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Utilities Unbundled Issue 15
Power & Utilities
Helping you master transformation in power and utilities
"With the need to align with the 'green agenda', the entry of new market players and the convergence of players across the energy supply chain, traditional energy companies across the continent have interesting and challenging times ahead." - Norman B Ndaba, Power & Utilities Leader
Power and utilities companies globally face the triple challenge of improving environmental performance, keeping consumers’ costs down and maintaining system reliability.
Our Global Power & Utilities Center can help you meet the coming changes and resulting challenges. We have over 3,500 power and utilities professionals worldwide with the broad experience to help you create strategies for future growth.
Supply and production constraints, improvement in environmental performance, provision of acceptable and affordable energy is a triple challenge faced by the energy sector globally and by power and utilities companies in particular. More than before these challenges present formidable transformational impacts that can be summarised into four broad categories:
- Reshaping the generation mix and renewing aging networks
Faced with ongoing policy pressure to reduce carbon emissions, the sector has an opportunity to reshape the generation mix completely over the next 30 years, through a mix of technologies. But aging infrastructure means major investment decisions must be taken today.
These will have implications across the value chain as networks respond to different demands from generators and suppliers.
Companies are considering how best to react to the introduction of low-carbon generation technologies, with a host of ongoing ‘make or buy’ questions.
Against the over-riding imperative of maintaining security of supply, key challenges include:
- Deciding on the best generation mix for a particular market
- Navigating policy regimes from country to country
- Funding the acquisition or construction of low-carbon generation assets
- Managing the risks of large-scale construction projects
- Engaging with customers over the value of a low-carbon future.
- Renewable Energy Country Attractiveness Indices
- Power and utilities transactions and trends
- Capital and funding
The challenges mentioned above all have significant cost implications that are magnified by the regulatory nature of most power and utilities markets. Capital raising and deployment is mostly diminished and constrained thereby affecting the effectiveness of such capital.
- Energy diversification
Power and utilities companies are increasingly obliged by law and societal pressure to deliver reliable, affordable, safe and acceptable energy. This challenge when grouped with capital constraints present an added layer to how power and utilities companies have to transform. Not only should they embark on new sources of energy but have to introduce energy efficiency measures downstream. Further the introduction of new market players in renewable energy technologies is forcing established energy companies to restructure their current operating models and business strategies.
- Operational excellence
The result of the market dynamics mentioned above leave power & utilities companies with little choice but to improve operational performance and adapt to new methods and systems of working.
- Customer impact
Consumers and users of energy have seen the cost of traditional energy rising considerably due market dynamics whilst the challenge of saving energy through new energy technologies increases cost.
- Our credentials
- PUMMA (Power & Utilities Maturity Model and Architecture) is our flagship response to the changing market dynamics in the sector. As companies embrace smart technology while delaying capital investment decisions and as they contend with tighter regulation and fluctuating energy prices – this solution is designed to address the appetite to fundamentally transform power companies business processes to achieve cost savings.
- PUMMA, is a content-rich model that contains a global view of the power and utilities process value chain, maturity models, risks & controls, key performance indicators (KPIs) and IT systems environments.
Norman B Ndaba
+27 11 772 3294
Power & Utilities Leader
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