Navigant and Public Utilities Fortnightly release fourth annual State
& Future of Power report
CHICAGO--(BUSINESS WIRE)--Jun. 10, 2019--
A survey of nearly 400 executives and influencers across the U.S. and
Canadian utility industry found that climate change, evolving business
models, and new competitors are among the most pressing issues in today
and tomorrow’s power sector.
Survey results from Navigant (NYSE: NCI) and Public Utilities
Fortnightly’s fourth annual special report on State
& Future of Power underscore the importance of utilities
taking immediate steps to protect their current business while also
solidifying their future role and growing shareholder value:
69% of respondents think utilities should pursue a dual strategy
investing in both current and new business models.
68% believe climate change is already posing a tangible threat to
65% said technology and telecommunications companies pose the biggest
competitive threat to utilities.
60% accept that rapid increases in distributed energy resources (DER)
and renewables are the most disruptive force for utilities.
“Whether from disruptive forces or changing business models, utilities
face complex challenges, but also unprecedented opportunities for
growth,” says Jan Vrins, leader of Navigant’s global Energy practice.
“Investing in sustainable energy infrastructure and solutions, taking a
customer-centric approach, and developing innovative business and
regulatory models are all critical paths to staying relevant to
shareholders and customers in tomorrow’s energy industry.”
Dual track innovation and new competitors
According to the report, as utilities seek to preserve their current
business models, they can achieve new growth by diversifying products
and services. Many of today’s forward-looking utilities are pursuing
Energy as a Service (EaaS) solutions—the market for which is expected to
triple to nearly $60 billion by 2026, according to Navigant Research.
The report notes that as utilities enter the market with new
offerings—from EV charging and mobility services to lighting as a
service—they will increasingly bump up against traditional technology
and telecommunications companies. Technology and telecom companies are
expected to be some of the biggest threats to utilities, according to
the survey, even as they support utilities in developing new products
Less than 14% of survey respondents see oil & gas companies as the
biggest threat to utilities despite their growing investments in new
energy assets like renewables, charging infrastructure, and DER.
Navigant expects these companies will move aggressively into the power
and utility sector as they build and diversify their businesses before
eventually becoming electric utilities themselves.
Climate change and making do with disruption
Survey results also indicate that planning for and mitigating against
the effects of climate change should be a priority. Respondents believe
utilities should factor climate risk into investment decision-making and
focus on developing more resilient infrastructure through
non-traditional technologies such as microgrids.
As in previous years, the majority of survey respondents believe that
DER and renewables are the most disruptive forces for utilities. Navigant
Research data shows new global DER capacity deployments are already
outpacing the deployment of new centralized generation capacity, with
North America slated to install over 60 GW of capacity in 2028,
generating revenue of $44 billion.
& Future of Power to see the full survey results and
insights from 10 of Navigant’s energy experts. The report analyzes
today’s utility industry and the major changes expected in the next
10-15 years. Join the social media conversation through #FutureUtility.
With over 600 consultants, Navigant’s
global Energy practice is the largest energy and sustainability
consulting team in the industry. We collaborate with utilities and
energy companies, governments and NGOs, large corporations, product
manufacturers, tech vendors, and investors to help them thrive in a
rapidly changing energy environment. Our clients include the world’s 60
largest electric, water, and gas utilities; the 20 largest independent
power generators; and the 20 largest gas distribution and pipeline
companies. Navigant’s seasoned professionals and highly skilled
specialists form exceptional teams to help clients transform their
businesses, manage complexity and accelerate operational performance,
meet compliance requirements, and transform organizations and systems to
address upcoming changes as the energy transition accelerates.
Navigant Consulting, Inc. (NYSE: NCI) is a specialized, global
professional services firm that helps clients take control of their
future. Navigant’s professionals apply deep industry knowledge,
substantive technical expertise, and an enterprising approach to help
clients build, manage, and/or protect their business interests. With a
focus on markets and clients facing transformational change and
significant regulatory or legal pressures, the firm primarily serves
clients in the healthcare, energy, and financial services industries.
Across a range of advisory, consulting, outsourcing, and
technology/analytics services, Navigant’s practitioners bring sharp
insight that pinpoints opportunities and delivers powerful results. More
information about Navigant can be found at navigant.com.
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