Are we leading towards a revolution that will deeply change the power sector?

2. IIIImmmmppppoooorrrrttttaaaannnntttt ggggrrrroooowwwwtttthhhh iiiinnnn
iiiinnnnffffoooorrrrmmmmaaaattttiiiioooonnnn fffflllloooowwwwssss
NNNNeeeewwww eeeelllleeeemmmmeeeennnnttttssss
Smart
Distributed
Generation
metering
storage
Distributed
generation
Transport &
Distribution
Demand

3. Distributed
storage
Smart
metering
Distributed
generation
High frequency consumption measuring (~6’’
intervals). Need to manage high volumes of
information (Big Data approach)
Enables demand management
Enables consumer’s electric appliances
identification (load signature)

4. Smart
metering
Solar PV: Competitive by 2020 (Grid Parity )
Relevant for supply of individual homes
Distributed
storage
Distributed
generation
Capture of high share of future demand
growth

5. PPPPoooossssiiiittttiiiivvvveeee ffffeeeeeeeeddddbbbbaaaacccckkkk lllloooooooopppp
Distributed
generation
storage
Smart
metering
Distributed
storage
Distributed
generation
Higher TD
operational
costs
Lower
customer
base to
share costs
Higher
competitive-ness
of self
consumption
Higher
retail cost
per
customer

6. Smart
metering
Distributed
storage
Distributed
generation
Evolution driven by different industries, such
as electric vehicles. Competitive in the
beginning of next decade
With distributed generation, allows for self-sufficiency
Drives changes of demand curve shape.
Reduces uses of peak shaving plants

7. HHHHiiiigggghhhh vvvvaaaalllluuuueeee iiiinnnn nnnneeeewwww sssseeeeggggmmmmeeeennnnttttssss
Distr. Generation
Today Evolution
Services
retail
Metering
Distribition
Transport
Generation

8. Need of Transport and Distribution networks
upgrading…
Allow for multidirectional flows
Smart control systems
… having a small or even negative demand
growth
Due to self-consumption and higher efficiencies

9. PPPPllllaaaayyyyeeeerrrr SSSSeeeeccccttttoooorrrr
na Data management
CCoonnssuummeerr sseerrvviicceess
Smart meters
Retail
Solar panel installation,
financing and
management

10. RRRRiiiisssskkkkssss OOOOppppppppoooorrrrttttuuuunnnniiiittttiiiieeeessss
Falling cost of capital for
new players:
• Leasing
• Crowdfunding + VC
• Low interest rates
High size and low cost of
capital
CCoonnssuummeerr vvss.. ccoonnnneeccttiinngg Experience in services and
point
financing
Low level of I+D Customer base
New players with experience
Presence in whole value
in other businesses
chain. Potential synergies
Cross subsidies in regulated
costs
Network upgrading

11. Utilities face a revolution as deep as the one
telecommunications faced in the last two
decades
Trend towards datification of business and
leisure
Domotics and the internet of things will give
consumers high control over their consumption
More widely, information flows allow for a higher
integration of all kind of services (smartcities)

12. Utilities need to capitalize their current
advantages before they erode. Even if that
means hurting current businesses
Early positioning (joint ventures, start-up
support) may be done at a small cost,
compared to the impact of not acting

13. 200
150
100
50
0
EU exchange index
IBEX
CAC
DAX
250
200
150
100
50
0
Share price
GNF
Iberdrola
GSZ
EON
RWE
400
350
300
250
200
150
100
50
0
Market value
GNF
Iberdrola
GSZ
EON
RWE
Germany is pioneering
distributed energy penetration.
It’s utilities have lost an
important share of value
compared to European peers.

14. RRRReeeessssoooouuuurrrrcccceeee RRRReeeevvvvoooolllluuuuttttiiiioooonnnn
Heck, Rogers y Carroll, Abril 2014
RRRReeeettttaaaaiiiillll EEEEnnnneeeerrrrggggyyyy
Brock, Lehrke, Saleh y Yousif. BCG Perspectives, Junio 2014
DDDDDDDDiiiiiiiissssssssttttttttrrrrrrrriiiiiiiibbbbbbbbuuuuuuuutttttttteeeeeeeedddddddd EEEEEEEEnnnnnnnneeeeeeeerrrrrrrrggggggggyyyyyyyy:::::::: AAAAAAAA ddddddddiiiiiiiissssssssrrrrrrrruuuuuuuuppppppppttttttttiiiiiiiivvvvvvvveeeeeeee ffffffffoooooooorrrrrrrrcccccccceeeeeeee
Bake, Maciel, Dean, Sesahdri y Gee. BCG Perspectives, Julio 2014
TTTThhhheeee ddddiiiissssrrrruuuuppppttttiiiivvvveeee ppppooootttteeeennnnttttiiiiaaaallll ooooffff ssssoooollllaaaarrrr ppppoooowwwweeeerrrr
Frankel, Ostrowski y Pinner. McKinsey Quarterly, Abril 2014
GGGGrrrriiiidddd EEEEnnnneeeerrrrggggyyyy SSSSttttoooorrrraaaaggggeeee
U.S. Department of Energy, Diciembre 2013