Utility investments are shifting from the traditional value chain toward Energy Cloud-related companies-those focused on renewables, energy services, or software to manage distributed energy resources (DER). Navigant Research's analysis of the investments global utilities made in 2016 and 2017 also shows that European utilities are leading the charge to the Energy Cloud, likely driven by a more competitive market and renewables-friendly energy policies across the continent.
The trend toward moving away from traditional large-scale generation is reflected in the poor financial performance of the large turbine manufacturers General Electric (GE) and Siemens, both of which have shed thousands of jobs. With increasing investment activity related to new technologies, the pressure to innovate has never been greater. Innovation is a strategic imperative to succeed in the Energy Cloud future.
This Navigant Research report examines utility investment activity, with a focus on preparing for a competitive future. The study compares the number of Energy Cloud and traditional investments made by utilities and examines why Energy Cloud investments now exceed those in the traditional utility value chain. It also provides detailed recommendations on how the utility industry can create an environment in which innovation can thrive.
Key Questions Addressed:
- What kinds of companies are attracting utility investments?
- Why are utilities increasingly investing in Energy Cloud companies?
- How does the Energy Cloud force utilities to innovate?
- Why should all utilities, regardless of regulatory framework, make plans for a more competitive future?
Who needs this report?
- Technology vendors
- Analytics software vendors
- Internet of Things (IoT) platform vendors
- Systems integrators
- IT consultants
- Energy Cloud startups
- Investor community
Table of Contents
Energy Cloud Investments Exceed Traditional Value Chain Investments
- Utility Investment Activity Is Driven by Europe
- Traditional Power Businesses Struggle to Adapt to the Energy Cloud
Focus Shifts from Traditional Value Chain to Energy Cloud
- Imperative to Innovate Has Never Been Greater
- Innovation Is a Strategic Imperative in the Energy Cloud
- Platforms Are Vital for Innovation
- Innovation Processes Are Being Centralized
Innovate to Prepare for a More Competitive Future
- Utilities and Technology Vendors Must Prepare to Compete
- North American Utilities Should Plan for a Competitive Future
- Strive to Optimize-Not Perfect-Innovation Processes
- Embrace Failure
- Value of Utility Investments by Transaction, World Markets: 2016 and 2017
- Number of Utility Investments by Transaction, World Markets: 2016 and 2017
- Number of Utility Investments by Investor Region, World Markets: 2016 and 2017
- Number of North American and European Utility Investments: 2016 and 2017