Navigant and Public Utilities Fortnightly identify key challenges, provide guidance for utility leadership in new industry report
CHICAGO – July 5, 2017 – Today, Navigant (NYSE:NCI) and Public Utilities Fortnightly released the second edition of “State & Future of the Power Industry,” a special report exploring the current status as well as the future of the power utility industry.
Key findings from this year’s report highlight that although low natural gas prices and renewables are impacting the utility industry, the biggest disruption is coming from increased penetration of distributed energy resources (DER), as well as the broader digitization of the utility value chain.
“As the industry transformation accelerates toward a cleaner, digital, distributed, and mobile grid infrastructure, the disruption facing the industry will proliferate and become increasingly complex,” said Jan Vrins, managing director and global Energy practice leader at Navigant. “This report shows that utilities must provide new energy products and services to their customers that are supported by new business models that will allow them to continue to deliver customer and shareholder value.”
By 2030, Navigant expects the global market for DER, digital energy products, and services will create at least $1.3 billion in new revenue opportunities globally, according to the report. New DER capacity from distributed generation, energy storage, energy efficiency, demand response, microgrids, and electric vehicles is expected grow three to five times faster than new central station generation in the next 10 years.
“Specifically, energy efficiency and distributed generation are putting pressure on overall load growth and disrupting the traditional utility business model,” Vrins said. “This is occurring as the industry faces fast-paced changes in policy, regulation, technology, and customer demands.”
Additional findings in the report are based on interviews with key executive leaders in the segment, including Navigant experts, as well as a Public Utilities Fortnightly survey of more than 400 utility industry leaders. The survey results revealed current thinking on the biggest issues facing utilities today:
To see the full report, click here, and join the social media conversation through #FutureUtility.
About Public Utilities Fortnightly
Public Utilities Fortnightly (PUF) has been, since 1929, the magazine of record for the electric and natural gas utilities industry. It is a forum for commentary, opinion and debate on utility regulation and policy. PUF is must-read for the broad readership of some fifteen thousand-plus senior utility managers, regulators, policymakers, and leaderships of the asset owner/developer, advocacy, financial, legal, engineering, economic and consulting communities that must address the industry's challenges every day.
Navigant Consulting, Inc. (NYSE: NCI) is a specialized, global professional services firm that helps clients take control of their future. Navigant’s professionals apply deep industry knowledge, substantive technical expertise, and an enterprising approach to help clients build, manage, and/or protect their business interests. With a focus on markets and clients facing transformational change and significant regulatory or legal pressures, the firm primarily serves clients in the healthcare, energy, and financial services industries. Across a range of advisory, consulting, outsourcing, and technology/analytics services, Navigant’s practitioners bring sharp insight that pinpoints opportunities and delivers powerful results. More information about Navigant can be found at navigant.com.