A significant volume of the power sector is shaped through merely the decisions taken by executives during the establishment of a new power plant. The nature of the power plant and its proposed duration of operation have massive says in how the region is going to move ahead in terms of investments, taxations, and industrial functions.
Looking Beyond the Present
With typical conventional power plants running for at least 40 years, a lot can change over its timeline that needs to be accounted for. And this needs to go further than simply taking the current government policies into perspective. Trump, for example, is driving for the investments into conventional energy, spiking the progress this segment of the power sector is making. There is, however, much more that needs to be said for the power sector beyond the Trump government alone.
Investing to Avoid Running Losses
One of the greater issues power sector big wigs are trying to tackle is the volatility of the power sector right now, which is making it difficult to predict that it would be like a few decades down the line. Given the increasing average operative durations of both conventional and renewable energy power plants and sites, companies need to think at least twice before taking the leap into either. This is because the losses that they can incur by choosing the wrong field could be far more harmful now more than ever. For instance, the two nuclear power plants that were proposed in South Carolina pushed the government to levy more charges on their customers. Both plants were later abandoned which has resulted in wastage of resources, funds, and time for all those involved.
This scenario makes it a lot more logical for investors to actually look beyond current policies and head towards the renewable range. Solar, wind, and hydroelectric are all moving into increasingly competitive domains due to technological advancements and it is getting more and more plausible to imagine a future where renewable energies take up the bulk of the power generation volume in nearly all key regions.