Today's power utilities market is facing major disruption. The magnitude of near and mid-term challenges is immense. Power companies are pulling the plug on conventional generation. Utility commodity businesses face continued strong headwinds. Carbon markets are not functioning. Regulation is often failing to produce the outcomes intended and is adding to uncertainty. The traditional utility business model is coming into question.
Where is the balance, often contradictory, between security, affordability and cleaner energy leading us? What is the role of subsidies and how are they best designed to avoid unintended outcomes? Crucially, what will be the impact of distributed generation oncentralised grids and the traditional utility business model? The extent of current disruption to the business model is perhaps only now becoming clear. Where it will lead and what it will mean for the future utilities’ business model remains unknown. We’d be wrong to say it can be predicted but the direction of some of the forces shaping it can be mapped out. And it is this ambitious territory that we make the focus of this year’s PwC Annual Global Power & Utilities Survey.
We look at these big issues through the viewpoint of a survey that is extensive in scope as well as intensive in its depth. We have talked to senior power and utility company executives in 53 companies and 35 different countries around the world. The survey is supplemented by the ‘on the record’ perspectives of a number of CEOs that are also included in the report. We report their finding on a range of questions and also, in a series of future scenarios, their assessment of how particular aspects of the world of electricity will look like in the future.
Visit the dedicated survey website to review the key findings, watch the web cast with Norbert Schwieters and read CEOs interviews.