A unique perspective on the future trend of the power industry

Behind the technical level of concern is the deep business impact. Research shows that the continuous development of global distributed generation and energy efficiency technologies will lead to significant changes in electricity demand, which will lead to a continuous reduction in the income of utility companies. By 2025, Accenture expects U.S. utility companies to reduce their revenue by 48 billion U.S. dollars a year, while Europe’s annual revenue declines will reach 61 billion euros. The reason for this situation is that, even if the subsidies are cancelled, with the changes in consumer awareness, the cost of new technologies, and the continuous rise in the price of electricity, breakthrough energy-efficiency technologies and distributed generation will rapidly develop, and thus more and more Individuals and businesses live a life of self-sufficiency in energy supply.

At the same time, a large number of power grid company executives in various countries in the survey believe that new industry entrants are involved in a series of potentially new industries with high growth potential and compete with traditional power companies. These areas include data-related services, distributed generation, energy efficiency and demand response solutions beyond power supply, and plug-in electric vehicles and related charging facilities. Most of the surveyed executives in China Power Grid Corporation believe that the main areas of new entrants in the market are distributed generation, energy saving and demand response solutions, demand-side aggregation services (such as load conversion services), and plug-in electric vehicles. Vehicles and related charging facilities.

Accenture's research team believes that the grid companies' trapping in the 'death spiral' is only a pessimistic assumption, but if grid companies do not make any adjustments to their existing business models, the market demand will become significant with the popularization of subversive technologies on the power demand side. The contraction will happen in real life and bring real threats to corporate income. This trend not only exacerbates the financial burden on grid companies, creates huge operational challenges, adds technical pressure to the grid, but also opens the door to the market, causing grid companies to face competition from new energy products and services.

In the face of rising electricity prices and environmental actions by energy consumers, the trend of “separate from the power grid and self-sufficiency” in electricity production and sales has grown rapidly in developed countries in Europe and America. For example, in Germany, currently, 1 in every 12 kWh is produced by a household or a factory; in the 2400 companies recently surveyed by the German Ministry of Trade, half of them have achieved self-generation or planned self-generation. Mr. Musk, CEO of Tesla, an electric car company, once imagined that China could rely on solar energy to build a "super charging station" that is independent of the big power grid and provides services 24 hours a day...

Due to the differences in the development stage and the market environment, it is still far-fetched for power users to “get out of the net”. However, in recent years, the rapid development of renewable energy such as solar energy and wind energy and various new energy technologies has also prompted China's power grid companies to take precautions and actively explore future business scenarios and transition models. In this regard, Accenture conducted its second phase of the Digital Grid Global Survey in 2014 to provide a unique perspective on future trends.

Why power grid companies are concerned about the feedback from power grid companies in the latest research shows that the friction between traditional grids and new energy technologies is still increasing. Many senior executives in the power industry began to worry that the economic efficiency of the company and the efficiency of the power grid will be negatively affected. Some respondents even hold that traditional power companies are entering the “death spiral”. According to the Accenture survey, nearly two-thirds (61%) of executives surveyed by power grid companies predict that by 2020, due to the use of distributed renewable energy (low-voltage networking), grid faults will increase; and more than half (53%) ) The interviewed senior executives believe that large-scale deployment of renewable energy power generation will also lead to grid instability.

Tramp Release Assembly

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