Even with plans for new generation capacity, power industry execs expect blackout

That's among the findings from PwC’s 12th Global Power & Utilities report -- The shape of power to come -- which surveyed the views of 72 power and utilities companies in 43 countries.

In Europe and North America close to half (46%) predict an increased risk of blackouts up until 2030, while in developing markets where power cuts are currently more commonplace, 53% expect them to reduce.

“The industry and governments face a trilemma in the balance between affordability, security and sustainability," said Manfred Wiegand, global power and utilities leader, PwC. "The outcome for key issues such as climate change and energy availability remains on top of the agenda. Investment has become more difficult and a majority report concerns about a shortage of capital for infrastructure projects. Reduced demand during the economic downturn has bought some breathing space in the race to meet global warming and power infrastructure challenges. But our survey highlights a considerable degree of concern that outcomes may not be good by 2030 if investment availability and policy issues are not resolved.”

In terms of the smart grid and smart metering, 80% of power executives surveyed in North America and 74% in Europe indicated they are worried about customer engagement being an obstacle to realizing the full potential of these technologies.

“Smart grids and smart metering are high on the list of investment priorities and yet a mix of customer apathy and concerns about data usage are already seen as constraints which could limit the potential for these new technologies," suggested Steven Jennings, UK power and utilities leader for PwC. "It will come down to building trust and transparency with customers to encourage and incentivise behaviour change."

He added that one in four power industry executives are waking up to the fact that the new competitive threat could be big customer brands outside the power sector that consumers know and trust.

Download the full report from the PwC site >>

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