The European electricity supply industry is facing major challenges in the coming years.  The infrastructure of the networks is ageing and requires significant investments in order to secure the supply of energy in the future. Strategic decisions are required: whether to replace or upgrade plants and networks. However the current status of the world economy tightens the available capital.

The 20-20-20 targets outlined by the European Commission also have a major impact on operating the network. Responding to the climate change, by addressing energy efficiency measures and inclusion of renewable energy sources, is high on the political agenda. According to a recent survey, done by PricewaterhouseCoopers, 59% of the world power utilities “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.”

Technological innovation is paramount to achieving the European targets. Energy efficiency, Combined Heat and Power, Distributed Generation and Solar power plants will contribute in reaching the goals, but again investments are indispensable.

Power utilities need to create a balance between, on one hand addressing the current crisis, but also maintaining a long-term business strategy.