Digitally Enabled Grid 2017: Reap the benefits of smarter distributed generation integration

2. Copyright © 2017 Accenture All rights reserved.Copyright © 2017 Accenture All rights reserved. Sources: Accenture New Energy Consumer and Digitally Enabled Grid research programs; “Photovoltaic milestone: 300 gigawatts of global installed PV capacity,” German Solar Association press release, 26 January 2017; “Solar Energy Supplies Power to 10 Million Households,” German Solar Association press release, 22 June 2016. DISTRIBUTED GENERATION IS DISRUPTING THE TRADITIONAL DISTRIBUTION MODEL 2 Utility executives expecting their company’s role to evolve toward DER integrator and DER services market facilitator Utility executives expecting small scale/prosumer distributed generation to place greater stress on network hosting capacity Solar PV capacity now deployed worldwide Consumers considering investing to become power self-sufficient Three-person homes in Germany covered by PV capacity 300 +10 66% 59% 57% DEMAND DISRUPTIONTECHNOLOGY DISRUPTION BUSINESS DISRUPTION

3. Copyright © 2017 Accenture All rights reserved.Copyright © 2017 Accenture All rights reserved. DISTRIBUTED GENERATION HOSTING CAPACITY COULD BE EXHAUSTED WITHIN 10 YEARS Percent of utility executives expecting to reach network hosting capacity for distributed generation We do not expect to ever need to exceed this threshold level Beyond 15 years Within the next 15 years Within the next 10 years We’ve already met/passed it Base: Respondents who have a very/moderately clear forecast of the potential distribution generation hosting capacity of their network. 3 5% 54% 16% 12% 13%

4. Copyright © 2017 Accenture All rights reserved. 4 CAPACITY PLANNING AND CHARGING STORAGE SUPPORT DG OPERATIONS Reinforcement requirements identification Locational incentives 69% Storage deployment; embedded in the network 70% Customer-owned storage; co-located with distributed generation 71% Full operational control of small-scale distributed generation 64% Provision of ancillary services from small- scale/prosumer distributed generation 63% 66% THE UNDERTAKING FOR DEVELOPING NEW CAPABILITILIES WILL BE MAJOR Percent of utility executives expecting to deploy the following capabilities to support distributed generation integration within 10 years Copyright © 2017 Accenture All rights reserved.

5. Copyright © 2017 Accenture All rights reserved.Copyright © 2017 Accenture All rights reserved. Which stage of IT/OT integration best fits your current status? TIME IS RUNNING OUT No IT/OT executed to date/ nothing yet started Integration has been completed At the strategy stage – convergence strategy, business case, roadmap A large-scale program underway At the initial deployment stages – governance, data model definition, data quality policy, system architectures and pilots To what extent has your company implemented the changes below as part of your smart grid deployments, to date? – To a great extent Copyright © 2017 Accenture All rights reserved. 5 5% 15% 24% 40% 16% Process redesign Governance changes Co-location of teams New skills development 11%14% 26% 24%

6. Copyright © 2017 Accenture All rights reserved.Copyright © 2017 Accenture All rights reserved. 6 THE SIZE OF THE PRIZE Copyright © 2017 Accenture All rights reserved. THE POTENTIAL to reduce distributed generation reinforcement capital spend in Europe and in the United States via customer- facing smart grid solutions 30%

7. Copyright © 2017 Accenture All rights reserved.Copyright © 2017 Accenture All rights reserved. 7 SHAPE THE FUTURE. START NOW Penetration forecasting Regulatory model assessment Hosting capacity forecasting Integrated network planning Align customer and grid needs Establish new markets Adjust/evolve regulatory model DER planning scenarios Real-time network visibility Real-time distributed generation optimization <6 MONTHS 1 YEAR 2 YEARS 5+ YEARS Assess new markets and conduct pilots CUSTOMERS DISTRIBUTION BUSINESSES Collaborate with regulator REGULATORY NEW MARKETS Copyright © 2017 Accenture All rights reserved. Adjust customer propositions

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