To read the full article in Power Finance & Risk click here.
PA's Ron Norman, an energy markets expert, is quoted in an article in Power, Finance & Risk. The article offers insight on the impact of Brexit on the U.S. power markets.
Commenting on this topic, Ron states: “We've already seen huge interest in U.S. infrastructure. Return expectations have been driven to low levels. Suddenly the U.K. and Europe look a lot less attractive, which will further expand interest in U.S. infrastructure and drive yields down and asset values up in the U.S.”
Ron concludes: “If return requirements are lower for contracted renewable generation or new contracted combined-cycle gas-fired turbines, some of that investment in energy infrastructure will increase capacity, whether generation or oil and gas. And three, four years down the line, you'd see it have the effect of reducing commodity prices and asset values.”