How will US sector trends impact the commercial viability of utilities around the world? We explore in the latest Utilities Unbundled.
How US trends are affecting utilities globally
Capital outlook: power and utilities
Renewable energy investment: Canada
Creating a customer-centric utility
Benchmarking European power and utility asset impairments
Power transactions and trends, Q2 2014
Building Blocks – September 2014
Talent at the table: index of women in power & utilities
Capital Confidence Barometer: power & utilities
Power & Utilities
Helping you master transformation in power and utilities
Power and utilities companies globally face the triple challenge of improving environmental performance, keeping consumers’ costs down and maintaining system reliability.
Our Global Power & Utilities Center can help you meet the coming changes and resulting challenges. We have over 3,500 power and utilities professionals worldwide with the broad experience to help you create strategies for future growth.
Key issues shaping the power and utilities environment today include:
- Reshaping the generation mix and renewing aging networks
Faced with ongoing policy pressure to reduce carbon emissions, the sector has an opportunity to reshape the generation mix completely over the next 30 years, through a mix of technologies. But aging infrastructure means major investment decisions must be taken today.
These will have implications across the value chain as networks respond to different demands from generators and suppliers.
Companies are considering how best to react to the introduction of low-carbon generation technologies, with a host of ongoing ‘make or buy’ questions.
Against the over-riding imperative of maintaining security of supply, key challenges include:
- Deciding on the best generation mix for a particular market
- Navigating policy regimes from country to country
- Funding the acquisition or construction of low-carbon generation assets
- Managing the risks of large-scale construction projects
- Engaging with customers over the value of a low-carbon future.
- Accessing capital in times of austerity
Power & utilities remains a hugely capital-intensive sector. The strategic allocation of available capital and access to new sources of finance will become increasingly important over the coming decade.
Massive investment will be needed to:
- Replace existing generation capacity, while taking account of environmental factors
- Renew and upgrade aging network infrastructure
- Transform today's networks into tomorrow's smart grids.
Since the global financial crisis, P&Us have come under pressure to strengthen balance sheets. This has led to significant divestment programs in Europe, and a new round of consolidation in North America.
Looking ahead, P&Us will have to raise and deploy capital on a huge scale, while engaging with a wide range of new finance providers and protecting credit ratings.
| Steve Power |
Power & Utilities
416 943 3367
Connect with us
Stay connected with us through social media, email alerts or webcasts. Or download our EY Insights app for mobile devices.
Our latest issue examines the importance of including statutory burden reconciliation for labour overpayments in a project contract and the impacts of the recent Supreme Court ruling on the Tsilhqot’n Nation v. British Columbia case..