When making an investment, the assets to choose are associated with various factors. One of the main factors would be to get an opinion on the kind of pros and cons associated with the asset. A good example of a suitable asset is energy companies that deal in the production of hydroelectricity. When dealing with this particular field , you should know the following advantages and disadvantages that are associated with the production of hydroelectric energy.
Amongst the advantages of the use of hydroelectric energy is the fact that this energy is renewable and reliable. Being renewable means that the energy cannot be used up. Energy production in these plants can only be interfered with if the climate or weather is unfavorable for so long enough to make up a famine or drought. Since it is unlikely for the energy to be cut off, the use of hydroelectric power plants for the production of this form of power has become the better choice for a huge number of people.
The process of producing hydroelectric energy does not have adverse effects on the environment and isn’t dangerous. There are no contaminants released into the environment when the energy is being produced; the only pollution is possible only during the construction of the power plant. In addition to this, there are no fuels or dangerous process implemented during the production of hydroelectric energy. If you compare and contrast this method of energy production to other forms such as the use of fossil fuels, it is significantly safer.
The amount of energy produced in hydroelectric power plants depends on the amount of water in the magazines. The amount of water that is in the magazines can be changed according to preference and hence the rate of energy production. With reference to demand, the energy production can be manipulated.
However, this form of production of energy also comes with a few of its setbacks. When the power plant is being established, there will be a lot of negative changes that have to be implemented. The water bodies have to be dammed and this will cause the death of fish in them. Other effects will be due to the construction of roads and power lines.
There is a lot of expenditure that is associated with the establishment of a power plant. Despite this, the cost of maintaining the plant are small along with the fact that only a few workers are needed.
It is true that the cost of energy and its production is determined by the current level of water that is available. This means that droughts can have very negative effects to this form of energy production.