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Project finance risk evaluation of the Electric power industry of Serbia

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  • MakajiÄ NikoliÄ, Dragana
  • Jednak, Sandra
  • BenkoviÄ, SlaÄana
  • PoznaniÄ, Vladimir

Abstract

From the aspect of the development of a country, the energy sector represents a domain of strategic interest. Generation and use of energy resources most often belongs to the public sector, and are most often under the influence of the government in most countries. This paper analyzes the risks that are characteristic to the business of the public enterprise, Electric Power Industry of Serbia (EPS). EPS has started its restructuring and is adjusting to changes and challenges imposed by the launched reforms in the energy sector. However, due to certain limitations, it is still not possible to implement its complete restructuring and modernization. The paper aims to point at the risks a potential strategic partner faces. The risks have been identified as commercial, financial and political, classification immanent for project finance, and their evaluation was done using Failure Mode and Effects Analysis (FMEA). Risk analysis was performed based on current conditions for two potential scenarios that predict different types of changes in the analyzed period. The results of the analysis show that the potential strategic partner should pay special attention to price risks, estimation, investments, project activity neglect, quasi-risks and debt collection.

Suggested Citation

  • MakajiÄ NikoliÄ, Dragana & Jednak, Sandra & BenkoviÄ, SlaÄana & PoznaniÄ, Vladimir, 2011. "Project finance risk evaluation of the Electric power industry of Serbia," Energy Policy, Elsevier, vol. 39(10), pages 6168-6177, October.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:10:p:6168-6177
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    References listed on IDEAS

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    Cited by:

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    2. Xiaole Wan & Zhengwei Teng & Zhen Zhang & Xiangtong Liu & Zhuoqian Du, 2024. "Equity financing risk assessment based on PLTS-ER approach in marine ranching from the ecological and circular economy perspectives," Annals of Operations Research, Springer, vol. 342(1), pages 875-920, November.
    3. Stevović, Ivan & Mirjanić, Dragoljub & Stevović, Svetlana, 2019. "Possibilities for wider investment in solar energy implementation," Energy, Elsevier, vol. 180(C), pages 495-510.
    4. Marko M. Mihic & Dejan C. Petrovic & Vladimir Lj. Obradovic & Aleksandar M. Vuckovic, 2015. "Project Management Maturity Analysis in the Serbian Energy Sector," Energies, MDPI, vol. 8(5), pages 1-20, May.
    5. Berrada, Asmae & Loudiyi, Khalid & Zorkani, Izeddine, 2017. "Profitability, risk, and financial modeling of energy storage in residential and large scale applications," Energy, Elsevier, vol. 119(C), pages 94-109.

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