Growth driven by powerful megatrends
We operate in sectors whose functions are critical for society. These functions – telecom, electricity, district heating, water and sewage – are affected by three powerful megatrends: climate change, digitalisation and the need to modernise 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 the 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 requires 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, building and the Internet of Things. This demands greater capacity from telecom networks. In Sweden and Norway, expansion of 5G networks has started and 6G will be rolled out within a decade. In the UK and Germany, fibre coverage is low and old copper networks will be replaced with fibre.
Modernisation of infrastructures
There is a vast need to modernise infrastructure 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 urgent need of being replaced or modernised. In the power area, the needs for renewal of the networks are very great and the networks must be replaced even if only to maintain current capacity. Sweden’s water and sewage treatment plants and pipeline networks are so neglected that the water supply risks becoming a societal crisis.