Albania offers exciting prospects in hydro-power, both for established players and for smaller participants, analysts say.
TIRANA, Feb. 16 – As climate concerns and emerging markets have led to increased interest in the large European hydro-power market, Albania is likely to be key player in the future, U.K.-based analysts said this week.
A briefing by Frost & Sullivan’s Energy and Power Systems Group suggests companies looking for investment opportunists will soon face many opportunities in Europe, and particularly in the Balkans.
“The key hydropower markets are also markets where economic and electricity growth is forecast to be strongest in the next decade: Albania, Croatia and Turkey. These markets offer exciting prospects, both for established players and for smaller participants,” said Zeinegul Hassan, a research analyst at Frost & Sullivan’s Energy and Power Systems Group.
In 2009, the World Bank increased its lending for large hydro-power projects, at a time when investment fell in many other sectors. This was a result of a pan-European commitment to generate more electricity from renewable energy sources and to better exploit mature hydro-power technology, according to Frost & Sullivan.
“In addition to creating new growth opportunities, this has had the effect of generating a thriving market for refurbishment projects that improve efficiency and reduce environmental impact,” the group said in a statement. “Consequently, the refurbishment and servicing market now offers manifold growth opportunities for original equipment manufacturers, services companies, and hydro-power producers.”
The company said it will release a full briefing late this month, discussing Europe’s hydropower market and analyzing the value of refurbishment, operation and maintenance services, and providing market development forecasts.
“The European Hydropower market has traditionally been viewed as a mature market with few opportunities and five years ago, maybe that perception was not so far off. However new opportunities for both new projects and refurbishment work are quickly undermining this perception,” said Frost & Sullivan’s Energy and Power Systems Consultant Jonathan Robinson. “Despite a short-term decline in electricity demand, the longer-term trend is upward as hydropower provides a cost-effective, carbon-free, electricity source.”
