Risk of electricity blackouts increasing: survey

Blackouts on both sides of the Atlantic have propelled security of energy supply to become the top concern for utilities companies across the world, according to the sixth annual PricewaterhouseCoopers report 'Supply Essentials: Utilities Global Survey 2004'. The report, which presents the views of 148 leading companies across 47 countries throughout Europe, the Americas, Asia Pacific, Africa and the Middle East, indicates that securing power supply has risen from the fourth concern only twelve months ago to the highest ranking issue of 2004.

This change in the global utilities landscape was a direct result of increasing difficulties in the balancing act of power generation, demand and transmission. Demand is now outstripping supply, and world energy demand is expected to rise by two-thirds between 2003 and 2030. In the same period, global electricity sector investment needs are estimated US$10 trillion, three times higher than investment in the electricity sector during the past 30 years*. There is also an increasing reliance on gas as a cleaner fuel source.

Manfred Wiegand, Global Utilities Leader, PricewaterhouseCoopers comments:
"Security of supply is a global concern. If blackouts are not to become a regular feature of the future, major investment in the sector is required. Across the world we see ageing infrastructure, coupled with increasing demands, on generation and transmission capacity. A consistent and stable regulatory environment is required to make the sector more attractive to investors. Capital will only come with good rates of return."

While security of supply was identified as the highest concern globally, a variety of issues echo across the world. In Europe, 91 percent of respondents surveyed believe blackouts will continue to be a regular occurrence. In the US, vertical integration and a back to basics approach is back on the agenda, as 82 percent predict a modest 0-5 percent growth in the next twelve months. In Asia, a small number of companies are investing outside their domestic markets, driven by constraints in their home markets due to high reserve margins and expanding electricity sector regulation. In Australia, the establishment of the Australian National Energy Regulator in 2004 is widely expected to improve regulatory certainty and enhance performance and stability.

Download the full survey report (PDF)

•Date: 11th May 2004 •Region: Various •Type: Article •Topic: Power management
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