Balabanyan, AniVrenezi, EdonPierce, LaurenHankinson, Denzel2012-03-192012-03-192011-03-22978-0-8213-8738-2https://hdl.handle.net/10986/2284Before 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.CC BY 3.0 IGOACCESS TO FINANCINGADVISORY SERVICEAFFORDABILITYAPPROACHAPPROVAL PROCESSARREARSAVAILABILITYBALANCEBANK DEBTBANK FINANCINGBANK LOANBANK LOANSBARRIERS TO INVESTMENTBIDSBONDSBORROWINGBORROWING CAPACITIESBUDGET DEFICITBUDGET DEFICITSCAPITAL CONSTRAINTSCAPITAL REQUIREMENTSCENTRAL BANKCHEMICAL INDUSTRIESCOALCOAL MINESCOAL MININGCOAL PRODUCTIONCOLLATERALCOLLATERAL REQUIREMENTSCOMBUSTIONCOMMERCIAL BANKCOMMERCIAL BANK LENDINGCOMMERCIAL BANKSCOMMERCIAL LENDERSCOMMERCIAL LENDINGCONSUMPTION OF ENERGYCOPYRIGHT CLEARANCECOPYRIGHT CLEARANCE CENTERCOST OF ELECTRICITYCREDIBILITYCREDIT GROWTHCREDIT GUARANTEECREDIT GUARANTEESCREDIT RISKCURRENCYCURRENCY DEPRECIATIONCURRENCY DEPRECIATIONSDEBT LEVELSDEBT PAYMENTDEBT SERVICEDEFAULT RATINGSDEMAND FOR ELECTRICITYDEMAND FORECASTDEPOSITSDEVELOPING COUNTRIESDEVELOPMENT BANKECONOMIC CRISISECONOMIC DEVELOPMENTECONOMIC GROWTHELECTRICITYELECTRICITY CONSUMPTIONELECTRICITY DEMANDELECTRICITY PRODUCERSELECTRICITY TARIFFEMISSIONEMISSION REDUCTIONEMPLOYMENTENERGY CONSUMPTIONENERGY DEMANDENERGY EFFICIENCYENERGY EFFICIENCY INVESTMENTSENERGY OUTLOOKENERGY SHORTAGEENERGY SHORTAGESENERGY SUPPLYENFORCEMENT OF CONTRACTSEQUIPMENTEQUITY CAPITALEQUITY FINANCINGEQUITY INVESTMENTSEQUITY INVESTORSEXCHANGE RATESEXPENDITUREEXPENDITURESFINANCIAL COVENANTSFINANCIAL CRISISFINANCIAL HEALTHFINANCIAL PERFORMANCEFINANCING COSTSFINANCING NEEDSFISCAL CONSTRAINTSFIXED COSTSFOREIGN CURRENCYFOREIGN CURRENCY DEBTFOREIGN EQUITYFOREIGN INVESTORSFUELFUEL CONSUMPTIONFUEL COSTSFUEL PRICESGAP FINANCINGGASGAS PRICESGENERATING CAPACITYGENERATIONGENERATION CAPACITYGOVERNANCE INDICATORSGOVERNMENT BUDGETGOVERNMENT BUDGET DEFICITSGOVERNMENT POLICYGROSS DOMESTIC PRODUCTHEATHEAT TARIFFHIGH ELECTRICITY DEMANDHIGHER GASHOLDINGHYDROPOWERHYDROPOWER PLANTINTEREST RATESINTERNATIONAL BANKINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL INSTITUTIONINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL FINANCIAL MARKETSINVESTINGINVESTMENT BANKINVESTMENT CLIMATEINVESTMENT IN ENERGY EFFICIENCYINVESTMENT PLANSINVESTMENT STRATEGYKILOWATT HOURLACK OF TRANSPARENCYLARGE POWER PLANTSLEGAL OBLIGATIONLENDERSLENDING CONDITIONSLENDING REQUIREMENTSLINE OF CREDITLIQUIDITYLOAN AGREEMENTLOCAL CURRENCIESLOCAL CURRENCYLONG-TERM INTERESTLONG-TERM INTEREST RATESLONG-TERM INVESTMENTSMARKET PRICESMARKET REFORMSMARKET RISKMARKET RISKSMARKET SHAREMARKET TRANSACTIONSMATURITIESMONETARY FUNDNATURAL GASNATURAL GAS PRICESNEW COMPANIESNON-PERFORMING LOANSNUCLEAR FUELNUCLEAR POWERNUCLEAR POWER PLANTOILOPERATING COSTOPERATING COSTSPARTIAL CREDITPARTIAL RISKPAYMENT OBLIGATIONSPEAK DEMANDPOWERPOWER PLANTPOWER SECTORPOWER SECTORSPRICE OF COALPRIVATE FINANCINGPRIVATE INVESTMENTPRIVATE INVESTMENTSPRIVATE INVESTORSPRIVATE SECTOR FINANCINGPRIVATIZATIONPROFIT MARGINSPROFITABILITYPROPERTY RIGHTSPROTECTION MEASURESPUBLIC BUDGETSPUBLIC DEBTPUBLIC SPENDINGRECESSIONREGULATORY FRAMEWORKSREINVESTMENTRENEWABLE ENERGYRENEWABLE ENERGY CAPACITYRENEWABLE ENERGY PROJECTSRESERVERESERVESRETURNRETURN ON ASSETSRETURN ON INVESTMENTSHAREHOLDERSSHORT-TERM BORROWINGSSHORT-TERM DEBTSOVEREIGN DEBTSTRATEGIC INVESTORSSUPPLY OF FINANCINGSUSTAINABLE INVESTMENTTARIFF LEVELSTAXTAX EXEMPTIONSTAX REVENUESTECHNICAL ASSISTANCETECHNICAL SUPPORTTHERMAL POWERTHERMAL POWER PLANTTHERMAL POWER PLANTSTRADINGTRANSMISSION SYSTEMTREATYUNEMPLOYMENTUNIONUTILITY COMPANYWINDWIND POWERWIND POWER PLANTSWORKING CAPITALWorld Bank10.1596/978-0-8213-8738-2