February 2013 - Kristóf Ferenczi, head of Kinstellar’s firm-wide Energy practice, and Stefan Botezatu, head of the firm’s Energy practice in Bucharest, presented an overview of key developments in the Emerging Europe energy sector at the “Central and Eastern European Power Conference” organised by power industry information experts Platts. Over 80 people, primarily representatives of major energy companies and banks, attended the two-day event held in Prague on 31 January and 1 February 2013.
In their presentation, Messrs Ferenczi and Botezatu highlighted the significant changes currently underway in the Emerging Europe power sector. These include the further implementation of the EU’s Third Energy Package, which is designed to further liberalise the gas and electricity markets in EU member states; the on-going reform of the EU’s Emissions Trading Scheme; the extension of power market coupling across Emerging Europe; the further development of nuclear power across the region; and the increasingly active role of the state in both regulation and investment in the Emerging Europe power sector.
One new trend on the rise in some Emerging Europe markets is that some of the long-term foreign investors in utilities sector are exiting or seeking to exit the region. This is due to a variety of reasons, including the increased regulatory framework, and it is opening the space to new investors, often local or regional power companies, but also those from Russia, Asia and elsewhere. These new investors are increasingly focusing on regulatory compliance and financing issues from the outset and are seeking increased local expertise to implement new projects.
The presentation concluded with a series of recommendations for energy investors in the region. These include strengthening due diligence before any acquisition, closer communication with regulatory bodies, and ensuring that investors have a clear understanding of the long-term implications of energy assets.
Kinstellar’s Energy practice is expert at handling energy sector issues in multiple jurisdictions in Emerging Europe and beyond. The firm’s clients include major multinational, regional and domestic energy companies, governments, energy traders, project sponsors/financiers, as well as contractors and suppliers.
For more information, please contact Adela Ene on +40 21 307 1639, or at .