Europeans' energy consumption at peak periods exceeds 95 percent of generating limits, says a new study from French consulting firm Capgemini. That is the highest level in 10 years, and one percentage point higher than 2004.

Energy use rises to record levels during heat waves, for example, such as the extremely hot summers of late in Spain and France. Generators can produce only 4.8 percent more electricity than is needed during these peak times. When demand exceeds capacity, there is a danger of blackouts.

"Investments in new plants and the delivery network are especially urgent."
--Philippe Coquet, Capgemini

A Capgemini analyst told reporters that Germany, which is a world leader in solar power deployments, has excess capacity of around six percent, "and is at a relatively safe level," he said.

A plan proposed by the EU in March 2006 would reduce energy consumption by 20 percent by the year 2020, and has encountered some roadblocks this summer. Germany will take over the EU presidency in January 2007 and observers expect energy to top the agenda.

Confusing energy policies make utilities uneasy about making investments, according to one researcher, even though energy prices -- and utility profits -- have risen sharply due to the higher demand and record petroleum prices. It is in the interest of the utilities to keep capacities low, she told Deutsche Welle for an article that appeared last week.

The report, "European Energy Markets Observatory," recommends specific investments in generating capacities and in the transmission grid.

A separate report this week by the UK's Energy Saving Trust found Germans are the most efficient in their energy use, followed by the Spanish. The British are the most wasteful, says the Trust's "Habits of a Lifetime: European Energy Usage Report." Environmental News Service published an account of the report. This week is Energy Saving Week in the UK.