| Most countries along "One Belt And One Road" are in a period of rapid economic development,with relatively backward infrastructure.The rapid industrialization process of these countries has put forward more and more urgent requirements for infrastructure,especially power supply,with strong demand for electricity and huge market potential for power infrastructure.Many Companies set a fixed benchmark require Equity IRR for overseas power investment projects no matter which country to be invest.This kind of method will limit international business expansion of Chinese enterprises.Therefore,in order to adapt to the complex environment of the international market,it is very important to give a reasonable benchmark required Equity IRR of power plant investment project.Enterprises can evaluate the capital cost and investment risk of the project comprehensively and use the required IRR as the measure of the risk.This paper will focus on international power market and analyze risk factors of international power plant with dozens of international energy listed enterprise data.Using Country Risk Premium to evaluate the risk of different countries a,calculating beta value of electric power industry by evaluating latest 5-year stock price of 42 listed energy/power utility companies.Propose a method to evaluate the equity capital cost by using an improved CAPM with country risk premium.Based on the usual financing conditions of overseas power investment by Chinese enterprises,the WACC model is used to calculate the reference method of project benchmark rate of return. |
