Monday, February 10, 2014

Low-cost electricity and capital outflows

How much can be earned off of the global energy problems facing developing markets? It’s possible to earn a lot, and regularly.
“We’re providing countries with the unique opportunity to participate in integrating their companies into this new business,” says one Ana Shell Fund employee. “We are inviting developing markets to learn how generating electricity using syngas produced via the gasification of renewable resources like agricultural waste and city garbage can lower the cost of a kW/h to around $.02 USD. Sometimes less.”


Countries in South-East Asia are at a high risk of a “sudden stop” of foreign capital flows, and therefore need to obtain access to low-cost electricity as soon as possible. In the opinion of Morgan Stanley London office analysts Manoj Pradhan and Patrick Drozdzik, India, Indonesia, Mexico and Thailand may experience an exodus of capital investment because investors tend to shy away from developing markets.
Ana Shell Fund’s comments on reforming the energy industry have been made against the backdrop of Indian, Turkish and South African central banks raising their key interest rates in order to protect their currencies, the International Business Times writes. According to their economists, a “sudden stop” is defined as the termination or even outflow of capital from a country. It also includes restricting said country’s access to international financial markets for a determined period, which would weaken their national economies.
In order to implement affordable power generation projects in developing markets, the Ana Shell Fund has formed a work team. The fruit of their collaboration is an Eco-SV turbine with an efficiency factor (EF) of over 55%, and best of all – it’s cheap to manufacture! This turbine would enable electricity to be produced at the low cost of two cents per kW/h. The purpose for this project is to reduce developing countries’ dependencies upon capital inflows and loans, helping them balance current account deficits, establish monetary freedom, and lessen China’s influence over foreign economies. Under existing economic conditions, the countries at the highest risk must determine how they will finance their budgets and energy deficits, and whether they will explore new financial avenues. It is worth pointing out that Thailand, Turkey, and Ukraine have recently suffered from political upheaval. Who will step up and take responsibility for our future?
Capital outflows are at an all-time high. According to data gathered by the Societe Generale, the total cash inflow into developing markets’ stock funds reached a peak level of $220 billion USD in February of last year. Since then, over $60 billion USD have been allocated to foreign assets. According to analysts’ forecasts, in the nearest future, the migration rate will more than double. The same fate is expected for the EM-obligations fund. Among other things, the gradual tapering of the US Federal Reserve System’s quantitative easing program may become cause for concern. That is why it is so important to create a cheap power industry, Ana Shell Fund analysts claim.
We are inviting all developing markets to participate in this Consortium.

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