WEC Pulse Check Investments in Energy Infrastructure. WEC Germany Berlin, November 2014

Transcription

1 WEC Pulse Check Investments in Energy Infrastructure WEC Germany Berlin, November 2014

2 Agenda 1 2 Global View 36 responses European View 21 responses out of 36

3 WEC Pulse Check Energy Infrastructure Investments Executive Summary Overall investment outlook considered positive, also compared to last year. European view however less positive and more neutral, in comparison to last year as well. National energy regulation as the most important factor for energy infrastructure investment mood. Investments in energy infrastructure considered a major investment necessity in their country by two thirds of respondents. Power sector by far attracting most investments (power supply infrastructure followed by power transmission infrastructure). Investments mainly coming from private sector considered to be even more important than national governments. Difficult regulatory environment considered key barrier to investments in case of neutral or negative outlook. More specifically, lack of planning reliability as key reason behind a difficult regulatory environment. Pulse check carried out among Chairmen of the WEC Member Countries in November 2014, received responses from 36 countries.

4 WEC Pulse Check Energy Infrastructure Investments The overall investment mood in terms of energy infrastructure is positive Question 1: How is the overall current investment mood in your country in terms of monetary investments in energy infrastructure? Positive Neutral Negative Power 42% 25% 33% N = 36 Gas 47% 33% 19% N = 36 Oil 34% 43% 23% N = 35 Heat 13% 65% 23% N = 31 Energy Efficiency 86% N = 36 - Balanced outlook for Power, more positive view on Gas - Investment mood regarding Energy Efficiency overwhelmingly positive across all regions

5 WEC Pulse Check Energy Infrastructure Investments National energy regulation and economic outlook are most important factors for investment mood Question 2: Which factors are contributing most to the energy infrastructure investment mood? (please select maximum two that apply best) N = 36 National energy regulation (i.e. taxes, subsidies) 61% Overall economic growth prospects 53% Private consumption (of energy efficient goods etc.) Profit outlook Multilateral energy regulation Others 22% 19% - National energy regulation as key factor reflects that energy continues to be a heavily regulated sector - Overall economic growth prospects matters much more than profit outlook

6 WEC Pulse Check Energy Infrastructure Investments Compared to last year, the investment mood is the same or even more positive Question 3: Do you perceive a change in investment mood compared to last year? N = 36 33% 36% 8% 8% Unchanged negative Change towards negative No change Change towards positive Unchanged positive - For more than 75% of respondents, the investment mood did not change, change to the positive or remained positive compared to last year

7 WEC Pulse Check Energy Infrastructure Investments For two thirds of respondents, investments in energy infrastructure is a major necessity in their country Question 4: How would you assess the need for investments in energy infrastructure in your country? N = 36 64% 28% 8% High (=major investment necessity in the upcoming years) Medium (=one investment necessity amongst others) Low (=minor investment necessity in the upcoming years) - Investments in energy infrastructure are a high priority around the world

8 WEC Pulse Check Energy Infrastructure Investments The power sector is attracting the biggest share of energy infrastructure investments Question 5: In which dimension / aspect of energy is investment mainly flowing into? (please select maximum two that apply best) N = 36 Power supply infrastructure 1 61% Power transmission infrastructure 2 Energy efficiency goods and services 42% 44% Gas transmission infrastructure 3 33% Extraction of fossil fuels 4 31% Power distribution infrastructure 5 22% Heat Others 6% 8% - Power supply infrastructure as the most important destination of investments (no specification if conventional or renewable), followed by power transmission infrastructure - Very positive investment mood on energy efficiency not yet entirely reflected here 1: i.e. power plants, wind parks 2: i.e. transmission lines 3: i.e. pipelines, LNG terminals 4: i.e. oil, gas etc. 5: i.e. distribution grid lines

9 WEC Pulse Check Energy Infrastructure Investments The private sector is considered the most important investor in energy infrastructure Question 6: From which parties are investments in energy infrastructure primarily coming? (please select maximum two that apply best) N = 36 Private sector / Business 61% National government 47% Multilateral institutions (i.e. World Bank, EU) 33% Foreign Direct Investment 31% Households (i.e. consumption of energy eff. goods) Others 8% Institutional investors (i.e. pension funds) 6% - Private sector / Business even more important than national governments - Investments from abroad multilateral institutions or FDI also important contributors

10 WEC Pulse Check Energy Infrastructure Investments A difficult regulatory environment is considered the biggest barrier to investment Question 7: In case of neutral or negative outlook, which barriers to investment in energy infrastructure do you see in your country? N = 28 All factors 89% If difficult regulatory environment, then which factor behind it? 48% 57% 44% 8% Difficult geopolitical situation Difficult market environment Difficult regulatory environment Lack of planning reliability Lack of right incentivization No further specification - In case of a neutral or negative investment outlook, almost all respondents cite a difficult regulatory environment as the most important barrier to investment - A lack of planning reliability is the key problem behind a difficult regulatory environment

11 Agenda 1 2 Global View 36 responses European View 21 out of 36 responses

12 WEC Pulse Check Energy Infrastructure Investments EUROPE The overall investment mood in terms of energy infrastructure is more neutral in Europe Question 1: How is the overall current investment mood in your country in terms of monetary investments in energy infrastructure? Positive Neutral Negative Power 24% 38% 38% N = 21 Gas 33% 43% 24% N = 21 Oil 57% 29% N = 21 Heat 20% 60% 20% N = 20 Energy Efficiency 90% 10% N = 21 - European outlook for Power less positive than global one, also for Gas - Investment mood regarding Energy Efficiency also extremely positive across Europe

13 WEC Pulse Check Energy Infrastructure Investments EUROPE In Europe, national energy regulation even more important for investment mood Question 2: Which factors are contributing most to the energy infrastructure investment mood? (please select maximum two that apply best) N = 21 National energy regulation (i.e. taxes, subsidies) Overall economic growth prospects Profit outlook Private consumption (of energy efficient goods etc.) Multilateral energy regulation Others, please specify 10% 29% 22% 19% 19% 19% 43% 53% Europe Global 67% 61% - National energy regulation as key factor even more important in Europe than globally - Profit outlook as factor catching up in Europe compared to global view - Higher influence of multilateral energy regulation reflects special European situation

14 WEC Pulse Check Energy Infrastructure Investments EUROPE Compared to last year, the European investment mood is more neutral and less of a positive change Question 3: Do you perceive a change in investment mood compared to last year? N = 21 Global 48% Europe 33% 36% 19% 19% 8% 8% 0% Unchanged negative Change towards negative No change Change towards positive Unchanged positive - Overall, European outlook compared to last year much less positive than the global one - For almost 50% of European respondents no change, for none unchanged positive

15 WEC Pulse Check Energy Infrastructure Investments EUROPE Also for two thirds of Europeans, energy infrastructure investment is a major necessity Question 4: How would you assess the need for investments in energy infrastructure in your country? N = 21 64% 62% Global Europe 28% 29% 8% 10% High (=major investment necessity in the upcoming years) Medium (=one investment necessity amongst others) Low (=minor investment necessity in the upcoming years) - European and global view very similar: investments into energy infrastructure are a major necessity in the upcoming years

16 WEC Pulse Check Energy Infrastructure Investments EUROPE In Europe as well, the power sector is attracting the biggest share of energy infrastructure investments Question 5: In which dimension / aspect of energy is investment mainly flowing into? (please select maximum two that apply best) N = 21 Power supply infrastructure Power transmission infrastructure Energy efficiency goods and services Gas transmission infrastructure Extraction of fossil fuels Power distribution infrastructure Heat Others 33% 33% 31% 22% 24% 8% 6% 5% 44% 52% 42% 43% 61% 57% Global Europe - Overall very similar European view compared to global one, with power transmission infrastructure more pronounced 1: i.e. power plants, wind parks 2: i.e. transmission lines 3: i.e. pipelines, LNG terminals 4: i.e. oil, gas etc. 5: i.e. distribution grid lines

17 WEC Pulse Check Energy Infrastructure Investments EUROPE Also in Europe, the private sector is considered the most important investor in energy infrastructure Question 6: From which parties are investments in energy infrastructure primarily coming? (please select maximum two that apply best) N = 21 Private sector / Business National government Multilateral institutions (i.e. World Bank, EU) Foreign Direct Investment Households (i.e. consumption of energy eff. goods) Others Institutional investors (i.e. pension funds) 33% 24% 19% 31% 19% 8% 10% 6% 10% 47% 48 61% 67% Global Europe - European and global picture very similar: Private sector / Business more important than national governments, in Europe even more pronounced than globally

18 WEC Pulse Check Energy Infrastructure Investments EUROPE A difficult regulatory environment is considered the biggest barrier to investment same in Europe Question 7: In case of neutral or negative outlook, which barriers to investment in energy infrastructure do you see in your country? N = 18 All factors Global Europe 57% 72% 89% 94% If difficult regulatory environment, then which factor behind it? 53% 35% 17% 12% Difficult geopolitical situation Difficult market environment Difficult regulatory environment Lack of planning reliability Lack of right incentivization No further specification - In case of a neutral or negative investment outlook, almost all respondents cite a difficult regulatory environment as the most important barrier to investment - A difficult market environment is a barrier for the majority of European respondents

19 Thank you Any questions?