In a Public Utilities Fortnightly article, Navigant discusses what it takes to build the next generation of utilities
As the power and utility industry journey further into the energy transformation, utilities' control over supplying energy services is being tested. This is a result of evolving customer demand, technology innovation, and changing policies and regulation focused on decarbonizing the global economy.
In a Public Utilities Fortnightly article, Navigant’s Jan Vrins, managing director and global energy practice leader, and Mackinnon Lawrence, director and head of Navigant Research, explore why the industry is shifting and how utilities can stay ahead of the energy transformation.
“Our research shows that utilities may no longer have the luxury of time to devise the prefect strategy, and forward momentum is critical,” said Lawrence.
Vrins and Lawrence explore expanding distributed energy resources, a more direct liability for climate change, and shifting consumer demands as key factors changing the role of utilities. They believe the most challenging thing will be maintaining economies of scale as centralized assets increasingly give ground to DER and service individualization expands across the utility customer base.
“We advise utilities to orient business model innovation around network orchestration,” said Vrins. “This means moving beyond an asset or even service-based model to one that facilitates two-way value exchange across a network of asset owners, service providers, prosumers, and stakeholders traditionally aligned in ancillary markets.”