144. The Hydro Industry: Need to Return to Long-term Philosophy

There is wide consensus that today's short termism is potentially damaging to proper capital investment processes on a wide front, not only in the power industry. Hydropower with its high capital cost suffers particularly from current dislocations in the capital markets of the world. Many aspects of hydropower development involve much longer schedules and time base than other forms of power generation. The long term value of firmness of hydropower energy cost and pricing can be expected to refocus investor interest when shortcomings of today's price volatility become abundantly clear. Return to long term philosophies in the financing of global hydropower potential is not illusionary: it requires a determined and consistent lead from International Lending Agencies and forward looking Banks.