ASIA LOOKS FOR POWER INDUSTRY REVIVAL

摘要

Through the early 1990s, power purchase agreements were being written across Asia, in places as high as 8-9 cents/kWh. All well and good, particularly for the IPPs that flocked to the region to capitalize on the liberalization of the power sectors in various countries. Problem was, the situation was inherently unsustainable, as end-user prices averaged only 4-5 cents/kWh in a number of these countries. The 'boundless optimism' that characterized much of Asia - spearheaded by strong economic growth - came crashing back to Earth when the Asian economic crisis hit in 1997. As recession took hold, power demand fell sharply, power projects were cancelled, and state utilities struggled to cope with changing realities.