EU member states must finance the deployment of more than 300 gigawatts of new power generation capacity to meet demand growth of 20% by 2030, requiring colossal levels of investment across the entire value chain.
Driven by legislative requirements and strategic diversification opportunities, Europe's leading utilities must finance conventional forms of power generation as well as record levels of low-carbon power generation in a rapidly evolving energy market environment.Analysis of key recent deals and outlookReview of the investment strategies of main European power utilitiesEnergy asset investment projections for 2020The economic downturn has had a dampening effect on power demand, due largely to lower industrial activity. It also took its toll on energy infrastructure investment initiatives, particularly in renewable energy, as risk-averse investors retreated to safe havens.Markets and energy companies acting on their own are unlikely to deliver the necessary technological breakthroughs as a result of delays in obtaining the necessary environmental and construction permits, an issue compounded by difficult access to finance and lack of adequate risk-mitigating instruments.Investors have expressed strong concerns about the scale and diversity of funds needed, the recent and potentially protracted contraction of capital markets, and new legislation that would reduce banks' ability to lend. They have also called for more transparent and stable policy making that addresses limitations on both supply and demand sides.How are European utility capex programs likely to evolve in the next three or four years?Where will energy investments come from? What is the scale and diversity of the funds needed?What does the investment outlook look like for renewable power, clean coal, liquid natural gas, and large-scale energy efficiency?What about conventional forms of power generation and nuclear?