The future of the utilities industry and the players that are driving market success.
of the world’s largest utilities analyzed.
combined market capitalization.
to prepare for upheaval, according to 45% of industry executives.
utilities now active in "behind the meter" market.
Decarbonization, decentralization, and digitization are compelling utilities to evolve faster than ever before. So, how are they responding to this new, three-dimensional challenge?
We analyzed the strategic actions of the world’s largest utilities by market capitalization. Our report highlights the different ways these heavyweights are navigating the road ahead and forging a new industry. We zero in on the strategies and capabilities that big utilities will need to succeed in an uncertain future. One finding is clear: Most utilities need to speed up the pace at which they develop and execute strategy.
Utilities are working hard to create winning strategies amid the most significant transformation in the sector for decades. The majority of their strategic effort is focused on five key areas:
Some utilities are embracing even more radical change. These leaders have begun to reinvent themselves, aggressively pursuing business model innovation and entering new markets for energy solutions and services. They are targeting new value pools in areas as diverse as energy management, electric car charging, and home automation.
Not only are utilities dealing with a world where markets, customers, and strategies have transformed, the GT40 must come to grip with another challenge: The externalities that influence their operations are becoming sharper.
Over the next few years, we expect to see a gap emerge between the most enterprising utilities companies and the rest. Leading players are learning from the way nontraditional competitors approach contested or new markets. They are thinking about shorter time horizons, innovative business models, and managing across multiple value chain segments. In other words, they are thinking like a “non-utility.”
These four steps provide a blueprint for utilities to act on now and set themselves up for future success.
Prof. Dr. Norbert Schwieters
Energiewirtschaft, PwC Germany
Tel: +49 211 981-2153
Power and Utilities Industry Senior Advisor, PwC United States
Energy Utilities & Mining Leader, PwC Australia
Tel: +61 3 8603 0009