Table 5 Risk shift from resource users to resource owners
From: The future of Swiss hydropower: how to distribute the risk and the profits?
Regime | Market risk | RMP | Technology differences |
|---|---|---|---|
Fixed | - Resource owners receive constant water fee payments | ||
- Entire market risk lies with the resource users | |||
Flexible | - Water fee payments depend on market prices | Differentiated | In low-price years: |
- (Pumped) storage plants have a relative advantage | |||
- Run-of-river plants pay relatively more | |||
- Relatively higher revenues for low-land cantons | |||
Uniform | In low price years: | ||
- Run-of-river plants have a relative advantage | |||
- Market risk is partly shifted from resource user to resource owner | - (Pumped) storage plants pay relatively more | ||
- In low-price years: lower revenues, especially for mountain cantons | - Relatively higher revenues for mountain cantons | ||
Resource Rent Tax | - Water fee payments depend on market prices and production costs | ||
- Market risk is partly shifted from resource user to resource owner |