In this very good Reuters article, Jason NEELY (REUTERS) sets out to show that Utilities’ volume-based model is no longer a sustainable profit-making vehicule, and that Energy Efficiency solutions providers start capturing the value from Utilities.
Here is a non exhaustive wrap-up of this article:
– European Utilities could be very affected by the decline of their energy revenues.
– As an example and according to Bain, “the big four [German] Utilities will lose about a third of their annual operating profits from generation […] by 2020”
– “Do they look for a profitable way to help consumers save energy or try to defend their traditional business model?”
– “Utilities need to move away from selling megawatt hours, to selling full energy services, that is the only solution for them”
– So far, analysts don’t see Utilities offering significant Energy Efficiency solutions. However, “despite the challenges, Utilities have no choice but change and there are some signs of them doing so”
– Energy Efficiency is presented as a global megatrend. For instance, the U.S. energy-efficient building market ($10 billion in 2005) “is expected to reach as much as $248 billion by 2016”
You enjoyed this post, Follow me