Energy & Utilities B2B Integration Has Become Mission-Critical
The electric utilities industry is undergoing a revolution, according to Europe’s trade association Eurelectric.
“The EU power sector is going through one of the most profound changes in its history,” the report stated. Strategy consultant Jesse Jenkins, in noting the report, speculated that Europe’s need for revolution reflects conditions in the energy industry world-wide, the message being, “they must evolve or die.”
Four major trends are reshaping the power sector, he said: the growth of renewables, a more decentralized system, foundations of the smart grid, and retail competition/new services.
The Eurelectric report cites several evolutionary improvements in services that are critical to the future, including improved system flexibility: “A market involving B2B [business to business] customers is already emerging and is likely to extend to the B2C segment through two-way digital communication enabled by smart grids and the increased penetration of smart appliances and home control technologies.”
The report concluded that real evolution in the industry requires not just technological innovation, but new innovative business models. A successful example is Entsog, the European Network of Transmission System Operators for Gas, which is smoothly facilitating the integration of trading across borders by leveraging the AS4 interface standard.