How the era of the digitally enabled grid is changing collaboration between utility distribution and regulators.

1. How the era of the digitally enabled
grid is changing collaboration between
utility distribution and regulators

2. As a smart grid operator, deploying technologies within the existing regulatory model is a business-critical first
step. But until regulatory models evolve, opportunities for new services and higher value will remain limited.
FOUR BUSINESS MODEL CHOICES FOR THE FUTURE
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Smart grid operator
Enhanced visibility in a
traditional model
Decoupled
integrated utility
Volume bias removal
supports improved
optimization
Platform access
provider
Access and network
services focused
Distribution
platform optimizer
Enhanced optimization
over all timescales

3. THE DISTRIBUTION PLATFORM OPTIMIZER (DPO) IS THE
MODEL ACCENTURE BELIEVES WILL DOMINATE OVER
TIME
Copyright © 2017 Accenture. All rights reserved. 3
The DPO model involves managing
and coordinating all elements end to
end, to provide the optimal outcome
for the whole energy system.
But to realize the full potential of
their transformation to a DPO,
distribution utilities will need to more
closely collaborate with regulators
across many areas of their
business.

4. COLLABORATION WITH REGULATORS IS A KEY
IMPERATIVE TO A DPO WORLD
Copyright © 2017 Accenture. All rights reserved. 4
Our Digitally Enabled Grid research confirms this imperative will be particularly key in areas such as new tariff
and pricing model creation, and in moving to an outcome-based, competitive revenue model.
NEW TARIFF/PRICING MODEL OUTCOME-BASED
COMPETITIVE REVENUE MODEL
No
41%Yes
84%
Yes
44%
7%
No
9%
Already
in
place
15%
Already
in place
Which of the following
regulatory changes do
you believe will be
necessary in the next
10 years (i.e., between
now and 2025)?

5. Yes
56%
COLLABORATION WILL ALSO BE KEY TO EFFECTIVELY
MANAGE DISTRIBUTED ENERGY RESOURCES
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Additionally, DPOs will use demand response to optimize network efficiency and reliability.
Greater role for the
distribution business in
the permitting and
authorization of
distributed energy
resource connections
Mandate to use
demand response
to optimize the
network/manage
constraints
Yes
66%
Yes
56%
Yes
55%
Mandate to apply
operational controls
on third-party
distributed
generation and/or
storage
Locational pricing for
new distributed
generation (medium-
or low-voltage
connection)
Which of the following regulatory changes do you believe will be necessary in the next 10 years. (i.e., between now and 2025)?

6. WHAT IS NEEDED: THE DEPLOYMENT OF INNOVATIVE
NETWORK TECHNOLOGIES
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Incentives for the deployment
of innovative technologies in
the network
Yes
64%
Which of the following regulatory changes do you believe will be necessary in the next 10 years. (i.e., between now and 2025)?

7. NEW NETWORK OPTIMIZATION RESPONSIBILITIES FORM
THE BASIS FOR NEXT-GENERATION SERVICES FROM THE
DPO
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GLOBAL
EUROPE NORTH AMERICA
79%
9%
Yes
65%
No
20%
Already
purchased
these
15%
12%
40% 44%
16%
Do you expect to be able
to purchase energy or
ancillary services from
distributed generation,
storage, demand-
response providers or
electric vehicle owners
within the next 10 years?
(i.e., between now and
2025)?

8. MOST UTILITY EXECUTIVES EXPECT A BLENDED
MARKET MODEL TO EMERGE WITHIN 10 YEARS
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This blended market model will trigger a move toward a greater role for a new market model based on incentives
and competitive markets.
GLOBAL
EUROPE NORTH AMERICA
60%
16%
68%
20%
7%
86%
Regulated
incentive
mechanisms
16%
Competitive
market
approaches
A blend of regulated incentive mechanisms
and competitive market approaches
20%
7%
Which of the following
market model
approaches will form
the basis for new
distribution
optimization services
within the next 10
years?
(i.e., between now
and 2025)?

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ABOUT ACCENTURE’S DIGITALLY
ENABLED GRID RESEARCH PROGRAM
Accenture’s Digitally Enabled Grid program provides actionable insights and
recommendations around the challenges and opportunities utilities face along the
path to a smarter grid. Drawing upon primary research insights from utilities
executives around the world as well as Accenture analysis, The Digitally Enabled
Grid examines how utilities executives expect smart grid technologies and solutions
to contribute to their future networks. Learn more about The Digitally Enabled Grid.
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