The steps to forming a joint venture IPP in Poland
Poland represents the largest market in Central Europe with 38 million people and an installed electrical generating capacity of about 32 gigawatts. Since 1989, when the process of governmental restructuring along free market principals began, the allure to IPP developers has been evident, but is of yet unrealized. The natural model for IPP development in Poland would seem to be joint ventures with Polish generating companies. These enterprises already have sites, franchises, and a going business to contribute to a joint company. There are a number of reasons why so few deals have been concluded in Poland to date, and a number of barriers still exist that tend to hamper the realization of project finance funded power joint ventures. But, these barriers are not insurmountable. Overcoming them in the context of a joint venture relationship with a domestic partner requires patience, work, and an ability to bridge the gaps between the realities of working in a post-Communist environment and the practicalities of structuring projects that can be financed in the international capital markets. The new Energy Law in Poland establishes a framework for a viable private sector power generation business. But the enabling regulations are yet to be published or approved. There is still effective political risk on account of the uncertainty this creates. Pressure is mounting on the Polish Government, especially due to its expressed interest in joining the EU, to get the power sector to operate on private sector terms, if not in private hands. The trends are pointing in the direction of increased market driven policies and practices. The conclusion is that, despite the delays of the past, independent power projects will start to happen in Poland on a joint venture basis, with increasing frequency in the next years.
- Research Organization:
- Warsaw (PL)
- OSTI ID:
- 20018798
- Report Number(s):
- CONF-9806214-; TRN: IM200018%%32
- Resource Relation:
- Conference: Power-Gen Europe'98, Milan (IT), 06/09/1998--06/11/1998; Other Information: 1 CD-ROM. Operating Systems: Windows 3.1, '95, '98 and NT; Macintosh; and UNIX; PBD: [1998]; Related Information: In: Power-gen Europe'98, [2400] pages.
- Country of Publication:
- United States
- Language:
- English
Similar Records
Krakow Clean Fossil Fuels and Energy Efficiency Project
Krakow Clean Fossil Fuels and Energy Efficiency Project