Financial outlook - perspectives
Perspectives on the cost and availability of capital for the utility and energy industry
Transforming the sustainable energy future requires significant investment in smart grid, energy efficiency and renewable technologies. It also requires investment in the processes and services needed to bring new technologies to market. This transformation comes at a time when thecost of capital is increasing and is becoming scarcer. And the capital that is in the market may preferentially chase smart grid ventures, creating a potential new technology bubble.
Significant growth opportunities are being seen in the energy industry. New market players are entering the traditional utility space – from established information, communications and data technology companies to venture-backed new-starts. And each faces different sets of financing opportunities and challenges.
For electric utilities,current economic conditions and risingcommodity prices are sapping consumer and regulator willingness to fund utility projects.
Established technology companies with broad capital bases are actively investing in energy business units.
The challenge for venture capital investment is the volatility of technology and risk. As venture capitaltrends towards emerging companies focused on innovative clean energy, energy efficiency and storage technologies is a “green tech” bubble inevitable?
The changing electric utility and end-user customer relationship
The rapid entrance of new market players is driving change in the electric utility and end-user customer relationship – in some cases displacing utilities in the customer base. With slow customer adoption rates of new technology, technology volatility and risk, and access to capital challenges facing the energy industry, utilities must find a way to partner with companies moving quickly into the industry and facilitate market change.
About the Utility of the Future conference
KEMA’s 2nd annual Utility of the Future executive conference was held June 18 – 19, 2009 in Washington DC.
For information on the panel participants and keynote speakers, download the conference summary Whitepaper, “Utility of the Future: Navigating energy sustainability.”
Thoughts, comments or insights? Join the KEMA Utility of the Future conversation.
KEMA’s 2nd annual Utility of the Future conference session summaries
The utility industry is at a point of historic transformation. Communications, collaboration and innovation are key to how well utilities will fare in a fast-paced, always-on future
The Smart Grid is the foundation for Smart Energy
Rules make markets. And rules are driving the immediate action on Smart Grid
There continues to be significant regulatory uncertainty in energy generation—particularly so in light of the American Climate and Energy Security Act
The utility industry expects to see new carbon policy limiting carbon emissions during the current administration
Energy storage is a transformative technology—it has the potential to change everything
Plug-in vehicles (PEVs) have become a topic of focus of bulk system operators, along with demand response, renewables and smart grid
Smart grid technology is a bridge that connects generation supply, demand and customers. To make it work, we need to know what customers are going to do