Road to NanoGrid: Week 5 - Utilities market cap problems

Since September 2008, utilities have been the worst-performing sector in the Morgan Stanley index of global share prices. In 2008, the top ten European utilities all had credit ratings of A or better. Now only five do. The combination of European demand and Chinese investment has slashed the cost of solar panels and battery storage.  Meaning, the challenge to traditional utilities will only get worse. 

Renewable, low-carbon energy accounts for an increasing share of production, is pushing wholesale prices down and has successfully driven down the price of new technologies. Renewables have not just put pressure on margins, they have completely transformed the established business model for utilities. How can utilities stay alive in today’s energy climate? How can they provide an electricity system that rewards low-carbon energy without reducing reliability and imposing excessive and unnecessary costs?

- Thanks to our Ossiaco Analyst - Samantha Rudolph - for making all our research!