Utilities are on a countdown to reinvention
The energy industry has long known that radical transformation is coming. Revenues have been under pressure from the rise in renewables; in 2016, clean energy accounted for almost two-thirds of net new power capacity around the world.
The maturing of renewable energy technologies, the proliferation of distributed energy resources, the falling cost of battery storage, and changing, more empowered consumer behavior are shifting how we produce, use, value and trade electricity.
Together these forces have put the energy sector on a path to three critical tipping points:
- 01 When data is worth more than energy, how will smart utilities profit?
- 02 When electric cars take charge, will they fast track opportunities for utilities?
- 03 When competitors have a head start, how can US utilities innovate to overtake?
Until now these milestones on a journey to a very different energy ecosystem have been vague future events. But now EY, together with one of the world’s leading global analyst houses, has calculated the interaction and amplification of 10 convergent technological trends to determine when these tipping points will be reached.
These dates will vary across global regions, because the trends driving change in the energy sector are different for different markets. But what is certain across all is that change is coming sooner than most of us previously expected.