Tuesday, December 30, 2014

Report: Distributed-Renewables Disruption Will Reduce Utility Revenues by Up To $123 Billion a Year by 2025

Digitally enabled grid executive surveys (Credit: Accenture) Click to Enlarge.
The ongoing growth of distributed renewable energy generation throughout the US and Europe will see utility-company revenues reduced by as much as $123 billion a year by 2025, according to a new report from the consulting company Accenture.

That new report on the Digitally Enabled Grid clearly states that if the utilities wish to maintain a market share comparable to that of today, the companies will need to “fundamentally transform their business models.”

Interestingly, the report makes note of the fact that roughly 61% of utility-companies are clear on the reality that potential disruption is a possibility and are expecting “significant or moderate revenue reductions” to be a result of this change.

As per the scenarios outlined by Accenture, utility-company revenues could fall by $123 billion per year by 2025 (Europe and the US) at the top end of the spectrum, or $66 billion per year on the low end.  So, significant changes no matter what — just a matter of how significant.

“Based on our research, Accenture believes that the most likely scenario in the next 10 years could lead to revenue losses at the lower end of our scale, $18 billion a year in the US and €39 billion (US$48 billion) in Europe, caused by a moderate reduction in load on the grid network,” stated Valentin de Miguel, global managing director of Accenture Smart Grid Services.  “Falling technology costs, shifting consumer sentiment and moderate electricity price increases will drive to increased penetration of clean technologies and the reduced utility revenues.”

Read more at Report:  Distributed-Renewables Disruption Will Reduce Utility Revenues by Up To $123 Billion a Year by 2025

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