The European electricity market under strong pressure

7/5/2014 - Report
ic_blogtagEconomic OutlookWestern EuropeEnergyDemandEurozoneGreen EconomySector RiskSupply
Electricity is by nature a non-storable product, which forces supply to constantly adjust to changes in demand.

In Europe, this demand is doubly limited: by the lack of economic momentum and by growing doubts over energy efficiency; total production is set to grow near by +0.4% per year by 2020.

A movement towards renewable energy is underway thanks to different types of support, which not only limit the spot price of electricity but also hurt the profitability of traditional energy providers (profit margins down -4 pp the last 10 years).

The electric bill is nevertheless bullish for final consumers, especially electric-intensive sectors, which are being pressured to reduce costs and raise efficiency.

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The European electricity market under strong pressure - Report