Europe Faces €1 Trillion Cash Crunch That Could Derail Green Agenda
The European power sector is facing a double whammy of a capacity and investment crunch which could jeopardise its security supply and derail its low carbon agenda.
That is the stark warning in a report published today which puts a €1 trillion price tag on the new infrastructure needed to maintain Europe’s energy supplies.
Analysts at US-based consultancy HIS (NYSE:IHS) say the investment climate deteriorated over the last year as several countries faced a double-dip recession, while the financial strength of utilities weakened due to higher debt levels and weaker credit ratings. [...]
IHS has calculated that investment of around €750bn ($997bn) is needed over the next ten years for power generation, €90bn for transmission lines and about €150bn for new gas supply and transmission capacity.
The report notes that Europe is due to close around a quarter of its fossil fuel power generation capacity by 2023 to meet tighter environmental rules, while the rapidly expanding renewables sector needs back-up supply and better grid interconnections.