Winner's curse can be a problem in any valuation, but confronting internal biases and engaging in objective reviews can mitigate the risks.
Good policy comes not from guessing the future but from basing decisions on robust analysis: understanding value and assessing relevant costs.
China has gas in the ground but bringing it to generate power requires infrastructure, cost-reflective market prices, and the reform of dispatch.
All photographs in this calendar were taken by TLG staff and associates.
A functioning electricity market in a developing country is noteworthy, but there remain regulatory challenges to ensure success for the long term.
Are the limitations of Single Buyer models holding Asia's power sectors back and allowing sub-optimal decisions to raise costs for stakeholders?
China's market is huge and growing fast, but success benefits from understanding the risks; analytical frameworks bring additional advantages.
Success takes rational analysis, prudence, resources, a grasp of both detail and the bigger picture, and an understanding of where value truly lies.