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Renewable-energy demand to drive Europe’s transmission & distribution market

By Paul Dvorak | August 28, 2013

The need to increase cross-border grid interconnections will be another boost to the European T&D market, because it could lead to competition in the power market and the potential reduction of power prices.

The need to increase cross-border grid interconnections will be another boost to the European T&D market, because it could lead to competition in the power market and the potential reduction of power prices.

A rising demand for electricity coupled with environmental concerns across Europe is leading countries to look for more diverse energy sources, which will in turn boost investment in their Transmission and Distribution (T&D) infrastructure, according to research and consulting firm GlobalData.

The company’s latest report* says key European countries, including  Germany, France, UK, Norway, Italy, Ireland, and France, will spend substantial sums on grid expansion and upgrade programs to increase security of electricity supply, deploy smart grid technology and accommodate new sources of power generation – particularly renewable.

Shivanshu Agnihotri, senior analyst at GlobalData, says: “Renewable energy accounted for around 70% of the total power generation capacity additions made in the EU in 2012, and further additions are being introduced as a result of EU targets aimed at reducing greenhouse gas emissions and increasing the share of renewables total energy consumption by 2020.”

According to the report, European T&D grids are characterized by issues related to network congestion and the integration of distributed energy resources.

Agnihotri continues: “The aging nature of the T&D networks in Europe has raised concerns regarding the stability of the electricity supply and has prompted a number of nations to frame policies for the incorporation of efficient technologies into the grid.”

The need to increase cross-border grid interconnections will be another boost to the European T&D market, as it could lead to competition in the power market and the potential reduction of power prices. By providing a broader generation base, interconnections can improve energy supply security and reduce the need for the additional construction of power generation capacity, states the report.

“Europe is expected to invest heavily in the establishment of transmission infrastructure as it strives to create cross-border grid interconnections and harness the energy generated from renewable sources around the continent,” Agnihotri concludes.

Furthermore, the report is said to provide an in-depth analysis of the T&D markets in the UK, Norway, Ireland, France, Russia, Germany and Italy in terms of infrastructure, investment and regulatory structure. Information is provided relating to T&D lines, transmission capacity, substations and cross-border grid interconnections. Key drivers and restraints impacting the market are also discussed and information is provided regarding smart grid deployment in these countries.

This report was written from data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts.

GlobalData
www.globaldata.com


Filed Under: News
Tagged With: GlobalData
 

About The Author

Paul Dvorak

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