Our 18th Capital Confidence Barometer indicates a confident Power & Utilities sector with strong dealmaking intentions remaining above long-term trends.
Portfolio shifts to dictate utilities’ dealmaking
Renewables withstand the headwinds
Power transactions and trends Q4 2017
The retail energy revolution
Would utilities or energy investment be better than P&U?
Expanding the traditional utility value proposition
Renewables: finally breaking free
Spotlight on power and utilities mega projects
Power & Utilities Capital Confidence Barometer 15
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 Network can help you meet the coming changes and resulting challenges. We have over 4,400 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.