Research On Project Financing Risks For PPP Microgrids Projects In China

As an effective means to alleviate China’s energy and environmental crisis,the microgrid has received great attention from the government and the society in recent years.However,the microgrid is a capital-intensive,technology-intensive infrastructure project that is closely related to people’s livelihood.The public-private partnerships(PPP)financing model can effectively reduce government financial pressure and improve infrastructure construction and operational efficiency.Although this financing model can effectively solve a series of problems in the process of infrastructure construction,due to the multi-party financing model,complicated contractual arrangements,huge financing amount and long construction period,it faces greater uncertainty.Therefore,in order to help investors make better decisions and ensure the smooth progress of financing,it is necessary to study the risk factors they face.This paper summarizes the research status at home and abroad,sorts out the relevant theories of PPP financing model and project financing risk management,qualitative analysis and quantitative analysis based on the risk factors of the basic process of risk management,and finally applies the model through cases.The specific research contents of this paper include:This paper takes the financing risk of microgrid construction projects under the Chinese PPP model as the research object,and conducts qualitative analysis related to risk management.By studying the existing literature and cases,combined with the expert opinions in the Delphi method,8 categories and 30 risk factors are identified,and the risk list is listed.And the risk factors are summarized into three levels: macro risk,meso risk and micro risk.The origin and consequences of risk factors are analyzed,and the suggestions for dealing with risk factors are put forward.Considering that the microgrid and PPP financing models are in the field with less practical experience in China,and there are few historical data related to project financing risks.Therefore,the two-round Delphi method is used to solicit experts’ opinions on the probability and degree of damage of risk factors.The qualitative risk data is quantified by the QQIR method,and the relative importance and statistical characteristics of the risk factors are calculated.Getting the risk at the macro level is the most important risk factor.