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EU accession countries likely to attract the bulk of new European electric power investment

7 September 2004 – The large majority of future investment and growth in the European electric power industry is likely to take place in the new European Union (EU) Accession countries because they offer the highest investment potential based on growing demand and meaningful market liberalization, according to an analysis by energy industry consultancy London Economics International (LEI).

“We expect the ten Accession countries to be targeted for the bulk � $60 billion or more � of new capital to be invested in the Eastern and Western European power industry through 2018,” said London Economics President A.J. Goulding.

“This is because capital flows toward opportunity, and the greatest investment opportunities are in the Accession countries and in four original EU member states – Greece, Ireland, Italy, and Portugal. Although these countries represent just over one-fourth of the region’s population and 20% of the region’s total gross domestic product, they present higher potential for strategic and financial investors due to their high levels of economic growth and high expected average electric load growth. Each offers specific restructuring or marketplace investment and growth opportunities,” he added.

The London Economics analysis is published in its newly released European Power Directory, which includes a detailed overview on trends and policies shaping the region-wide power industry, regional maps, references to industry information sources, and a detailed statistical appendix. Extensive macroeconomic, competitive and power industry profiles, including lists of significant industry players and regulators, are included in four-page market briefings on each individual country in the region.