安大略及三星綠能投資協議之財務分析

Abstract

The primary purpose of this research is to analyze Samsung C&T’s decision to invest C$7 billion by signing the Green Energy Investment Agreement with the Province of Ontario in its first foray into the Renewable Energy sector. An array of analytical techniques was employed including Political, Economic, Social & Technological (PEST) Analysis, the Discounted Cash Flow model, and Real Options Analysis. The research finds that this investment decision, while it does carry significant political and regulatory risk due to reliance on Feed-in Tariff subsidies, does indeed have financial and strategic merit. The project was estimated to have a positive NPV, the Real Options Analysis revealed several valuable options, and the downside risks can likely be mitigated by Samsung C&T and partners. A notable finding is that should the company successfully complete the project and develop competence in Renewable Energy project development, it will serve as a long-term growth option while providing a hedge against its traditional fossil fuel and nuclear-based businesses.