The utility industry is undergoing fundamental change.
The operational and business models of the past are falling away, as the timeline for decarbonization becomes more urgent and distributed energy resources (DERs) change the nature of customer relationships.
The addition of solar power, battery capacity and other DERs means electricity no longer flows in one direction, from a centralized power plant to end customers. Similarly, customers are no longer just energy consumers. Every day, more of them become producers, meaning the era of the “prosumer” has arrived.
The challenge for utilities is to upgrade the distribution grid with systems that can manage the increased operational complexity and elevate their business processes—indeed, their entire mindset—to address the growing diversity of relationships with customers, partners and other vital stakeholders. At the same
time, customer expectations are increasing. People want to track and engage with their energy purchases on phones and tablets—the way they regularly do with other goods and services.
The risk to utilities doesn’t end there. Digital-native startups and major players from other industries are getting into the energy game, competing for market share. At the same time, utilities are left with the responsibility of maintaining the wires, poles and other critical infrastructure that makes it all possible.
It’s no wonder that some industry observers have suggested the convergence of factors could trigger a death spiral for conventional utilities. On the other hand, it could be an opportunity to create new value for innovative utilities willing to re-invent their relationships with customers.
This article is posted at salesforce.com
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