4min chapter

Energy Unplugged by Aurora cover image

EP.114 Global Project Finance Series in partnership with SMBC Group PART II - Australia

Energy Unplugged by Aurora

CHAPTER

The Impact of Higher Inflation and Higher Cost Environment on Project Finance Terms

High inflation and higher cost environment typically do to project finance terms. We're starting to see that effect work through at the moment, we've had a period of very attractive energy prices from new projects. Increasing customers are initially reluctant to enter into contracts at higher prices. They want to validate that that's real, that there is cost pressure. So the bigger policy framework is supporting customers. Accept an increase in power prices and they can see other people are exposed to that as well.

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