A new report from PwC and Strategy& warns that the Power Sector is transforming fast and companies that don’t stay ahead of change are in danger. New market models and new business models will become established as a result of energy transformation and could quickly eclipse current company and country strategies.
The report, The Road Ahead: gaining momentum from energy transformation, finds global megatrends such as technological breakthroughs, rapid urbanisation and resource shifts are creating new opportunities and challenges in customer behaviour, new forms of competition, different generation models and changes in regulation.
Among the issues:
- Existing generation assets could be left stranded as local energy systems and self-generation by customers eat away at the traditional centralised grid and large-scale generation model.
- Sector transformation could shrink the role of some power utility companies to providers of back-up power.
- Developing countries may ‘leapfrog’ conventional centralised system models in favour of local energy systems.
- Existing grid and network systems may be unable to rapidly evolve to meet the needs of decentralised assets delaying the adoption of advanced technologies.
Report: The road ahead
Source: African Press Organization