Research and Markets: Will Rivalry between Endesa and Iberdrola Lead to a Strengthening of the Trend towards Fierce Competition in the Iberian Power Markets?

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c19318) has announced the addition of Price Bust After the New-Build Boom? The Power Markets of Spain and Portugal, 2005-2020 to their offering.

With several large incumbent players, strong rivalry, a boom in new-build CCGTs and complicated stranded cost regimes, the future of the Spanish and Portuguese power markets appears unclear. Will the obvious rivalry between Endesa and Iberdrola and the advent of MIBEL - the single Iberian power market - lead to a strengthening of the trend towards fierce competition? Or will the incumbent players realise the futility of their rush for market share and new capacity, and will a cosy Iberian oligopoly emerge in the context of further merger activity?

This report presents both the essential market background required for a thorough understanding of the key drivers of the Iberian power markets, as well as presenting the key results of a study of the market over the period 2005-2020.

This report includes a spreadsheet containing the numbers behind the key tables and charts, as well as a full plant listing (owner, name, capacity, etc).

How low will prices fall under increased competition?

Nearly 6.9 GW of new gas-fired CCGT plant has been installed in Spain since 2002, and a further 6.8 GW is under construction. This follows a long period of virtually no investment, and some tight capacity situations during winter 2001/02 when the system operator imposed rolling blackouts in central Spain. Although around 7 GW of oil and dual oil/gas plant in Spain is approaching economic and technical retirement, the explosion in new capacity is threatening a situation of over-capacity.

In this report we consider the impact of the vast fleet of new plant coming online in the Spanish market, and the increasing tendency for Endesa and Iberdrola to focus on market share rather than profitability. Although EdP has the Portuguese market firmly in its grip, once the Iberian MIBEL market has started there will be little choice for Portugal but to track Spanish price levels.

The integrated approach on Iberia taken in this Market Study ensures a consistent picture is drawn of the power sectors in the two countries. At the same time, the report provides a thorough appreciation of the sometimes very different driving forces at work in Spain and Portugal, despite moves towards market integration.

By purchasing this report, you will enhance your insight into:

--Why and how long intensified competition will persist in Spain; and

--When a transition to a healthier market will likely take place;

For more information visit http://www.researchandmarkets.com/reports/c19318.