The report, titled “Energizing the Energy Sector in Central-Eastern Europe,” highlights that competitive electricity markets decarbonize 66 percent faster than non-competitive ones. Despite this, the Central and Eastern European (CEE) region has yet to fully harness market potential. Researchers have identified 40 different barriers that hinder competition, increase business costs, and deter private investment, thereby slowing decarbonization in these countries.
Economic freedom varies across the CEE region. The Czech Republic ranks highest with a relatively liberalized market, fewer barriers to entry, and more transparent regulations. Yet, even here, significant obstacles remain. For instance, completing a wind farm project takes at least seven years due to bureaucratic delays. Romania, with moderate barriers, presents a generally favorable investment climate. Hungary is the least economically free, marked by extensive government control and frequent legislative changes, creating a volatile environment for investors. Bulgaria faces substantial challenges, including high bureaucracy and regulatory instability, further deterring private investment. In Poland, the energy market is effectively nationalized, with state-owned companies producing about 70% of the country’s energy, marginalizing private investments. The discretionary power wielded by government officials also blocks private investments in new energy capacities, such as Small Modular Reactors (SMRs).
Full report available here: http://dx.doi.org/10.13140/RG.2.2.10264.81923
You must be logged in to post a comment.