Lifeline Worth Billions Thrown to Utilities After Slump
- Dividend yield of power grid companies seen set to rise
- Move to digital age unlocks new businesses for utilities
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Electric utilities, hurt by plunging commodity prices and anti-pollution programs, are being thrown a high-tech lifeline.
After losing about half their value since 2007, European power companies are pivoting away from fossil fuels, where profits have all but evaporated amid subsidized competition from renewable energy. By moving electricity grids into the digital age, utilities can get low-risk, government-regulated rates for distributing their power, as well as new revenue from running more efficient networks or providing household battery-storage and electric vehicle systems.