A key component of long term supply security in electricity is the sufficient amount of investment into electricity generation. There is an ongoing discussion about whether the market conditions that have been created in Central and South-East Europe provide the proper investment incentives or not. This study seeks to contribute to this discussion by collecting the latest publicly available information on the state of expected new investments in the upcoming decade, and critically evaluate this information in light of how much new capacity would be needed until 2020 from an economic point of view.

Our findings do not refute the claim that liberalized markets and long term supply security in electricity can coexist. We find that if anything, investment plans are overabundant in our region, and a considerable portion of them should probably be cancelled, or delayed until they are really needed.