Utilities must transform their existing business models to compete in an Energy Cloud future
A new white paper from Navigant Research highlights the opportunities and challenges that the utility industry will face during the transition to an intelligent and distributed future.
Significant change is already underway in the energy industry, and in just a little more than a decade, it is expected that current distribution network operators will have transformed into distribution service orchestrators, responsible for far more than just network operations. Likewise, the current energy supply business will be fully transformed into an energy service provider (ESP) model, and companies will offer end-to-end energy services that have little in common with today’s volume-based approach to revenue generation. Click to tweet: According to a new white paper from @NavigantRSRCH, by 2030, the utility value chain will have transformed significantly.
“This white paper assesses the impact on the utility industry of an aggressive Energy Cloud scenario, where distributed energy resources (DER) are near ubiquitous; DER owners can trade their self-generated power on transactive energy markets; and utilities rely heavily on machine learning and analytics-driven automation to manage the grid,” says Stuart Ravens, principal research analyst with Navigant Research. “To reach this future goal, utilities must significantly transform their existing business models.”
Utilities cannot ignore the threats and opportunities that lie within the Energy Cloud and must plan now for every possible eventuality, according to the white paper. The disruption created by this scenario will be deep and pervade the entire energy value chain.
The white paper, Defining the Digital Future of Utilities, provides an overview of the opportunities and challenges that the industry will face during the transition to an intelligent and distributed future. It is part of Navigant Research’s Digital Utility Strategies Research Service, which features a variety of reports focused on related topics. The white paper is available for free download on the Navigant Research website.
Contact: Lindsay Funicello-Paul
* The information contained in this press release concerning the report, Defining the Digital Future of Utilities, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.