The Research On ABS Of Electric Power Assets Application In China

Electric power is the most important strategic resource. The electric power industry is the basic industry of the national economy. With the fast growing of our national economy and the improving of our consumptive level, the demand of electric power in industry and living is increasing rapidly. In order to adapt our electric power construction with our economy growing, we must be planned in increasing our investment of electric power construction, so we will improve the average level of power used of people, we will avoid the "electric power lacked" phenomena in the earlier years.To expedite the construction of electric power, we need to look for a financing method with low cost and high efficiency. Now the financing of the power construction is mainly depended on IPO and the loan of bank, but these methods have some kinds of questions such as the obstacle of system and low financing quantum etc. So we raise the method of Assets Backed Securitization(ABS) of electric power assets to activate the huge permanent assets in electric power industry and improve the financing efficiency.The basic way of the ABS of electric power assets is as follows : making effective combination in electrical source and power grid assets, combining "electric power assets pool" as basic assets, then selling the basic assets to the Special Purpose Vehicle(SPV), and the SPV will design the product of Securitization based on the future cash flows based on the basic assets, then making Credit Enhancer for the product, at last selling the product to the investor.The paper introduces the background and meaning of the ABS of electric power assets, and has introduced the basic theory of ABS. At the same time, the paper uses the experience of ABS in American and Japanese for reference. The paper carries out feasible analysis of the application of ABS of electric power assets, and designs the optional pattern based on the characteristic of our national electric assets and our institutional environment. At last the paper points out the questions in applying ABS, and makes some corresponding policy advice.