![]() ![]() This report will discuss the multitude of forces disrupting and driving change in the power and utilities sector, explore the exciting future the industry is moving toward, and help companies plot a digital path to thrive in that future. Continuing what they’ve been doing for the last century is likely not going to work. But to thrive in this bright future, power and utility companies will need to develop new capabilities and transform their working environment. For those incumbents, a lot may be at stake, and even more may be possible. Technologies such as artificial intelligence (AI), Internet of Things (IoT), cloud, and blockchain can catalyze new business or operating models, help new entrants disrupt the sector, and enable incumbents to reach new levels of performance. Overlaying these trends is the advance of digital technologies, sometimes at a breath-taking pace. Global battery storage capacity at customer sites is projected to rise by 516 GW by 2050. ![]() 3 At the same time, the traditionally centralized, hub-and-spoke power grid continues to decentralize, as deployment of distributed energy resources such as solar PV and battery storage rises rapidly. 2 In the United States, power sector carbon emissions were down 28 percent from a 2005 baseline at the end of 2018, and many power companies have voluntarily committed to reduce emissions as much as 80 percent from the 2005 level by 2050. 1 And that electricity is becoming cleaner, with emission-free sources such as wind and solar power projected to reach as much as 48 percent of total global electricity generation by 2050 from about 8 percent currently. In transportation, a projected 55 percent of global new car sales and 33 percent of the global fleet may be electric by 2050, accounting for about 9 percent of electricity demand. To further reduce carbon emissions, some groups are advocating electrification of end uses such as transportation, water and space heating, and industrial processes. Opportunities abound in today’s power and utilities sector, and more will likely open as the future unfolds, marked by three growing trends: electrification, decarbonization, and decentralization. View more content for the Power & Utilities sector From rising costs and changing load patterns, to newly viable technologies, regulatory change, and the growing call to decarbonize, disruptive forces are transforming the industry, driving it toward a new and different future. Why? The sector is being reshaped by forces that have been evolving and converging for more than a decade. From large conglomerates in the technology, retail, oil, and other sectors to asset managers and hot new tech startups, a lot of outsiders are looking to enter this market. Fast forward to today and, while still laser-focused on reliability and affordability, the power and utilities sector appears to be morphing into an increasingly attractive, high-tech magnet for a multitude of new players. Its main goal was to keep the lights on without breaking the bank. While solid and dependable, the sector wasn’t generally considered cutting-edge, innovative, or exciting by any stretch of the word. The power and utilities sector was traditionally where many parents or grandparents parked their savings as they got older, attracted by low volatility and stable returns. Those that don’t seize the opportunity to evolve risk being left behind or displaced by more agile players. As disruptive forces transform the power and utilities sector, many companies are turning to digital technologies and a more innovative mindset to thrive in the new era.
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