Utilities & Energy
Utilities (water, electricity, and gas) are essential services that must be in place as part of any industrialized nation’s infrastructure, and their presence (along with type and abundance) plays a vital role in any country’s economic and social development. Having a strong Utility base, particularly one involving power, provides part of that infrastructure required to support diverse industries and fuel growing businesses.
Because Utilities themselves require significant infrastructure that must be kept current to remain efficient, these companies often carry large debt loads, particularly those that supply power. The capital investment required is enormous, and this market demand is but one of the many challenges currently facing the power industry as a whole. Within the United States alone, capital expenditure requirements are expected to exceed $100B annually through 2020. For years the sector spent relatively little to upgrade necessary infrastructure, much of which dates back to the 1970s or 1980s. Aging assets now must be repaired or replaced, and even more so when considering needed improvements tied to smart grid technology and more stringent environmental standards.
As regional and global economies continue to develop quickly, the challenges faced by the power industry will only amplify. Demand for petroleum, coal, gas, and nuclear power is growing, particularly in Eurasia, with China leading the way, followed by India and Turkey. Long term projections show that across energy sources, per-capita consumption in North America and Europe is likely to fall as consumption rises in these other regions.
Adding to an already complex market is the growing demand for more non-traditional sources, particularly in the US. New technology is continually making previously discounted methods more accessible, and this represents a considerable capital investment paradigm for industry players. Existing companies are having to adapt to a changing landscape being reshaped by the merging of diverse and changing consumer preferences, technology innovation, increasing regulatory demands, and an undercurrent of sustainability and cleaner energy.
The Utilities and Energy industries have changed rapidly in recent years in trying to meet the increased demand placed on them by businesses and consumers, and these demands will continue to grow.
At Avaltos, we develop solutions to assist in maximizing capital expenditures while navigating the regulatory landscape.
With our help, clients embrace disruptive, innovative technologies, and above all, adapt to change at an accelerated pace.
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Avaltos Management, and Business Consultants.