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Benchmarking The Cost Performance of The Hydropower Industry

Benchmarking The Cost Performance of The Hydropower Industry

Full Title: Benchmarking The Cost Performance of The Hydropower Industry
Author(s):
Publisher(s): PA Consulting
Publication Date: February 1, 2017
Full Text: Download Resource
Description (excerpt):

Hydro generation – it’s a very mature business and cost efficiency is moving up on directors’ agenda. Previously, costs were under-prioritised as income dwarfed operating costs and availability significantly impacted revenues.

Costs are currently a major focus area due to their impact on safeguarding values and optimizing commercial potential. Paradigm changes have changed mindsets in hydro generation – reinforced by low electricity prices in Europe.

Despite the focus on cost efficiency increasing, hydro operators find it challenging to understand their own performance compared to their peers. Best practice performance is obscured due to the unique nature of each hydro operation, which is affected by, among others, various asset types and configurations, income profile and risk, regulation, hydrological factors, climate and more.

 

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