As the pace of change in the energy industry accelerates in response to increasing pressure on supply and demand, utilities must adapt to the new world of energy generation and distribution. Smart energy technology – such as battery storage, smart meters and virtual power plants – are expected to play a crucial role in the transformation of the traditional utilities company.

But with energy businesses lacking the in-house skills to implement major technological transformations, how can they adapt in this rapidly changing and demanding environment? Utilities and investors are under pressure to spread their investment, often beyond their comfort zone, but how and where varies.

Our “Hungry for Change: Investing in a smarter energy future” report, in conjunction with Mergermarket, reveals the technologies and geographies that will shape the future energy industry and will inform the debate for those seeking to capitalise on the smart revolution.

Key findings

  • 90% of utilities are looking for a joint venture, acquisition or both to take the next step in smart energy technology.
  • 85% of respondents expect M&A in the utilities sector to increase over the next 12 months.
  • 46% of investors and 30% of utilities are investing to access new technology.
  • 30% of utilities and 24% of investors are looking to invest in smart meter technology in the near term.
  • 26% of investors and 31% of utilities are looking to put their money in cloud-based management systems/virtual power plant (long-term 6-10 years).
  • Germany, China and the UK revealed as the top three targets countries for smart energy investment for utilities and investors.
  • Nordics take the top spot for financial attractiveness for implementation.

About the report

We spoke to 250 senior level executives, drawn from 200 utilities businesses and 50 investment entities including private equity, investment banks, multilateral development banks and sovereign wealth funds. The respondent pool was split evenly between EMEA and Asia Pacific regions.

Our Energy experience

Our international energy team is renowned for its sector expertise, gleaned through decades of exposure to all facets of the industry, significant experience of cross-border transactions and project delivery, and the development of a global team which encompasses all legal disciplines.

We will help navigate the likely challenges an energy project may face, including: property, planning and environmental issues, grid connection, power purchase arrangements (PPAs) and participation in markets, corporate structuring, bankability, regulatory issues and taxation. We also advise extensively on construction, procurement and operation and maintenance agreements.

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