A number of UNECE economies in transition are facing a range of specific investment problems, with a lack of investment currently noted in the electricity generating sector. It has been estimated that some US$ 10 billion investment is needed by this sector by 2012, in particular for rehabilitation of existing power plants. If this investment is not forthcoming over this period then the regulated electricity market could be jeopardised. However, investment is clearly an issue for the UNECE region as a whole and not just the transition economies, as witnessed by the recent electric power blackouts in North America. Looking out to 2030 for the entire European electricity market, the International Energy Agency estimates that to meet growing electricity demand the EU-15 will require some US$ 1,100 billions of investment and the rest of Europe some US$ 250 billions. 

    Although specific investment problems are being faced by individual transition economies, many of the problems are related to these economies undergoing a transition period from a centrally planned economy to a fully functioning internal energy market. Hence the key risks for investors tend to be political-economical instability, legal and regulatory uncertainties and problems related to customers such as high non-payment rates, lack of metering etc. The reform of the electricity supply industry has also profound implications for investment decisions. 

    This Roundtable will serve to not only highlight the challenges and barriers to investment in the electricity sector in the transition economies, but also to debate how these issues might be overcome in order to look for solutions that would create the appropriate environment to encourage investment. 

For further information, please contact:

Ms. Charlotte Griffiths

Tel.: + 41 22 917 19 88 
Fax: + 41 22 917 00 38 
E-mail: charlotte.griffiths@unece.org