Outage : Investment Shortfalls in the Power Sector in Eastern Europe and Central Asia

Before the onset of the global financial crisis in late 2008, countries in Eastern Europe and Central Asia (ECA) experienced strong economic growth. Demand for electricity increased steadily with gross domestic product (GDP). GDP grew, on average, 6.5 percent between 2000 and 2007, and electricity consumption per capita grew 2.75 percent. Meanwhile, energy security and supply reliability were a growing concern for policymakers and planners. Despite increased access to financing through the opening of international financial markets, under-maintenance of old soviet-era power sector infrastructure created a backlog of critical investments threatening the stability of the sector. As a result, a gap between demand and available supply capacity was beginning to emerge. This report analyzes the impacts of the financial crisis on power sectors in the ECA region through the experience of five countries (the study countries); Armenia, the Kyrgyz Republic, Romania, Serbia, and Ukraine. The report's objective is to help policymakers in the region plan and prioritize electricity sector investments in the wake of the financial crisis, and to provide a basis for future discussions about World Bank assistance.

Bibliographic Details

Main Authors:	Balabanyan, Ani, Vrenezi, Edon, Pierce, Lauren, Hankinson, Denzel
Language:	English
Published:	World Bank 2011-03-22
Subjects:	ACCESS TO FINANCING, ADVISORY SERVICE, AFFORDABILITY, APPROACH, APPROVAL PROCESS, ARREARS, AVAILABILITY, BALANCE, BANK DEBT, BANK FINANCING, BANK LOAN, BANK LOANS, BARRIERS TO INVESTMENT, BIDS, BONDS, BORROWING, BORROWING CAPACITIES, BUDGET DEFICIT, BUDGET DEFICITS, CAPITAL CONSTRAINTS, CAPITAL REQUIREMENTS, CENTRAL BANK, CHEMICAL INDUSTRIES, COAL, COAL MINES, COAL MINING, COAL PRODUCTION, COLLATERAL, COLLATERAL REQUIREMENTS, COMBUSTION, COMMERCIAL BANK, COMMERCIAL BANK LENDING, COMMERCIAL BANKS, COMMERCIAL LENDERS, COMMERCIAL LENDING, CONSUMPTION OF ENERGY, COPYRIGHT CLEARANCE, COPYRIGHT CLEARANCE CENTER, COST OF ELECTRICITY, CREDIBILITY, CREDIT GROWTH, CREDIT GUARANTEE, CREDIT GUARANTEES, CREDIT RISK, CURRENCY, CURRENCY DEPRECIATION, CURRENCY DEPRECIATIONS, DEBT LEVELS, DEBT PAYMENT, DEBT SERVICE, DEFAULT RATINGS, DEMAND FOR ELECTRICITY, DEMAND FORECAST, DEPOSITS, DEVELOPING COUNTRIES, DEVELOPMENT BANK, ECONOMIC CRISIS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ELECTRICITY, ELECTRICITY CONSUMPTION, ELECTRICITY DEMAND, ELECTRICITY PRODUCERS, ELECTRICITY TARIFF, EMISSION, EMISSION REDUCTION, EMPLOYMENT, ENERGY CONSUMPTION, ENERGY DEMAND, ENERGY EFFICIENCY, ENERGY EFFICIENCY INVESTMENTS, ENERGY OUTLOOK, ENERGY SHORTAGE, ENERGY SHORTAGES, ENERGY SUPPLY, ENFORCEMENT OF CONTRACTS, EQUIPMENT, EQUITY CAPITAL, EQUITY FINANCING, EQUITY INVESTMENTS, EQUITY INVESTORS, EXCHANGE RATES, EXPENDITURE, EXPENDITURES, FINANCIAL COVENANTS, FINANCIAL CRISIS, FINANCIAL HEALTH, FINANCIAL PERFORMANCE, FINANCING COSTS, FINANCING NEEDS, FISCAL CONSTRAINTS, FIXED COSTS, FOREIGN CURRENCY, FOREIGN CURRENCY DEBT, FOREIGN EQUITY, FOREIGN INVESTORS, FUEL, FUEL CONSUMPTION, FUEL COSTS, FUEL PRICES, GAP FINANCING, GAS, GAS PRICES, GENERATING CAPACITY, GENERATION, GENERATION CAPACITY, GOVERNANCE INDICATORS, GOVERNMENT BUDGET, GOVERNMENT BUDGET DEFICITS, GOVERNMENT POLICY, GROSS DOMESTIC PRODUCT, HEAT, HEAT TARIFF, HIGH ELECTRICITY DEMAND, HIGHER GAS, HOLDING, HYDROPOWER, HYDROPOWER PLANT, INTEREST RATES, INTERNATIONAL BANK, INTERNATIONAL FINANCE, INTERNATIONAL FINANCIAL INSTITUTION, INTERNATIONAL FINANCIAL INSTITUTIONS, INTERNATIONAL FINANCIAL MARKETS, INVESTING, INVESTMENT BANK, INVESTMENT CLIMATE, INVESTMENT IN ENERGY EFFICIENCY, INVESTMENT PLANS, INVESTMENT STRATEGY, KILOWATT HOUR, LACK OF TRANSPARENCY, LARGE POWER PLANTS, LEGAL OBLIGATION, LENDERS, LENDING CONDITIONS, LENDING REQUIREMENTS, LINE OF CREDIT, LIQUIDITY, LOAN AGREEMENT, LOCAL CURRENCIES, LOCAL CURRENCY, LONG-TERM INTEREST, LONG-TERM INTEREST RATES, LONG-TERM INVESTMENTS, MARKET PRICES, MARKET REFORMS, MARKET RISK, MARKET RISKS, MARKET SHARE, MARKET TRANSACTIONS, MATURITIES, MONETARY FUND, NATURAL GAS, NATURAL GAS PRICES, NEW COMPANIES, NON-PERFORMING LOANS, NUCLEAR FUEL, NUCLEAR POWER, NUCLEAR POWER PLANT, OIL, OPERATING COST, OPERATING COSTS, PARTIAL CREDIT, PARTIAL RISK, PAYMENT OBLIGATIONS, PEAK DEMAND, POWER, POWER PLANT, POWER SECTOR, POWER SECTORS, PRICE OF COAL, PRIVATE FINANCING, PRIVATE INVESTMENT, PRIVATE INVESTMENTS, PRIVATE INVESTORS, PRIVATE SECTOR FINANCING, PRIVATIZATION, PROFIT MARGINS, PROFITABILITY, PROPERTY RIGHTS, PROTECTION MEASURES, PUBLIC BUDGETS, PUBLIC DEBT, PUBLIC SPENDING, RECESSION, REGULATORY FRAMEWORKS, REINVESTMENT, RENEWABLE ENERGY, RENEWABLE ENERGY CAPACITY, RENEWABLE ENERGY PROJECTS, RESERVE, RESERVES, RETURN, RETURN ON ASSETS, RETURN ON INVESTMENT, SHAREHOLDERS, SHORT-TERM BORROWINGS, SHORT-TERM DEBT, SOVEREIGN DEBT, STRATEGIC INVESTORS, SUPPLY OF FINANCING, SUSTAINABLE INVESTMENT, TARIFF LEVELS, TAX, TAX EXEMPTIONS, TAX REVENUES, TECHNICAL ASSISTANCE, TECHNICAL SUPPORT, THERMAL POWER, THERMAL POWER PLANT, THERMAL POWER PLANTS, TRADING, TRANSMISSION SYSTEM, TREATY, UNEMPLOYMENT, UNION, UTILITY COMPANY, WIND, WIND POWER, WIND POWER PLANTS, WORKING CAPITAL,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20110411012951 https://hdl.handle.net/10986/2284
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