Energy and utilities firms have expressed optimism concerning the growth prospects for Europe’s electricity market in 2011.
A poll of 60 power equipment and service providers and their customers undertaken at POWER-GEN Europe 2010 found that the majority of respondents (75 per cent) see a strengthening in market demand next year, despite the uncertainty surrounding international climate change regulation.
Indeed, only a tiny minority of respondents – just 1.5 per cent – thought the market would weaken, although many firms have yet to be convinced that the EC’s drive towards a single electricity market will be beneficial to their business.
In a survey designed to gauge industry confidence, POWER-GEN Europe, the leading event for the international power industry, found that EU targets to reduce carbon emissions and increase power efficiency, each by 20 per cent by 2020, are expected to drive the market. However, opinion remains divided regarding the impact of climate change regulation, and that of the EC’s aim to create a common European electricity market. A third of respondents said that the uncertainty surrounding international climate change regulation was having a negative impact on the European power industry, whilst just under a third believed that a common European electricity market would benefit their business.
“Our survey shows that there is a lot of optimism about how Europe’s energy sector will develop next year, tempered by a fair amount of uncertainty,” said Nigel Blackaby, conference director at POWER-GEN Europe 2011. “Despite the negative impact of the economic downturn, the existing power infrastructure has need for significant new investment and the optimism expressed by our survey participants ensured the atmosphere at last year’s POWER-GEN Europe event was electric. Each time we’ve held the event, it has been a great success, and we’re confident that the 2011 event will again surpass expectations.”
The results of the survey were announced ahead of POWER-GEN Europe 2011 , which is being held at Fiera Milano City in Milan, from 7-9 June.