new business opportunities for utility distribution companies in an expanded role as a distribution...
Post on 16-Apr-2017
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Digitally Enabled GridNew business opportunities for utility distribution companies in an expanded role as a distribution platform optimizer
Copyright © 2016 Accenture All rights reserved. 2
Six powerful forces are creating unprecedented stresses on today’s legacy energy distribution modelWith each fueled and accelerated by the migration to digital and each opening up widening fault-lines that demand radical action
Consumer behaviors and expectations are
changing
Greater complexity driving
execution risk
Demand evolution is destabilizing the
cost-revenue distribution model
Grid-related technical risks are a struggle
Targets and constraints from
regulators continue to evolve
Competition from all sides is
expanding
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As a result, close to half of utilities industry leaders globally now recognize that the current distribution model must change
A figure that rises to almost two-thirds in Europe
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Platform access
provider
Distribution platform optimizer
Smart grid operator
In choosing a new model, distribution utilities have four choices, each of which brings its own opportunities to sell value-adding services
Decoupled integrated
utility
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But until the regulatory model changes, the opportunities for new services and value delivery will remain relatively limited
The first is deploying smart technologies within the existing regulatory model – smart grid operator
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The decoupled integrated utility is now incentivized to implement cost control solutions that would have reduced revenues in the traditional modelSeizing opportunities in areas like demand response and peak load management
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Opening up opportunities to offer network optimization services that support grid operations in real time
The platform access provider can operate new markets open to all network users
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The distribution platform optimizer combines the benefits of revenue decoupling and platform access provisionAnd provides clarity on which of the major beyond-the-meter opportunities are within scope for distribution businesses
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The distribution platform optimizer is the model that Accenture believes will come to dominate over time
Involving managing and coordinating all elements end-to-end, to provide the optimal outcome for the system as a whole
Opening up all the service opportunities available to the other three models, and founded on a clear market model that creates a framework for commercial decisions on asset operations
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An electric distribution utility looking to transform into a DPO must first become truly digital from end-to-endWith a new strategy, new capabilities, working practices and customer relationships
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