by Guest Author John Domagalski
Constellation is an IMA Member
Trend 1: Flat Load is a Global Phenomenon
The US has experienced flat grid-served load throughout the past decade., and other highly-developed economies are experiencing the same trend. Recent analysis by DNV GL estimates that on a per capita basis, energy consumption is falling in many countries today. Energy efficiency gains are having a significant impact.
Trend 2: Prosumers are Pacesetting
Customer expectations are evolving. Prosumers (those that are both producers and consumers) are creating a new category in retail energy markets. This nascent but influential segment is a key driver in energy innovations. These early adopters are looking for energy solutions tailored to their needs (e.g., solar, wind, battery storage, etc.).
Trend 3: Digitization and Data Deliver
There is a wave of data coming to the energy industry. Several businesses that are making extensive use of data and analytics were featured at the Forum (e.g., Polis, Fleetcarma, Ohm Connect, ChargePoint). These emerging business models seek to leverage data in a unique way to engage customers.
Trend 4: Marginal Costs are on the Move
The marginal (or incremental) cost of providing retail energy may decrease over time. This seems to be driven by the increasing penetration of renewable energy sources (e.g., wind, solar), increased use of data and analytics, and new innovations/ technologies (e.g., blockchain) that are reducing transaction costs. As production and transaction costs decrease, fixed costs will likely represent a greater share of electricity services.
To view the original article, click here.
