“Business as usual” for utilities is being challenged by a wave of new technologies, new uses and new stakeholders that are impacting every step of the value chain for electricity, water and waste.
BearingPoint’s deep knowledge of the sector, our ability to mobilize our capabilities and our 600 consultants spread across 20 countries specialized in the utilities industry will be able to provide support to utilities facing these challenges.
- New technologies: the empowerment of renewable energies, the advent of distributed generation, the development of innovative technologies such as gas-to-power or GNV, the spreading use of IoT and big data tools are transforming the industrial and process landscape of utilities.
- New use and new customer expectations: clients now have the same expectations regarding their utility provider and other goods and services providers (telco, insurance, etc.). Digitalization, customer centricity, as well as adaptation to new customer behaviors (bulk purchasing, volatility, etc.) will shake up the current organization, capabilities and culture of utilities.
- New players: the emergence of new stakeholders such as aggregation platforms, pure players, and even unexpected external stakeholders (from the telco and the web industries) are very likely to reshape current market structures.
- New paradigm: the utility value chain is being transformed by decentralization and the commoditization of the molecule or the electron. New business models will emerge, remodeling the landscape and balance of power for stakeholders.
These trends will deeply transform current utility activities:
- Industrial assets: environmental sustainability concerns along with the evolution of regulation are transforming strategic investment planning. Also, a more competitive environment implies improved efficiency and performance. Utilities will need support to identify relevant technologies, organization and processes to support these transformations.
- Network: new technologies and capabilities will transform the upgrade, maintenance and failure detection of large scale networks to make them smarter and more flexible (sensors, drones, smart grids, predictive maintenance, etc.). Electricity and gas network upgrades will be particularly critical as the growing share of intermittent renewable energy, distributed generation, introduction of green gas in the network, and the development of curtailment will put more pressure on network balance. It will be a challenge to optimize these assets over time to ensure a balanced CAPEX and OPEX.
- Sales and marketing: to face current challenges of the market, utilities must enlarge their service offerings and deeply invest in customer experience to position themselves as a legitimate provider of enriched services by the end consumer. Leveraging innovation and relevant partnerships will be key success factors.