Capturing value in connected energy
July 31, 2019
July 31, 2019
As a more decarbonized, decentralized, and customer-oriented power model takes shape, energy providers need to identify how and where they will invest to thrive in connected energy to achieve greater performance and value. Connected energy services present a huge opportunity—finding ways to deliver distributed generation and EV products and related services, energy management, energy efficiency and flexibility as part of consumers’ new digital energy experience.
There is good reason to give consumers what they want. Our analysis suggests that much of future growth will likely come further downstream through new energy retail products and services.
We estimate that in Europe alone the market for connected energy products and services could represent a potential €52 billion to €73 billion in revenue in 2030 across three core value pools.
Three core value pools for connected energy services:
European utilities could unlock significant value by investing in connected energy services.
To tap into connected energy value pools, three customer plays are taking shape:
Focuses on both selling and democratizing energy. This play helps support an energy model in which many parties supply and/or consume energy from each other.
Serving as installer, integrator, maintainer, and/or operator for rooftop solar, storage, heating electrification and smart home devices. Model emphasizes on end-to-end range of products and services.
Focuses on serving as integrator for chargepoint services, information services and mobility services. This play also aims to serve as aggregator and provider of flexibility services for eMobility.
European energy providers are well-positioned to capitalize and seize market share as these emerging opportunities grow and mature. And they should consider the power of integrating offerings to create holistic customer value propositions.
As a new ecosystem develops, new entrants are investing in connected energy solutions for future growth. These competitors include oil and gas companies, car manufacturers, startups and digital giants.
To capture value in connected energy, energy providers need to grow new routes to market. As companies work to find and scale growth, Accenture recommends starting with the following areas of focus:
Above all, energy providers must accelerate investment in the connected energy future—or risk being left behind.