8
Prysmian Group Insight
Europe has set ambitious and
binding targets for the contribution
of renewables to its energy
needs, which will provide a boost
to investment to support the
continent’s cable industry.
The Union set the amount of power
to be generated from renewable
sources at 35% by 2020 and
offshore wind plants are a key pillar
to enable that transition.
According to recent available data,
the global investments in offshore
wind energy is expected to be as
much as $130 billion by 2020, while
Europe alone will invest nearly
$19.3 billion or
€
14.4 billion to add
4.5 GW of offshore wind energy
sources by then. Unlike the rest of
the world, the targets set by the EU
are legally binding, which means
that the amount of capital spending
is almost certain, according to
industry experts.
In 2012, the offshore wind turbines
installed represented a total
investment of approximately
€
4
GLOBAL SCENARIO
Renewables and broadband
growth to boost Europe’s
cable industry
But segments associated with construction are still lagging
billion, with a 33% increase over
the capacity installed in 2011. EU
targets require that 20% of all energy
comes from renewables by 2020
against the current 13%. The broader
category of energy includes electricity
power, heating and cooling and
transportation.
While power grid
upgrades and
investments in renewable
energy are driving
innovation and constantly
increase demand in
cables, other cable market
sectors are still stagnant,
as they are suffering from
slow economic growth,
such as the cable market
segments associated with
building construction and
industrial expansion.
The European fibre business outlook
is somewhat brighter, experts and
industry watchers say, as it appears
to be immune from the poor health
of Europe’s economy, as 2013
unfolds. Fibre is driven by other
factors that are far more positive
than GDP trends – bandwidth
growth, the EU’s drive for broadband
connectivity with its
the push for efficiencies in data
transport for railways, utilities and
other infrastructures.
In Spain, for instance, among the
weakest countries for GDP growth,
the incumbent Telefonica went
ahead with plans to deploy FTTH in
Barcelona and Madrid to improve its
infrastructure. The amount of cabled
fibre installed in Western Europe
rose 5% in 2012 from the previous
year while that in Eastern Europe
(excluding Russia) jumped 15%.
London, the Shard: 350 km of cables
laid by Prysmian
