EU Utilities Rush for Renewable Energy

The 20 largest European utilities are to double investment in renewable energy generation over the coming five years, a new study by Emerging Energy Research says.

Driven by high fuel prices and emissions restrictions under the Kyoto Protocol, companies are increasingly viewing renewable energy as a key component of their generation portfolios, the report says.

EER, a research and advisory company based in Spain and the United States, predicts that investment in renewable energy will exceed $60 billion by 2011, excluding large-scale hydroelectricity. The top 20 utilities have already allocated $13.3 billion for renewable energy ventures, primarily onshore wind farms but also offshore wind, wave and tidal energy, solar, biomass and small-scale hydroelectric projects.

The growing focus on renewable generation has been prompted by regulatory pressures, increasing market competition, and a mounting awareness of renewable energy as both a growth opportunity and a means to improve business performance, the report states. In an era of spiraling fuel prices and global instability, security of supply is also a significant concern.

National Ledger