The energy consumer in the new energy ecosystem Wytse Kaastra European Utility Week - November 4, 2014 Agenda § The New Normal for the Energy World § Europe’s New Energy Consumer § The Rise of Innovative and Disruptive Business Models § The Fight for the Connected Home § Designing for the Future Copyright © 2014 Accenture All rights reserved. 2 The New Normal for the Energy World Trading & generation is bleeding Commoditization of the retail business & Margin Cost to serv e Shifting consumer preferences and values Copyright © 2014 Accenture All rights reserved. Digital disruption Energy transition is accelerating 3 The Shifting Energy Ecosystem Old world New world Centralized production Decentralized prosumers Physically connected to the grid Off-grid opportunities Predictable load Energy Products Copyright © 2014 Accenture All rights reserved. Need for flexibility in storage & demand/ response Lifestyle connected Energy services 4 Increasing Focus on Energy related Services 28% 35% 27% 41% 72% 45% 48% 27% About 40% are planning to spend money on energyrelated products and services in the next 12 months 45% 48% Would you consider purchasing electricity, and/ or related P&S from the following providers? However, most customers are considering non-utility providers for these Products and Services Copyright © 2014 Accenture All rights reserved. Yes, I consider a provider other than an utility provider 73% General Retailer/ Home Improvement (e.g. Carrefour, Leroy Merlin) Telecom Provider Online Site (e.g. Amazon, Google) Source: Accenture Analysis 59% 50% 47% 5 MegaTrends - Europe’s New Energy Consumer 41% of consumers Nearly half of 50% or more of would consider purchasing solar products from their energy provider consumers plan to sign-up for connected home services in the next five years consumers prefer digital channels for the majority of their interactions 58% of consumers 81% of consumers 70% of consumers are interested in product and service bundles from energy providers prefer energy providers for electric vehicle services no longer look for a traditional utility experience Copyright © 2014 Accenture All rights reserved. 6 The Rise of Innovative and Disruptive Business Models Characteristics of new business models • Technology driven • Over the top, skipping value chain • Sharing economy • Asset light • High scalability • Free publicity Copyright © 2014 Accenture All rights reserved. 7 Industry Convergence: The Fight for the Connected Home • The connected house is the new battlefield • Technology of the future today - the internet of things • New entrants - partners or competitors for Utilities? Copyright © 2014 Accenture All rights reserved. 8 The Perfect Storm €€€ Marginal energy price converging to 0 Patchwork & uncertainty of legislation Industry convergence Shifting consumer preferences New entrants with new business models End of traditional value pools The traditional Utility Race for the connected home Copyright © 2014 Accenture All rights reserved. Digital disruption Peer-to-peer exchanges Rise of the prosumer 9 Designing for the Future Fix and optimize the current operations Accelerate digital transformation • Straight through processing • Full omni-channel experience (24/7) • Lean management • Consumption analytics • Zero incident back office • Low cost CRM & Billing Copyright © 2014 Accenture All rights reserved. Innovate the business model • Exchange platform, connected home proposition • Mobile enablement • Demand/Response customer engagement • Social • Off grid solutions • Customer analytics • Geared on lifestyle • Easy payment 10 Q&A Thank you ! & what does your future look like ? Copyright © 2014 Accenture All rights reserved. 11
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