Friday, 28 June 2013

Hydroelectric Power Generation Investments

Hydroelectric Investments Marketed by Emerald Knight

The on-going search for more sources of renewable energy is no longer a task relegated to scientists and philanthropists. Hydroelectric power attracts many people simply because it is a very lucrative business that can compete with more conventional electric power generation operations. Investment marketers like Emerald Knight can identify hydroelectric investments.

It's a Growing Market

This industry seems to be thriving. China, Canada, and Brazil continue to gain a larger share in the global hydroelectric market each year. In 2008, China generated roughly 18 percent of the entire world's hydroelectric power. This was a considerable achievement, knowing that the largest segment of hydropower (about 31 percent) comes from local, small-scale power plants spread across the planet. Experts predict that hydropower’s market value will be maintained at around $2.2 billion per year, so long as its three- to eight- percent growth rate remains consistent until 2020. Investment opportunities, however, are a different story altogether, since many factors can determine the functionality and profitability of prospective sites of hydropower in different locations worldwide. Topography, water pressure, and even the presence of sediments can make or break the creation of a hydroelectric plant.

The Market Needs Help

Currently, machines and equipment for hydroelectric power can remain functional for 30 to 60 years. In practice, however, this is not the case—especially in developing countries that lack resources for maintenance of the equipment. It is expected that most hydroelectric power plants across the globe would need to be renovated and upgraded by 2030. However, the future looks promising now that organizations like the World Bank are spearheading development projects for this industry to refurbish existing HEP stations and develop new hydro-electric power stations. Private funding into these initiatives are good for the environment and can provide good returns for private investors.

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