Utilities: Fundamental players for socio-economic and environmental development

Abstract

The environment in which Utilities operate has dramatically evolved along the past twenty years and the transformation is still ongoing. Changes in the regulatory framework, technological evolution, increasing concern for the environment, have revolutionised the sector structure and forced Utilities to adapt their organizations and business models. European directives have been a fundamental driver of this transformation, firstly by breaking the existing monopolies in the relevant markets (power, gas, waste) and secondly by establishing ambitious decarbonisation targets. Moreover, shocks in the economy as the long economic crises begun in 2008, which affected power demand, have been another key element for companies’ strategy. Recently, the combination between digitalisation, spread of renewables and distributed generation, has given birth to the so-called energy transition, a new paradigm in the energy sector to which Utilities are adapting. This introductive chapter clearly identifies these and further major steps in the transformation of the Utilities sector and the most significant trends that have shaped the companies’ strategic choices, which will be discussed in depth in the subsequent contributions realized by leading experts.