Risk Assessment And Avoidance Strategies On Investment In Coal And Electricity Integration Project By Power Enterprise

Recent years, with the rising of the coal prices, the contradiction between the coal and power enterprises continues to be highlighted, and the energy supply situation becomes increasingly grim. As the largest user of the coal industry, power industry faces great risks and threatens, and coal-electricity vertical integration strategy becomes one of their significant choices to bail out. This thesis uses the modern risk management theory to analyze and assess the risks of the investments to coal business by power enterprises, and puts forward strategies to control and avoid the risks. Taking Inner Mongolia Buliangou coal-electricity vertical integration project as example, this thesis identifies the risk factors of its three subprojects, which are Buliangou coal mine project, Buliangou Power plant project, and Dalu Logistics Park project, through the paths of business processes and value chain of the enterprises. Besides, this thesis also analyzes the whole project's risks. On the basis of the risk identification, the major risk factors of the three subprojects are analyzed and assessed by using the method and models of risk matrix, and the influence coefficients of the risk factors and composite risk levels of the three subprojects are determined. The results are that the composite risk levels of the three subprojects are all Intermediate risk, and the key risks of the coal mine, power plant and Logistics Park are market risk and security risk, market risk and transportation risk, and sales risk respectively. Finally, by using the risk control theory and practical experience, this paper puts forward strategies for the prevention, control and avoids of the three subprojects' risks, and gives some suggestions for the risk avoidance of whole project. The research of this paper is significant for power enterprises to improve the economic benefits and prevent the risks of the coal-electricity vertical integration projects and make some contributions to ensure the smooth implementation of the coal-electricity vertical integration and ease the contradiction between coal and power enterprises.