Utilities

Utilities such as electricity, heating, and water remain essential to the quality of life across Europe. Most EU citizens enjoy near-universal access to these services, supported by strong regulatory frameworks and infrastructure. Under EU law, households have the right to be connected to electricity networks, and vulnerable consumers cannot be disconnected even if they cannot pay their bills. However, energy affordability remains a significant challenge. A 2025 study published in ScienceDirect found that approximately 17% of the EU population is considered "energy poor" according to expenditure-based indicators, with rates particularly high among income-poor groups, though a notable share of middle-income households also experience energy-related deprivations. Using a "union approach" that considers multiple indicators, up to 40% of the EU population (approximately 180 million citizens) would be classified as energy poor by at least one measure, though the overlap across indicators is minimal, with only 0.3% classified as poor by all four indicators simultaneously.

 

To strengthen resilience and sustainability, the EU is investing heavily in modernizing utility infrastructure. Programs under the European Green Deal and REPowerEU allocate billions toward electrification, renewable integration, and smart metering. The EU smart meter market is estimated at $8.53 billion in 2026, up from $7.72 billion in 2025, with projections to reach $14.03 billion by 2031 at a compound annual growth rate of 10.45%. Binding installation obligations under EU Directive 2019/944 continue to drive compliance acceleration across member states: Austria has surpassed 95% penetration, Belgium has achieved 70% coverage with 4.4 million devices, and Germany has legally enshrined a 2032 completion deadline. In June 2026, the European Commission launched a Roadmap on AI and Digitalisation in the energy sector, which recognizes smart metering as a key enabler for consumer participation, demand response, dynamic electricity pricing, and more efficient use of Europe's electricity grids. A new legislative proposal in 2026 aims to accelerate the rollout of smart meters across the EU, targeting minimum smart meter coverage in every member state. These initiatives aim to reduce energy poverty, improve efficiency, and support the transition to carbon neutrality by 2050.

 

Global energy investment is projected to reach approximately $3.4 trillion in 2026, a 5% increase year-on-year, with approximately $2.2 trillion directed toward clean energy technologies including renewable power, grid infrastructure, battery storage, and electrified transport. Fossil fuel investment is set to remain significantly lower at $1.2 trillion. Investment in renewable power projects is expected to total around $665 billion in 2026, with $365 billion going toward solar alone. Nuclear investment continues its resurgence, exceeding $80 billion annually, with close to 80 gigawatts of new nuclear capacity under construction across 15 countries. Coal investment, meanwhile, is set to rise to $180 billion in 2026—the highest level since 2012—with China accounting for almost 70% of global coal supply spending as some Asian countries affected by the current energy crisis seek to keep existing coal-fired power plants operating for longer to bolster energy security. In Europe, the European Commission has launched a Clean Energy Investment Strategy to accelerate financing for the energy transition, estimating that delivering the clean energy transition will require up to €660 billion of investment annually through to 2030, rising to approximately €695 billion between 2031 and 2040. The European Investment Bank Group has indicated it intends to provide more than €75 billion in financing over the next three years in support of the plan.

 

In Asia, access to utilities continues to expand rapidly. India has made major strides through the Jal Jeevan Mission, which has increased rural tap water coverage from 3.23 crore households (16.7%) in August 2019 to approximately 15.84 crore households (81.87%) by May 2026, covering 2.77 lakh villages with 100% tap water coverage. Budgetary allocations for the mission increased by 488% between 2020-21 and 2026-27 to Rs 67,670 crore. Tap water connectivity has also expanded significantly in schools (from 29,711 to 9.23 lakh), anganwadi centres (from 15,464 to 9.66 lakh), and healthcare institutions (3.93 lakh gram panchayats and community health centres, covering 77.27% of such facilities). The extended phase of JJM will focus on infrastructure quality and operation and maintenance of rural piped water supply schemes through "Jan Bhagidhari" (people's participation), with separate MoUs being signed with states and union territories to ensure sustainability and citizen-centric water service delivery. Despite progress, challenges in water quality, infrastructure maintenance, and coverage in difficult terrains remain.

 

China's rapid urbanization and expanding middle class have significantly improved access to utilities. The country's 15th Five-Year Plan (2026-2030) places major emphasis on infrastructure modernization through a "Six Networks" initiative, including water networks, new-type power grids, computing power networks, next-generation communication networks, urban underground pipeline networks, and logistics networks. Investment in the Six Networks and related key areas is provisionally estimated to exceed 7 trillion yuan (approximately $1 trillion) in 2026 alone. China expects to invest more than 5 trillion yuan during the 15th Five-Year Plan period on upgraded power grids alone, involving power transmission corridors, interprovincial electricity mutual-aid projects, urban power distribution network upgrades, and strengthening of county-level and rural power grids. China had built nearly 3.9 million kilometers of underground pipelines by the end of 2025—the world's largest such network—and expects to invest approximately 5 trillion yuan to build and renovate about 770,000 km of gas, water supply, drainage, and heating pipelines during the 2026-2030 period. Smart monitoring systems will also be installed to enable full-process risk management of urban infrastructure. The National Development and Reform Commission has earmarked 160 billion yuan (about $23.5 billion) for underground pipeline projects in 2026, an increase of 25 billion yuan from the previous year.

 

Vietnam and other ASEAN nations continue scaling up infrastructure spending, with ASEAN's energy demand projected to rise significantly, driving investments in power grids, water systems, and renewable energy projects.

 

Globally, utility infrastructure remains a major investment priority. While advanced economies and China dominate investment flows, emerging markets face financing gaps due to high capital costs and limited fiscal capacity. International agencies and multilateral banks continue to call for risk-mitigation tools and blended finance to accelerate inclusive access to clean and affordable utilities worldwide. The IEA report highlights growing interest among fuel-importing countries in domestically available energy sources including renewables, nuclear power and, in some cases, coal. Despite higher oil prices in 2026, oil investment is expected to decline for a third consecutive year, falling below $500 billion, as uncertainty over the duration of price spikes, long project lead times, and supply chain constraints limit near-term spending responses outside the Middle East. Natural gas investment, however, is projected to rise to $330 billion—the highest level in a decade—supported by a wave of new LNG export projects, particularly in the United States and Qatar.