Critical success factors for BOT electric power projects in China: Thermal power versus wind power

Chinese electric power industry has adopted Build–Operate–Transfer (BOT) approach in a number of projects to alleviate the pressure of sole state-owned investment. The Chinese government has taken enormous efforts to create an environment to facilitate the application of BOT approach in electric power projects. Moreover, the growing attention on the sustainability issues puts the traditional major source of electricity – thermal power project under more strict scrutiny. As a result, various renewable energy projects, particularly the wind power projects have involved private sector funds. Both thermal power and wind power projects via BOT approach have met with a varying degree of success. Therefore, it is imperative to understand the factors contributing towards the success of both types of BOT power projects. Using an extensive literature survey, this paper identifies 31 success factors under 5 categories for Chinese BOT electric power projects. This is followed by a questionnaire survey to exam relative significance of these factors. The results reveal the different levels of significance of success factors for BOT thermal power projects versus wind power projects. Finally, survey results were analyzed to explore the underlying construction and distributions among the identified success factors. This study provides a valuable reference for all involved parties that are interested in developing BOT electric power projects in China.