Challenges for Polish power in 2005

摘要

The Polish power sector can be expected to undergo dramatic change within the next few years and it will not be too soon. Declining generation capacity and hard coal production come at a time when energy consumption is forecast to increase by up to 5% per year, with energy prices to follow suit. Attracting private investment into the sector will be a key priority for the government. To achieve this it will need to find some consistency and coherency in its restructuring and privatization policy, which has thus far been lacking. EU accession and compliance with its directives will, moreover, force the government, which is still the major shareholder in the sector, to achieve this and accelerate the reform process. This will be appreciated by all - both domestic and foreign incumbents and potential future investors. Although the further development of the market remains unclear, we can draw some key conclusions for the Polish power sector and its major players resulting from observations of other commodity markets, especially the oil sector. Both the government and domestic market players would do well to look and learn from CEE oil companies which have opted for vertical integration, more aggressive marketing strategies and comprehensive restructuring processes to maintain their competitive position in domestic markets.