Utility companies are facing a difficult challenge as they balance the constraints of the downturn with the investment required to meet future energy demand, security of supply, and climate change concerns. This year’s annual Utilities global survey highlights the dilemmas of steering through the downturn while remaining focused on the long-term.
The PricewaterhouseCoopers survey goes to the heart of boardroom interviewing 69 senior executives from 65 utility companies across 39 countries. Research covered the four major regions of the Americas, Europe, Asia Pacific, Middle East and Africa. The survey sample is comprised of power and gas utilities (suppliers, transmission companies, traders or generators) that have developed a broad range of interests in a number of complementary utility sectors or other regions.
Key observations from the report:
- Two thirds (67%) of survey respondents reported that a shortage of capital is having a high or very high impact on their activities.
- The development of new generation capacity and the renewal of existing generation plant is a priority area for most companies. 83% are seeking to make medium to large investment in new generation and 79% are seeking to do likewise in transmission.
- 86% of respondents indicated that reduced liquidity in energy trading markets was having an impact on their companies with 60% of all respondents rating this impact as high or very high. Customer credit risk is also identified as an area of major concern. Asked if the economic recession would slow down responses to climate change, 79% felt it would with two thirds of those saying it would have a high or very high slowdown impact.
- 59% feel that their renewable energy investment programmes are being affected by the lack of clarity from governments on renewable energy targets and financial support for renewable energy.
The full report can be downloaded from the PricewaterhouseCooper’s website
Picture from Creative Commons: Flickr: BigBlue
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