Moody’s: Carbon reduction policies bring risk, opportunities for global unregulated utilities

Global unregulated utilities and power companies, as the largest source of carbon emissions in most developed countries, will need to contribute a large share of the emission reductions agreed under the Paris Agreement , says Moody’s Investors Service in a new report published today. However, generators with the right business mix may find opportunities, while supportive policies in some markets may ease the transition for those negatively affected.

Moody’s report, titled “Global Unregulated Utilities and Power Companies: Carbon Transition Brings Risks and Opportunities”, is available on Moody’s subscribers can access this report here

“We expect to see a continued rise in renewable energy, more distributed generation, and overall lower growth in the demand for energy as a result of efficiency improvements. Disruptive technologies, including energy storage, could also challenge the economics of power generation businesses,” says Graham Taylor, a Moody’s Vice President — Senior Analyst and one of the report’s authors.