Are Distribution Businesses at Risk of Losing Their Power

The traditional electricity distribution model is no longer fit for purpose. That is according to almost half (45 percent) of utility industry executives worldwide surveyed by Accenture.

Unless the industry undergoes a digital, regulatory, and business model transformation, utilities warn of increasing pressure on supply reliability and prices, Accenture’s Digitally Enabled Grid research shows.

The proliferation of distributed generation has been a key challenge for utilities. Accenture’s survey of 85 industry executives across 18 countries found that more than half (56 percent) expect grid faults to increase by 2020 as a result of distributed renewable generation, such as residential solar photovoltaics (PV). In addition, improving economics could make electricity storage another key disruptor, with 32 percent of executives expecting it to cause an increase in grid faults — up from 14 percent in 2013. Download free report.