TY - JOUR T1 - Equity Investment in the U.S. Power Market JF - The Journal of Structured Finance SP - 5 LP - 8 DO - 10.3905/jsf.2000.320230 VL - 6 IS - 3 AU - Roger D. Feldman Y1 - 2000/10/31 UR - https://pm-research.com/content/6/3/5.abstract N2 - The coming decades will see a growing emphasis on the financing of portfolios of independent power facilities, comprised of both newly constructed merchant or partially merchant facilities and existing generation units with established operating capacity. Analysis shows that equal or better returns, on a risk-adjusted basis, can be derived from portfolios than from single-plant projects because portfolios help diversify risk, permit the implementation of trading strategies, make possible additional revenue streams through related activities such as fuel trading, and enhance the optionality value of individual projects. Power project portfolios will be evaluated like companies following corporate finance strategies—and equity investments in them—like classic securities investments. Successful players in this market must be masters of new types of portfolio analysis and asset acquisition. ER -