By Our Reporter
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, titled ‘The Road Ahead:gaining momentum from energy transformation’, finds global megatrends such as technological breakthroughs, rapid urbanization and resource shifts are creating new opportunities and challenges in customer behavior, new forms of competition, different generation models and changes in regulation.
Among the issues it raises include:
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-Existing generation assets could be left stranded as local energy systems and self-generation by customers eat away at the traditional centralized 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 centralized system models in favor of local energy systems.
-Existing grid and network systems may be unable to rapidly evolve to meet the needs of decentralized assets delaying the adoption of advanced technologies.
Angeli Hoekstra, the Africa power and utilities leader at PwC says, “The disruption taking hold in the power sector is just the start of a transformation in the energy industry. It is not a question of whether new market models will be taking shape, as this is already happening around Africa and the world, but also which new business models will be pursued in the sector and what countries and regulators will do to increase access to reliable electricity supply and what existing power utilities will do to keep up with the change and alter their course.
