Whitepaper DNV GL: What’s driving tomorrow’s electricity grid?

We, at DNV GL, believe it is our job to catalyze the transition of the energy industry to a sustainable one.  We do this for example by developing and supporting the development of technology, create business cases related to market opportunities, design frameworks for market models, etc.  Concrete and specific tools and measures that– so to speak – can be implemented tomorrow. We support our clients with business & technology strategy development: how to create sustainable revenues in new markets? Our experience and added value here lies in competitive analysis, benchmarking and risk assessed scenarios.

Our contribution to the Energy Next symposium was all about concrete business cases for utilities coming from the game-changing electric vehicle opportunity. We presented business cases and showed how cooperation between utilities and OEMs (car manufacturers) can be beneficial for both in order to manage the transition smoothly and use the core competences of both partners in the most effective and efficient way. Several aspects concerning alternative and second use for EV batteries are explored. Using EV batteries to provide flexibility to the power system (alternative use) is shown to open up new revenue streams for those utilities that are willing to adapt their business models and transition from their traditional role as commodity providers to being service providers. The second use concept proposed in the paper, allows OEMs to offload the recycling obligation for used EV batteries and provides utilities with a viable business case for PV energy storage.

It is apparent, that the automotive and the energy industry are confronted with disruptive trends, that will over the next decade change the business models in both industries significantly.

Whilst the energy industry’s major trend is decentralization, a major trend in the automotive sector is electrification. As shown in this paper, both trends merge at the end customer whose energy storage capabilities will grow significantly when EVs will be mature enough to serve the mass markets. Both trends are currently still in their beginning but in the mid-term they will change the way OEMS andutilities will be able to generate business. As we tried to show in this paper cooperation between utilities and OEMs can be beneficial for both sides in order to manage the transition smoothly and use the core competences of both partners in the most effective and efficient way.

Ready? The road ahead

In the competitive worlds of energy retail and automotive industry, companies are keen to develop strong and commercially attractive propositions. In such a competitive environment, cross-divisional product combinations are a proven concept in e.g. telecom sector and known to generate fair margins. The key aspect is to setup commercial configurations that can swiftly be implemented. In this new business model OEMs and utilities must determine how exactly they will earn their revenue, incur their cost and manage the associated risk. They should evaluate the depicted trends thoroughly with regard to their effect on the individual business model. OEMs and utilities must act proactively and investigate how cross industrial partnerships could improve the individual position in a changing environment.

Read the entire Whitepaper here:

Energy Next

Nieuwe technologieën, marktmodellen en samenwerkingsvormen dragen in grote mate bij aan het hervormen van de energiemarkt. Het roer moet immers om, maar hoe? Tijdens het Energy Next! congres op 10 december 2015 hoort u o.a. alles over de nieuwste initiatieven, businessmodellen en kansen. DNV GL is partner van het Energy Next! congres. Meer informatie vindt u op de website van Energy Next!