Normen Kegler, Advisory Council Cha

Normen Kegler, Advisory Council Chairman, Independent Power Producers' Forum (IPPF), Hong Kong
For quite some time the power generation sectors of China and India have shifted away from foreign direct investment as their respective market practice, regulatory framework and tariff policies hardly encourage traditional foreign independent power producer investment.
The question is rather 'how' than 'if' foreign direct investment will explore opportunities in other markets in the region.
The days of the 'classic' IPP model appear to be numbered as most countries in the region have matured and gained direct access to the capital, technologies and expertise required to develop their power generation sectors.
Foreign IPPs that are still successful and proactive in the Chinese and Indian power generation market currently demonstrate business development models that indicate the future role and shape of IPPs in the region.
They keep strong and multiple affiliations with domestic stakeholders and have refined their capability to cater for advanced technical and managerial demands in niche segments to maintain their success. They pay close attention to the advanced technologies favoured by governments in their energy policy development, as those determine the market niches that an IPP can successfully occupy without facing too much domestic competition.
Some IPPs have engaged in local supporting industries such as coal processing and coal blending, thus deepening their market integration.
Public private partnerships may allow for a more efficient project risk management on both sides. However, since the partners differ a lot in their basic purposes and management styles, such partnerships can be troublesome.
Generally, IPPs have learned to move along with the host country rather than offering prefabricated standard solutions that were incorporated in their business models and applied all around the world.
Therefore IPPs have become more sustainable partners for addressing specific sets of requirements and therefore will continue to play an important role in developing the power generation markets in Asia.