Majority of utilities preparing for disruptive forces

Utilities are largely accepting of an energy future characterized by increasingly distributed forms of energy generation and storage, and are taking action to ready themselves and shape the outcomes. That is according to DNV GL research among 200 energy leaders.

When asked, “What is the most significant challenge facing the utility industry over the next five years?” 40 percent cited interconnection of distributed generation, and 32 percent cited “lack of clarity in national energy and environmental policies.

“We’re seeing a significant shift in the power sector today, prompted in part by changes in policy around clean energy and by new technical capabilities,” Hugo van Nispen, executive vice president, Global Energy Advisory — DNV GL, said. “This shift will have significant implications for how we produce and deliver power in years to come, and will most likely disrupt existing business models.”

The survey also found that a majority in the industry appear to be preparing to acclimate to potentially disruptive forces, particularly through adoption of new technologies.

“We’re seeing significant potential to innovate,” van Nispen said. “However, changing technology creates challenges and utilities will likely need regulatory support to adapt.”

According to the report: “The key policy issues on the minds of many are the impact of net metering and distributed generation interconnection, greenhouse gas and emissions control and the evolution of the competitive retail markets. Together, over 78 percent of respondents believe these policy or regulatory advances will have the greatest impact on the industry’s evolution by 2020.”

For more:
– see this report

Related Article:
Industry disruptors: Technology, policy and money

http://www.fiercesmartgrid.com/story/report-majority-utilities-preparing-disruptive-forces/2014-06-11