Power and utilities are taking a hard look in the mirror, evaluating asset portfolios and developing key strategies to face the realities of tomorrow. Those seeking to shift their service offerings, business models, customer relationships and ways of working may consider mergers and acquisitions as a method to jump start their transformations. But, leaders report that the deals landscape is filled with challenges. Some are more focused on partnerships with technology firms that can fill in the gaps in their digital capabilities. We’re calling this a move toward being a Utility Platform Player, or an integrator and connector in a more expanded role at the center of a new energy economy. Explore how your peers are taking steps in this direction on the deals and partnership front.
When it comes to explaining to key stakeholders the value of acquiring, or even partnering with, technology companies; our survey found that utilities are encountering some difficulty. Of all the stakeholders utilities must persuade of a transaction’s worth, regulators are seen as the toughest to sway according to survey participants.
Our survey revealed great concern that the utility sector is at risk of ceding commercial opportunities to new entrants from outside the industry because regulators continue to lag behind in their understanding of emerging technologies and business models.