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2023/12/07 / Erste Group Research

European utilities in the energy transition: Decarbonization requires high investments

The European utility sector is in the midst of the energy transition: Expansion of renewable energy sources, diversification of the generation mix, and expansion of the grid infrastructure are the most important cornerstones for this. However, high financial resources are required to achieve these goals while at the same time ensuring security of supply. The investment requirement cannot be clearly quantified, but the estimates of individual utilities should at least give a sense of the order of magnitude: it is in the high three-digit billion range and an upward correction cannot be ruled out.

We expect the investment requirements to be covered in part by debt financing, including corporate bonds (with sustainability features).

Moody's recently confirmed the stable outlook for the European utilities sector, both for the regulated and unregulated sub-sectors. At the same time, competition and resource risk are likely to increase.

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General information

AuthorErste Group Research
Product nameCredit News
Topic in focusCredits/ Corporate bonds
Economy in focusEurozone
Currency in focusEuro
Sector in focus-


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