Plans for another FRSU with 17 mtpa regas capacity and an onshore LNG terminal show the government of Bangladesh “is clearly in support to boost its LNG supply,” Wood Mackenzie comments. Already, private capital is being attracted to this sector with Summit Power, Reliance Power and Petronet looking to invest in these terminals.
Uncertainty over the future operation of Britain’s energy market, rising financing costs and post-Brexit challenges to include interconnectors in the UK’s capacity market are expected to “add a risk premium into all forward capacity auctions,” Cornwall Energy says. Higher clearing prices at auction could add over £360 million to consumers’ energy bills.
South Africa’s gas-to-power IPP projects are “on track” – qualifications will be handled from September as the energy ministry seeks sending out Request for Proposals (RFP) in early March next year. Standard Bank and other financial institutions have signed interest in funding gas power projects.
Banks are reassessing collateral required from power project developers as they seek higher potential returns, according to Gints Sorokins, board member at OS Energy. This tends to delay new-builds and risks to derails a number of projects.
Debt capital of €3.5 billion for realising Egypt’s Beni Suef, Burullus and New Capital power plant projects has been structured and arranged by Deutsche Bank, HSBC and KfW IPEX-Bank together with a consortium of 17 international banks.
Investment in global energy infrastructure in Asia-Pacific is forecast to grow to $11.7 trillion by 2035, with the bulk spent on power and heat generation in China and India. Though there is no lack of local financing, but investors shy away from regulatory risk as power and gas prices are still regulated in many Asian markets, warns Seethapathy Chander, deputy director general of ADB
Dorothy Thompson, the head of the UK's largest coal fired power plant Drax, says her company is keen to diversify and considers investment in gas-fired power generation.
E.on, Europe's second largest power producer, has set up new venture-capital activities through co-investments in start-up companies like Munich-based Orcan Energy and California-based Bloom Energy with a view to exploring distributed and smart energy solutions.