Product Code: 2398-0842
BMI View: European power markets, which are stagnating amid major structural changes to the power
generation business model and cuts to renewables subsidies, hold limited appeal for investors. Energy
agendas across the CEE region will remain focused on boosting domestically sourced and cheap coal-fired
power, as policymakers endeavour to strengthen energy security in an affordable manner.
- We expect regional energy policy in the CEE to centre on boosting coal-fired power over our 10-year forecast period. As such, coal will remain a crucial fuel in the region's power mix over the coming decade, contributing 32% of total power generation by 2025.
- An influx of renewables capacity has also led to structural changes in the power sector that have hit traditional European utilities hard - with many in a precarious financial position as their thermal power plants have been squeezed out of the market by subsidised renewable-based generation.
- We expect to see consolidation in the European renewables space - as renewables developers combine to reduce costs, achieve improved economies of scale and expand their capital bases to gain access to cheaper financing - in order to offset the impact of the renewables slowdown.
- Policymakers are growing increasingly concerned about the cost of renewables policies and the impact of higher electricity prices and we are seeing a move towards less generous market-based subsidy systems - such as reverse renewable capacity auctions.
Table of Contents
BMI Industry View
- Europe Power - BMI View
- Table: Europe Power Forecasts
Regional Forecast Analysis
- CEE Power Regional Overview
- NAWE Power Key Themes
Industry Risk/Reward Index
- CEE Power Risk/Reward Index
- Table: CEE Risk/Reward Index
- NAWE Power RRI: US Outperforms Tepid European Power Markets
- Europe - Affordability Focus To Shape CEE Nuclear Strategy
- Table: Nuclear Share In Power Mix By Country
- Europe - Generation Shift To Sustain Pressure On Utility Margins
- Europe - Central Asian Electricity Exports Marred by Obstacles
- Table: No Boom In Electricity Exports*
- Methodology And Sources
- Industry Forecast Methodology
- Risk/Reward Index Methodology
- Table: Power Risk/Reward Index Indicators
- Table: Weighting Of Indicators