In collaboration with analysts from Datamonitor's Energy business unit, in this brief Ovum's Utilities Technology team outlines the key changes in the industry, explains which trends will have the biggest impact, and analyses the implications and opportunities of these developments for both utilities and providers of technologies and services.
Scope
* This brief outlines business issues and technology enablers that are expected to affect the utilities industry during 2010.
* The report covers developments in North America and Europe.
Highlights
Ageing infrastructure, increasing demand for electricity, the complexity of incorporating distributed generation from renewable sources, demand from consumers for accurate billing, and the need for increased visibility of energy usage are forcing utilities to invest in smart grid and smart metering projects.
The global economic downturn is stretching consumers' pockets, forcing utilities to focus on strategies both to deal with recoveries during the recession and to better manage clients in the ensuing upturn.
Reasons to Purchase
* Understand the key operational trends to watch during 2010.
* Gain insight into the technologies that utilities must either invest in or extract more value from in 2010.
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Report Table of Contents:
Overview
CATALYST
SUMMARY
OVUM VIEW
analysis
BUSINESS TRENDS AND TECHNOLOGY ENABLERS
SMART GRID PROJECTS ARE AT THE TOP OF MANY UTILITIES' AGENDA
Changing demand and supply dynamics force investment in smart grid projects
Smart meters and smart grid investments will only gain slow traction in 2010
Preparing for AMI at an early stage is essential to maximise the benefits of smart metering
Utilities need to continue to lobby for standardisation of AMI technology
LEGISLATIVE PRESSURE AND INCREASING DEMAND WILL FORCE UTILITIES TO HELP CUT ENERGY USE
Emissions legislation will further intensify the requirements for demand management
Energy demand reduction will require an increased focus for commercial users
Utilities should seek innovative methods to better manage their residential customers
Effective demand management will require sticks as well as carrots
UTILITIES WILL INCREASINGLY FOCUS ON THE CUSTOMER RELATIONSHIP
Utilities are blighted by poor customer service, deregulation and high cost-to-serve
Competition forces utilities to seek ways to differentiate their customer care
Utilities must have an AMI-enabled CRM system in place before they complete their AMI deployments
Social media present utilities with innovative methods to engage their customers
UTILITIES MUST ADAPT TO BOTH THE ECONOMIC DOWNTURN AND ENSUING UPTURN
Retail strategies in a downturn
Retail strategies in the upturn
DELEVERAGING WILL BE PREFERRED TO LARGE-SCALE INVESTMENTS IN 2010
Infrastructure build is unlikely to see much investment from institutions
Major acquisitions are also unlikely as utilities seek to deleverage
ACHIEVING THE INVESTMENT REQUIRED OVER THE NEXT 10 YEARS REQUIRES A WEAKENING OF UTILITIES' INNATE CONSERVATISM
Utilities have not traditionally been active outsourcers
AMI will be a key driver for a future increase in outsourcing opportunities
ACTIONS
TECHNOLOGY RECOMMENDATIONS FOR ORGANISATIONS IN THE UTILITIES SECTOR
Prepare for AMI sooner rather than later
Focus on the consumer
Ensure that retail strategies can be adapted to a changing economic climate
Be prepared to temper conservatism over technology ownership
RECOMMENDATIONS FOR PROVIDERS OF TECHNOLOGIES AND SERVICES
Ensure that clients are able to maximise the value of AMI
Co-operate with utilities to improve customer service in 2010
Work with clients to investigate how alternative ownership models can deliver value
APPENDIX
DEFINITIONS
METHODOLOGY
FURTHER READING
LEAD AUTHOR
CONTRIBUTING AUTHORS
OVUM CONSULTING
DISCLAIMER
About Datamonitor
The Datamonitor Group is a world-leading provider of premium global business information, delivering independent data, analysis and opinion across the Automotive, Consumer Markets, Energy & Utilities, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Technology and Telecoms industries. Datamonitor's market intelligence products and services ensure that you will achieve your desired commercial goals by giving you the insight you need to best respond to your competitive environment. View more research from Datamonitor at http://www.fastmr.com/
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
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