Towards a digital grid: Insights to prepare for the future October 2013

Transcription

1 Towards a digital grid: Insights to prepare for the future October 2013

2 Despite great improvements, in recent years Utilities have presented a low innovation intensity vs. other industries Low R&D intensity, compared to other industries 15% (R&D/Sales) 12,6% 10.6% 12.4% 11.9% 12.0% 11.4% 12.3% Technology industry Limited introduction of innovative products to explore new income sources 5% 4% 3% 2% 1% 0% High Int. Industries 4.0% 2.5% 0.33% % 3.2% 3.2% 3.6% 3.8% 2.4% 2.3% 2.3% 2.4% 2.2% 2.4% 0.29% 0.29% 0.31% 0.34% 0.34% 0.34% Average R&D intensities by industry (05 11) Health Care 11.8% Food & Bever. 1.1% Automobiles 4.9% Financial Serv. 0.9% Chemicals 4.9% Consumer Serv. 0.6% Ind. Goods & Serv. 3.3% Construction 0.6% Household Goods 2.7% Metals & Mining 0.5% Telecommunications 1.4% Oil & Gas 0.3% Sources: Accenture analysis, Annual reports, EU Ind. R&D Inv. Scoreboard Copyright 2013 Accenture All rights reserved. 3.9% Utilities related manufacturers European Avg. Utilities Low Int. Industries Hardware & Equipment Software & Computer Serv. Automobiles Health Equip. & Serv. Electronic & Electrical Equip. Metals & Mining Industrial Engineering Food Producers Aerospace Chemicals Pharma. & Biotech. Construction & Materials Oil & Gas Utilities Source: EC JRC-IPTS (2012) Share in annual sales of innovative products launched during the last 3 years 33% 30% 23% 22% 17% 13% 12% 11% 10% 7% 2% 1.5% 46% 63% 2

3 And the pressure is mounting It s a model that hasn t changed much since Thomas Edison invented the light bulb. And it s doomed to obsolescence. Business Week Why the U.S. Power Grid's Days Are Numbered, 22 Aug 2013 the very nature of developed market utilities is likely to change, and companies face a choice of evolving themselves within this new energy framework, or gradually regressing to become effectively state funded... Citi GPS ENERGY DARWINISM -The Evolution of the Energy Industry, Oct 2013 The business of the smart grid is, of course, alive and well. But it clearly has not yet fully delivered on its promises and is stagnating. Electric Light & Power Smart grid is dead, long live smart grid, Jun 2012 Copyright 2013 Accenture All rights reserved. 3

4 There are major energy industry challenges to which distribution networks must respond Control over rising electricity costs Energy security and independence Support for demand growth Evolving distributed generation technologies Environmental Sustainability Reliability and resilience of supply Copyright 2013 Accenture All rights reserved. 4

5 The innovation tipping point: Digitization Analytics When every business is a digital business, innovation will redesign processes and business models Social Solar to mass market Philips IntelliVue/Google Glass Mobility Data velocity Cloud 3D printing Drones Active Defense Copyright 2013 Accenture All rights reserved. 5

6 The Digital Grid has already arrived How can we make the most of it? Digital Asset Mgmt Digital Workforce Intelligent Grid Optimization Consumption Optimization Copyright 2013 Accenture All rights reserved. 6

7 Tackling the technology challenges for the creation of SuperGrids Tail Top TOP New materials, power electronics and analysis tools Non-destructive testing Super-scale, multi-terminal HVDC systems Super-scale capacity HVDC cables and AC/DC convertors Intercontinental electrical transmission system Energy transfer, reserve, use of storage & demand-side

8 Innovation is the only way to increase existing last mile capacity and meet carbon footprint targets Tail Top TAIL Transition towards high voltage grids (active DSO) Voltage regulation / power quality provision Capacity improvements in the last mile Reliability and service quality on legacy infrastructure Proactive outage communication

9 Practical considerations preparing for the digital grid Leverage advances in mobility to embed collaboration into the business processes Pursue further integration of your supply chain create an environment to foster innovation and drive delivery excellence Take advantage of the unlimited processing power available to leverage automation and real-time data-driven decisions Design for analytics ask the questions first and design for the answers Develop a risk-based organisation from cyber security to investment decisions Focus on the customer and exceed expectations don t look inside, compare yourself with external benchmarks Copyright 2013 Accenture All rights reserved. 9

10 Electric light did not come from the continuous improvement of candles Oren Harari Copyright 2013 Accenture All rights reserved. 10