New Business Opportunities for Utility Distribution Companies in an Expanded Role as a Distribution...

Digitally Enabled GridNew business opportunities for utility distribution companies in an expanded role as a distribution platform optimizer

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Six powerful forces are creating unprecedented stresses on today’s legacy energy distribution modelWith each fueled and accelerated by the migration to digital and each opening up widening fault-lines that demand radical action

Consumer behaviors and expectations are

changing

Greater complexity driving

execution risk

Demand evolution is destabilizing the

cost-revenue distribution model

Grid-related technical risks are a struggle

Targets and constraints from

regulators continue to evolve

Competition from all sides is

expanding


As a result, close to half of utilities industry leaders globally now recognize that the current distribution model must change

A figure that rises to almost two-thirds in Europe


Platform access

provider

Distribution platform optimizer

Smart grid operator

In choosing a new model, distribution utilities have four choices, each of which brings its own opportunities to sell value-adding services

Decoupled integrated

utility


But until the regulatory model changes, the opportunities for new services and value delivery will remain relatively limited

The first is deploying smart technologies within the existing regulatory model – smart grid operator


The decoupled integrated utility is now incentivized to implement cost control solutions that would have reduced revenues in the traditional modelSeizing opportunities in areas like demand response and peak load management


Opening up opportunities to offer network optimization services that support grid operations in real time

The platform access provider can operate new markets open to all network users


The distribution platform optimizer combines the benefits of revenue decoupling and platform access provisionAnd provides clarity on which of the major beyond-the-meter opportunities are within scope for distribution businesses


The distribution platform optimizer is the model that Accenture believes will come to dominate over time

Involving managing and coordinating all elements end-to-end, to provide the optimal outcome for the system as a whole

Opening up all the service opportunities available to the other three models, and founded on a clear market model that creates a framework for commercial decisions on asset operations


An electric distribution utility looking to transform into a DPO must first become truly digital from end-to-endWith a new strategy, new capabilities, working practices and customer relationships

New Business Opportunities for Utility Distribution Companies in an Expanded Role as a Distribution...

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