Energy Management: A Key Growth Driver Within General Electric
General Electric’s (NYSE:GE) Energy Management makes transformers, motors and related products that allow utilities and industrial firms to manage electricity efficiently from generation to consumption. Its products are used to distribute, protect and control electricity, modernize the grid, enable micro-grids and convert electricity into power (or power into electricity). Roughly half of its 2014 revenues of $7.3 billion came from the U.S. The Alstom grid acquisition will double EM’s revenues, especially outside the U.S.
Overall growth in electricity demand is expected to be modest. According to IEA estimates, the demand for power will grow 2.3% annually to 2040, net of annual efficiency gains of 1.2%. Even so, the growing use of distributed power, the drive to modernize electric grids, the growth of emerging market economies and the quest to improve efficiency will ensure ready markets for EM’s products and services.