Utility Dive•3 days ago
What the last gas boom (and bust) says about today’s rush to build
Key Takeaway
Developers and IPPs face a paradoxical market where existing gas assets are highly valued, but new gas generation projects carry significant investment risk, echoing past boom-bust cycles.
AI Summary
- •M&A valuations for existing gas power assets have doubled since 2024, indicating strong market interest in current infrastructure.
- •Despite high M&A activity, analysts warn that new gas generation projects remain a risky investment.
- •The article's title suggests a historical parallel to previous gas boom-and-bust cycles, implying caution for current development trends among developers and IPPs.
Topics
ccgtsimple-cyclem&afinancing