Full Title: Risks Outweigh Rewards for Investors Considering PJM Natural Gas Projects
Author(s): Bryndis Woods, Elizabeth Stanton, Dennis Wamsted
Publisher(s): Applied Economics Clinic, Institute for Energy Economics and Financial Analysis (IEEFA)
Publication Date: October 5, 2020
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Description (excerpt):
Financial entities take heed: Investing in natural gas-fired power plant development in the Pennsylvania-New Jersey-Maryland (PJM) region—the largest independent power system operator (ISO) in the United States—entails substantial risk. Development has become increasingly perilous in the past several years, and there is rising uncertainty about the financial viability of new gas plant projects. In this report, Applied Economics Clinic and the Institute for Energy Economics and Financial Analysis (IEEFA) have identified six overarching threats that pose growing risks for investors in new PJM gas-fired power plants.