How should companies respond?
How companies respond to these changes will determine whether they will be part of the future or join the ranks of companies from other industries whose business models have been eclipsed by technological and market change. Strategies are needed that identify the best revenue opportunities in a changed and, potentially, transformed future market landscape.Efficiency savings and performance improvements can buy power utility companies considerable defensive headroom in responding to the changing industry environment. Nearly a third (31%) of all survey participants worldwide say there is scope for power and utility companies to achieve cost base and efficiency improvements of more than 20%. Nearly three-quarters (73%) see big scope for improvement in asset performance management.
But also critical will be how companies respond to the rise of the ‘energy saving’, ‘energy generating’ active consumers. A significant proportion (41%) of our global survey participants see their market in one or more of these terms in ten years’ time compared to just 9% today. This includes 60% of survey participants in Europe, 50% of those in North America and 46% of those in Asia.