Customer Feedback

European Utility Values Plummet: What is the Solution?

A report published by Forum for the Future claims that the energy system in the UK is changing at such a rate not seen since the Industrial Revolution.

A complete decarbonisation of the system in the near future is deemed to be necessary to avoid dangerous climate change and economic issues. The utilities sector as a whole faces decisions which may disrupt the medium-long term value of companies, which should inevitably feed down through the energy sector and the wider economy.

European utilities have already lost over €100 billion in value since 2008 and the primary factors driving change include decarbonisation, digitisation and decentralisation along with democratisation. Interestingly, it is claimed that the system has grown from 80 power stations to over 900,000 power generating units.

This vastly increased number includes a number of renewable technologies along with rooftop solar units. Typical consumers in the previous system are now becoming much more active in the power usage and personal generation.

The impact of decentralisation has the potential to cause issues for traditional power companies; as Australia’s grid industry predicts that 50% of the electricity used in 2050 will have been produced by consumers.

Poor Forecasting?

To date, governments and industry have consistently underestimated the impact and growth of renewables along with the drastically reduced costs associated with such technologies.

For example, it was forecasted in 2002 that globally, the installed capacity of solar power would hit 10GW in 2020. The actual figure as of 2016 was a capacity of 300GW globally, with the UK single-handedly surpassing the original global target of 10GW.

Investors are now being encouraged to come forward to potentially push the sector toward a more positive outcome. While some utility companies are already in the midst of losing market share, there is likely to be more disruption to the market as a transition to a decarbonised energy system becomes common place.

A Solution in Sight?

Through the integration of innovative technologies and business models, it is the view of industry experts that the big utility companies should lead the way in bringing change or else face the threat of an unsustainable future in their current format.

The processes being put forward to accelerate the positive change include the transition to zero or low carbon generation, distributed energy and storage capabilities. Along with changing the interaction and relationship with traditional customers.

It seems, however, that transport needs to play catch up with the industry. Figures show that there are only around 100,000 electric vehicles and plug-in hybrids on the road in the UK. Whereas 99.7% of vehicles are powered purely by fossil fuels.

Crown Gas & Power are a gas supplier to the commercial world. If you would like more information about our business supply and connection services, request a quote here or get in touch with our team on 0161 762 7744.

Latest from Twitter

Further Reading...

How can we help you?

If you have a question or need some further information please get in touch using one of the options below

Crown Gas & Power
Bury New Road,
Heap Bridge,
Bury
BL9 7HY, UK
Tel: 0161 762 7744

Where to find us...

QUOTE

Contract coming to an end?
Moving to new premises?
GET A QUOTE NOW

Contract coming to an end?
Moving to new premises?

Get a Quote

METER READING

We don’t like billing customers to estimated readings, submit your gas reading now for a more accurate bill.

Submit Meter Reading

LATEST NEWS

Follow Crown Gas and Power on social media and keep up to date with all industry information

Latest News

CONSULTANTS

Are you a consultant looking to work with a transparent gas supplier?

Find out more
Crown Oil

Leading Nationwide Fuels & Lubricants Distributor delivering to homes & businesses

Crown Oil
Speedy Fuels & Lubricants

Fuels & Lubricants Supplier Specialising in Deliveries Across the London Area

Speedy Fuels & Lubricants
Crown Oil Environmental

Crown Oil supply a number of environmental services including fuel oil testing and fuel polishing.

Crown Oil Environmental