1Q 2018

Energy Cloud 4.0

The energy sector is in the midst of a major global transformation. A rapidly increasing share of renewable energy generation, wide-scale adoption of distributed energy resources (DER), decarbonization of the global economy, electrification of transportation, and digitization are just some of the megatrends reshaping the existing energy paradigm in profound ways. The result will be a grid that is increasingly clean, intelligent, mobile, and distributed. Meanwhile, linear value chains supporting one-way power flow from centralized generation to end customers are giving way to a more sustainable and dynamic energy system Navigant calls the Energy Cloud.

The emerging Energy Cloud ecosystem will support multiple value flows among an increasingly diverse field of stakeholders. The power industry is expected to both expand and collide with other industries, ushering in an unprecedented wave of competition and innovation. Client and shareholder value creation will evolve as combinations of fast emerging technologies lay the foundation for disruptive innovation across the edge of the traditional grid. Energy companies, utilities, and industry stakeholders will need to be more responsive to changing market pressures and increasingly agile in their thinking around delivering value to traditional energy customers.

This Navigant white paper is the latest installment of our Energy Cloud thought leadership. Drawing on Navigant Research forecasts and insights, the paper explores the impacts of innovation across five core industry dimensions: customers, policy and regulation, technology, business models, and operations. These impacts include a shift in value downstream to the customer and greater competition across traditional players and new market entrants. The paper also examines the highly dynamic and disruptive Energy Cloud platforms—Integrated DER (iDER), Building-to-Grid (B2G), Transportation-to-Grid (T2G), Internet of Energy (IoE), Transactive Energy (TE), Neural Grid, and Smart Cities. Innovation pathways and Navigant’s Energy Cloud Playbook offer blueprints for navigating a historic transformation that will reshape the energy economy.

Pages 45
Tables | Charts | Figures 21

  • What is the Energy Cloud?
  • What industry and technology trends are leading to industry transformation?
  • What are Energy Cloud platforms and how can they deliver new revenue opportunities?
  • What business models should stakeholders pursue to sustain shareholder returns while serving shifting public interests?
  • How are energy customer expectations evolving and what value attributes should new products and services deliver?
  • What strategies should industry stakeholders employ to prepare for and navigate the Energy Cloud transformation during the next 5-15 years?

  • Utilities
  • Energy companies and service providers
  • Energy technology manufacturers and developers
  • Automotive OEMs
  • IT, networking, and telecommunications vendors
  • Building vendors and service providers
  • Technology vendors
  • Regulators
  • Investor community

1. Executive Summary

1.1   Defining the Energy Cloud Transformation

1.2   Navigating the Transformation

1.3   Building Sustainable Value

2. Transformation

2.1   Sizing Up the Energy Transformation

2.2   Energy Cloud Scenarios

2.3   Energy Cloud Inflection Points

2.4   Anticipating Energy Cloud Ripple Effects

2.5   Beyond the Energy Cloud and Toward a Circular Economy

3. Opportunities

3.1   Energy Cloud Platforms Redefine Value Creation and Delivery

3.2   Capturing Value through Energy Cloud Platforms

3.3   Enable the Platform, Manage the Energy Cloud

4. Pathways to Success

4.1   Capitalizing on Energy Cloud Disruption

4.2   Define Your Organization’s Energy Cloud Platform Strategy

4.3   Decide Which Business Models You Want to Deploy

4.4   Execute Your Vision

5. Conclusions and Recommendations

  • Navigant Energy Cloud 4.0: Network of Networks
  • The Clean, Intelligent, Mobile, and Distributed Grid
  • The Energy Cloud Transformation
  • Grid to Cloud: The Energy Transformation
  • Integrating Energy Carriers
  • Value Differentiation of Products and Services in the Energy Cloud
  • Changes in Value Flows in the Energy Cloud
  • Value Shift Projections in the Energy Cloud
  • Retail Disruption in the Energy Cloud
  • The Customer Battleground in the Energy Cloud
  • The Energy Cloud Platform Value Creation Model
  • Energy Cloud Platforms
  • EV Value Streams
  • Evolution of Vehicle-to-Grid Integration
  • IoE Connected Home
  • Value Creation in the Energy Cloud
  • Energy Cloud Platform Orchestrator Success Factors
  • The Energy Cloud Innovation Matrix
  • Value of Energy Cloud Platform Orchestration
  • The Energy Cloud Playbook
  • Energy Cloud Scenario Planning