Challenges to generating investment
A report warns that Poland must significantly boost its investment in power production to achieve government targets of reducing its dependence on coal from 95 percent and increasing its share of renewable energy sources to 14 percent by 2025.
The findings are published by PricewaterhouseCoopers (PWC) in its study, Under Pressure 2005, which highlights a series of obstacles faced by the industry.
It is estimated that Poland's consumption of electricity will increase dramatically over the next two decades. While overall consumption is predicted to rise by 75 percent, average consumption per citizen is forecast to increase by around 95 percent. Analysts warn that these figures raise major questions about both the ability of the industry to meet demand and the security of energy sources.
One of the main difficulties facing industry leaders is the task of attracting investors to develop and expand the sector. According to PWC's research among utility companies in the gas and energy industry, investors' biggest fear is the uncertainty of market regulation. The report shows that 39 percent of investors believe that market reforms undermine confidence, highlighting the dangers of inconsistent energy, tax and environmental policies.
Globally, the International Energy Agency estimates that $12.7 (zł.42.6) billion needs to be invested by 2030 in the power generation, transmission and distribution and gas-supply infrastructure in order to meet demands.
"The challenge for the utilities sector is immense. We urge governments, utility companies, investors and consumers to work together to find a truly sustainable and long-term strategy for the industry," said Manfred Wiegand, PWC's global utilities leader.
Seventy-two percent of those quizzed by PWC said that security and transmission capacity are the most pressing problems to be solved by the sector.
Investors expect the greatest challenges in the renewable sector. Action undertaken by governments and institutions, to encourage the replacement of traditional fuels with renewable ones, has resulted in growing interest in the latter. Fifty-two percent of the respondents said they expect a renaissance of nuclear energy to meet this demand.
Companies such as Południowy Koncern Energetyczny SA or Zespół Elektrowni Pątnów Adamów Konin SA have been struggling for months to finance big investments.
The findings are published by PricewaterhouseCoopers (PWC) in its study, Under Pressure 2005, which highlights a series of obstacles faced by the industry.
It is estimated that Poland's consumption of electricity will increase dramatically over the next two decades. While overall consumption is predicted to rise by 75 percent, average consumption per citizen is forecast to increase by around 95 percent. Analysts warn that these figures raise major questions about both the ability of the industry to meet demand and the security of energy sources.
One of the main difficulties facing industry leaders is the task of attracting investors to develop and expand the sector. According to PWC's research among utility companies in the gas and energy industry, investors' biggest fear is the uncertainty of market regulation. The report shows that 39 percent of investors believe that market reforms undermine confidence, highlighting the dangers of inconsistent energy, tax and environmental policies.
Globally, the International Energy Agency estimates that $12.7 (zł.42.6) billion needs to be invested by 2030 in the power generation, transmission and distribution and gas-supply infrastructure in order to meet demands.
"The challenge for the utilities sector is immense. We urge governments, utility companies, investors and consumers to work together to find a truly sustainable and long-term strategy for the industry," said Manfred Wiegand, PWC's global utilities leader.
Seventy-two percent of those quizzed by PWC said that security and transmission capacity are the most pressing problems to be solved by the sector.
Investors expect the greatest challenges in the renewable sector. Action undertaken by governments and institutions, to encourage the replacement of traditional fuels with renewable ones, has resulted in growing interest in the latter. Fifty-two percent of the respondents said they expect a renaissance of nuclear energy to meet this demand.
Companies such as Południowy Koncern Energetyczny SA or Zespół Elektrowni Pątnów Adamów Konin SA have been struggling for months to finance big investments.
