Outage: Investment shortfalls in the power sector in Eastern Europe and Central Asia
This study analyzes the impacts of the financial crisis on power sectors in five countries in the region: Armenia Kyrgyz Republic Romania Serbia and Ukraine. Before the financial crisis these countries faced expected power shortages as a result of large investment gaps. With the financial crisis GDP dropped leading to a drop in demand for electricity. The drop in demand created a window of opportunity for meeting investment needs but the crisis has limited the sources of financing available to the sector. In the post-crisis period the study concludes that policymakers need to prioritize public spending and create a legal and regulatory environment more conducive to private investment.
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