Digitalized Electricity
Dijitalleşen Elektrik
8 Mayıs 2014 – İstanbul ICSG
Agenda
1
2
Traditional utility model at a crossroads
Trending insights for utilities companies
3
Copyright © 2014 Accenture All rights reserved.
Emerging smart grid business models
2
Major energy challenges are impacting the electricity industry
Reliability and
resilience
Superstorm Sandy heightens
US consumer concern over
reliability
Rising electricity
costs
Solar PV subsidies in
Germany cost €8.8 billion in
2012
Electricity theft estimated to be
more than 30% for some Indian
utilities (World Bank)
China’s electricity demand grew at
more than 9.5% per year from
2006 to 2010 (EIA)
Distributed generation in
Germany reaches more than 1
million households, Denmark
gets more than 30% of
electricity from wind
Evolving technologies
Copyright © 2014 Accenture All rights reserved.
The last of Japan’s nuclear
fleet goes offline in summer
2013
Natural gas boom continues
with the EIA estimating the
United States to be net
exporter by 2020
In 2012, an outage in India
affected more than 620 million
people—about 9% of the
world’s population
Solar PV reaches grid
parity in most of
Australia
Energy security and
independence
China aiming to reduce greenhouse gas
emissions per unit of gross domestic
product by 40% below 2005 levels by
2020
Environmental sustainability
Average total energy
consumption fell by 24.7% in
England between 2005 and
2011 (UK ONS)
Changes in demand
patterns
3
Major energy challenges are impacting the electricity industry
in Turkey as well
Reliability and
resilience
Severe weather conditions
during last winter caused gas
shortages leading to electricity
cuts
Rising electricity
costs
While improvements have been
made, theft & loss is still an
issue
Increasing share of renewables
in energy mix will continue to
secure domestic production
Upper limit for unlicensed
generation becoming 1 MW,
and increasing unlicensed
generation lead to need of
managing discontinuous supply
and imbalances
Evolving technologies
Copyright © 2014 Accenture All rights reserved.
Constituting 38% of Turkey’s
electricity generation,
dependency on NG & foreign
imports will continue.
Yet its share is expected to
decrease by 9% by 2023
Daily gas consumption
incresing to 180-200 bcm,
caused major problems in
transporting the required
amount of gas
Solar PV started to take place
in the energy mix
Energy security and
independence
While the last year demand was
relatively flat, we expect it to
increase in the upcoming years
again
Participating in the voluntary market, Turkey
aims to reduce greenhouse gas emissions
through developing renewables
Environmental sustainability
Energy intensity (energy
consumption per capita) is
expected to increase by 0.1 2.0% acc to different scenarios
Changes in demand
patterns
4
causing distribution networks to respond across three major
areas
Reduce retail costs
New technology
threats and
opportunities
Asset efficiency
and performance
Reduce theft
Enable demand flexibility
Improve asset utilization
Consumer Enable consumer peak and
Improve network reliability
and outage duration
demand reduction
O&M reduction and
CAPEX optimization
Increase renewables
carrying capacity
Enable new load capacity
(PEV, storage, etc.)
Copyright © 2014 Accenture All rights reserved.
5
Agenda
1
2
Traditional utility model at a crossroads
Trending insights for utilities companies
3
Copyright © 2014 Accenture All rights reserved.
Emerging smart grid business models
6
Trending insights –
Smart grid becoming mainstream
Smart grid is here to stay. It will
become mainstream and a core
part of utility operations
Operating models will need to evolve to
support the new capabilities, processes
and data
Mainstream
The example: Outage management
Disagree
The smart grid is a
natural extension of the
ongoing upgrades of the
electricity network
Will smart technology solutions be part of your
outage management solution by 2020?
Agree
The adoption of smart
technologies will
reduce the costs of
upgrading/maintaining
the grid by 2030
Disagree
Agree
Source: Accenture’s Digitally Enabled Grid program, 2013 executive survey.
Copyright © 2014 Accenture All rights reserved.
7
Trending insights –
Hybrid models will dominate
Utilities will adopt a hybrid model
involving traditional and smart
technologies
Align smart and traditional asset
investments and operating model into an
integrated management strategy and
investment plan
Which of the following
network operating models
will best characterize your
network by 2030?
Source: Accenture’s Digitally Enabled Grid program, 2013 executive survey.
Copyright © 2014 Accenture All rights reserved.
8
Competition will increase – opportunities and threats
A new set of potential services,
with data as a critical asset, will
bring increased competition as
well as new opportunities
Understand new threats and leverage
these to position for growth with emerging
opportunities
Competition is expected to increase
Impact by 2030: Threats or opportunities?
% of Utilities executives that believe that increased
competition will arise in the following areas within five years:
Revenues
85%
Beyond-the-meter solutions focused
on energy efficiency and demand
response
85% Data-related services
85%
Distributed generation
Source: Accenture’s Digitally Enabled Grid program, 2013 executive survey.
Copyright © 2014 Accenture All rights reserved.
83%
of Utilities executives expect that energy
data markets (i.e., centralized single point
of access for integrated energy data,
covering consumers, load types, segments
etc.) will develop within the next 10 years
9
Trending insights –
Regulatory strategy gains importance
Current regulatory models are
increasingly under pressure due to
the challenges facing distribution
companies
Collaborate with regulators to help shape
the regulatory models to accommodate
demand reduction and competitive threats
Do you believe that regulatory or legislative
changes are necessary to help you manage the
grid effectively?
56%
of Utilities executives believe that the
lack of regulatory and policy support is
one of the main barriers for the
deployment of smart solutions for their
network
No.1
biggest challenge to successful full-scale
smart metering deployment is the lack of
supporting policy/regulation
Source: Accenture’s Digitally Enabled Grid program, 2013 executive survey.
Copyright © 2014 Accenture All rights reserved.
10
Trending insights –
IT capabilities are stretched
Smart technologies will require
new IT capabilities to maximize
benefit realization
Address the need for new skills, tools and
capability requirements without
compromising on asset and financial
performance. IT becomes a core
competency, tightly linked with OT
Current hurdles
The needs
96%
Data management will be critical or important
for managing the complexity of the network
94%
Need to improve analytical capabilities for
IT/OT integration
92
%
Cyber security and privacy management will be
critical or important for managing the
complexity of the network
88%
Need to improve data governance
90%
Access to the right IT skills will be critical or
important to manage the increasingly large data
volumes and integration
100%
Need to improve analysis toolsets
88%
Advanced analytical/statistical tools will be
critical or important to manage the increasingly
large data volumes and integration
No.1
Barrier for North American & European
Utilities executives for deployment of smart
solutions:
Lack of mature technology solutions
Source: Accenture’s Digitally Enabled Grid program, 2013 executive survey.
Copyright © 2014 Accenture All rights reserved.
11
Closing the skills gap is vital
Real insights will come from
analytics that correlate data
across the whole enterprise
Securing access to skills which blend IT
and OT will be critical to address the
opportunity associated with analytics
The skills imperative
Importance of skills to manage the increasingly large data
volumes and integration (important + critical):
Access to the
right IT skills
90%
84%
Availability of
statistical/data
science skills
How well positioned do you believe your
company is to compete for analytic skills in
the market?
Maturity of current analytic capabilities (% of respondents
indicating a significant need for improvement):
Data
integration
53%
46%
Statistical
analysis/data
scientist skills
Data
governance
Only 25% very
well positioned
33%
Sources: Accenture’s Digitally Enabled Grid program, 2013 executive survey; Accenture analysis.
Copyright © 2014 Accenture All rights reserved.
12
Agenda
1
2
Traditional utility model at a crossroads
Trending insights for utilities companies
3
Copyright © 2014 Accenture All rights reserved.
Emerging smart grid business models
13
Evolving Business Model – determine the "smart" plan and
timing for your strategic response
Deployment of smart grid for
internal operations
Utility excellence – assumes low
competitive threat
Utility of the future
Smart grid challenger
Smart grid embracer
Priorities
• Funding for a portfolio of pilots and proactive support for
smart solutions
• Innovate to meet consumer expectations
• Build consumer relationships to support active participation
• Targeted investment in key enabling capabilities (including
communications and IT/OT)
• Opportunistic pursuit of new revenue streams using alliance
partners to reduce risk
Priorities
Low risk in the short term, nonsustainable
long term
• Aggressively pursue new revenue streams
• Make significant smart investments without
guaranteed regulated returns
• Engage in major business and operating model
change including mergers and acquisitions
• Actively drive change in regulation to disrupt the
status quo
Noneffective
Incremental traditionalist
Priorities
•
•
•
•
•
•
Protect existing revenues
Maintain pace with regulatory expectation
Proven solutions with slow scaling
Avoid investment at risk of stranding
Minimize business disruption
Lowest risk approach in the short term
Copyright © 2014 Accenture All rights reserved.
Deployment of smart grid to support
external growth opportunities
14
Accenture’s Digitally Enabled Grid program
Accenture’s Digitally Enabled Grid program provides insights and
recommendations around challenges and opportunities utilities face along the
path to a smarter grid, including views from utilities executives around the world
Forging a Path
toward a Digital
Grid: Global
perspectives on
smart grid
opportunities
Assessment of the
drivers for smart
grid adoption and
the approach to
defining an optimal
route toward a
future digital grid
Realizing the Full
Potential of Smart
Metering
Optimizing Grid
Performance through
Advanced
Operations
Unlocking the Value
of Analytics
Investigation of the
critical factors for
the deployment of
smart meters and
the extraction of
greater value
through the
adoption of
advanced solutions
Consideration of
the impacts of
changing energy
requirements on
grid operations and
the role that smart
solutions can play
in cost-effectively
delivering reliable
electricity supplies
Examination of the
central role that
analytics will play in
extracting value
from smart
solutions and
detailing of the key
factors that utilities
must address to
enable this vital
capability
Copyright © 2014 Accenture All rights reserved.
15
Thank you
Teşekkür ederiz
hakan.irgit@accenture.com