Complex sentence: Private generating companies now have to accept shorter output contracts and the risks of future lower-cost competition, so they desire a shorter return on investment period--this favours generation plant types with lower capital costs even if associated fuel costs are higher.
Split into simpler sentences: Private generating companies now have to accept shorter output contracts and the risks of future lower-cost competition, so they desire a shorter return on investment period. This favours generation plant types with lower capital costs even if associated fuel costs are higher.