News

World news Bookmark and Share

30.11.2017 12:32
CEZ switches focus from the Balkans to the West
In terms of new assets, the company is now definitely aiming at renewables in Central and Western Europe
AUTHOR: publics.bg


  • © CEZ

The largest power producer in Eastern Europe is scaling back its troubled Balkan operations to expand in the west, Bloomberg reported.
 
After spending hundreds of millions of dollars in Southeastern Europe last decade, CEZ AS is changing tack following too many fights with local lawmakers and regulators. The Prague-based utility is in talks to sell coal plants and a distribution business in Bulgaria. In Western Europe, the company is snapping up wind farms, heating facilities and other assets to compete with giants like EON to Engie.
 
“We are shifting our focus,” Chief Financial Officer Martin Novak said this month in an interview. “In terms of new assets, the company is now aiming at renewables, and definitely in Central and Western Europe, rather than in Southeastern Europe.”
 
The impending sale of assets in Bulgaria, which the company hopes to complete in the next few months, marks the end of rapid expansion under the previous management in emerging markets from Albania to Romania and Turkey. The Czech utility, which still generates most of its power from coal and nuclear, plans to double profit from new sources by 2020 to catch up with western peers.
 
CEZ’s Balkan strategy began to crumble at the turn of the decade as wholesale prices slid and nationalist governments turned on foreign utilities. The company soon ran afoul of local regulators as Albania nationalized its assets, Romania temporarily withheld state compensation for wind power and Bulgaria repeatedly threatened to revoke the utility’s license after accusing CEZ of charging consumers too much. 
 
The utility is still negotiating with potential buyers, including Czech company Energo-Pro AS, which sweetened its bid in September. CEZ may also sell its 50 percent stake in Akcez Enerji Yatirimlari AS, a power supplier to 3.4 million people in northwest Turkey. Though the management isn’t officially negotiating, it’s open to offers, Novak said.
 
At the same time, the utility has added 35 megawatts of onshore wind capacity in Germany this year. It bought nine wind farms in France, where it plans to develop as much as 100 megawatts in the next five years.
 
CEZ’s strategy shift coincides with a push by the European Union to increase the region’s renewable energy target to 30 percent of total consumption in the bloc by 2030 from the current goal of at least 27 percent by 2030, European Commission Vice President Maros Sefcovic said last week, Bloomberg reminded.
 
CEZ is contemplating separating renewable assets from conventional energy in a similar vein to when RWE AG spun off its green power, grid and retail units into Innogy SE, Novak said.

TAGS: CEZ | scaling back | Balkans | sale | assets | Western Europe | renewables | investments | wind power | Martin Novak 


All world news

No published comments
Login to comment


Interview

20.03.2022  Teodor Bobochikov, Managing Partner, V-Ridium
Energy Transformation – Trends and drivers
Full text

Events

No records in this category!

Poll

What kind of transport do you use to get to work?











 



We use cookies to ensure we give you the best browsing experience on our website. Find out more on how we use cookies and how you can change your settings.

Cookies

What are cookies ?

A cookie is a small text file that a website saves on your computer or mobile device when you visit the site. Cookies are widely used in order to make websites work, or work more efficiently, as well as to provide information to the owners of the site.

How do we use cookies?

Website use Google Analytics, a web analytics service provided by Google, Inc. ("Google") to help analyse the use of this website. For this purpose, Google Analytics uses"cookies", which are text files placed on your computer.

The information generated by the cookies about your use of this website - standard internet log information (including your IP address) and visitor behaviour information in an anonymous form - will be transmitted to and stored by Google including on servers in the United States. Google will anonymize the information sent by removing the last octet of your IP address prior to its storage.

According to Google Analytics terms of service, Google will use this information for the purpose of evaluating your use of the website and compiling reports on website activity.

We not use, and not allow any third party to use the statistical analytics tool to track or to collect any personally identifiable information of visitors to this site. Google may transfer the information collected by Google Analytics to third parties where required to do so by law, or where such third parties process the information on Google`s behalf.

According to Google Analytics terms of service, Google will not associate your IP address with any other data held by Google.

You may refuse the use of Google Analytics cookies by downloading and installing Google Analytics Opt-out Browser Add-on. The add-on communicates with the Google Analytics JavaScript (ga.js) to indicate that information about the website visit should not be sent to Google Analytics.

Cookies are also used to record if you have agreed (or not) to our use of cookies on this site, so that you are not asked the question every time you visit the site.

Google Analytics Opt-out Browser Add-on

How to control cookies?

You can control and/or delete cookies as you wish. You can delete all cookies that are already on your computer and you can set most browsers to prevent them from being placed.

All about cookies

Managing cookies in your browser

Most browsers allow you to:
  • see what cookies you have got and delete them on an individual basis
  • block third party cookies
  • block cookies from particular sites
  • block all cookies from being set
  • delete all cookies when you close your browser

If you chose to delete cookies, you should be aware that any preferences will be lost. Also, if you block cookies completely many websites (including ours) will not work properly and webcasts will not work at all. For these reasons, we do not recommend turning cookies off when using our webcasting services.
X