The results of the were presented in Milan XV Utilities Observatory of Agici Corporate Finance and Accenture. These are two studies that analyze the 2014 of the sector both in Italy and in Europe.
Il first study analyzes the results of the Utilities sector in 2014 in Italy and in Europesome evidence:
Le fossil sources are increasingly in crisis: in 2014 in Europe 80% of the additional capacity is renewable. The growth of renewable energy sources is accompanied by an increasing use of coal and lignite-fired plants, because they are increasingly competitive in terms of price. Gas for electricity production is increasingly off the market.
The role of large plants is increasingly marginal: in Italy as many as 31 GW (over 50% of peak demand) are connected to local networks; in Germany this value rises to 71 GW (85% of the peak). According to research by the Observatory, in 2020 over 40% of the additional capacity in the world will be covered by distributed generation plants.
As far as consumption is concerned, recovery can be considered excluded: a progressive decline is expected in Europe up to 2035, this is also due to the diffusion of energy efficiency and responsible consumption styles, as well as the diffusion of prosumers (consumers and producers together ): in Italy over 10% of the electricity consumed is self-produced on site.
For the Italian multiutilities there is a situation of stagnation for revenues and profits, which remain unchanged in 2014 from the previous year.
The water sector, on the other hand, did well: in the period being analyzed (2008-2013) revenues are growing, profitability is constantly increasing, debt is declining sharply.
Il second study defines the "Strategies to renew Utilities in Italy":
In the light of the market context which presents strong structural and contingent challenges (decline in consumption, production overcapacity, falling margins, increasingly demanding customers) the strategies on which Utilities must focus in order to compete and innovate are identified. The survey suggests the right direction to follow.
Three imperatives must inspire concrete actions: achieve excellence in conventional business, open up to new businesses, evolve skills and human resource management.
Starting from the historical data of the Italian market in recent years, the analysis suggests that if these actions are taken, the performance of utilities could grow by 30% in terms of profitability by 2020.
