The priority given to renewables on the electricity grid has resulted in closures of gas and coal plants, which operate mainly to meet peak demand and for too little time to be profitable. This threatens security of energy supply. UK’s Brexit also puts pressure on British security of supply, with investments being delayed.
Also, the growth in renewables combined with low oil and gas prices has meant a fall in wholesale electricity market prices. With Utilities players exposed to these low prices, their financial situation has deteriorated.
These fundamental changes in the market – including decentralisation of production, an increase in renewables and the resulting wholesale price decreases, and even the entry of new players, has meant that Utilities need to adapt, and adapt fast.
● Accelerate their digital transformation journey leading to
○ Improved operational processes and client relationships
○ Significant cost reductions in the long run
○ Becoming more innovative and agile