WORLDWIDE MARKET RESEARCH REPORT - CISE

EC/IST FP6 Project No 026920
Work Package: 6
Type of document: Report
Date: 20.12.2007
File name: OP_WP6_D37_V1.0.doc Version: 1.0
Title: Worldwide Market Research Report 119 / 356
Mounting bills result from non-payment by consumers, electricity theft, and wastage. The
sector has been restructured into 2 generators and 5 distributor companies, and in 2000,
Moldova completed the first round of electricity privatization, selling 3 of the distributors to
Union Fenosa of Spain.
Poland
About 95% of the country's electricity is generated by burning fossil fuels. Public opposition
in the early 1990s put an end to the construction of a proposed nuclear power plant in
Zarnowiec, which was converted to conventional fuels instead. Hydroelectric power is also
generated, mostly in southern Poland, where the mountainous topography offers
opportunities to construct dams. Since much of the country's terrain consists of open plains,
there is some expectation of being able to harness wind power in the future.
Romania
Investment into Romania's energy sector is badly needed. The country generates its power
from a combination of thermal, hydro-electric, and nuclear power plants. But most of the
plants are over 20 years old, and about 60% of Romania's power capacity will have to be
replaced within the next 5 years. The power market is dominated by the state monopoly
Conel. To meet EU expectations and attract investment into the power market, Romania
plans to liberalize the power market, break up Conel, and privatize parts of the sector. The
government is also pushing for an oil and gas pipeline to be built through the country to
transport fuel from the Caspian Sea region to the West. But with several countries competing
to become a transit route, the outcome is uncertain.
Russia
Russia's overall electricity production is produced for the 69% through burning fossil fuel,
20% results from hydroelectric generation, and roughly 13% is produced at commercial
atomic generating stations.
Effective wholesale gas and electricity tariffs have been at only around one-tenth of the
Western European level for the past decade, with the ratio even worse in distribution to