The document outlines findings from a four-year research program on enabling a digitally resilient grid, involving over 300 utility executives across 20 countries. Key insights include the need for utilities to renew their operational models, embrace distributed energy resources, and enhance IT/OT integration, while being proactive in addressing cybersecurity threats. Utility executives express strong agreement on the necessity for regulatory changes and the evolution of their roles towards facilitating distributed generation services.

1. TOWARD A MORE
DIGITAL, DISTRIBUTED
AND RESILIENT GRID

2. 2Copyright © 2017 Accenture All rights reserved.
DIGITALLY ENABLED GRID
RESEARCH PROGRAM
FOUR
YEARS
of actionable insights
and recommendations
around the challenges
and opportunities
utilities face along the
path to a smarter grid.
+300
utility executives
surveyed over the
past four years.
+20
countries surveyed.
FOUR
scenario-based models
looking into the impact
of distributed energy
resources, energy
efficiency and storage
on the grid.

3. SHAPE
New Revenues
EMBRACE
Distributed
Generation
FRAME
Regulation
RENEW
Operating
Model
ACCELERATE
IT/OT
Integration
SIX IMPERATIVES
FOR THE UTILITY DISTRIBUTION BUSINESS
WATCH
Cybersecurity
3Copyright © 2017 Accenture All rights reserved.
THE DIGITALLY ENABLED GRID

4. Copyright © 2017 Accenture All rights reserved. 4
SHAPE NEW REVENUES
UNDERSTAND
NEW THREATS
and leverage them to position for
growth with new services
43%
61%
58%
2013 2014 2015 2017
Percent of utility executives who believe distributed
generation will cause revenue reduction by 2030

5. Copyright © 2017 Accenture All rights reserved. 5
SHAPE NEW REVENUES
POTENTIAL
SERVICES
with data as a critical asset, will
bring new opportunities
2013 2014 2015 2017
Percent of utility executives who believe these
assets will generate revenue upside by 2030
A new set of
PEVs and charging stations Energy storage solutions
29%
42%
47% 50%
55%
57%
81% 79%

6. Copyright © 2017 Accenture All rights reserved. 6Copyright © 2017 Accenture All rights reserved.
RENEW OPERATING MODEL
EVOLVE OPERATING MODELS TO SUPPORT
NEW CAPABILITIES, PROCESSES AND DATA
MAJOR
UNDERTAKING
AHEAD
26% 24%
14%
11%
Governance
changes
Process
redesign
Co-location
of teams
Development
of new skills
Changes made to a great extent to date as part of
smart grid deployments

7. Copyright © 2017 Accenture All rights reserved.
7
Copyright © 2017 Accenture All rights reserved.
RENEW OPERATING MODEL
WHAT IS YOUR STRATEGIC RESPONSE?
PLATFORM
ACCESS PROVIDER
Provides neutral access to
network to independent
players
DECOUPLED
INTEGRATED UTILITY
Removes volume bias and
disincentive to optimize
SMART GRID
OPERATOR
New technology in existing
management paradigm
DISTRIBUTION
PLATFORM OPTIMIZER
Provides optimal outcome
for overall system

8. 8Copyright © 2017 Accenture All rights reserved.
FRAME REGULATION
COLLABORATE
WITH REGULATORS
to help shape the regulatory
models to accommodate demand
reduction and competitive threats
Percent of utility executives who believe the current
regulatory model is failing to evolve to facilitate
the transformation of the distribution business
42% 40%
Moderately agree Fully agree

9. 9Copyright © 2017 Accenture All rights reserved.
FRAME REGULATION
Percent of utility executives who believe these
regulatory changes will be necessary by 2025
MOVE TO AN OUTCOME-BASED, COMPETITIVE REVENUE MODEL
84%
YES
Already
In place
No
7%
9%
New tariff/pricing model
Outcome-based
competitive revenue model
44%
YES
No
41%
Already
in place
15%

10. Copyright © 2017 Accenture All rights reserved.
EMBRACE DISTRIBUTION GENERATION
Utility executives
expecting their company’s
role to evolve towards
DER integrator and DER
services market facilitator
Sources: Accenture New Energy Consumer and Digitally Enabled Grid research programs; “Photovoltaic milestone: 300 gigawatts of global installed PV capacity,” German Solar Association press release, 26 January 2017; “Solar Energy Supplies
Power to 10 Million Households,” German Solar Association press release, 22 June 2016.
Utility executives
expecting small
scale/prosumer
distributed generation to
place greater stress on
network hosting capacity
Solar PV capacity now
deployed worldwide Consumers
considering investing
to become power
self-sufficient
Three-person homes in
Germany covered by PV
capacity
300
+10
66%
59%
57%
10
SHARPEN DISTRIBUTED GENERATION INTEGRATION, THE TIME IS
NOW
DEMAND DISRUPTIONTECHNOLOGY DISRUPTION BUSINESS DISRUPTION

11. Copyright © 2017 Accenture All rights reserved.
Base: Respondents who have a very/moderately clear forecast of the potential distribution generation hosting capacity of their network.
EMBRACE DISTRIBUTION GENERATION
11
We do not expect to
ever need to exceed
this threshold level
Beyond
15 years
Within the next
15 years
Within the next
10 years
We’ve already
met/passed it
5%
54%
16% 12% 13%
Percent of utility executives expecting to reach network hosting capacity for distributed generation
SMART-ENABLED DG INTEGRATION WILL BE CRITICAL, AND
MASTERING DATA AND ANALYTICS WILL BE FOUNDATIONAL

12. Copyright © 2017 Accenture All rights reserved.
Percent of utility executives who believe the following
aspects of IT/OT integration are/have been the most
challenging 12
ACCELERATE IT/OT INTEGRATION
ADDRESS
NEED FOR
NEW SKILLS,
tools and capability requirements
with IT/OT integration as a
core competency
65%
52%
48%
35%
29%
Overcoming cultural barriers
and organizational silos
The business case/
cost to implement
Status of the legacy systems/
ability to evolve to IT/OT integration
Increased/changed
cybersecurity implications
Poor data availability
and quality

13. Copyright © 2017 Accenture All rights reserved. 13
ACCELERATE IT/OT INTEGRATION
MIND THE
GAPPercent of utility executives
assessing the maturity of their current
IT/OT integration capabilities
51% 44%
5%
Significant need
for improvement Some need
for improvement
No need
for improvement

14. Copyright © 2017 Accenture All rights reserved.
WATCH OUT
CYBERSECURITY
THREATS
and design for resilience
Percent of utility executives who believe to a great extent that
the following effects of cybersecurity attacks concern their
organization
Don’t underestimate
cybersecurity
57%
53%
51%
45%
27%
Interruptions to supply
Compromising employee and/or customer safety
Theft of sensitive customer or employee data
Theft of company data/intellectual property
Destruction of physical assets 43%
Cyber-ransom
31%
Denial of access/defacement
of company websites
including customer areas
14

15. Copyright © 2017 Accenture All rights reserved. 15
IT’S TIME
for utility distribution businesses
to take charge of their future.
Create and maintain
NETWORKS
THAT MATTER.

16. ABOUT ACCENTURE
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