The scale and complexities of the challenge facing the power utilities sector are immense. The International Energy Agency estimates that the cumulative global investment required in the power sector from 2010 to 2035 is US$16.6trillion (in year-2009 dollars).
The suddenness of the recent economic crisis and the subsequent uncertain recovery shows how stop/start uncertainties can affect project pipelines. As well as economic and market volatility, companies also have to weigh up the direction of travel of the regulatory environment, particularly with respect to the fuel mix. As events following the Japan earthquake showed, this context can change abruptly.