We would like to thank all of our COP 22 panelists for their invaluable contribution during our COP 22 side event. The unanimous conclusion being that AGC could help create a liquid regional power market by:
- Adding liquidity and efficiency to the regional power pools and driving integration on the back of a multi buyer model
- Reducing the cost of capital and the credit risk profile of underlying portfolio projects and the wider power sector through a strong balance sheet, diversification and trading capabilities
- Lowering contingent liabilities of utilities and sovereigns and therefore creating headroom for further investment in the rehabilitation of utilities
- Creating new opportunities to share and mitigate risks and lowering transaction costs
- Applying international best practice and leveling the playing field through standardized terms thus increasing the number of bankable projects
- Creating a more favourable investment environment for a wider universe of investors • Increasing the potential for refinancing–giving confidence to upfront lenders and helping to bring long term capital market / institutional investors engagement
- Facilitate the move towards local currency denominated PPAs by facilitating an increase in local currency lending to power projects.