Electricity generation is currently a significant contributor to GHG emissions. It is also a key enabler and driver of carbon transition. As the economy is moving toward electrification (increasing use of electric vehicles, heat pumps, and other forms of substitution of fossil fuels by electricity as the source of energy), it is becoming imperative to make sure the power utilities sector is rapidly switching to renewables, and away from coal, gas, and oil. 

The importance of this transition is reinforced by growing demand for energy in developing countries. Populations in many countries, especially in Africa, still lack basic access to electricity. As these countries develop their infrastructure, and as people in emerging markets enjoy growing disposable incomes and begin to use more electricity-powered goods and services, demand for this source of energy is bound to keep growing for decades to come.

In this report we look at the role of the power utilities sector in carbon transition, at the relevant opportunities and challenges, review the situation in emerging markets, and highlight the critical issues that investors ought to pay attention to.