1. Market Overview
Across Western, Central and Eastern Europe, as well as in Eurasia, export and investment opportunities abound for U.S. firms, both large and small. These "best prospects" exist in a plethora of sub-sectors, ranging from renewable energy and energy trading in the European Union, to the liberalization/privatization of existing power generation plants and transmission facilities, new generation facilities and transmission and distribution projects in Central and Eastern Europe, to oil and gas exploration, production and transportation in Eurasia. Of course, there is some overlap among regions, but to a large extent, these regional markets within Europe present markedly different opportunities for U.S. firms.
In the past, most governments, to varying degrees, have heavily regulated the energy sector, often inhibiting the sector's development and operation. However, as governments in the region seek to attract greater foreign investment, many are opening their markets through privatization and liberalization. The EU’s energy sector is far more developed and liberalized than the other regions within greater Europe. At the same time, the EU is increasingly enacting pro-renewable energy legislation designed to increase its own share of overall energy consumption within its borders; this again presents excellent opportunities for American firms. Biodiesel, biogas and other bio fuel technologies and investments are strongly encouraged within Europe.
In Central and Eastern Europe, many power-generation, transmission and distribution assets are in direct need of upgrading to meet safety and environmental standards. Additionally, these countries, who have traditionally relied on a single source of fuel for their power generation needs, are now trying to diversify their supply in order to guarantee energy security. As many of these countries wish to accede to the EU, they will need to comply with EU standards, which requires that they increase the use of renewable energy sources, upgrade existing facilities, and prepare for privatization and liberalization. This will entail the investment of billions of dollars in the energy sector over the coming years. Since many of these countries lack local funding sources, most will require significant amounts of foreign financing and foreign direct investment to achieve these objectives.
In the Eurasian countries, billions of dollars of procurements in oil and gas exploration, production, refining and transportation, backed by blue-chip international oil consortia, are expected to create major opportunities between the years 2007-2010. In turn, this presents major export opportunities for U.S. firms – whether small, medium or large. U.S. firms should also monitor the wider opportunities in Russia, Kazakhstan, Azerbaijan and the Caspian Sea region. In directly related sub-sectors such as oil and gas field service equipment, offshore and onshore pipelines, refineries, natural gas storage, LNG & CNG facilities, biodiesel, biogas, and SCADA systems, as well as indirectly related sectors such as compressors, road construction, heavy earth moving equipment, health, safety and environment, telecommunications, and information technologies, U.S. firms and their highly sought-after products and services will find themselves to be very competitive.
2. Objectives
The Showcase Europe Energy Team key objectives are:
· Monitor the European and Eurasian energy sector in order to alert U.S. firms about new commercial opportunities and regulatory developments, as well as maintain and further develop key industry contacts.
· Advocate on behalf of U.S. business interests, whether related to energy policy, the regulatory environment, or specific business opportunities.
· Assist U.S. companies in taking full advantage of increasingly liberalized and deregulated markets across Europe.
· Assist and encourage local and international businesses and government enterprises to source American products and services.
· Introduce and market SCE Energy Team activities to U.S. SMEs, particularly new-to-market and new-to-export companies.
· Integrate SCE Energy Team programs with other groups, such as the Domestic Energy Team, Europe Team, Manufacturing Team, EPS, TD, TDA, Ex-Im Bank and OPIC, stressing creative approaches to providing services more effectively and efficiently to our clients, with particular emphasis on SMEs and under-served communities.
3. Strategies
3.1 SCE Energy Team Participation
The following posts are expected to participate in SCE Energy Activities in 2007:
Albania Austria Belgium
Bulgaria Croatia Czech Republic
Denmark European Union Finland
France Germany Greece
Hungary Ireland Italy
Kazakhstan The Netherlands Norway
Poland Portugal Romania
Russia Slovak Republic Spain
Sweden Switzerland Turkey
Ukraine United Kingdom
3.2 Market Research
SCE Energy Team members will prepare following subject reports in 2007:
ISAs – Renewable Energy, Biofuel, Nuclear Energy, Oil & Gas Market, Potential Energy Privatization & Liberalizations
IMIs – Biomass Energy Projects, Solar Energy Projects, Wind Energy Projects, New Power Plant Projects, Refinery or LNG Terminal Projects, Oil & Gas Pipelines, and Natural Gas Storage.
Project Profiles – The SCE Energy Team will update the Energy Profile Reports that are continually distributed on CDs to our U.S. clients at Tier I and Tier II Events, as well as through the SCE webpage. These reports are intended to provide clients with a brief “snapshot” of opportunities within a given market.
3.3. Market Promotion
The Showcase Europe Energy Team will coordinate closely with the Domestic Energy Team and Europe Team to promote 2007 Tier I and Tier II trade shows and other events. Some of the SCE Energy Sector Team members will attend the following Tier I and Tier II events, depending on the potential contribution that the event may bring to a particular market.
3.3.1. SCE Tier I Event:
PowerGen Europe - Madrid, Spain - June 26-28, 2007
POWER-GEN Europe is Europe's premier power generation conference and exhibition - renowned not only for its size, but also for the quality of its attendees.
Leading industry suppliers active in the pan-European market have an exhibit presence, while the conference consistently attracts senior speakers from around the world. The combined conference and exhibition provides a vibrant and influential forum for European and international industry executives to make valuable connections, enabling them to succeed in one of the world's most diverse and challenging power markets. Power-Gen Europe is a Tier I event, where SCE Energy Team members with the help of the Domestic Energy Team will provide Showtime appointments. We will counsel exhibiting U.S. companies and provide them with a CD, which will incude Energy Briefs of the European Markets. Further information can be found in the following link: http://pge07.events.pennnet.com/fl/index.cfm
3.3.2. SCE Energy Sector Tier II Events
The following Tier II events are optional. Team members will try to recruit International Buyer Delegations from their countries to these events.
PowerGen International – Orlando, Florida - November 28-30, 2006
For this Tier II event, the Domestic Energy Team is organizing Showtime appointments for the SCE Energy Team members with U.S. firms. Several European posts such as the Czech Republic, Italy, Romania, the Slovak Republic, Sweden, and Ukraine are planning to attend and participate in Showtime appointments with U.S. firms. All posts will promote the event in their countries for foreign buyers to attend this event. Our attending specialists will counsel exhibiting U.S. companies on opportunities in SCE Energy Team markets. Some sessions of the related conference will be highlighted to encourage attendance by participating Energy Specialists, to help them gain familiarity with U.S. energy company capabilities and trends. Specialists will also be encouraged to choose sessions appropriate to their markets.
Further Information on this program is available at http://pgi06.events.pennnet.com/
PowerGen International – Las Vegas, Nevada - November or December 2007
For this Tier II event, the Domestic Energy Team will organize Showtime appointments. Several European posts may attend and participate in Showtime appointments with U.S. firms. All posts will promote the event in their countries for foreign buyers to attend this event. Our attending specialists will counsel exhibiting U.S. companies on opportunities in SCE Energy Team markets. Some sessions of the related conference will be highlighted to encourage attendance by participating Energy Specialists, to help them gain familiarity with U.S. energy company capabilities and trends. Specialists will also be encouraged to choose sessions appropriate to their markets.
Further Information on this program is available at http://pgi07.events.pennnet.com/