This report from the US member firm examines how demand for renewable energy and increasing penetration of distributed energy resources is transforming the industry. Utility business models are changing in response to this new paradigm.
Increasing demand for renewable energy across residential and commercial and industrial (C&I) segments is driving utility business model change up and down the value chain. As energy markets in the United States and around the world can attest, customers want greater involvement and more innovation in their energy generation and use. This transformation is both enabled and driven by the increasing penetration of distributed energy resources (DER).
This shift comes at a time when electricity providers are faced with flat or declining demand and pressure to manage costs, grow earnings, and satisfy public shareholders.
As a result, electricity providers are exploring new ways to capitalise on customer demand for renewable energy. Utility business models are evolving through technology advancements, partnerships with distributed energy resource solution companies, and experimental program models.
Electricity providers see new and potentially profitable opportunities to provide customers with: