Transcript: Central Europe market insights - Energy opportunities

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>>Steve Rank: The energy security concerns in Europe, and Central Europe more specifically, is resulting in a fundamental transformation in the energy infrastructure across the region. The catalyst for this transformation was the Ukraine/Russian gas dispute in 2009. The recent instability in Ukraine, a key transit country for Russian gas and coal supplies has heightened these concerns amongst European policy makers.

This has resulted in the development in May 2014 of a European Energy Security Strategy which is focused on ensuring continuity of supply, as well as ensuring efficiently operating energy markets across Europe.

There are approximately €160 billion in gas pipeline projects and €104 billion in electricity transmission grid projects. This, together with the development of new energy fields across the region, in improving energy efficiency and renewal of power and heat generation plants provides good opportunities for Australian firms in the region.

The key trends are the shift from coal to development of renewables and gas across the region. Also really importantly is reducing import dependence to ensure energy security and this is playing out in terms of developing new sources of energy and developing new oil and gas fields across the region.

One of the other key trends is enhancing energy infrastructure through transmission grids, as we’ve mentioned, but also through renewal of old energy and heat generation plants which are very inefficient.

The final area of focus is around market liberalisation and ensuring an efficient market mechanism for energy across the region.

The European Union imports 53% of its energy needs at a cost of €1 billion a day. The import dependency is exacerbated by the reliance on a single supplier. Russia alone supplies 39% of Europe’s gas needs and 33% of its daily oil needs.

The opportunities for Australian organisations include particularly the mining equipment technology services area in terms of helping reduce the cost of extraction and processing of coal, developing, enhancing the gas and electricity grid networks across Europe, the $160 billion in gas and $104 billion in electricity networks; the renewal and the development of new electricity and heat generation plants, as well as the exploration of new energy fields in shale, unconventional gas, as well as off and onshore gas fields. Also there’ll be the services to support these new oil and gas developments across the region.

If you would like to know more about the energy opportunities in the Central European market, please contact us. We’re providing and publishing regularly information around opportunities in the marketplace, as well as updates on trends in the energy markets across Central Europe. It’s rapidly evolving and a very complex area, so these insights will help you understand what’s happening in the marketplace a little bit easier.