World Bank2017-08-152017-08-152010-12https://hdl.handle.net/10986/27850The global financial crisis severely affected economies in Eastern Europe and Central Asia (ECA). Currencies depreciated across the region. Government tax revenues declined sharply leading to high budget deficits and rising levels of public debt. Tightening credit supply and deteriorating financial conditions have limited the ability to borrow in the public and private sector. The financial crisis slowed demand enough to delay an imminent energy shortage by a few years. In this sense, the financial crisis bought ECA countries some time. This report analyzes the impacts of the global financial crisis on power sectors in five countries in the ECA region: Armenia, Kyrgyz Republic, Romania, Serbia and Ukraine. It estimates the investment gap and proposes a prioritization of critical investments in each country. The report also proposes actions needed to mobilize financing for the sector, including a continued commitment to legal, regulatory and policy reform in the sector. The global financial crisis has created a window of opportunity to meet investment needs and avert a potential power shortage, but Governments need to recognize and act on this opportunity. This report serves as a starting point to facilitate further World Bank engagement in the region that can help Governments make timely, critical investments and foster sustainable investment in the sector over the long-term.en-USCC BY 3.0 IGOACCESS TO FINANCINGACCESS TO MARKETSADVISORY SERVICEAFFORDABILITYAPPROACHARREARSAVAILABILITYBALANCEBANK DEBTBANK FINANCINGBANK LOANSBARRIERS TO INVESTMENTBIDSBONDSBORROWINGBORROWING CAPACITIESBUDGET DEFICITBUDGET DEFICITSCAPITAL CONSTRAINTSCAPITAL REQUIREMENTSCASH FLOWSCENTRAL BANKCHEMICAL INDUSTRIESCOALCOAL MINESCOAL MININGCOAL PRODUCTIONCOLLATERALCOLLATERAL REQUIREMENTSCOMBUSTIONCOMMERCIAL BANKCOMMERCIAL BANK LENDINGCOMMERCIAL BANKSCOMMERCIAL LENDINGCONSUMPTION OF ENERGYCORRUPTIONCOST OF ELECTRICITYCREDIBILITYCREDIT GROWTHCREDIT GUARANTEECREDIT GUARANTEESCREDIT RISKCURRENCYCURRENCY DEPRECIATIONCURRENCY DEPRECIATIONSDEBT LEVELSDEBT PAYMENTDEBT SERVICEDEFAULT RATINGSDEMAND FOR ELECTRICITYDEMAND FORECASTDEPOSITSDEVELOPMENT BANKECONOMIC CRISISELECTRICITYELECTRICITY CONSUMPTIONELECTRICITY DEMANDELECTRICITY PRODUCERSELECTRICITY SYSTEMELECTRICITY TARIFFEMISSIONEMISSION REDUCTIONEMISSIONSEMISSIONS REGULATIONSEMPLOYMENTENERGY CONSUMPTIONENERGY DEMANDENERGY EFFICIENCYENERGY EFFICIENCY INVESTMENTSENERGY OUTLOOKENERGY SHORTAGEENERGY SHORTAGESENERGY SUPPLYENFORCEMENT OF CONTRACTSEQUIPMENTEQUITY CAPITALEQUITY CONTRIBUTIONEQUITY FINANCINGEQUITY INVESTMENTSEQUITY INVESTORSEXCHANGE RATESEXPENDITUREEXPENDITURESFINANCIAL ASSISTANCEFINANCIAL COVENANTSFINANCIAL CRISISFINANCIAL HEALTHFINANCIAL PERFORMANCEFINANCING COSTSFINANCING NEEDSFISCAL CONSTRAINTSFIXED COSTSFOREIGN CURRENCYFOREIGN CURRENCY DEBTFOREIGN EQUITYFOREIGN INVESTORSFUELFUEL CONSUMPTIONFUEL COSTSFUEL PRICESGAP FINANCINGGASGAS PRICESGENERATING CAPACITYGENERATIONGENERATION CAPACITYGOVERNMENT BUDGETGOVERNMENT BUDGET DEFICITSGOVERNMENT POLICYGROSS DOMESTIC PRODUCTHEATHEAT TARIFFHIGH ELECTRICITY DEMANDHIGHER GASHOLDINGHYDROPOWERHYDROPOWER PLANTINTEREST RATESINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL INSTITUTIONINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL FINANCIAL MARKETSINVESTINGINVESTMENT BANKINVESTMENT CLIMATEINVESTMENT IN ENERGY EFFICIENCYINVESTMENT PLANSINVESTMENT STRATEGYKILOWATT HOURLACK OF TRANSPARENCYLARGE POWER PLANTSLEGAL FRAMEWORKLEGAL OBLIGATIONLENDERSLENDING CONDITIONSLENDING REQUIREMENTSLINE OF CREDITLIQUIDITYLOANLOAN AGREEMENTLOCAL CURRENCIESLOCAL CURRENCYLONG-TERM INTERESTLONG-TERM INTEREST RATESLONG-TERM INVESTMENTSMARKET PRICESMARKET REFORMSMARKET RISKMARKET RISKSMARKET SHAREMARKET TRANSACTIONSMATURITIESMONETARY FUNDNATURAL GASNATURAL GAS PRICESNONPERFORMING LOANSNUCLEAR FUELNUCLEAR POWERNUCLEAR POWER PLANTOILOPERATING COSTOPERATING COSTSPARTIAL CREDITPARTIAL RISKPAYMENT OBLIGATIONSPEAK CAPACITYPEAK DEMANDPOST-CRISIS PERIODPOWERPOWER PLANTPOWER SECTORPOWER SECTOR PLANNINGPOWER SECTORSPRICE OF COALPRIVATE FINANCINGPRIVATE INVESTMENTPRIVATE INVESTMENTSPRIVATE INVESTORSPRIVATE SECTOR FINANCINGPRIVATIZATIONPROFIT MARGINSPROFITABILITYPROPERTY RIGHTSPROTECTION MEASURESPUBLIC BUDGETSPUBLIC DEBTPUBLIC SPENDINGRECESSIONREGULATORY FRAMEWORKREGULATORY FRAMEWORKSREINVESTMENTRENEWABLE ENERGYRENEWABLE ENERGY CAPACITYRENEWABLE ENERGY PROJECTSRESERVERESERVESRETURNRETURN ON ASSETSRETURNSRULE OF LAWSHAREHOLDERSSHORT-TERM BORROWINGSSHORT-TERM DEBTSOVEREIGN DEBTSTRATEGIC INVESTORSSUPPLY OF FINANCINGTARIFF LEVELSTAXTAX EXEMPTIONSTAX REGIMETAX REVENUESTECHNICAL SUPPORTTHERMAL POWERTHERMAL POWER PLANTTHERMAL POWER PLANTSTRADINGTRANSMISSION INFRASTRUCTURETRANSMISSION SYSTEMTREATYUNEMPLOYMENTUNIONWINDWIND POWERWIND POWER PLANTSWORKING CAPITALWorking PaperWorld Bank10.1596/27850