Outage: Investment shortfalls in the power sector in Eastern Europe and Central Asia (Directions in Development)

This study analyzes the impacts of the financial crisis on power sectors in five countries in the region: Armenia, Kyrgyz Republic, Romania, Serbia and Ukraine. Before the financial crisis, these countries faced expected power shortages as a result of large investment gaps. With the financial crisis, GDP dropped, leading to a drop in demand for electricity. The drop in demand created a window of opportunity for meeting investment needs, but the crisis has limited the sources of financing available to the sector. In the post-crisis period, the study concludes that policymakers need to prioritize public spending and create a legal and regulatory environment more conducive to private investment. books.jpeg......Page 1 books_001.png......Page 2 books_002.png......Page 3 books_003.png......Page 4 books_004.png......Page 5 books_005.png......Page 6 books_006.png......Page 7 books_007.png......Page 8 books_008.png......Page 9 books_009.png......Page 10 books_010.png......Page 11 books_011.png......Page 12 books_012.png......Page 13 books_013.png......Page 14 books_014.png......Page 15 books_015.png......Page 16 books_016.png......Page 17 books_017.png......Page 18 books_018.png......Page 19 books_019.png......Page 20 books_020.png......Page 21 books_021.png......Page 22 books_022.png......Page 23 books_023.png......Page 24 books_024.png......Page 25 books_025.png......Page 26 books_026.png......Page 27 books_027.png......Page 28 books_028.png......Page 29 books_029.png......Page 30 books_030.png......Page 31 books_031.png......Page 32 books_032.png......Page 33 books_033.png......Page 34 books_034.png......Page 35 books_035.png......Page 36 books_036.png......Page 37 books_037.png......Page 38 books_038.png......Page 39 books_039.png......Page 40 books_040.png......Page 41 books_041.png......Page 42 books_042.png......Page 43 books_043.png......Page 44 books_044.png......Page 45 books_045.png......Page 46 books_046.png......Page 47 books_047.png......Page 48 books_048.png......Page 49 books_049.png......Page 50 books_050.png......Page 51 books_051.png......Page 52 books_052.png......Page 53 books_053.png......Page 54 books_054.png......Page 55 books_055.png......Page 56 books_056.png......Page 57 books_057.png......Page 58 books_058.png......Page 59 books_059.png......Page 60 books_060.png......Page 61 books_061.png......Page 62 books_062.png......Page 63 books_063.png......Page 64 books_064.png......Page 65 books_065.png......Page 66 books_066.png......Page 67 books_067.png......Page 68 books_068.png......Page 69 books_069.png......Page 70 books_070.png......Page 71 books_071.png......Page 72 books_072.png......Page 73 books_073.png......Page 74 books_074.1.jpeg......Page 75 books_074.png......Page 76 books_075.png......Page 77 books_076.png......Page 78 books_077.png......Page 79 books_078.png......Page 80 books_079.png......Page 81 books_080.png......Page 82 books_081.png......Page 83 books_082.png......Page 84 books_083.png......Page 85 books_084.png......Page 86 books_085.png......Page 87 books_086.png......Page 88 books_087.png......Page 89 books_088.png......Page 90 books_089.png......Page 91 books_090.png......Page 92 books_091.png......Page 93 books_092.png......Page 94 books_093.png......Page 95 books_094.png......Page 96 books_095.png......Page 97 books_096.png......Page 98 books_097.png......Page 99 books_098.png......Page 100 books_099.png......Page 101 books_100.png......Page 102 books_101.png......Page 103 books_102.png......Page 104 books_103.png......Page 105 books_104.png......Page 106 books_105.png......Page 107 books_106.png......Page 108 books_107.png......Page 109 books_108.png......Page 110 books_109.png......Page 111 books_110.png......Page 112 books_111.png......Page 113 books_112.png......Page 114 books_113.png......Page 115 books_114.png......Page 116 books_115.png......Page 117 books_116.png......Page 118 books_117.png......Page 119 books_118.png......Page 120 books_119.png......Page 121 books_120.png......Page 122 books_121.png......Page 123

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.

Analyses the impacts of the financial crisis on power sectors in five countries: Armenia, Kyrgyz Republic, Romania, Serbia and Ukraine. It concludes that policymakers need to prioritize public spending and create a legal and regulatory environment more conducive to private investment.