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Question:

Would building the grid mean a tax increase for some countries?

Key Words:

grid, tax increase, countries, issues, infrastructure development loans/bonds, raising capital, taxes, transmission lines, electricity flow, tax reductions

Answer:

Taxes are rarely the means that power projects and transmission grids are financed. There are numerous financing methods used, since projects can range from a few million dollars to several billion. Some large projects are funded by utilities themselves, while others are built by governments and funded through bond offerings.

In some developing nations, the developer may assist in several schemes: build-own-operate, build-own-transfer, obtain regional bank financing. At the end of every energy project is a customer who wants lighting, refrigeration, communication, etc. — and their monthly payments ultimately pay for the project.

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