Impacts of Risk Perceptions on Foreign Direct Investment in Energy Generation and Transmission Projects in Russia
Keywords:energy policy, foreign direct investment, Russia, risk perceptions, energy generation and transmission projects
This paper deals with an issue relevant for Russia’s energy policy, namely, the need to attract private investment, including foreign direct investment, in renovation and upgrading of energy infrastructure. Based on the survey that involved private investors from several countries, the paper addresses the question of how investors perceive private investment risks existing in Russia. Further, the conclusions are made about how these perceptions might affect private investment in energy systems projects in Russia. The results demonstrate that improvements in policy and institutional frameworks are needed in order to attract private investment, especially, in such projects with medium and long-term planning horizon and return of investment as deployment and upgrading of energy generation and transmission infrastructure in Russia.