Auto-Translate | Client Login
Who Can Benefit From the European Electricity Service

PIRA believes that "knowing the numbers" of generation, demand, cross-border trading and price is essential to achieving success and winning in this new and hard-to-predict market. The European Electricity Service will make winners out of:

Power Traders and Marketers. EES will assist you in understanding essential generation issues (i.e. availability of hydro, thermal and nuclear plants), generation availability for trade, demand growth, and the development of prices.

IPPs and New Entrants. EES will help you to understand the "map of the power" of the Europe's well-established electricity incumbents. Knowing the details of incumbent's physical portfolios will help you in defining your entry strategy and your competitive position in the market.

End-Users. Perhaps no other type of client will find EES as valuable as the end-user. As the driving force behind European market liberalization, buyers of gas, power, and oil are now faced with the daunting task of choice. Power generators, industrial buyers, petrochemical firms, and commercial buyers will be offered deal after deal, but with these choices comes a complex web of commercial decisions: What price can be obtained? Where is the market heading? EES provides end-users with the numbers and analysis to correctly answer these critical questions.

Gas Traders and Marketers. Using gas to produce electricity will account for up to 80% of total gas demand growth in Europe in the decades to come. So if you are selling gas, the power producer is likely to be a client, and if you are producing power, there is a strong chance that you will be burning gas at some point. The relationship between gas and power grows closer each year, with the "spark spread" — a measure of profitability in gas-fired power generation — becoming as common a tool of analysis as the refining margin in oil markets. The growing convergence of US and European markets via spot LNG arbitrage also increasingly connects changes in the European electricity market to North American gas and electricity.

Coal Market Players. In most European countries, coal is in a constant state of competition with gas and oil as the fuel of choice in the power generation sector. The coal spread is a key indicator of profitability for power producers. Changes in the European or US power markets will have increasingly rapid effect on Atlantic Basin coal prices and trade. EES provides the tools for showing coal market players where they stand in terms of competitiveness in the power generation sector and also offers a comparative framework for clients that also retain PIRA's North American Electricity Service.

Banks and Financial Institutions. As a bank involved in the financing of new plants or asset acquisitions, it will be imperative for you to analyze accurately the market environment for these projects. Lending to the power sector requires a thorough understanding of the markets in which the power plants are going to be built and operate in the deregulated European market. EES can be a valuable resource for conducting due diligence on regional markets, growth potential, and constraints.


Send mail to webmaster@pira.com with questions or comments about this web site.
Copyright © 2012 PIRA Energy Group.
Revised:  February 04, 2003
All rights reserved.