Europe’s energy demand to drive T&D investment, says GlobalData

The latest report from research and consulting firm GlobalData states that a rising demand for electricity, coupled with environmental concerns across Europe, is causing countries to look for more diverse energy sources. This will mean boosted investment in their transmission and distribution (T&D) infrastructure.

The report says key European countries - including Germany, France, UK, Norway, Italy, Ireland and France - will spend substantial sums on grid expansion and upgrade programs in order to increase security of electricity supply, deploy smart grid technology and accommodate new sources of power generation.

There will be a focus on renewable energy, with GlobalData senior analyst Shivanshu Agnihotri noting, “Renewable energy accounted for around 70% of the total power generation capacity additions made in the EU in 2012, and further additions are being introduced as a result of EU targets aimed at reducing greenhouse gas emissions and increasing the share of renewables total energy consumption by 2020.”

According to the report, European T&D grids are characterised by issues related to network congestion and the integration of distributed energy resources. Agnihotri said, “The ageing nature of the T&D networks in Europe has raised concerns regarding the stability of the electricity supply and has prompted a number of nations to frame policies for the incorporation of efficient technologies into the grid.”

The need to increase cross-border grid interconnections will be another boost to the European T&D market, as it could lead to competition in the power market and the potential reduction of power prices. By providing a broader generation base, interconnections can improve energy supply security and reduce the need for the additional construction of power generation capacity, states the report.

“Europe is expected to invest heavily in the establishment of transmission infrastructure as it strives to create cross-border grid interconnections and harness the energy generated from renewable sources around the continent,” Agnihotri concluded.

The report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts. It can be accessed here.

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