Author(s)

A. DOMNIKOV, G. CHEBOTAREVA & M. KHODOROVSKY

Abstract

The present-day trends in the economic development are characterized by both the processes of restructuring initiating investment activity and the mounting competitive pressure. These special characteristics clearly manifest themselves in the developing economies featuring low level of development of infrastructure – in the power sector in particular, and this gives rise to the development of specific forms of competition in the power-generating sphere. Finding solutions to the problems of development of energy infrastructure will be instrumental in strengthening the competitive position of the developing countries on the world market and reducing the threat of takeover. This paper presents a complex approach to assessment of competitiveness of power-generating companies in developing countries. Such an approach offers an opportunity to assess the attractiveness of current levels of investment of a company and its long-term sustainability through application of modern analytical tools. The practical aspects of the authors’ methodological approach to the assessment of competitiveness are discussed using a Russian power-generating company as an example. The proposed ideas based on revealing the most risk-bearing hazards, those of latent nature including, may serve as a methodological basis for the development of risk management programmes in the power-generating sphere, to the benefit of realization of investment projects as well.

Keywords

bayes method, competitiveness, developing country, investment decision, power-generating company, risk, risk rating, ‘TGK-9’ JSC’