Power and utilities companies are at the core of the clean energy transition. But as the natural resources industry changes, financial and operating models are under pressure.
Key priorities for power and utilities companies
over the next 10 years, the top three priorities for power and utilities companies are set to change as the clean energy transition gathers pace.
In our 2025 Global Clean Energy Survey, power and utilities organizations revealed how their priorities shift over the immediate-, mid- and long-term:[1]
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Immediate priorities
- Investment in new technologies (80%) and raising capital (80%)
- Research and development/innovation (68%)
- Working with trade bodies and government departments (66%)
- Investment in new technologies (80%) and raising capital (80%)
- Research and development/innovation (68%)
- Working with trade bodies and government departments (66%)
Priorities for the next five years
- Divesting operations or business segments (51%)
- M&A to acquire new capabilities or technologies (49%)
- Major changes to existing assets ($250 million or more) (43%)
- Divesting operations or business segments (51%)
- M&A to acquire new capabilities or technologies (49%)
- Major changes to existing assets ($250 million or more) (43%)
Priorities for the next 10 years
- Major changes to existing assets ($250 million or more) (34%)
- Forming joint ventures and partnerships (21%)
- Divesting operations or business segments (17%)
- Major changes to existing assets ($250 million or more) (34%)
- Forming joint ventures and partnerships (21%)
- Divesting operations or business segments (17%)
Top risks facing power and utilities companies
But with change, comes risk. Power and utility companies face major challenges including:
- Volatility in financial markets
- Uncertainty of return on investment
- Legal and liability exposures
- The cost of new technologies
- Changing regulation
- Sociocultural expectations
- Stakeholder pressures
- Access to capital
In a changing and complex industry, power and utilities companies listed supply chain and geopolitical risk as the top two risks to achieving their clean energy strategy in our Global Clean Energy Survey 2025.[2]
#1 RiskSupply chain disruption
#2 RiskGeopolitical risk
Forward-thinking leaders in the power sector are finding strength in specialty.
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Footnotes
- Results from our Global Clean Energy Survey 2025 in response to the question ‘What timespan has your organization set for implementing the following aspects of your clean energy strategy? Return to article
- Global Clean Energy Survey 2025 Return to article
- New Power Systems report. Return to article
- A Power Grid Long Enough to Reach the Sun Is Key to the Climate Fight. Return to article
- Connected Risk Intelligence. Return to article
Disclaimer
WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
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