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Generation Capacity in Europe Will Stay Tight

Different sources, e.g. Union for the Coordination of Transmission of Electricity (UCTE), Cambridge Energy Research Associates (CERA), IEA expect capacity bottlenecks already by 2009.
Major drivers for capacity bottlenecks:
– Ageing power plants
– Volatile gas prices (driven by oil prices)
– Supply constraints for power plant components, scarcity of consented sites
– Lengthy approval procedures for interconnector extensions
– Political risks threatening investment plans for power plants and networks
– Special drivers:
   • Nuclear phase out in Germany
   • Large Combustion Plant Directive (LCPD) in UK
   • Increased peak-load demand in France
   • Volatile hydro reservoir levels in Spain, Scandinavia, Austria, Switzerland
   • Decommissioning of old nuclear reactors in new EU member states

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