Friday, December 19, 2008

Investments, Investments, Investments

With all the grim news about the fall in the global economy it is very nice to see that there are positive developments in the energy sector. We can summarize the final year news as 'clean energy'. This bodes well for the future development in the market.

First we have the news that Romania finally got its act together and brought the different project partners together, with RWE in the lead, to build Unit-3 and 4 of the Cernavoda nuclear power plant (missing the size and dates). Then we have the news from this week that Slovakia will be going ahead with CEZ to build more units at the Jaslovske Bohunice nuclear power plant to build around 1,000 MW and 1,600 MW of generation capacity by 2020 (platts).

In Bulgaria they have signed a deal with AES to build the Sveti Nikola wind power 'park' for EUR 270 M with 52 wind power generators, and a total production capacity of 156 MW ( Go back a few months and Romania announced its intention to build with CEZ Romania 347.5-megawatt Fintinel project in Tulcea. Throw in more wind power and gas plants in Hungary and there is a very robust power investment portfolio that is not slowing down.

Overall, there is a lot to be optimistic about in the region. Even if the projections for growing consumption in the region turn out to be slightly off, there is still a significant amount of capacity that does need to be replaced in the region. The government and companies know these projects are still years away from becoming operational, but what better way to stay busy in a slowing economy that to be working hard at a project that will come online just when the economies are revving up and environmental restrictions begin to tighten.

I don't know about you, but I'm going into the New Year in a positive mood.