Portfolio Optimization for Power Plants: The Impact of Credit Risk Mitigation and Margining

2010 ◽  
Author(s):  
Joachim Lang ◽  
Reinhard Madlener
Keyword(s):  
Credit Risk ◽  
Portfolio Optimization ◽  
Power Plants ◽  
Risk Mitigation ◽  
The Impact

Technical Risks and Mitigation Measures in Combustion Turbine Project Development

2002 ◽  
Vol 125 (1) ◽  
pp. 228-235 ◽  
Author(s):  
D. Grace ◽  
J. Scheibel
Keyword(s):  
Power Plants ◽  
Development Process ◽  
Risk Mitigation ◽  
Mitigation Measures ◽  
Life Cycle Costs ◽  
Project Development ◽  
Technical Risk ◽  
Technical Risks ◽  
Interruption Costs ◽  
The Impact

Project developers, insurers, financiers, and maintenance organizations have an interest in quantifying technical risks and evaluating risk mitigation alternatives for combustion turbine (CT) power plants. By identifying exposure to risk early in the project development process, optimal procurement decisions, and mitigation measures can be adopted for improved financial returns. This paper describes a methodology used to quantify all nonfuel O&M costs, including scheduled and unplanned maintenance, and business interruption costs due to unplanned outages. The paper offers examples that demonstrate the impact of technical risk on project profitability. An overview of activities required for addressing technical risk as part of the equipment selection and procurement process is provided, and areas of technical improvements for reducing life cycle costs are described.

The Credit Securitisation Process as a Tool of Portfolio Credit Risk Managing

2012 ◽  
pp. 5-28
Author(s):  
Di Clemente Annalisa
Keyword(s):  
Credit Risk ◽  
Simulation Analysis ◽  
Risk Mitigation ◽  
Probability Of Default ◽  
Loan Portfolio ◽  
Asset Return ◽  
Portfolio Credit Risk ◽  
The Impact ◽  
Monte Carlo Simulation Model

This study explores the role of the credit securitisation process in managing the credit risk amount of the banking loan portfolio, when the bank originator retains a residual equitylike class as illiquid first loss position (FLP). An Importance Sampling Monte Carlo simulation model has been implemented for estimating the portfolio credit risk amount, taking into account the portfolio credit risk mitigation effect provided by the credit securitisation process. This study identifies the credit asset pool able to produce the larger effect of credit risk reduction on the loan portfolio, when the asset pool is unloaded off the banking book. Moreover, this simulation analysis quantifies the extent of the portfolio credit risk mitigation, produced by the securitisation process of the asset pool previously identified. The impact of the securitisation activity has been also investigated when the probability of default and the asset return correlation of the obligors in portfolio are changing.

Technical Risks and Mitigation Measures in Combustion Turbine Project Development

2001 ◽  
Author(s):  
Dale Grace ◽  
John Scheibel
Keyword(s):  
Power Plants ◽  
Development Process ◽  
Risk Mitigation ◽  
Mitigation Measures ◽  
Life Cycle Costs ◽  
Project Development ◽  
Technical Risk ◽  
Technical Risks ◽  
Interruption Costs ◽  
The Impact

Project developers, insurers, financiers and maintenance organizations have an interest in quantifying technical risks and evaluating risk mitigation alternatives for combustion turbine (CT) power plants. By identifying exposure to risk early in the project development process, optimal procurement decisions and mitigation measures can be adopted for improved financial returns. This paper describes a methodology used to quantify all non-fuel O&M costs, including scheduled and unplanned maintenance, and business interruption costs due to unplanned outages. The paper offers examples that demonstrate the impact of technical risk on project profitability. An overview of activities required for addressing technical risk as part of the equipment selection and procurement process is provided, and areas of technical improvements for reducing life cycle costs are described.

scholarly journals Carbon Credit Risk Mitigation of Deforestation: A Study on the Performance of P2H Products and Services in Indonesia

2021 ◽  
Vol 12 (2) ◽  
pp. 125
Author(s):  
Wiwik Utami ◽  
Lucky Nugroho ◽  
Kelum Jayasinghe
Keyword(s):  
Literature Review ◽  
Credit Risk ◽  
Systematic Literature Review ◽  
Risk Mitigation ◽  
Arable Land ◽  
Forest Damage ◽  
Carbon Credit ◽  
Community Forest ◽  
The Government ◽  
The Impact

This study aims to analyze the performance of the loan products and services offered by Indonesian government’s Forest Development Financing Center (BLU-P2H Center) that target the prevention and repair of forest damage. The methodology used is a systematic literature review that identifies, assesses, and interprets this chosen research topic's findings. The study attempts to answer three formulated research questions— (i) How can P2H products and services policies that align with the carbon credit risk mitigation of deforestation be mapped?; (ii) How should P2H products and services that contribute to carbon credit risk mitigation be investigated?; and (iii) How can the impact of P2H products and services in preventing deforestation be measured? The systematic literature review findings highlight that the Indonesian Government has adopted some important provisions and institutions, namely P2H products and services, and carried out loan disbursements to prevent forest destruction, specifically, the forestry business and environmental investment financing. The findings also indicate that while the government most extensively disbursed certain loans, such as community forest enterprises (HR), there was a low level of loan disbursement for community forest-based loans (HKm) because of the constraints faced by farmers in arable land that produces seasonal crops. Therefore, the study implicates that the forest destruction, particularly in Indonesia, resulting from illegal logging by local communities, needs to be further prevented by increasing the public knowledge on the sustainability impact of deforestation and also by increasing the public’s access to and opportunities for public welfare, alternative livelihoods, and micro-business activities. The study findings also make an original contribution to the literature on the carbon credit risk mitigation of forest damage as they illustrate a government-sponsored, innovative P2H scheme in the form of loan disbursement aiming to reduce and prevent forest destruction.

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