- Email: [email protected]
Assessing Potential of Power Generation Investment in ASEAN Countries
Available online at www.sciencedirect.com
ScienceDirect Energy Procedia 100 (2016) 475 – 479
3rd International Conference on Power and Energy Systems Engineering, CPESE 2016, 8-12 September 2016, Kitakyushu, Japan
Assessing potential of power generation investment in ASEAN countries Siripha Junlakarn*, Weerin Wangjiraniran Energy Research Institute, Chulalongkorn University, Thailand
Abstract The Association of Southeast Asian Nations (ASEAN) has been considered as one of the attracting regions for foreign direct investment. As developing nations are growing, they tend to consume more electricity and need more power generation, which becomes one of attractive businesses in this region. However, not many studies focus on an assessment of business environment of power generation and might deter unfamiliar investors from venture. Therefore, we assessed the relative attractiveness of power generation investment in this region in five aspects: economy, business, risk, infrastructure, and finance, which were taken up from the framework of the Global Infrastructure Investment Index. The assessment can provide an overview of strengths and weaknesses of power generation investment and serve as guidelines for investment decisions and policy making to investors and government in each ASEAN country. © 2016 2016The TheAuthors. Authors.Published Published Elsevier by by Elsevier Ltd.Ltd. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of the organizing committee of CPESE 2016. Peer-review under responsibility of the organizing committee of CPESE 2016 Keywords: ASEAN; Business environment; Power generation investment
1. Introduction The ASEAN, which comprises of Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, has been identified as one of the fastest developing regions in the world, and by an establishment of the ASEAN Economic Community (AEC), a regional economic integration has been strengthen and brought interests from foreign investors [1]. To support the region’s economy growth, the needs for sustainable energy security have become significant and shall be considered when government makes policy [2][4]. One of the important contributors that enhance the region’s energy security is a private investment, from both domestic and abroad investors. To attract these investors, the region should develop solid guidelines that promote its energy business. Therefore, this study deploys available data to assess attractiveness for power generation investment in ASEAN countries through a quantitative method. The purpose of this work is to preliminarily screen for attractive markets abroad of power generation. Country screening is commonly accepted as the first step in analyzing foreign market entry [5].
* Corresponding author: Tel.: +66-2-218-8091 E-mail address: [email protected]
1876-6102 © 2016 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of the organizing committee of CPESE 2016 doi:10.1016/j.egypro.2016.10.205
476
Siripha Junlakarn and Weerin Wangjiraniran / Energy Procedia 100 (2016) 475 – 479
Market attractiveness, as a term found in portfolio analysis and market strategy planning, describes market growth and profit possibilities of an available market or industry; market attractiveness is affected by various factors. According to a number of studies that have investigated the various factors of international expansion [5]-[10], market potential, which depends on the market size, the market growth and the consumer purchasing power, is identified as one powerful factor affecting the market attractiveness. In addition, McKinsey & Company suggests that the most common factors affecting the market attractiveness are growth rate, market size, market profitability, market structure, product life cycle changes, changes in demand, trend of prices, macro environment factors, seasonality, availability of labor, market segmentation [11]. The attractiveness of foreign markets is also involved with economic, political, legal, regulatory, cultural and geographic of that country [5], [9]-[10], [12]. However, key factors that should be included to evaluate market attractiveness depend on company’s objectives of such evaluation [11]. To preliminarily assess attractiveness of international market, there are two main complementary approaches: country clustering and country ranking [5]. The former classifies countries in groups according to their similarity of commercial, economic, political, and cultural dimensions, while the later ranks countries from their overall market attractiveness, which is evaluated from different dimensions in respect to the considered market. The details of these two methods have been discussed in [5], [13]. For this study, the method of country ranking is selected because we aim to assess the relative attraction of ASEAN countries to power generation investors. 2. Methods 2.1. Framework Since power generation business is relevant to infrastructure investment, this study assesses the attractiveness of power generation market under the framework modified from that of the Global Infrastructure Investment Index [14]. This framework focuses on the relative attraction in five aspects: economy, business, risk, infrastructure, and finance. By considering this framework, we chose indicators related to power generation investment under each aspect, and all indicators have the same weight in the assessment. However, due to limited data availability, we selected only twenty indicators which are available for all ASEAN countries from different years (2010-2015), as shown in Table 1. These indicators were used to assess an overall situation of power generation investment in the ASEAN region. 2.2. Data transformation The assessment was done by using secondary data from national statistics and open source data. We collected the data set of each indicator, and then the data set was normalized on a linear scale of 1-5 as shown in (1). ݔ ᇱ ൌ ͳ ሺͷ െ ͳሻ ൬
ݔ െ ݊݅ܯ ൰ ݔܽܯ െ ݊݅ܯ
(1)
where, ݔ ᇱ is normalized value based on 1-5 scale. ݔ is value of the original data set ܺ ൌ ሾݔଵ ǥ ݔ ሿ. ݊݅ܯ and ݔܽܯ are minimum and maximum value/scale of that original data set ܺ, respectively. On the other hand, if indicators, such as variation of inflation, difficulty to get electricity, or tax rate, are inversely related with the scale, the reverse normalization can be calculated as shown in (2). ݔ ᇱ ൌ ͳ ሺͷ െ ͳሻ ൬
ݔ െ ݔܽܯ ൰ ݊݅ܯ െ ݔܽܯ
(2)
Table 1. Indicators related to power generation investment for each aspect Aspect
Code
Indicator
Economic environment
E-1 E-2 E-3 E-4 B-1 B-2 B-3 B-4 R-1
Average GDP growtha Gross fixed capital formation Renewable market sizeb Electricity market size growthc Ease of doing business Government transparency Legal framework in settling disputes Electricity market structured Political stability
Business environment
Risk
Year
Data source
2010-2014 2014 2012 2010-2012 2015 2012-2013 2012-2013 2013 2014
[15] [15] [16] [16] [15] [17] [17] [18] [15]
Siripha Junlakarn and Weerin Wangjiraniran / Energy Procedia 100 (2016) 475 – 479 R-2 2012 [17] Variation off inflatione R-3 2012 [17] Strength of investor i protectionn Public trust in i politicians R-4 2012-20133 [17] Infrrastructure Quality of ellectricity supply 2012-20133 I-1 [17] I-2 Population accessing a to electrricity 2012 [15] f I-3 2013 [19] ASEAN netw work connectedneess Difficulty to get electricityg I-4 2015 [15] Fin nancial Availability of financial serviices F-1 2012-20133 [17] env vironment F-2 Local equity y market 2012-20133 [17] F-3 [17] Incentives to o investors 2013 Tax rate F-4 [15] 2015 a Averrage GDP growthh calculated from arithmetic averag ge of five years off GDP, except tha at of Myanmar whhich was calculatted from two yearrs of GDP (2013-2014). b Reneewable market siize was estimated d from the proportion of renewabble electricity net consumption to the total electriciity net consumption. Renew wable energy resoources are defined d according to thee data source. c Electtricity market sizee growth is calcullated from Compo ound Average Raate Growth (CARG G) of three year oof total electricity net consumption. d Elecctricity market strructure ranks from m 1 to 5 (verticaally integrated reggulated utilities, single s buyer moddel with IPPs, whholesale spot marrket, retail competition, and electricity futures market). e Variation of inflation was estimated fro om variation of an nnual % change oof inflation for fou ur years. f ASE EAN network connnectedness was estimated e from th he capacity of traansmission lines connecting c to othher countries accoording to the plan n of ASEA AN power grid byy 2030. g Diffiiculty of access too electricity was assessed a from tim me for customer to be connected to electricity supplyy.
3. Results and disscussion When W considerring all five aspects, Singapo ore, Malaysia and Thailand are the top thhree countries whose market is attractive for pow wer generation investment am mong other A ASEAN countrries as shown in Fig. 1. Sinngapore’s market oped as it has the open business env vironment, reelatively low risks, available envirronments are fully develo infraastructure andd strong finan ncial sector. The strengthss of Malaysia are the maature infrastruucture, low risk r envirronment and ease of doing g business. Th he strong poinnts of Thailan nd in attractinng investors arre the electriccity infraastructure, andd financial env vironment. The bottom threee countries whose w market is i in the initiall states are My yanmar, Cambbodia and Viettnam. The stro ong point of these threee country is their econom my. However, since Myanm mar has just reecently openedd its businesss to privaate sectors annd foreign inv vestors, it stilll lacks fundam mental environments to nuurture businesss growth. Quick goveernment reform ms and policcymaking thatt create frienndly business environment should stimuulate its coun ntry deveelopment. Cam mbodia has weeakness in its infrastructure i ffrom low goveernment invesstment in the ssubject. Howev ver, the inland i countryy is likely to develop its in nfrastructure rrelatively conv venient than i sland counterrpart. Vietnam m is relatively risky onn variation of inflation, i whicch results from m the rapid gro owth of countrry economy. H Heighten contrrols c witth diversificatiion of other in ndustries and llarger econom my should contain on fiiscal and moneetary policy, combining the effect e of unstabble inflation.
BRN: B Brunei Darussalam KHM: Cambodia IDN: Inndonesia LAO: L Lao PDR MYS: Malaysia MMS: Myanmar PHL: P Philippines SGP: S Singapore THA: T Thailand VNM: Vietnam
477
478
Siripha Junlakarn and Weerin Wangjiraniran / Energy Procedia 100 (2016) 475 – 479
Economy
Business
Low w risk
Infrastructure
Finance
Fig. 11. Ranking of ASE EAN countries baased on the score of the relative atttraction in power generation investtment
All A these threee countries have h potentiall to grow in generation bu usiness; howeever, key chaallenges for th hese relatively weak coountries shoulld be addressed. Investors m may focus on the strengths aand be aware oof the weaknessses wheen making investment decisiion. 4. Conclusions C Due D to the avaailability of data d on ASEA AN countries, w we selected tw wenty indicatoors to assess attractiveness for pow wer generationn investment. With W the limittation of data aaccess, the tw wenty indicatorrs, which can be acquired frrom the reliable and reegularly updatted data sources, are sufficieent to provide an overview of strengths annd weaknesses of pow wer generationn investment to o investors and d government.. The results of o the assessm ment can be serrved as guideliines for investment ddecisions and policy makin ng. Notably, tthe assessmen nt can be impproved to be sophisticated d by mpact of indicaators on investtment decisionn. For instancee, if levelized ccost of electriccity, which is one considering an im of significant facttors, is includeed in the assessment with a hhigh weight, the results of aassessment willl change. Each E country in the region n faces some challenges off its own. Thee common chhallenges are in the aspectss of busiiness, econom my and financee. To foster thee attractivenesss for power generation g invvestment in thee region, ASE EAN coop peration may come useful in i addressing key concernss such as ease of doing busiiness and legaal framework and deveeloping comm mon guidelinees for govern nments. In adddition, economic environnment could be improved by integrating more m mature and less mature marrket together tthrough transm mission system ms such as ASEAN Power Grid G projjects [1]. The iintegrated marrket with less restricted movvement of money in the reggion can also ffacilitate variattion of financial fi servicces. Ack knowledgemeents This T research was funded by b the Ratchad dapisek Somppoch Endowm ment Fund (20 16), Chulalonngkorn Univerrsity (CU U-59-080-AD)). Refferences [1] International Ennergy Agency. So outheast Energy Asia Outlook; 22015. Available from: f https://www w.iea.org/publicaations/freepublicattions /publication/weoo2015_southeastassia.pdf [accessed 06.03. 16] [2] Tongsopit S, et aal. Energy Securitty in ASEAN: A Quantitative Q Apprroach for Sustaina able Energy Policcy. Energy Policyy 2016; 90: 60-72. [3] Vithayasrichareoon P, et al. Assesssing the Sustainaability Challenges for Electricity Industries I in ASE EAN Newly Induustrializing Counttries. Renewable and S Sustainable Energ gy Reviews 2012; 16: 2217-2233. [4] Thamsereekul M M, Wangiraniran W. W A Study on Energy E Security IIndicators for Tha ailand Power Secctor: Utility Aspeect. Journal of En nergy Research 2014; 112: 2-19. (in Thai) [5] Cavusgil ST, et al. Complementaary Approaches to o Preliminary Forreign Market Opp portunity Assessm ment: Country Cllustering and Cou untry Ranking. Industrrial Marketing Maanagement 2004; 33: 607–617. [6] Tyebjee TT, Bruuno AV. A Model of Venture Capittalist Investment A Activity. Management Science 19884; 30: 1051-10666. maswami S. Choicee of Foreign Mark ket Entry Mode: IImpact of Ownership, Location, annd Internationalizzation Factors. Jou urnal [7] Agarwal S, Ram of International B Business Studies 1992; 23: 1–27. nal Market Entry by U.S. Internett Firms: An Empirical Analysis off Country Risk, N National Culture,, and [8] Rothaermel FT, et al. Internation ment 2006; 32: 56– –82. Market Size. Jouurnal of Managem owards a Strategicc Model of Globall Franchise Expan nsion. Journal of R Retailing 2011; 887: 345–365. [9] Aliouche EH, Scchlentrich UA. To [10] Tripodo G, Dazzzi N. Market Attraactiveness of Dev veloping Countries. Socio-Economiic Planning Sciennces 1995; 29: 2877-303. g Ideas: The GE– –McKinsey Nine--Box Matrix; 200 08. Available from m: http://www.m mckinsey.com/insig ghts/ [11] McKinsey & Coompany. Enduring [accessed 13.07.16] Zelner BA. Political Capabilities, Policy Risk, andd International In nvestment Strateggy: Evidence from m the Global Eleectric [12] Holburn GLF, Z Power Generatioon Industry. Strateegic Managementt Journal 2010; 311: 1290–1315.
Siripha Junlakarn and Weerin Wangjiraniran / Energy Procedia 100 (2016) 475 – 479
[13] Papadopoulos N, Denis JE. Inventory, Taxonomy and Assessment of Methods for International Market Selection. International Marketing Review 1988; 5: 38 – 51. [14] Arcadis. Second Global Infrastructure Investment Index; 2014. Available from:https://www.arcadis.com/en/global/our-perspectives/ emerging-markets-attracting-more-infrastructure-investment/ [accessed 06.03.16] [15] World Bank, 2015. Indicators. < http://data.worldbank.org/indicator [accessed 06.03.16] [16] Energy Information Administration. International Statistics (Electricity); 2012. Available from: http://www.eia.gov/beta/international/ [accessed 18.03.16] [17] World Economic Forum. The Global Competitiveness Report 2014–2015; 2014. Available from: http://reports.weforum.org/ [accessed 06.03.16] [18] Somani S. Overview of the Power Sector in the SEA Region; 2015. Available from: http://www.iesingapore.gov.sg/~/media/IE%20 Singapore/Files/ASIR/PreConference_workshop_Sharad_Somani.pdf [accessed 18.03.16] [19] Hermawanto B. ASEAN Power Grid: Road to Multilateral Power Trading; 2015. Available from: http://www.energyforum2015.com/ download/Session1-1present.pdf [accessed 18.03.16]
479
ScienceDirect Energy Procedia 100 (2016) 475 – 479
3rd International Conference on Power and Energy Systems Engineering, CPESE 2016, 8-12 September 2016, Kitakyushu, Japan
Assessing potential of power generation investment in ASEAN countries Siripha Junlakarn*, Weerin Wangjiraniran Energy Research Institute, Chulalongkorn University, Thailand
Abstract The Association of Southeast Asian Nations (ASEAN) has been considered as one of the attracting regions for foreign direct investment. As developing nations are growing, they tend to consume more electricity and need more power generation, which becomes one of attractive businesses in this region. However, not many studies focus on an assessment of business environment of power generation and might deter unfamiliar investors from venture. Therefore, we assessed the relative attractiveness of power generation investment in this region in five aspects: economy, business, risk, infrastructure, and finance, which were taken up from the framework of the Global Infrastructure Investment Index. The assessment can provide an overview of strengths and weaknesses of power generation investment and serve as guidelines for investment decisions and policy making to investors and government in each ASEAN country. © 2016 2016The TheAuthors. Authors.Published Published Elsevier by by Elsevier Ltd.Ltd. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of the organizing committee of CPESE 2016. Peer-review under responsibility of the organizing committee of CPESE 2016 Keywords: ASEAN; Business environment; Power generation investment
1. Introduction The ASEAN, which comprises of Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, has been identified as one of the fastest developing regions in the world, and by an establishment of the ASEAN Economic Community (AEC), a regional economic integration has been strengthen and brought interests from foreign investors [1]. To support the region’s economy growth, the needs for sustainable energy security have become significant and shall be considered when government makes policy [2][4]. One of the important contributors that enhance the region’s energy security is a private investment, from both domestic and abroad investors. To attract these investors, the region should develop solid guidelines that promote its energy business. Therefore, this study deploys available data to assess attractiveness for power generation investment in ASEAN countries through a quantitative method. The purpose of this work is to preliminarily screen for attractive markets abroad of power generation. Country screening is commonly accepted as the first step in analyzing foreign market entry [5].
* Corresponding author: Tel.: +66-2-218-8091 E-mail address: [email protected]
1876-6102 © 2016 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of the organizing committee of CPESE 2016 doi:10.1016/j.egypro.2016.10.205
476
Siripha Junlakarn and Weerin Wangjiraniran / Energy Procedia 100 (2016) 475 – 479
Market attractiveness, as a term found in portfolio analysis and market strategy planning, describes market growth and profit possibilities of an available market or industry; market attractiveness is affected by various factors. According to a number of studies that have investigated the various factors of international expansion [5]-[10], market potential, which depends on the market size, the market growth and the consumer purchasing power, is identified as one powerful factor affecting the market attractiveness. In addition, McKinsey & Company suggests that the most common factors affecting the market attractiveness are growth rate, market size, market profitability, market structure, product life cycle changes, changes in demand, trend of prices, macro environment factors, seasonality, availability of labor, market segmentation [11]. The attractiveness of foreign markets is also involved with economic, political, legal, regulatory, cultural and geographic of that country [5], [9]-[10], [12]. However, key factors that should be included to evaluate market attractiveness depend on company’s objectives of such evaluation [11]. To preliminarily assess attractiveness of international market, there are two main complementary approaches: country clustering and country ranking [5]. The former classifies countries in groups according to their similarity of commercial, economic, political, and cultural dimensions, while the later ranks countries from their overall market attractiveness, which is evaluated from different dimensions in respect to the considered market. The details of these two methods have been discussed in [5], [13]. For this study, the method of country ranking is selected because we aim to assess the relative attraction of ASEAN countries to power generation investors. 2. Methods 2.1. Framework Since power generation business is relevant to infrastructure investment, this study assesses the attractiveness of power generation market under the framework modified from that of the Global Infrastructure Investment Index [14]. This framework focuses on the relative attraction in five aspects: economy, business, risk, infrastructure, and finance. By considering this framework, we chose indicators related to power generation investment under each aspect, and all indicators have the same weight in the assessment. However, due to limited data availability, we selected only twenty indicators which are available for all ASEAN countries from different years (2010-2015), as shown in Table 1. These indicators were used to assess an overall situation of power generation investment in the ASEAN region. 2.2. Data transformation The assessment was done by using secondary data from national statistics and open source data. We collected the data set of each indicator, and then the data set was normalized on a linear scale of 1-5 as shown in (1). ݔ ᇱ ൌ ͳ ሺͷ െ ͳሻ ൬
ݔ െ ݊݅ܯ ൰ ݔܽܯ െ ݊݅ܯ
(1)
where, ݔ ᇱ is normalized value based on 1-5 scale. ݔ is value of the original data set ܺ ൌ ሾݔଵ ǥ ݔ ሿ. ݊݅ܯ and ݔܽܯ are minimum and maximum value/scale of that original data set ܺ, respectively. On the other hand, if indicators, such as variation of inflation, difficulty to get electricity, or tax rate, are inversely related with the scale, the reverse normalization can be calculated as shown in (2). ݔ ᇱ ൌ ͳ ሺͷ െ ͳሻ ൬
ݔ െ ݔܽܯ ൰ ݊݅ܯ െ ݔܽܯ
(2)
Table 1. Indicators related to power generation investment for each aspect Aspect
Code
Indicator
Economic environment
E-1 E-2 E-3 E-4 B-1 B-2 B-3 B-4 R-1
Average GDP growtha Gross fixed capital formation Renewable market sizeb Electricity market size growthc Ease of doing business Government transparency Legal framework in settling disputes Electricity market structured Political stability
Business environment
Risk
Year
Data source
2010-2014 2014 2012 2010-2012 2015 2012-2013 2012-2013 2013 2014
[15] [15] [16] [16] [15] [17] [17] [18] [15]
Siripha Junlakarn and Weerin Wangjiraniran / Energy Procedia 100 (2016) 475 – 479 R-2 2012 [17] Variation off inflatione R-3 2012 [17] Strength of investor i protectionn Public trust in i politicians R-4 2012-20133 [17] Infrrastructure Quality of ellectricity supply 2012-20133 I-1 [17] I-2 Population accessing a to electrricity 2012 [15] f I-3 2013 [19] ASEAN netw work connectedneess Difficulty to get electricityg I-4 2015 [15] Fin nancial Availability of financial serviices F-1 2012-20133 [17] env vironment F-2 Local equity y market 2012-20133 [17] F-3 [17] Incentives to o investors 2013 Tax rate F-4 [15] 2015 a Averrage GDP growthh calculated from arithmetic averag ge of five years off GDP, except tha at of Myanmar whhich was calculatted from two yearrs of GDP (2013-2014). b Reneewable market siize was estimated d from the proportion of renewabble electricity net consumption to the total electriciity net consumption. Renew wable energy resoources are defined d according to thee data source. c Electtricity market sizee growth is calcullated from Compo ound Average Raate Growth (CARG G) of three year oof total electricity net consumption. d Elecctricity market strructure ranks from m 1 to 5 (verticaally integrated reggulated utilities, single s buyer moddel with IPPs, whholesale spot marrket, retail competition, and electricity futures market). e Variation of inflation was estimated fro om variation of an nnual % change oof inflation for fou ur years. f ASE EAN network connnectedness was estimated e from th he capacity of traansmission lines connecting c to othher countries accoording to the plan n of ASEA AN power grid byy 2030. g Diffiiculty of access too electricity was assessed a from tim me for customer to be connected to electricity supplyy.
3. Results and disscussion When W considerring all five aspects, Singapo ore, Malaysia and Thailand are the top thhree countries whose market is attractive for pow wer generation investment am mong other A ASEAN countrries as shown in Fig. 1. Sinngapore’s market oped as it has the open business env vironment, reelatively low risks, available envirronments are fully develo infraastructure andd strong finan ncial sector. The strengthss of Malaysia are the maature infrastruucture, low risk r envirronment and ease of doing g business. Th he strong poinnts of Thailan nd in attractinng investors arre the electriccity infraastructure, andd financial env vironment. The bottom threee countries whose w market is i in the initiall states are My yanmar, Cambbodia and Viettnam. The stro ong point of these threee country is their econom my. However, since Myanm mar has just reecently openedd its businesss to privaate sectors annd foreign inv vestors, it stilll lacks fundam mental environments to nuurture businesss growth. Quick goveernment reform ms and policcymaking thatt create frienndly business environment should stimuulate its coun ntry deveelopment. Cam mbodia has weeakness in its infrastructure i ffrom low goveernment invesstment in the ssubject. Howev ver, the inland i countryy is likely to develop its in nfrastructure rrelatively conv venient than i sland counterrpart. Vietnam m is relatively risky onn variation of inflation, i whicch results from m the rapid gro owth of countrry economy. H Heighten contrrols c witth diversificatiion of other in ndustries and llarger econom my should contain on fiiscal and moneetary policy, combining the effect e of unstabble inflation.
BRN: B Brunei Darussalam KHM: Cambodia IDN: Inndonesia LAO: L Lao PDR MYS: Malaysia MMS: Myanmar PHL: P Philippines SGP: S Singapore THA: T Thailand VNM: Vietnam
477
478
Siripha Junlakarn and Weerin Wangjiraniran / Energy Procedia 100 (2016) 475 – 479
Economy
Business
Low w risk
Infrastructure
Finance
Fig. 11. Ranking of ASE EAN countries baased on the score of the relative atttraction in power generation investtment
All A these threee countries have h potentiall to grow in generation bu usiness; howeever, key chaallenges for th hese relatively weak coountries shoulld be addressed. Investors m may focus on the strengths aand be aware oof the weaknessses wheen making investment decisiion. 4. Conclusions C Due D to the avaailability of data d on ASEA AN countries, w we selected tw wenty indicatoors to assess attractiveness for pow wer generationn investment. With W the limittation of data aaccess, the tw wenty indicatorrs, which can be acquired frrom the reliable and reegularly updatted data sources, are sufficieent to provide an overview of strengths annd weaknesses of pow wer generationn investment to o investors and d government.. The results of o the assessm ment can be serrved as guideliines for investment ddecisions and policy makin ng. Notably, tthe assessmen nt can be impproved to be sophisticated d by mpact of indicaators on investtment decisionn. For instancee, if levelized ccost of electriccity, which is one considering an im of significant facttors, is includeed in the assessment with a hhigh weight, the results of aassessment willl change. Each E country in the region n faces some challenges off its own. Thee common chhallenges are in the aspectss of busiiness, econom my and financee. To foster thee attractivenesss for power generation g invvestment in thee region, ASE EAN coop peration may come useful in i addressing key concernss such as ease of doing busiiness and legaal framework and deveeloping comm mon guidelinees for govern nments. In adddition, economic environnment could be improved by integrating more m mature and less mature marrket together tthrough transm mission system ms such as ASEAN Power Grid G projjects [1]. The iintegrated marrket with less restricted movvement of money in the reggion can also ffacilitate variattion of financial fi servicces. Ack knowledgemeents This T research was funded by b the Ratchad dapisek Somppoch Endowm ment Fund (20 16), Chulalonngkorn Univerrsity (CU U-59-080-AD)). Refferences [1] International Ennergy Agency. So outheast Energy Asia Outlook; 22015. Available from: f https://www w.iea.org/publicaations/freepublicattions /publication/weoo2015_southeastassia.pdf [accessed 06.03. 16] [2] Tongsopit S, et aal. Energy Securitty in ASEAN: A Quantitative Q Apprroach for Sustaina able Energy Policcy. Energy Policyy 2016; 90: 60-72. [3] Vithayasrichareoon P, et al. Assesssing the Sustainaability Challenges for Electricity Industries I in ASE EAN Newly Induustrializing Counttries. Renewable and S Sustainable Energ gy Reviews 2012; 16: 2217-2233. [4] Thamsereekul M M, Wangiraniran W. W A Study on Energy E Security IIndicators for Tha ailand Power Secctor: Utility Aspeect. Journal of En nergy Research 2014; 112: 2-19. (in Thai) [5] Cavusgil ST, et al. Complementaary Approaches to o Preliminary Forreign Market Opp portunity Assessm ment: Country Cllustering and Cou untry Ranking. Industrrial Marketing Maanagement 2004; 33: 607–617. [6] Tyebjee TT, Bruuno AV. A Model of Venture Capittalist Investment A Activity. Management Science 19884; 30: 1051-10666. maswami S. Choicee of Foreign Mark ket Entry Mode: IImpact of Ownership, Location, annd Internationalizzation Factors. Jou urnal [7] Agarwal S, Ram of International B Business Studies 1992; 23: 1–27. nal Market Entry by U.S. Internett Firms: An Empirical Analysis off Country Risk, N National Culture,, and [8] Rothaermel FT, et al. Internation ment 2006; 32: 56– –82. Market Size. Jouurnal of Managem owards a Strategicc Model of Globall Franchise Expan nsion. Journal of R Retailing 2011; 887: 345–365. [9] Aliouche EH, Scchlentrich UA. To [10] Tripodo G, Dazzzi N. Market Attraactiveness of Dev veloping Countries. Socio-Economiic Planning Sciennces 1995; 29: 2877-303. g Ideas: The GE– –McKinsey Nine--Box Matrix; 200 08. Available from m: http://www.m mckinsey.com/insig ghts/ [11] McKinsey & Coompany. Enduring [accessed 13.07.16] Zelner BA. Political Capabilities, Policy Risk, andd International In nvestment Strateggy: Evidence from m the Global Eleectric [12] Holburn GLF, Z Power Generatioon Industry. Strateegic Managementt Journal 2010; 311: 1290–1315.
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