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Risks
1. Construction and development delays: Capital Power Corporation’s projects often involve extensive construction and development activities, which can be subject to delays that could potentially have a negative financial effect.
2. Asset obsolescence: Capital Power Corporation invests in energy facilities, so there is a risk that their assets may become obsolete because of new, more advanced technologies that come onto the market.
3. Market demand and pricing volatility: Capital Power Corporation’s products are subject to market demand and pricing volatility and are sensitive to changes in commodity prices, interest rates, exchange rates, and overall economic conditions.
4. Regulatory environment: They operate in highly regulated industries and their investments could be adversely affected by regulatory or governmental actions.
5. Financing and liquidity risk: Capital Power Corporation must secure financing to meet their operational and capital requirements and any difficulty in carrying out this could reduce their profitability or even force them to sell off assets.