‘The European utilities are losing profit and facing a gloomy future. For the moment their response is to channel their anger against renewable energy sources and to lobby aggressively against policies seeking to transform the energy system. Their inability to adapt will only make the preservation of their status more difficult, in a competitive market’, commented Francisca Achtenberg who leads Greenpeace’s energy and transport campaign in Brussels.
Greenpeace’s report demonstrates that while the 10 major utilities [3"> generate more than half of Europe’s energy (58%), 4% of it comes from renewable energy sources (excluding hydro power). The companies have contributed 85 GW of power from fossil fuel sources in the last decade – this is equal to the output from all fossil fuel generating stations in Germany.
The analysis shows that the utilities will have to shut down about 50GW of fossil fuel power, if they want to maintain their profits which have already been diminishing since 2012. [4">
Now that they have missed the energy revolution train, they are trying to derail it, by putting pressure on EU governments.
In the current critical debate around the 2030 energy and climate policy package, the utilities are opposed to the ambitious energy efficiency targets.
They have no alternative, but to redesign their development strategies. The EU member governments, who often own large shares in these companies, have the responsibility to direct them towards more economically sustainable business models, which should also take the environment and public health into account.
Sources:
[1"> http://www.greenpeace.org/eu-unit/Global/eu-unit/reports-briefings/2014/Locked%20in%20the%20past-Why%20big%20energy%20companies%20fear%20change.pdf
[2"> The Economist, 12 October 2013, European utilities: How to lose half a trillion Euros – Europe’s electricity providers face en existential threat: http://econ.st/1cYIvEV
[3"> E.ON , Enel , CEZ , EdF , RWE, GdF Suez, Iberdrola ,Vatten-fall , EnBW, PGE
[4"> Bloomberg, 7 March 2013, Utilities need to close 30% of European power plants, UBS says:http://bloom.bg/1a0xpNW
Fear of change could accelerate the demise of European utilities
