Navigating Megatrends and Tipping Points in the Utilities Industry
Navigant’s Global Energy practice leader, Jan Vrins, discusses seven megatrends that are driving changes. He also describes key tipping points (current and future) that are clear indicators that a broad energy industry revolution has started.
Each of the megatrends is changing the way we produce and use power globally. Together, these megatrends are revolutionizing the industry:
1. The power of customer choice and changing demands
2. Rising number of carbon emissions reduction policies and regulations
3. Shifting power-generating sources
4. Delivering shareholder value through mergers and acquisitions (M&A)
5. Regionalizing of energy resources
6. Merging industries, new entrants, and colliding giants
7. The emerging Energy Cloud
“Balancing today’s business with tomorrow’s opportunities is key. Thinking through strategy and future case scenarios will help you understand the opportunities and threats as technology and customer choice drive new products, services, and business models. Stay close to your customers and innovate; partner where it makes sense and stay in the game. This is Energy Strategy 2.0 for the Energy Cloud 2.0,” comments Jan Vrins.
These megatrends cannot be underestimated. They are accelerating transformation in the energy industry, enabling the entry of new players, putting pressure on incumbent players, and altering traditional strategies and business models. Organizations will need to adapt, and there will be winners and losers as this transformation takes shape.
“The incumbent utility (which includes the traditional competitive retailer not offering DER) has to adapt. Customers will look for better, greener, and cheaper alternatives, and more and more of these alternatives are becoming available,” adds Vrins.
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