Funds and fundamentals: securing sound financing for new electric power projects

Many electric power generation projects fail to materialize because of the lack of available funding. The most common approaches to financing new projects include balance sheet or 100% equity financing and nonrecourse financing. However, both approaches leave developers and prospective energy buyers vulnerable to a wide range of financial factors. Consequently, energy developers and buyers still have to seek financing through private lending institutions, which are often wary about investing in new electric projects. Energy developers and buyers should ensure that their projects are financially sound to increase their chances of getting private loans.
At current levels of growth in the developing world, capital requirements for new electric power projects alone are on the order of US$75 billion to US$100 billion per year. Multilateral [...]