Digital: The
Transformational
Play for Utilities

2
Each driver is fueled and accelerated by the migration to digital
Copyright © 2016 Accenture All rights reserved.
Demand disruption Disruption in demand from new energy technologies
Asymmetric competition Competition from new players in the value chain
Customer choice Change in customer behaviors and expectations
Capital contention Increased scrutiny on the growth of capital spend
Policy activism Motivation and goals of regulators and policy makers
An array of powerful forces are driving change in
utilities’ business models

3Copyright © 2016 Accenture All rights reserved.
52%
of consumers are
likely to install
energy technologies
similar to new solar
products and
services in less than
5 years
Solar panels Electric vehicles Storage Microgrids
+50%
of consumers are
considering an
electric vehicle for
their next car
purchase
58%
of consumers
are interested in
back-up energy
storage
+66%
of utilities
executives expect
the deployment of
microgrids to grow
and proliferate,
nearly doubling
from 2013 and
2015
Sources: Accenture New Energy Consumer research program and Accenture Digitally Enabled Grid research program.
Consumers are interested in using a widening range
of energy technologies to support their lifestyles

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Generation
Market
Operations Transmission Distribution
Residential
and SMB
Commercial
& Industrial
Digital asset management
Digital field worker
Digital commercial
optimization
Intelligent grid operations
Digital enterprise services/corporate functions
Interactive demand
optimization
Digital customer
interaction
Digital energy products
& services
Utilities are responding by using digital to deliver
more from their existing business models

5Copyright © 2016 Accenture All rights reserved.
Infrastructure
security
Customer
desires
Shareholder
expectations
Policy
objectives
RiskTrust
GrowthChoice
Efficiency
Conservation
Low carbon
ROIC
Growth
Certainty
Stimulate
innovative services
Decarbonize
energy supply
Transform the
energy network
However, broader stakeholders are putting utilities
under pressure to transform their business models
…to meet needs like more innovative services, lower carbon, and more agile
and responsive energy networks

6
The ‘power plays’ are reflecting the parallel drives to reduce carbon,
optimize distribution and innovate for customers
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Generation
Market
Operations Transmission Distribution
Residential
and SMB
Commercial
& Industrial
Low-carbon
producers
Growth in low-carbon
energy assets
Distribution platform
optimizers
System optimization,
efficiency and utilization
Solution
integrators
Innovative
customer solutions
and services
As utilities transform their business models, three
alternative ‘power plays’ are emerging

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MARKET MODEL – Energy system optimization
REGULATORY FRAMEWORK – Outcome-based incentives
BUSINESS
MODEL
OPERATING
MODEL
WORK CUSTOMER
MODEL
New roles,
scope, and
differentiating
STRATEGIES
Reform
structures and
operating
CAPABILITIES
Adopt
fundamentally
new operating
PRACTICES
Transform the
interaction
model &
RELATIONSHIP
Whichever plays a utility chooses, it will need to
transform its business model to become truly digital

8Copyright © 2016 Accenture All rights reserved.
Source: Accenture Digital Performance research, 2016.
Disruptors
Europe Utilities
Utilities (average)
North America Utilities
Digital activity - internal
Digitalactivity-external
Shape customer
expectations
Redefine capacity
Create shared value
Enable optimal
pricing
Drive low cost
service models
Utilities are using digital capabilities to drive
performance within their current business models
Yet only a few disruptors are making the leap to become fully digital

9Copyright © 2016 Accenture All rights reserved.
Generation
Market
Operations Transmission Distribution
Residential
and SMB
Commercial
& Industrial
Asset life-cycle
management
• Asset performance management
• Digital field worker
• Smart asset planning
Customer
& demand
integration
• Energy management
• Digital customer interactions
• Solution integration
Lifestyle
& uses
• Living services
• Industrial services
• Municipal services
Grid
optimization
& aggregation
Energy
aggregation
• Supply & demand management
• Energy storage integration
• Real-time network control
Interoperable
devices
*Source: Digital Transformation of Industries: Electricity Sector, World Economic Forum and Accenture, 2016.
The reward from a digital transformation of the
utilities’ business model is enormous
The potential value from rapid digital transformation for the industry is
US$1.3 trillion by 2025*

10Copyright © 2016 Accenture All rights reserved.
Shift capital
to strategic
grid assets
Build an
innovation
ecosystem
Innovate in
the regulatory
model
Scale digital
plays with the
customer
Use corporate
venturing
Utilities need to innovate around their business
models as a matter of urgency
Investing in no-regrets capabilities today will drive success tomorrow

11Copyright © 2016 Accenture All rights reserved.
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www.accenture.com/utilities
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