M&A’s like a lion
As far as M&A’s are concerned 2011 looked like a sheep and 2012 is starting like a lion.
Smart meters represent dozen of billions of dollars of investment and utilities still have hundreds of billions to invest in updating their IT infrastructure, changing their software, implementing new networks and new security systems. This is a lot of money but almost nothing compared to what needs to be accomplished in the transportation and distribution areas which are the most critical parts of the smart grid transformation.
Tomorrow’s infrastructure will be almost entirely different from what it is today. It will be tightly secured, will absorb a diversity of energy sources, will transport power to far away places and will manage energy storage. On top of that, a big part of the US infrastructure has not been updated in the past three or four decades. This transformation will require trillions of dollars of investments and stakeholders with very deep pockets. This is why we will see many more energy M&A’s in the years to come.
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