Risk Prevention Of Electric Power Enterprises' Overseas Direct Investment

Electric power industry is the basic industry of the national economy,whose development has a direct impact on the nature of the national economy and people's living standards.In recent years,with the implement of China's "going out" strategy and the sustained economic growth,China's electric power enterprises increasingly accelerate the development of overseas direct investment.Electric power companies' overseas direct investment can not only reduce costs,avoid trade barriers,but also bring new profit growth point to promote the international operations of Chinese enterprises,and additionally promote long-term sustainable development of China's electric power enterprises.Based on these backgrounds,the paper reviews the relevant research literature and theoretical basis of overseas direct investment risk of electric power enterprises,and takes Indonesia Asa project invested by China Huadian Corporation as example to analyze risk prevention of electric enterprises' overseas direct investment.Firstly,according to the central enterprise-wide risk management,the paper defines the risks of overseas direct investment as strategic risk,market risk,operational risk,financial risk,legal risk and other risks and accordingly establishes the risk evaluation system.Secondly,by adopting index weight determination method and fuzzy comprehensive evaluation methods which are based on relationship of order,the paper summarizes that the main investment risks of Indonesia Asa project are strategic risk,financial risk and other risks.Finally,in order to prevent the investment risks,the paper proposes that electric power company should build sound relationships with partners,enhance financing management capacity,research cultural background of the host government,and government should set up supportive policies.These suggestions will be useful for other overseas direct investment projects in the electric power industry in the future.