Low power prices, flat demand, disruptive technologies and a quickly changing regulatory environment. Globally, the power generation sector is facing unprecedented challenges. The changes under way go to the basic nature of the customer’s relationship with the utility. Technology is enabling consumers to become “pro-sumers", as microgrids, virtual power plants and community aggregation grow more widespread, leading to a re-thinking of business models along every aspect of the value chain.
In today’s unprecedented energy environment, traditional business models are becoming outmoded. In this environment, the successful power company and/ or utility must be able to embrace the forces of disruptive technology, whether it’s the growth of rooftop solar or batteries, and navigate the quickly changing competitive landscape as it is reshaped by mergers and acquisitions.
Business models are under more pressure than ever to balance competing forces such as flat demand and the need for greater resiliency or low energy prices and the shift toward a low carbon economy.
Leading power companies are contemplating new business and operating models and are working to implement them. Others are testing new lines of business or new ways of doing business. Those that have yet to embrace the changes in the market are at risk of falling behind.
Key to success in any task is having the right tools. For a business model that means having the right assets and ensuring that they are using them to their full potential.
Oliver Wyman has the expertise to successfully guide clients through the varied aspects of this changing environment, from a big picture strategy:
- Asset sales
- Generation strategy for nuclear, fossil, and hydro generators
- Fuel strategy
To a detailed analysis at the asset level:
- Optimization of plant operations
- Maintenance management
- Outage management
- Fuel and fuel transportation logistics
- Supply chain management