Hydro and Wind Power Strategy for Selected Countries in Europe, South East Europe countries (Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Macedonia, Albania)

Client: Private Investor

Name of partner(s): Pöyry Energy Oy, Finland

Start/Completion Date: April 2008 – May 2008

Project description: The international investor has been screening possibilities to be involved in the hydro and wind power markets in South Eastern Europe. The Scope of Work included:

• Market outlook (ongoing/upcoming hydro tenders, planned privatizations of hydro assets, wind power situation - existing and new projects/plans, investment regulation (BOT/BOO, foreign ownership issues etc.), RES subsidies;
• Competitive landscape (past transaction prices for hydro and wind assets, key players -local and foreign, actions and strategies of competitors);
• Target assessment (listing of potential hydro power targets (existing assets and greenfield developments, listing of potential wind power targets -developers and projects, listing of engineering companies - e.g. hydro O&M, identification of market authorities);
• Poyry has prepared country reports on SEE countries for opportunities (Albania, Bosnia and Herzegovina, Croatia, Montenegro, Macedonia, Serbia and Slovenia) based on public available information.

SEEC evaluated and updated the information from the country reports based on its experience in the Balkan area; it’s on data base and public information available in each country. SEEC added new possible hydro and wind projects on the target areas and commented the probability of the listed projects, in particular focusing on:

• Quality of hydro power plants/wind farms and likelihood of completion;
• Administrative barriers: complexity and timing of procedures (local perspective), local environmental and social constraints;
• Grid connection: feasibility, timing;
• Profitability expectations: wind conditions, production estimates or load factors, estimated costs;
• Status of ownership;
• Status of development (pre financing or already financed);
• Existing ownership structure: small developers or large utility.

SEEC carried out the works successfully in really short implementation period thanking to its good position among other players in all Balkan countries and its own network of associated experts working with them on regular basis.