Delivering New Energy Experiences for Future Growth

NEW ENERGY CONSUMER RESEARCH
Delivering new energy
experiences for future growth
Copyright © 2021 Accenture. All rights reserved.

2
Lead with
purpose-
driven
customer
experiences
Embrace
sustainable
offerings
Seize the window
of opportunity to
lead with new
energy products
and services
Digital
to the max
Pivot from a utility
to an entirely new
type of business
that provides
digital energy
services
NEW ENERGY CONSUMER
DELIVERING NEW ENERGY EXPERIENCES FOR FUTURE GROWTH
Five key takeaways arise from this year’s research
01 02 03 04 05

NEW ENERGY CONSUMER
DELIVERING NEW ENERGY EXPERIENCES FOR FUTURE GROWTH
Six Forces Shaping the Ecosystem Emerging Sources of Value
Four Strategic Plays
Executing at Scale
“The Why”
Burning Platform
“The What”
Tech & Biz Models
“The How”
Guidelines for Execution
Energy Value
Provider
Energy
& Home
Services
Provider
Connected
Energy
Services
Provider
Beyond
Energy
This year’s report offers a framework to help energy companies examine their path forward
1 2 3 4
3
Consumer
Generation
and Storage
eMobility
Energy Efficiency
and Energy
Management
Demand-side
Flexibility
Alternative Financing

POWERFUL FORCES ARE SHAPING THE NEW
DOWNSTREAM ENERGY ECOSYSTEM
We have reached an inflection point—pandemic or not—in the transition to a decarbonized future
4
Digital technologies expose
new value potential
with digital customer journeys, online
sales and services, personalization and
AI-driven customer operations
Investor interest in sustainable
businesses grows
as the financial industry looks to innovative,
green-focused utilities
as the energy businesses of the future
Competition is heating up with
new entrants
such as auto manufacturers, tech
companies, oil and gas majors, and
startups looking to capture downstream
energy value
Energy demand growth
is sluggish
as electrification of transport and heating
are offset by energy-efficiency measures
and DERs
Renewables are being
deployed at a rapid pace
and increasingly competing
with and beating traditional
generation sources on price
Business continue to make
climate commitments
alongside increasingly ambitious
government-led sustainability targets
and regulation

NEW SOURCES OF CUSTOMER
VALUE ARE EMERGING
These sources of value are rapidly maturing and gaining traction, with opportunity across segments
Retrofit programs, device maintenance
services, revised building codes, appliances
standards and intelligent management
systems
EV energy supply, charging on the go,
charging anywhere, home/fleet charging
and smart charging
Equipment referral and installation,
operations and maintenance, energy
storage, and community energy solutions
such as offsite rentals
Time-of-use tariffs/flexible tariffs/ demand-
response options, dynamic pricing in retail
markets, “smart” appliances, and DER value
stacking
Consumer Generation
and Storage
eMobility
Energy Efficiency
and Energy Management
Demand-side
Flexibility
Alternative Financing
Lease/rent models for assets with high upfront costs, “green finance”
opportunities for zero-carbon infrastructure
5

FOUR STRATEGIC PLAYS FOR ENERGY
COMPANIES
The appropriate approach will differ based on individual client context
Connected Energy
Services Provider
Offering future-
forward energy
products and
services
Energy Value
Provider
Commodity focus,
with value-added
perks to improve
retention
Example:
Eneco – Comfort
Bonus
Energy & Home
Services Provider
Adding “status
quo” services in
tandem with
commodity
Beyond
Energy
Pivoting to address
emerging needs in
the new power
ecosystem
Example:
Iren Mercato –
Micromobility
Example:
Centrica – Boiler
Repair & Smart
Home
Example:
Total – Vroaming
eMobility Offerings
1 2 3 4
6

EBITDA = Earnings Before Interest, Taxes, Depreciation, & Amortization
Source: Accenture modeling and analysis.
Scope: Six Key European countries
(NL, FR, DE, UK, IT, SP)
…while traditional commodity growth stagnates
CONNECTED ENERGY HOLDS GREAT VALUE
POTENTIAL
7

8
CONNECTED ENERGY MARKET PERSPECTIVE
AND VALUE POOLS
There is a menu of connected energy experiences to capture value in DER and eMobility
Scope: Six Key European countries (NL, FR, DE, UK, IT, SP)
EBITDA 2030 outlook (billion euros) – commodity vs new business in utilities retail in six key European markets
Source: Accenture modeling.

EMOBILITY AND DER OPPORTUNITIES CAN
HELP AVOID SIGNIFICANT NET EMISSIONS
Source: Accenture modeling.
B2C
B2B
Quantification focuses on internal combustion engines replaced by EVs, and electricity consumption replaced
by standalone PV or PV with storage (million metric tons CO2/year in 2030)
9
eMobility 59
DER 17

10
CUSTOMERS ARE READY TO ENGAGE –
IF ADOPTION BARRIERS ARE ADDRESSED
BARRIERS TO ADOPTION
Success hinges on four experience drivers
TOO MANY CHOICES
Customers feel overwhelmed by the wide range of options for home
insulation, renewable energy systems or an EV and want simple,
personalized solutions.
LACK OF FINANCING OPTIONS
Customers need affordable, low-carbon solutions—whether
EVs, solar PVs, batteries or heat pumps—which require better
financing solutions.
UNCERTAINTY ABOUT DATA USE AND PRIVACY
Customers are concerned about safety and privacy so it is critical to
balance these priorities with the benefits of access to data for
personalization and efficiency.
NOT ENOUGH INFORMATION
Customers want better insight into the real costs and benefits
of low-carbon solutions by trusted authorities.
SIMPLICITY
TRANSPARENCY
AFFORDABILITY
TRUST
01
02
03
04
EXPERIENCE DRIVERS

THREE PATHWAYS FOR MAKING NEW BUSINESS
MODELS A REALITY
One pathway is currently viable, and two others are likely to become more broadly viable in the future.
Now
Future
Future
Current value pathway: direct solutions, focusing
on individual and bundled offerings of connected
energy solutions in the eMobility and DER space.
Future value pathway #1: aggregation and commercial
asset optimization depending on market structures and
rules, volatility from renewables, and natural gas prices—
enabling value stacking of aggregated DER assets.
Future value pathway #2: pivots beyond the core
business with energy companies extending their retail
offerings beyond energy, such as offering security,
telecom or financial services.
11

NINE GUIDELINES CAN HELP ENABLE
SUCCESSFUL EXECUTION AT SCALE
Now is the time to execute, with digital customer experience at the core
Hone an intentional
brand and connect with
customers on their
terms
Leverage customer
lifetime value as the
guide
Master asset, device, and
field operations
Build a strong technology
stack with intelligent
platforms at the core
Prioritize people and
tap into
digital workforce
enablement
Double-down on digital
customer operations with
AI-powered engagement
Capitalize on
intelligent pricing
Partner for shared
success
Prioritize data as
fundamental
Copyright © 2021 Accenture. All rights reserved. 12

13
Managing against these proactively can help smooth the path to value at scale
WE OBSERVE SEVEN COMMON CHALLENGES
AND GUIDELINES FOR EXECUTION
Common
Challenges
Guidelines
for
Execution
Bundling can
be tricky
Serving the SMB
segment with
connected energy
services can be
costly and
complex
Pushing digital
customer
solutions can be
difficult
Time to market
for new business
models and
offerings can be
slow
Pilots and proofs
of concept can
get “stuck”
The tipping points
for new business
models can feel as
if they are still far
in the future
Regulation may
not effectively
incentivize
newer business
models
Stabilize
individual
journeys before
bundling
Strike a balance
between
customer
personalization
and
standardization
Embrace
consumer
adaptability
and digital as
the new
normal
Build, buy or
borrow –
committing to
differentiated
capabilities
Adopt a
structured
approach to
innovation and
execution
Time to market is
key—be patient
and lean on
commodity
business to bridge
the gap
Collaborate to
evolve market
structures,
especially while
ecosystems are
more open to
change

TIMING OF NEW MARKET ENTRY IS CRUCIAL, AND
MARKET POSITION TAKES INVESTMENT
The commodity business represents a steppingstone to bridge the gap
In new markets (e.g., EVs and
flexibility) it is important to enter
in time to build a position.
But there is also a need to
be patient, before the volumes
start to scale and the business
case works out.
In the first few years, you
may actually lose money, but
you will be building this
market position.
Be prepared to take this time
and survive the valley of
losses and rise as a new
company.
Above all, act now while you
still have a commodity base
to help you bridge the gap
between old and new.
Copyright © 2021 Accenture. All rights reserved. 14

15
CONTACTS
Wytse Kaastra
Managing Director, Utilities,
Energy Retail and Customer Services
Sanda Tuzlic
Managing Director, Strategy & Consulting,
Utilities, Energy Transition Services
Gabriel Grossman
Offering Development Principal,
Energy Transition Services
Elizabeth Burlon
Manager, Strategy and Consulting, Utilities
Learn more about the New Energy Consumer
research program at
www.accenture.com/newenergyconsumer.
ABOUT ACCENTURE
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