Operators of Federal Energy Regulatory Commission (Ferc) licensed hydro schemes in the US could face competition from other market participants when relicensing comes around, according to law firm Baker Botts.
The law firm said 50% of Ferc licensed projects will need to be relicensed over the next 15 years.
“This concentrated period of relicensing activity could present substantial challenges to existing licensees who currently own and operate hydroelectric projects, as well as significant opportunities for competitors,” said Jay Ryan, a partner in Baker Botts’ Washington DC office.
“It is not well-known that marketplace participants can compete for hydroelectric assets as part of the relicensing process; there is no guarantee that the current licensee will maintain the Ferc license necessary to operate the project.
“Moreover, applicable law enables competitors who wrest a license from an existing owner to potentially pay something less than fair market value for the hydroelectric asset.”
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US hydro faces relicensing battle
Operators may have competition to renew Ferc licenses warns law firm
By EBS