Frost & Sullivan’s Journey Through Growth and Investment Opportunities in the Power Generation Market Across the World

LONDON - A series of briefings with top analysts will provide an overview of the powergen sector in specific countries - The first conference will focus on Russia

“There is a tremendous amount of opportunities out there,” stated Frost & Sullivan’s Chairman David Frigstad a few days ago, during a live television appearance on CNBC in London. These growth opportunities represent an enormous, and often hidden potential for companies from different markets across the world. The power generation sector certainly is one of the key markets for companies to invest and grow. But where are these opportunities? How can they be identified and explored? How should market participants be approaching this market?

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Frost & Sullivan is proud to be initiating a new series of topical analyst briefings, examining the market opportunities for the power generation sector in the BRIC countries and beyond. The first of these will take place on 11 June, at 3 pm BST and will focus on Russia. Each briefing will give an overview of the powergen sector in a specific country and highlights for international equipment suppliers, EPC contractors and investors.

The power generation sector reform in Russia, nearly completed but still waiting for several important steps to be taken, has created many opportunities for international investors. The need to upgrade the powergen infrastructure and build new plants fuelled interest and investment shortly before the world economic crisis struck Russia. With power consumption falling, the projected forecast for increased power demand hardly seems attainable in the near term. Does this mean investment has to be put on hold? Frost & Sullivan does not believe so. Firstly, the government is insisting that private investors carry on their investment programmes as if there had been no economic downturn and no decrease in power consumption. Secondly, there is no doubt that Russian powergen infrastructure is in need of investment.

And in fact, two-thirds of the installed capacity was commissioned prior to 1980 and is on the brink of its useful life limit. In order to replace this aging capacity, 38 GW of new thermal capacity will need to be built. This is according to the eagerly awaited General Scheme for Power Generation Plants and Infrastructure, which was intended to provide a clear guide for powergen infrastructure development until 2020.

Demand for new capacity inevitably translates into demand for power equipment, other parts and components, as well as construction services. While Russia has a number of indigenous power plant equipment manufacturers, many customers choose to install international equipment, mainly for its superior technical characteristics. Proof of this can be seen in the gas turbine market, as international manufacturers have achieved a combined market share in excess of 50%.

Also, Russia suffers from a lack of certain domestically manufactured parts and components; for example, most of the stainless steel pipes, pipe fittings and valves are imported from Europe. This provides yet another good sales opportunities for European manufacturers.

Frost & Sullivan’s analyst briefing will review results of the industry reform, the new industry structure and provide an overview of the latest major events in the powergen industry in Russia (2007- May 2009). The briefing will also provide a detailed analysis on the impact of the financial and economic crisis. From an investment standpoint, we will cover the urgent drivers for investment as well as a likely timeline. Finally, along with providing an overview of procurement practices, Frost & Sullivan will assess how to make inroads into the Russian market and look at how market participants should be approaching this market in order to maximise the opportunities that it presents.

To participate, please email Chiara Carella, Corporate Communications, at chiara.carella@frost.com with the following information: your full name, company name, title, telephone number, e-mail, address, city, state and country. Upon receipt of the above information, a registration link will be e-mailed to you. You may also register to receive a recorded version of the briefing at anytime by submitting the aforementioned contact details.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company’s Growth Partnership Service provides the CEO and the CEO’s Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 35 offices on six continents. To join our Growth Partnership, please visit www.frost.com.

Contact: Chiara Carella Head of Corporate Communications P: +44-(0)207-3438314 M: +44-(0)7533017689 E: chiara.carella@frost.com www.frost.com

Source: Frost & Sullivan

Chiara Carella, Head of Corporate Communications of Frost & Sullivan, +44-(0)207-3438314, mobile, +44-(0)7533017689, chiara.carella at frost.com. Logo: https://www.newscom.com/cgi-bin/prnh/20081117/FSLOGO