Market Projections for the Hydroelectric Industry

by Donald Marier, Alternative Sources of Energy Inc, Milaca, MN, USA,

Document Type: Proceeding Paper

Part of: Water Power '87


The hydroelectric industry enjoyed a rapid rate of development from 1980 through 1986. This expansion was fed in part by a combination of tax incentives, the PURPA legislation, and high energy prices. With the phaseout of tax incentives, the imposition of increasingly restrictive environmental regulations, and the decline in buy-back rates, the industry faces new challenges. A survey of the industry conducted by Alternative Sources of Energy (ASE) indicates that most expect orders for new hydroelectric capacity to stagnate or decline over the next five years. This reduced market is causing consolidation among both manufacturers and developers. On the other hand, the industry is gearing up for an increased level of activity in repair, uprating, and environmental study work as existing facilities age or are subject to re-licensing by the Federal Energy Regulatory Commission (FERC).

Subject Headings: Hydro power | Power plants | Industries | Electric power | Business management | Taxation | Project management

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