Investment opportunities in power plants
The trend of investing in mega power plants has vanished. The main reason being uncertainties regarding costs, upcoming changes in legislation, long project times, ever increasing unpopularity, and last but not least, cheaper alternatives such as natural gas. While there is a certain interest in running power plants (reliability of supply and in some cases a lower carbon footprint [hydro]), the overall demand for new projects is muted. Furthermore, the few new plants presently being built in France and Finland are running behind schedule and have massive cost overruns.
Therefore, investors seeking opportunities in power plants should seek alternatives which offset the disadvantages mentioned above which are often associated with traditional power producers. As of today, valid opportunities could be considered in natural gas power plant operators because they combine advantages such as low carbon footprints, operational flexibility, relatively short project times, and an increasing popularity among the population. Yet, we have not yet identified any sizeable opportunities in this field at this time.