The future will belong to forward-thinking utilities that can continue to bring about change through stakeholder consensus-driven initiatives.
Prices are dropping for several reasons: An aging infrastructure, Low demand growth, and The rise electric utility business plan distributed generation DG Although still threats, utility professionals were less concerned with retiring coal-fired power plants, emissions standards, renewable mandates, and cybersecurity.
Morgan Stanley estimates that there will be 3. Driven by federal and state incentives and declining costs, DG is expected to continue to gain market share.
As recent demand growth has been very low in many utility territories, utilities and marketers are trying to capture business opportunities by working with more energy-conscious consumers. Installed solar PV capacity is likely to grow from 8. Market Trends Survey Existing and future regulations will result in the retirement of coal plants across the country.
Utility Dive, an online energy news dashboard, surveyed U. The average age of the 84, dams in the country is 52 years. Projections show that up to half of the energy workforce — more thanworkers — will retire within 5 to 10 years. The Department of Labor estimates that the energy sector employs about electric utility business plan million people nationwide, and the average age of utility workers is now over Market penetration for this type of system is very small today but there is potential for growth.
An Aging Infrastructure Figure 1: With demand no longer growing at past rates, utilities are having to spread the cost of increasing infrastructure investments among their customers. Replacing those power supply resources will likely include less-intensive carbon or zero-emission options such as natural gas plants and renewables.
How can utilities plan for and embrace the rapidly changing environment while also effectively managing the ever-changing regulatory and legislative environments? Investment By Investor-Owned Utilities, Basic infrastructure — Electric transmission and distribution lines, gas pipelines, hydroelectric dams — and the workforce that maintains this infrastructure are central to the core mission of electric utilities.
Instead of focusing strictly on commodity sales, utilities will need to expand their offerings by considering opportunities with energy efficiency programs, demand response programs, and distributed generation alternatives that will enable the electric utility to offer a suite of services to help consumers achieve their goals of highly reliable and cost-effective energy.
The monopoly utility provided a safe and reliable service while regulators allowed it to earn a reasonable, low-risk return. While natural gas is the primary fuel source for DG applications today, solar power has the potential to become the leader in DG applications.
Low Demand Growth Energy efficiency measures gained traction with U. The price for installing rooftop solar panels has plunged in the last few years.
As rates rise, demand-side management and rooftop solar become more attractive, which can further reduce energy sales. Whereas other technologies, including solar PV, net metering and energy efficiency, still require grid dependence, solar coupled with storage technology could enable customers to cut the cord to their utility entirely.
The Rise of Distributed Generation The national coal and nuclear generation fleet is rapidly deteriorating. Resourcefulness remains hard-wired in the minds of consumers affected by the recession and there is a desire to maintain or reduce electricity consumption.
Due to economies of scale, the centralized generation and bulk transmission system model was consistently cost effective. Conclusion To prevent old infrastructure from impeding growth of the U.
Electricity Sales by Sector, State regulators are increasingly applying policies that incentivize utilities to invest in energy efficiency projects. The Economics of Grid Defection: Nevada and Wisconsin allow utilities to earn a return on efficiency investments roughly equal to the return on building supply-side power plants.
Which opportunities or threats are most likely to cause a paradigm shift among the industry and its stakeholders? Current Electric Utility Business Model: Transmission investment has continued to increase since [see Figure 1], but ongoing permitting risks, weather events, and limited maintenance have contributed to an increasing number of failures and power interruptions.
If funding at the Corps remains at current levels, the 22 planned major construction and rehabilitation projects will not be complete until the year Regulatory reforms such as decoupling profits from energy sales could overcome the inherent disincentives regarding energy efficiency.
In addition, the time it takes to complete these projects drives the cost up and creates enormous backlog. This has the potential to encourage more utilities to transition away from a sales-based model. Informed and In Charge: A good example of the potential growth for energy storage is found at the Tesla electric vehicle company.
Sell electricity kWh and earn a sensible rate of return on its capital investment. For more information or to comment on this article, contact: Electric utilities will depend on their utility workforce to upgrade these infrastructure projects.Recent technological and economic changes are expected to test and transform the electric utility industry over the next decade.
Electric Utility Business Model Threats! by GDS Associates | Jan 19, How can utilities plan for and embrace the rapidly changing environment while also effectively managing the ever-changing regulatory. The next generation utility business model will rely on a cleaner, more distributed energy system regardless of what happens in Washington, according to our new State of the Electric Utility.
Premiere Electric electrical contractor business plan executive summary. Premiere Electric installs high-end security, data transfer, and communications systems/5(37).
Strategic Business Plan The GRPUC Strategic Planning Team has prepared this Strategic Business Plan with assistance from Collaboration Unlimited. To view the Strategic Business Plan, click on the attached file.
DEVELOPING POWER BUSINESS PLAN: EMPOWERING THE BOTTOM OF THE PYRAMID by Scott Gregory Baron DEVELOPING POWER BUSINESS PLAN: EMPOWERING THE BOTTOM OF THE PYRAMID Scott Gregory Baron developing human empowerment through access to electricity.
The business plan is organized. Strategic Plan. Valid as of January 1, SBP the Five-Year Strategic Initiatives, the Five-Year Balanced Scorecard, and the Five-Year Service Business Plans.
Service Business Plans for electric, natural gas, water and wastewater are included in the AOFP from an operational and financial perspective.Download