Electricity storage technology

As battery storage technology improves, utilities face a new, fundamental threat to their earnings.

Commercial and Industrial (C&I) customers can lower their consumption during peak usage times, which can significantly reduce the demand charge and consequently lower revenues for the utility. As battery storage increases in popularity, this could put billions of dollars in annual revenues at risk for the US utility sector.

Oliver Wyman’s latest article explores this issue and how successful utilities might respond. Rather than resist new technology, forward-thinking utility executives are drawing on their traditional strengths. They are using long-standing customer relationships to understand their customers’ power requirements, especially in the C&I segment and knowledge of the grid to integrate new technologies in a way that benefits both the customer and the utility.

Electricity storage technology