Many recent analyses focus on the bleak outlook and dire consequences that the competitive dynamics of the new smart electric grid will have on utilities, especially electric utilities. Our new analysis evaluates and focuses on the strong foundation that utilities have, especially with future rate base and earnings growth, to be successful in the energy market. During the next 15 years, Oliver Wyman expects utility earnings will grow 3% to 4% annually, with upside if utilities change smartly in the face of the new competition. The smart grid can enable utilities to thrive, not wither.
The warnings of competitive threats to the US utility industry have sounded as the new smart electric network begins to evolve and develop and new distributed solar and wind generation finds traction in the market.