BRUSSELS, Belgium, February 12 /PRNewswire/ --
The European Commission's new "Green Package" of legislation on climate change and renewable energy represents a significant potential opportunity for European utilities, according to a report released by The Brattle Group and Trilemma UK.
The Green Package sets targets that represent a step change in the energy market: save 20% of energy, increase the share of renewable energy to 20%, and cut greenhouse gas emissions by at least 20%, all by 2020. The joint report highlights the huge uncertainties in these targets, which make investment decisions difficult and risky, particularly regarding new power stations.
"The European energy market is on the cusp of a significant change and this will inevitably create corporate winners and losers," noted Simon Skillings, co-author of the report and director of Trilemma UK. "Smart strategic thinking can ensure that organisations take maximum advantage of the opportunities that will arise," he continued.
Investors who are able to correctly interpret the policy environment stand to enjoy high returns, while others may suffer significant losses. The report's analyses indicate that the most successful energy companies will be those that embrace the potential benefits of adjusting to a climate-constrained market, through:
1. A clear analytical foundation for decision-making. 2. Expert understanding of the potential risks facing the investment. 3. Innovative approaches to managing these risks. These could include seeking to influence policy choices in a way that supports the company's specific investment needs while remaining aligned with wider energy and climate policy goals.
"Utilities looking to influence the direction of policy on climate change, renewables and energy efficiency need to understand how different options relate to the fundamental policy goals, and how they will be viewed by policy-makers and other stakeholders. At the same time they have to assess their implications for sustainable profitability in a world of new and major uncertainties," commented Boaz Moselle, a co-author of the report and principal of The Brattle Group.
The report, "Managing the Risks of Climate Policy: Smart Strategy for a Low Carbon World," can be found at www.brattle.com or www.trilemma-uk.co.uk.
About the Firms
The Brattle Group provides consulting services and expert testimony in economics and finance to corporations, law firms, and public agencies worldwide. Areas of expertise include antitrust and competition, valuation and damages, and regulation and planning in network industries. For more information, please visit www.brattle.com.
Trilemma UK was recently established by Dr Skillings to provide strategic and policy advice on European energy market issues. It provides clients with the insights gained through Dr Skillings' twenty years of experience in the industry, most recently as director of strategy and energy policy at E.ON UK. For more information visit www.trilemma-uk.co.uk.
Web site: http://www.trilemma-uk.co.uk http://www.brattle.com
Media, Laura A. Waters of The Brattle Group, +1-617-864-7900, laura.waters@brattle.com
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