Supply bottlenecks bedevil emerging markets' power sector expansion

Overview

Governments in emerging markets have announced ambitious plans for increasing generation capacity as power shortages threaten economic growth. The result has been a scramble for resources, from fuel to power generation equipment and skilled labour. When combined with growing protectionism – for reasons ranging from management of current account balances to incompatibility of foreign equipment and contract renegotiations due to rising raw material costs – slippages ensue. Prospects for...