Energy transition and regulation, coupled with the national renewable energy funding regimes, expose grid operators to considerable challenges: the exponential growth of renewable energies is increasingly pushing transport and distribution grids to their capacity limits. With the orchestration of production and consumption, a paradigm shift is imminent.
In order to preserve the grid operation abilities target grid planning in asset management must make far-reaching investment decisions concerning the necessary grid expansion and restructuring – amidst an increasing overall business risk through uncertain regulatory frameworks. In addition the national grid agencies demand the continuous improvement of system operation and maintenance processes.
Meanwhile, new technologies have become available that enable cost effective operating processes, the economic market integration of renewable energies and new business models. New market participants from the telecommunications and internet sectors have recognized this, launching new technologies on attractive markets.
For grid operators this challenging environment bears a number of consequences in order to sustain profitability and stability of their business and manage increasing complexity through new technical solutions.
We advise grid operators to …
- Use future scenarios in order to give guidance in this challenging environment!
- Align your business and investment strategy enterprise value oriented in order to avoid unnecessary investments!
- Intensively analyze possible effects of new technologies on grid extension mitigation as well as the possibility to facilitate new business models!
- Initiate an ambitious road map for a systematic approach to cost reduction in auxiliary functions!
Author:
Jens Raschke, Associé