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.
Description
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?
Table of Contents
TOC
OVERVIEW
Catalyst
Summary
THE CURRENT EUROPEAN POWER AND INVESTMENT LANDSCAPE
European power market landscape
Technological diversity
Geographic diversity
European power investment landscape
State of play in 2010
Energy investment in 2011
Debt trends
Equity trends
Regulatory trends
ANALYSIS OF KEY RECENT DEALS AND OUTLOOK
Recent deals and drivers
Deal outlook for 2011 and beyond
ANALYSIS OF THE INVESTMENT STRATEGIES OF MAIN EUROPEAN POWER UTILITIES
Main power utilities in Europe
Investment in renewable energy
Investment in the upstream oil and gas sector
Investment in nuclear power
General outlook
Current situation across key markets
Japan
France
Germany
Overview of short-, medium-, and long-term opportunities
2020 ENERGY ASSET INVESTMENT PROJECTIONS
The European power asset landscape in 2020
APPENDIX
Ask the analyst
Datamonitor consulting
Disclaimer
TABLES
Table: German nuclear plant lifetime extensions and associated voluntary payments
Table: M ajor nuclear steam supply system providers
Table: Comparative full-time equivalent employee assessment per GW of installed power generating capacity (estimated)
Table: Peak construction craft labor requirements
Table: Peak onsite labor requirements
Table: Summary of opportunities for suppliers to the generation III+ nuclear industry
FIGURES
Figure: European power supply (TWh) 2010-20f
Figure: European power demand (TWh), 2010-20f
Figure: European power supply and demand (TWh), 2010-20f
Figure: European power generation mix, 2010
Figure: European power supply from renewable sources excluding hydropower (TWh), 2010-20f
Figure: European power generation mix, 2020f
Figure: Evolution of wind turbine rotor sizes (m) and capacity over time
Figure: US Henry Hub spot prices, 2008-11 (year to date)
Figure: Historic and anticipated onshore wind new-build in the US, 2007-14e
Figure: Announced power purchase agreements for US wind projects, 2008-12e
Figure: Traditional developer and investor risk profile
Figure: The declining costs of wind and solar power assets
Figure: Spot price of solar-grade silicon, 2000-April 2011
Figure: Cost of debt (%), 2005-11
Figure: W ind farm proposals currently awaiting permission in the UK
Figure: Renewable energy global stimuli funding, 2009-13e
Figure: Global subsidies for renewable energy and fossil fuels
Figure: NEX vs MSCI vs AMEX vs NYMEX indices, January 2006-January 2011
Figure: Selected utility capital expenditure (€m), 2009
Figure: Global investment in renewable energy plants by technology type ($bn)
Figure: Governments have used capacity caps, moratoriums, and tariff cuts to restrict growth
Figure: Utility-scale solar asset finance volumes
Figure: Global investment levels across sectors ($m), 2010
Figure: Drivers of financial deals in the utilities sector
Figure: Horizontal integration trends of utility renewable assets
Figure: Barriers to financial deals in the utilities sector
Figure: Main European power utilities at a glance, 2009-10
Figure: Estimated global capex of major European power utilities (2011-15f)
Figure: Key projects by main power utilities in Europe
Figure: Estimated global renewables capex of major European power utilities (€bn), 2011-15f
Figure: RWE Dea's activities: upstream oil and gas, 2010
Figure: E.ON Ruhrgas: E&P position, 2010
Figure: E.ON: global drilling activities, 2005-09
Figure: The nuclear positions of major European power utilities, 2009
Figure: Nuclear projects planned and currently under construction in Europe
Figure: Nuclear power output and share of total power supply by country, 2010
Figure: German nuclear power phase-out schedule
Figure: Forecasted nuclear power output and share of total power supply by country, 2020f
Figure: Power generation forecast in France, 2008-30f
Figure: Graphic representation of Areva's carbon-free power generation services
Figure: Graphic representation of Areva's presence in the world, 2011
Figure: German nuclear plant safety records based on the International Nuclear Event Scale
Figure: Electricity generation in Germany by fuel type, 1991-2009
Figure: Proportion of total power generation projects currently under construction, by European region
Figure: Proportion of projects currently under construction in Europe, by type
Figure: Largest markets for projects planned and projects currently under construction
Figure: Projects currently under construction in Europe, by country and type (MW)
Figure: Projects planned in Europe, by country and type (MW), 2011-20f
Economic Recovery: Financing Utilities Investments published by Datamonitor in September 22, 2011. This report price starts from US $ 2900.
