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Navigant and Public Utilities Fortnightly Release Exclusive Report Addressing Concerns of Electric Utility Industry.

Navigant and Public Utilities Fortnightly Release Exclusive Report Addressing Concerns of Electric Utility Industry.
July 06
16:44 2017

Navigant (NYSE: NCI) and Public Utilities Fortnightly released the second edition of “State & Future Power Industry.” This is an exclusive report that answers the question, “What is the state and future of the electric utility industry?,” by sharing and discussing approaches such as industry leader’s perspectives, a survey on electricity’s future, and more.

Crucial findings from the second edition emphasize that even though gas prices and renewables are influencing the utility industry, the most consequential disruption originates from increased infiltration of distributed energy resources (DER), in addition to the expansive digitalization of the utility value chain.

Jan Vrins, managing director and global Energy practice leader at Navigant elaborates:

“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. 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.”

According to “State & Future Power Industry,” Navigant predicts the global market for DER, digital energy products, and services to generate an estimated $1.3 billion in new revenue opportunities. Additionally, new DER quantity from energy storage, distributed generation, energy efficiency, demand response, microgrids, and electric vehicles are forecasted to grow three to five times faster than new central generation in the upcoming five years.

Vrins comments:

 “Specifically, energy efficiency and distributed generation are putting pressure on overall load growth and disrupting the traditional utility business model. This is occurring as the industry faces fast-paced changes in policy, regulation, technology, and customer demands.”

The Public Utilities Fortnightly survey, involving more than 400 utility industry leaders, concluded additional thoughts on the biggest impacts affecting the utility industry:

  • Nearly half of the respondents see increased penetration of DER as the most disruptive threat to traditional utility business models over the coming decade, and more than 60 percent believe it will force a major shift in business models in the next decade.
  • Roughly 40 percent believe technology cost reductions will be the greatest driver of clean, renewable energy adoption over the next decade.
  • One-third ranked electrification of transportation as offering the most revenue growth potential for utilities.
  • Over 40 percent of respondents agree that wind and solar, combined with storage, are the most viable resource alternatives to backfill declining baseload generation.
  • Four in 10 respondents point to a supportive regulatory model as the most important tipping point for utilities to aggressively pursue owning and operating DER.
  • And, over two-thirds of the respondents see energy platform provider or network orchestrator as the role for the future utility to pursue.

To see the full report, click here

Image from Pixabay

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