Central and Eastern Europe (CEE) is taking on the pressing challenge of boosting its renewable energy market with a revived focus. Until recently, the region heavily relied on fossil fuels from Russia and largely ignored the potential of renewable energy sources. However, today CEE is facing Russia's threat of cutting off energy supplies and the looming burden of the 2020 European Union directive on boosting renewable energy to 20% by 2020. As CEE countries take on the challenge of developing their indigenous energy sources, companies are currently experiencing first-mover advantages that could place them ahead of the curve.
New analysis from Frost & Sullivan (energy.frost.com), Renewable Energy Regulations in Central and Eastern Europe Strategic Analysis, comprises 19 country profiles including 11 EU countries, two candidate countries and six non-EU countries. This research provides valuable insight into the CEE renewable market conditions and potential.
"The EU Directive for 2020 is pushing renewable energy markets in Europe, especially in the CEE region as it has not been traditionally focusing on the sector except for large hydropower for electricity, and biomass energy for heat," says Frost & Sullivan Industry Analyst Gouri Kumar. "This is impelling CEE countries to review their energy portfolios and develop a strategy to achieve those targets in the most efficient way."
Kumar's insight highlights that the 2020 targets for the EU member nations are the most significant driver for the CEE countries. The targets, coupled with energy security issues, are boosting the renewable energy market in CEE, making it attractive for investors and market participants.
Five EU countries Bulgaria, Czech Republic, Hungary, Poland, and Romania and one non-EU country, Turkey are forecasted to see high growth in their renewable energy markets in the coming years. This growth is attributable to their good incentive structure, the pressure of growing demand, and relatively good investor-friendly environments and encouraging governments. The medium growth countries include Latvia, Slovakia and Slovenia. Although these countries have some good motivating factors, their market growth is hindered by lack of political will, uncertain support, and long cumbersome planning processes. In order for CEE to maximise growth of its renewable energy markets, the region must cultivate political support and efficient incentive mechanisms with dedicated focus.
On a positive note, "Although the challenges persist, the degree to which they are affecting the market is gradually reducing as the governments of several countries have begun to address these issues in their efforts to create a more conducive environment for investment," explains Gouri. "It is moving slower than expected but the efforts are translating into growth in many sectors including the wind and solar energy markets."
Governments are pushing through important regulations that cater to the development of the renewable energy market. Such improvements in the regulatory framework coupled with the installation of new projects provide a prosperous foundation for the renewable energy market to thrive on. As a result, the CEE region is becoming lucrative for investors as markets in Western Europe grow rapidly and mature. Step by step, the CEE region is making an honest effort to secure its energy independence and sustainability in the coming years.
If you are interested in more information and a complimentary brochure on this study, please send an email to Chiara Carella, Corporate Communications, at chiara.carella[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.
Renewable Energy Regulations in Central and Eastern Europe Strategic Analysis is part of the Energy & Power Growth Partnership Services programme, which also includes research in the following markets: large hydropower, biomass energy, and offshore wind energy. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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Renewable Energy Regulations in Central and Eastern Europe Strategic Analysis/ M51B