Steady Flow: Hydroelectric Power in the US Industry Market Research Report Now Available from IBISWorld

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Although hydroelectricity is a renewable energy source and perceived as environmentally friendly, establishing a new hydroelectric facility has been difficult for companies in the Hydroelectric Power industry because of stringent state and federal regulations and a lack of suitable locations. Furthermore, the recession caused financing for large projects to dry up and, in turn, made it hard for industry firms to break ground. Industry players have remained busy, though. Plans for upgrades are already in the works, and industry players are seeking to upgrade facilities as electricity demand climbs and the water keeps flowing. For these reasons, industry research firm IBISWorld has added a report on the Hydroelectric Power industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Stringent government regulations and a lack of suitable locations have hindered growth

Severe droughts that took place between 2007 and 2009 led to less water flowing into the Hydroelectric Power industry, limiting its ability to create electricity. Many firms in the industry are government agencies that also oversee water-management operations. According to IBISWorld industry analyst Deonta Smith, “These firms focused their attention on mitigating the effects of the droughts and scaled back hydroelectricity operations.” In turn, investment in hydroelectric infrastructure slowed and plans for upgrades that would have increased efficiency and output were delayed as other pressing issues took center stage. As a result, industry revenue is expected to fall 1.7% annually to $6.1 billion in the five years to 2012.

Although hydroelectricity is a renewable energy source perceived as environmentally friendly, federal and state governments have scrutinized it considerably. Establishing new hydroelectric facilities has been difficult for companies in the Hydroelectric Power industry because of stringent state and federal regulations and a lack of suitable locations where there is enough water and a steep-enough incline to produce electricity. Furthermore, the recession caused financing for large capital-intensive projects to dry up and, in turn, made it hard for industry firms to find money to break ground, says Smith. Industry players have remained busy, though: Plans for upgrades are already in the works, with industry players upgrading facilities during 2012 as electricity demand climbs and the water continues flowing. Upgrades to existing facilities helped boost industry revenue 0.9% from 2011 to 2012.

Sustained growth during the next five years will contribute to more robust demand conditions for electricity generation and transmission. Investment will be spent on increasing the efficiency of existing facilities. Additionally, in response to increased government environmental regulation and a lack of suitable locations for large projects, industry players will look to establish small hydroelectric facilities to expand their presence in the hydroelectric space. Other types of renewable energy generators that operate in this industry will benefit as well due to favorable government regulations promoting cleaner energy. Moderate industry concentration reflects the historical development of the industry in which the federal government, and to a lesser extent state governments, built and operated major hydroelectric facilities. Although concentration has edged down over the past few years as new small companies enter the industry, these firms' activities will continue to be dwarfed by government-owned hydroelectricity generators. Entities including the US Army Corps of Engineers, US Bureau of Reclamation and New York Power Authority continue to lead the industry. For more information, visit IBISWorld’s Hydroelectric Power in the US industry report page.

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IBISWorld industry Report Key Topics

Firms in this industry operate facilities that use water to generate hydroelectric and renewable electricity (other than wind power and solar power). Industry players also use renewable energy sources including wood, municipal waste, landfill gas, biomass and geothermal energy to generate electricity.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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