Growth driven by powerful megatrends
Netel operates in sectors that are critical for society. These functions – electricity and water supply, sewage, district heating and telecom – are affected by three powerful megatrends: climate change, digitalisation and the modernisation requirements for the infrastructures.
Climate change
Climate change is today’s biggest issue, which is driving new trends in society that have a major influence on the power networks. It is necessary to update capacity in power networks in order to manage the transition to electricity-driven transportation and meet the needs of major industries that want to switch to electricity- based production. The introduction of more renewable energy sources such as solar panels also require investments in the power networks. As the number of energy sources climb, demand for greater flexibility in the power networks increases, which in turn requires investments in capacity and new technology.
Digitalisation
Increasingly more manual work is done digitally and the number of connected devices is growing exponentially, driven by more digital applications, smart cities, buildings and the Internet of Things. This demands greater capacity from telecom networks. In the Nordic region, expansion of 5G networks has started and 6G networks will be rolled out within a decade. In Germany, fibre coverage is low and old copper networks will be replaced with fibre.
Modernisation of infrastructures
There is a vast need to modernize infrastructures in Europe in the areas of power, district heating, water and sewage. Many networks are at the end of their life cycle. Some networks are more than 70 years old and in acute need of being replaced or updated. In the power area, the situation is so critical that networks must be replaced simply to maintain current capacity.