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Monday, June 02, 2008

Transmission & Distribution Industry 2006-2007 in a Snapshot

The years 2006 and 2007 were significant for the world transmission & distribution industry and it may well be that in the future they will be seen as milestones in the industry’s history. Two important things happened. Firstly, the transmission and distribution industry is dominated by a handful of large companies, each of which has a strong presence in the mature, traditional markets in the industrialised countries. Investment in the transmission & distribution segment of the electrical industry has been sluggish for some years because of new and increasing competitive cost pressures due to electricity market liberalisation. The industrialised countries are all faced with the problem of aging infrastructural assets to some degree or another, and this reached such a point that late in 2005 operators and regulators changed tack and higher levels of capital expenditure investment were sanctioned, on average rising 24% to 30% and to be continued for some years. At the same time, for different reasons, there has been a huge surge in authorised transmission & distribution investment in China and promise of more in India. The transmission and distribution industry leaders have long been present in China but are now intensifying their efforts there and some are even talking about a shift in the centre of gravity of their activities from Europe and the US to China.

2 Comments:

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1:19 pm  

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