Energy and utilities

Energy and utilities

In a world of volatile energy prices, uncertain sources of new energy supply, aggressive investor involvement, and intense regulatory scrutiny, fundamental changes are occurring within the power and gas industry. With historically high oil and gas prices driving the price of marginal power production, governments are seeking non-carbon based power sources and increasingly looking to alternative or cleaner energy sources, including nuclear, liquified natural gas (LNG), and coal gasification.

Alternative energy sources, such as renewables and biofuels, have become a cause celebre with both environmentalists and industry executives. And with this evolving market backdrop, regulators are insisting on flawless energy delivery and stability in prices, while exercising close control over industry consolidation. As market forces continue to create challenges, distinctive strategy, business model evolution, financial capacity, regulatory innovation, and world class operations capabilities become table stakes for success.

Drawing on a deep understanding of industry dynamics, extensive experience along the entire gas and power value chains, and broad functional capabilities, Strategy& assists many of the world’s leading companies in the gas and power sectors. Our global capabilities are delivered throughout the sector to traditional utilities, merchants, and marketers, as well as to financial sponsors, vendors and suppliers, and governments. Working side by side with our private and public sector clients, we assist with strategy development and execution, M&A transaction support, performance management, and technology strategy and implementation.

read more
Companies in the utility sector should consider how to restructure financially, while navigating new regulations, distributed generation, and the evolving customer interface.
read more
Strategy& works with all types of megaproject stakeholders, including corporate owners, engineering procurement and construction (EPC) firms, original equipment manufacturers (OEMs), governments, and major suppliers to improve the likelihood that megaproject scope will be delivered safely, on-time, on budget, and with high quality.

Our thought leadership

read more
As growth curves regress toward the industry mean, some utilities are considering a new way to deliver shareholder returns: growth through subtraction. Executives need to ask a critical strategic question of their businesses: In today’s market conditions, what fits, and what doesn’t?
read more
Utility mergers often take a year or longer to close. Based on our experience with utility integrations over the last 25 years, we have developed 10 best practices that can improve the likelihood of a successful merger outcome.
read more
The energy industry’s performance has plateaued recently, but a new approach can help. Instead of limiting the accountability for safety and environmental factors to an isolated function, this model shifts the responsibility to front-line workers.
read more
External political, market forces and coal pricing will determine coal competitiveness, but optimism in the U.S. coal industry is the heart of our article published at World Coal Magazine.

read more energy and utilities thought leadership >


How we help our clients

Competitive companies require tailored strategies to tackle the full range of strategic and market challenges. Working with condition-driven methodologies, our teams help clients inform their strategic debate, envision the future, set clear expectations, and develop and implement appropriate strategies related to:

  • Corporate growth
  • Capital allocation
  • Portfolio optimization
  • Operating models
  • Organizational architecture
  • Workforce planning

Drawing on our proven industry expertise and our functional experience in the support of all phases of M&A processes, we support our clients during target assessment, synergies quantification, regulatory strategy, and integration program implementation. Major support activities include:

  • Acquisition strategies
  • Financial analysis and valuation
  • Due diligence support
  • Clean room operation
  • Postmerger integration
  • Business carve-out

Markets and regulators are demanding that power and gas companies not simply pursue, but achieve, operational excellence. We support our clients in the sustainable optimization of their entire services and cost base with independent analysis and support of:

  • Cost structure review
  • Process optimization
  • Customer management
  • Supply chain optimization
  • Asset utilization
  • Outsourcing analysis

Understanding technology trends and deployment is fundamental to defining how to effectively support business operations and optimize capital investment, particularly with respect to the evolution of the "smart grid." We help clients develop real-world understanding of available asset and system technologies and manage implementation of projects to achieve intended results by addressing:

  • Innovation strategy
  • Technology assessment
  • Deployment economics
  • Investment effectiveness
  • Architecture design
  • Network optimization

Strategy& has worked with an array of the world’s leading gas and power companies in every category of the value chain: power generation, transmission pipelines and storage, LNG, trading and marketing, distribution, and retail.


Client example

read more
Strategic and well executed alliances can be game changers in business performance. See how we equipped our client with the tools to make the right decisions at the right stage to ensure they gain competitive advantage.