German utilities much more optimistic on energy transition – consultancy

The number of German energy companies that consider the energy transition good for business has risen considerably, according to a survey by business consultancy Horvath & Partners. 80 percent of utilities and energy service providers believe the Energiewende is an opportunity, and a majority says it will boost profits, according to the company’s press release. "Growing margins are expected in energy-related services and flexibility options, while the core business of conventional generation, as well as electricity and gas sales, is not recovering and no longer promises satisfactory earnings contributions," the consultancy said.

The energy transition has shaken many of Germany's utilities to the core, as they were far to slow to embrace renewables and conventional power generation came increasingly under pressure, forcing them to scramble for new business models. While digital technologies are disrupting the power market, many power companies hope the pending electrification of transport and heating will offer new growth opportunities in the Energiewende’s next phase.