Technological and business model innovation in the power sector are central to meeting Europe's energy and climate goals but require a supportive policy framework and agile private sector, according to Eurelectric.
The European trade body has conducted a study that shows that innovation in the power sector and downstream energy service sector could unlock up to €70 billion of investment in 2030, and reduce power generation costs by 11 per cent.
"Capturing this potential depends on an agile private sector, supported by effective public policy," said Eurelectric president and CEO of Enel, Fulvio Conti. "European policymakers must make the promotion of innovation a priority in energy policy and act now to streamline innovation policies and pave the way to a greener, smarter and ultimately less costly power system.
"This is especially relevant as the EU institutions begin their discussions on the 2030 energy and climate policy framework."
According to Eurelectric, European power utilities will need to innovate on three fronts: master new technologies, get closer to consumers, and develop new business models and services. The report shows that utilities are aware of this increased innovation potential and are already shifting their investment in favour of stronger R&D.
"Breakthrough innovation will reduce costs, increase energy efficiency, improve customer convenience, and foster EU competitiveness. That is why innovation is becoming a major priority for EU utilities," said Conti. "Over the last decade alone, annual R&D expenditure by large European utilities has nearly doubled to over €1.7 billion, turning them into powerhouses of innovation.
The report recommends five key areas for EU action, including nuturing public-private sector dynamics, unlocking downstream innovation and adopting a systems approach to innovation policy.
Linkedin
