In many respects, hydropower tends to live the shadow of its green-energy counterparts, solar and wind. If the headlines are to be believed, investors are snapping up the latter energy producers left and right, as ESG becomes a portfolio must-have. But why is hydropower getting left behind?
Experts like Tor Syverud, head of investment management hydropower at Aquila Capital, say hydropower is an untapped class — possibly even with the potential to outshine its renewable brethren. According to Syverud, who spoke with IREI in a video interview, hydropower is a proven technology that has been around more than 150 years. Because of its durability, hydropower can provide stable and predictable returns with no technological risk. But that is only part of what makes it appealing. Hydropower can act like the backbone in an energy mix, producing energy when wind and solar cannot, offering a more balanced dispatch of power into the market.
“Hydro often has some storage capac