In contrast to large coal-fired and nuclear power stations, many renewables plants “can be satisfactorily built on a much smaller basis”, notes Graham Weale.
That presents an existential problem for utilities, which are primarily concerned with “economies of scale”.
The upshot, Weale claims, is that “the role of utilities is becoming – and will become – less important” in Europe.
Weale’s prediction, made this week at a conference in London, was followed by yesterday’s announcement that RWE intends to halve its dividend next year to reflect its financial challenges.
Essen-based
