Asia's power utilities catch up to growing industry trends

摘要

Financing power plants in Asia can prove to be worth it due to rapid economic growth and high power demand brought about electrification rates that are still as low as 37%, but financiers could run into regulatory and logistical challenges as well as competition from banks and other entities. For instance, Asia's emerging markets are filled with blockages that prevent developers from accessing investments or loans themselves. According to Ted Low, director of origination & structuring at Clifford Capital, there are currently five risks for emerging markets, namely: offtake risk, currency risk, regulatory risk, jurisdictional risk, and political risk Addressing these risks in a market with unprecedented financing terror like Myanmar, a frontier project relied on key success factors such as an international standard tender, a bankable set of project documents (contractual framework was familiar to investors in the region), and a reputable sponsor.