In our 2015 Global Power & Utilities Survey, we asked utility executives about how technology is disrupting the traditional utility business model. About 85 percent of respondents recognize that falling technology costs for renewables will result in new sources of power generation becoming widespread and accessible. From new energy storage technologies to the smart grid, 59 percent of Power & Utilities CEOs say their companies are making significant changes in how they use technology to help them assess wider stakeholder expectations and respond to them more effectively. However, while many utilities recognize the need to develop a robust strategy for disruptive technologies and evolve their business model, most have just started to take the first steps towards implementing their plans.
How PwC can help
PwC provides advice across the renewable industry value chain in a diverse range of ways. From evaluating innovative technologies and developing new business models to creating the financial structure of renewable energy projects and ensuring these assets are efficiently constructed and operated, our team can help you no matter where your organization resides in the value chain.
Business and market entry strategy
We support a range of companies – from utilities, independent power producers, and developers to manufacturers and energy solution providers – with the development of their renewable energy strategies. Examples include market and disruptive technology assessments, business plan development, commercial due diligence, and business model innovation.
We provide advice to developers, manufacturers, operators, financial institutions, and investors throughout the project lifecycle, including feasibility analysis, financing, tender and procurement, construction, operations and management, and project exit. We have experience with solar, wind, energy storage, biomass, and other technologies, and we have worked on projects for large utilities as well as distributed generation solution providers.
We support renewable energy companies and utilities in all aspects of operations such as sales and marketing, supply chain, product development, finance effectiveness, operations and maintenance, and customer service. We can help design your company’s strategy and operating model as well as identify operational efficiency improvements and other means of improving company performance.
Deals and investments
We help with M&A and investment–related services for power and utility companies, developers, and investors. Our advisory services include assisting with valuation, corporate finance, deal structure designs, business evaluation for stakeholder investments/divestments, due diligence, post-merger integrations, and power purchase agreement definitions.
Financial and tax structures
We evaluate financial models for renewable energy projects, taking into account the tax and regulatory implications. We also identify advantageous financing and tax structures as well as debt and equity raising strategies. In addition, we help assess and launch innovative financing vehicles such as YieldCos and asset-backed securities.
Government strategy and regulatory frameworks
We support public administrations and a wide range of renewable energy organizations to determine an appropriate energy mix and renewable energy development frameworks. We provide a range of services, from designing policy and regulations to assisting with financial incentive structure design and tariff forecasts.
Michael (Casey) A. Herman
Energy, Utilities & Mining Co-leader; US Power & Utilities Leader, PwC US