Delta-ee: New business models are the key to utilities’ continued relevance in the 21st century

Published: Wed 16 Dec 2015
A blog entry by Scott Bryant

Contributed by:

Scott Bryant
Analyst
Delta Energy & Environment

Scott Bryant's Blog

The West’s energy industry is coming under pressure to change and innovate at an increasingly frantic pace on account of a whole range of drivers that interact with each other in complex, unpredictable ways.  Policy change, IT & technological developments, growing customer power, vertical market convergence and geopolitical factors are all playing a part. Energy companies know they have to react but, caught in the headlights of oncoming crisis, are freezing when decisive action is most needed.

However, we at Delta-ee believe that all is not lost; indeed, we believe that utilities will still have a critical role to play in the 21st Century. That is, provided they reinvent themselves now as credible energy services businesses and learn to depend less on their legacy, commodity-only business models. As part of our recent Energy Services Innovation study, Delta-ee investigated 107 global innovating energy service companies and identified 11 disruptive business models that can keep energy companies relevant in the 21st Century. We look to explore 4 of these in more detail in our upcoming Utility Week article.

However, there is a risk that, based on the current practices of what we’ve seen presented by energy companies at events around Europe, that they’ll be left behind by firms already forging ahead with any combination of these innovative energy services business models. But we also concluded that it’s not too late – and indeed that utilities remain supremely well placed to jump on the best opportunities, provided they move soon.

The key question is: which business models – and thus, which investments – make most sense?

Finding the answer will be critical in determining success or failure in the years to come.

To find out more visit our Energy Services Innovation page, or join the discussion and get involved via our LinkedIn Group ‘Delta-ee Energy Services Innovation Group’. Alternatively, just shoot me an email.

#energyservicesinnovation