Power predictions from PwCA new report from PwC and Strategy& warns that the Power Sector is transforming fast and companies that do not stay ahead of change are in danger. New market models and new business models will become established because of energy transformation and could quickly eclipse current company and country strategies. © Warakorn Harnprasop – 123RF.com The report, 'The Road Ahead: gaining momentum from energy transformation', finds global megatrends such as technological breakthroughs, rapid urbanisation and resource shifts are creating new opportunities and challenges in customer behaviour, new forms of competition, different generation models and changes in regulation. Issues
Angeli Hoekstra, Africa power and utilities leader, PwC, said, "The disruption taking hold in the power sector is just the start of a transformation in the energy industry. It's not a question of whether new market models will be taken shape, as this is already happening around Africa and the world, but also which new business models will be pursued in the sector and what countries and regulators will do to increase access to reliable electricity supply and what existing power utilities will do to keep up with the change and alter their course." The report identifies a number of market models that could emerge such as:
"We don't believe there will be a single winning market or business model. We see a range of market and business models that build on existing models or fill new service or product needs. Incumbent companies may not be as nimble or focused as some new entrants. However, they have a number of potential advantages about existing assets, relationships, pricing and collaborating. New companies will mainly play in providing additional generation capacity, building self-sustainable local energy systems without grid connections or behind the meter solutions." Alongside the evolution of current asset-based business models, the report also identifies eight new and emerging business model strategies and what capabilities companies should be building now to stay competitive in the future or to enter a new market. Examples
According to her, in Africa governments, businesses, regulators, incumbent and new utilities, donors, investors and customers need to work together to increase access and supply of reliable electricity and embrace new market and business models to achieve this. |