Moody’s announces stable outlook for Asia-Pacific power sector

However, as governments in the region implement policies to address growing carbon transition risks, business conditions across APAC will increasingly diverge.
“The key factors supporting our stable outlook for the power sector in APAC are the steady market structures and consistency of returns in the region,” said Mic Kang, a Moody’s vice president and senior analyst.
“Growing demand for electricity will help most Moody’s-rated power companies with dominant or stable market positions maintain adequate dispatch volumes, despite challenges from renewables.
“As for the higher environmental costs associated with carbon transition policies, such costs will remain manageable, because of the gradual implementation of initiatives, cost pass-through and/or compensation through subsidies,” he added.