Regulatory Risk at the Forefront of Issues Affecting the Power Sector

In the power sector, policy risk has historically been associated with emerging markets, but this trend appears to be changing. There has been a resurgence of regulatory risk as people have lost confidence in markets. Policy risks are now on the rise in more developed countries, where there is heightened concern surrounding environmental obligations to reduce emissions.

This briefing paper on regulatory risk in the power sector explores:

• The rise of policy risk in developed countries.
• Assessing exposure to policy risk.
• Protecting against regulatory risk.
• Diversification as a hedge against policy risk.
• Future regulatory changes to the power sector.