The Path to High Performance: Addressing the Conflicts Between European Energy Policy Targets and Utility Industry Goals

In this paper, Accenture explains why the European utilities industry faces a host of challenges like never before.

In January 2007, the European Commission adopted new proposals for an ambitious energy policy for Europe, clearly signalling a changing market for the European utilities industry. The policy has given rise to three ambitious targets for 2020: a goal of 20 percent of energy use from renewable sources, a 20 percent reduction in greenhouse gases and a 20 percent improvement in efficiency of energy use. Further steps were taken in January 2008 when the European Commission put forth an integrated proposal for Climate Action.

Criticaleye Affiliate Accenture believes these pressures create major challenges for the European utilities industry as it confronts conflicting goals that have reached a tipping point - a situation that potentially holds massive implications for the industry. Together with the dual EU policy goals of maintaining security of supply and improving market integration, the coming industry challenges will separate the 'leaders and winners' from the 'followers and also-rans'.

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