According to Navigant Research, to ensure a successful future, utilities should take a pragmatic approach to the energy transformation, creating a transformation strategy and an actionable roadmap that is backed by executives and then carefully communicated to stakeholders.
Two companion reports from Navigant examine how the energy transformation is playing out across distribution networks, offering examples of leading business models and providing practical recommendations for network utilities to realize a successful transformation.
Few in the utilities industry have escaped the buzz around the profound changes expected to alter how energy is produced and consumed. Decentralization and renewable energy are gathering pace, disrupting the way distribution networks are managed, while new announcements for new products and services flood the market.
“No two markets are the same, and no two companies operating in the same market are the same,” says Stuart Ravens, principal research analyst with Navigant Research. “As a result, each utility’s transformation will be different, but having a better understanding of the conditions that have forced change and the path of each company’s transformational journey, as well as a plan, will better equip utilities when their time for change comes.”
For most network utilities, transformation is not optional, and roadblocks are to be expected during the journey. However, according to the reports, having the right strategy in place will help to navigate political uncertainty; manage market-specific regulatory policies; access project finance from skeptical and conservative shareholders; and confront legacy issues such as corporate culture, a lack of skills, and outdated technologies.