New Energy Is Reshaping The Power System

Renewable Energy Boom Is Pushing The Grid To Its Limits, Prompting Operators To Reinvent Themselves

Jean-Marc Ollagnier, January 14, 2019 (Forbes)

“…[The earnings growth of many electricity distribution utilities will likely] remain under severe pressure until around 2025. The ever-growing amount of distributed energy resources (DER), such as renewable energy sources like home solar photovoltaics and energy storage, are making the grid more difficult and costly to manage for operators…[and] stagnant or even decreasing total electricity demand in some geographies is also putting additional pressure on earnings…[The 2018 Digitally Enabled Grid research] found that 95 percent of respondents agree that deployment of distributed generation is increasing at a more rapid rate than distribution companies can build needed hosting capacity in high demand areas. In addition, 99 percent of respondents believe that parts of their grid will have reached maximum capacity in the next five years…

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[…In the longer term, electric] distribution utilities have the potential for a bright future, both as profitable businesses and playing a key role as a pivotal component in the future power system…[because, according to 97 percent of respondents,] earnings will grow beyond 2025, thanks to expected improvements in process efficiency and network performance as well as new sources of revenue from additional services…The key to adapting to this new landscape is for distributors to develop greater operational agility to further drive cost savings, and to pursue potential new business opportunities by tapping into digital technologies [like advanced analytics, robotics, digital twins and drones] and implementing new business models…[We advise process optimization --by implementing digital asset management, deploying smart infrastructure and supporting more connected workers…” click here for more

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