European Power Sector Faces Investment Boom
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FAIRFAX, VA, May 13, 2002 - ICF Consulting
analysis has shown that the European power markets
are about to experience a major upswing, just as a
number of U.S.-owned power companies pack up and leave.
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Many U.S. power companies have found the European
markets to be an uncomfortable place to do business with
excess production capacity, high valuations being placed
on assets, and strong competition from the entrenched European
utilities. However, with environmental pressure tightening
on the European power sector, particularly constraints on
carbon emissions, a massive investment in new power stations
will be needed over the next few years to meet energy needs.
With their painfully won knowledge of the European markets,
trading structures already in place, and more merchant project
development and financing experience than European rivals,
the U.S. companies could be major beneficiaries of the European
situation.
Simon Allen, President of ICF Consulting Europe,
said, "The U.S. power companies seem to be retreating
at exactly the wrong time. The perception of U.S. investors
has been shaped by low returns over the last few years and
uncertainty regarding the evolution of competitive and liquid
power markets in Europe. However, our analysis shows substantial
opportunities exist in the future for attractive generation
investments as the European markets react to environmental
pressures."
Managing consultant Neil Cornelius added,
"With excess generating capacity and generally low
prices, the European power sector seems an unlikely candidate
for a surge in investment. However, the strong desire of
the European Governments to meet ambitious Kyoto emission
reduction targets will change the picture in a dramatic
fashion. We estimate that up to $90 billion will have to
be invested in order to cut power sector carbon dioxide
emissions and meet national renewable generation targets."
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ICF International (Nasdaq: ICFI) partners with government and commercial clients to deliver consulting services and technology solutions in the energy, environment, transportation, social programs, defense, and homeland security markets. The firm combines passion for its work with industry expertise and innovative analytics to produce compelling results throughout the entire program life cycle, from analysis and design through implementation and improvement. Since 1969, ICF has been serving government at all levels, major corporations, and multilateral institutions. More than 1,800 employees serve these clients worldwide. ICF’s Web site is http://www.icfi.com.
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For Immediate Release
United Kingdom Contact: Kim Keats Martinez
Tel: 44 (0) 20.7092.3006
United States Contact: Douglas
Beck
Tel: 1.703.934.3820
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