Regional highlights
| United States • In the current environment, fundamental operational matters have played a prominent role in US utility company priorities. Companies continue to focus on plant capacity and maintenance, customer service, long-term capital projects, rate case preparedness, and environmental readiness rather than on mergers and acquisitions or other strategic restructuring moves. Canada • In common with many parts of the world, the challenge of responding to climate change concerns and other regulatory challenges are at the top of major concerns facing the Canadian utilities sector. In addition, Canadian survey respondents highlight the problems of an ageing workforce and physical infrastructure as well as stretched transmission capacity. South America • After several years of strong economic growth, growth in the region is weakening in response to the wider global economic downturn and financial crisis. The International Monetary Fund has forecast that Latin America GDP growth will drop to 1.1% in 2009 after unprecedented annual expansion over the last six years at a rate of around 5%. In its March 2009 forecast, the World Bank anticipated that the Latin American economy is likely to contract in 2009, experiencing a drop of 0.6%. Europe • Energy security, cleaner energy, market competition and energy infrastructure have been the issues dominating the European power market agenda. Ahead of the recession, European leaders set their sights some way forward by committing to a 20:20:20 ambition of 20% emissions reductions, 20% renewable energy and a 20% improvement in energy efficiency by 2020. Asia • 2009 is proving to be a very challenging year for power utility companies in Asia. Power utility executives are seeking various means to increase operational efficiencies in the current difficult market situation. At the same time, some of the power utilities, especially those in China, continue to be confident for the future and seek growth opportunities locally and overseas to meet the expected long-term demand growth of the utilities in the region. |
Australia and New Zealand • The development of legislation for an emissions trading scheme, and its subsequent impact on investment in new generation and other energy infrastructure, has been a major focus for Australian utility companies. In December 2008 the Australian Government released its White Paper for the proposed Carbon Pollution Reduction Scheme, planned to start in July 2010. Middle East • Growing demand for electricity, and the impact of an inadequate physical and financial infrastructure, means that the region’s developing markets have enormous long-term potential for power developers. There are high expectations for project activity in the water and power sector in 2009. However, the economic slowdown has led to reduced power and water demand expectations in some parts of the region as planned residential and business developments have been put on hold. Central, East and West Africa • The African power industry is an investment hotspot. Governments, utility players and other stakeholders all have a ‘build, build, build’ mentality as they look to satisfy the region’s rapidly increasing demand for electricity. However, as the ripples from the international financial crisis reach the region and investors become increasingly risk-averse, the industry needs to take bold steps to attract the required investment inflows. Southern Africa • Like their peers in the rest of the continent, Southern African utility companies are focused on capacity expansion to meet the growing demand for power in the region. The successful execution of comprehensive expansion plans, coupled with energy efficiency and demand side management initiatives, are expected to restore the region’s target reserve margin by 2012. Securing investor support and generation equipment amid worldwide demand is of the highest priority in boardrooms. |