Hydroelectric Power in the US Industry Market Research Report from IBISWorld Has Been Updated

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Efficiency upgrades and smaller plants will boost performance. For this reason, industry research firm IBISWorld has updated a report on the Hydroelectric Power industry in its growing industry report collection.

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

Severe droughts led to a decrease of water inflow to the Hydroelectric Power industry over the past five years, limiting its ability to generate electricity. Industry operators focused their attention on mitigating the effects of droughts by scaling back hydroelectricity operations. In turn, investment in hydroelectric infrastructure slowed and plans for upgrades to increase efficiency and output were delayed, as combating the droughts took center stage. According to IBISWorld Industry Analyst David Yang, “Although other renewable power sources, such as biomass generation, experienced steady expansion, it was insufficient for sustaining industry growth.” As a result, IBISWorld expects industry revenue to fall at an annualized rate of 1.7% to $3.6 billion in the five years to 2014.

Although hydroelectricity is a renewable energy source and is perceived as environmentally friendly, state governments have scrutinized it considerably due to the potential damages hydroelectric dams can cause to river resources. Establishing new hydroelectric facilities has been difficult for industry players, due to stringent state and federal regulations and a lack of suitable locations where there is ample water near 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 difficult for industry firms to find money to break ground. As a result, industry revenue is expected to fall another 1.7% in 2014. Profit margins have similarly declined over the past five years.

Sustained economic growth in the next five years will contribute to more robust demand for electricity generation and transmission, while investments will be used to increase 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 smaller hydroelectric facilities to expand their presence in the hydroelectric space. “Geothermal and biomass generators that operate in this industry will benefit as well, due to favorable government regulations promoting clean energy,” says Yang. As a result of these positive trends, industry revenue is forecast to increase in the five years to 2019.

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 the Hydroelectric Power 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. Data is sourced from the Energy Information Administration and the US Census Bureau and does not include government-owned facilities.

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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