Global Utilities & Independent Power Producers 2025 Outlook: Spending Greens to Get Greener

Our outlook for global utilities and independent power producers (IPPs) in 2025 is stable. We expect growth in the industry to be robust for the year, driven by the energy transition, especially with electrification and the demand for more renewable energy sources.

Key Highlights
-- Continued high level of capital expenditures for the energy transition is likely to pressure credit metrics in 2025.
-- We expect regulatory roadblocks for natural gas utilities to moderate, but new challenges for renewable projects in the U.S. to arise given the uncertainty surrounding the Trump administration's climate policy.
-- While more favourable economic conditions should reduce the risk associated with passing costs to customers, affordability will always be a key consideration.

"Overall, we expect our ratings on utilities and IPPs to remain stable in 2025," said Tom Li, Senior Vice President, Energy and Natural Resources. "Our focus for the year will be on monitoring the pace of capital spending and on any erosion of our issuers' credit metrics."