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Spurred by investor demand and the need to mitigate climate change, the energy and utility industry is shifting towards new-energy models. Today, most (71%) industry executives believe that implementation of new-energy models is key to survival. But what challenges do they face and how can they fast-track adoption? We wanted to find out.For the latest Capgemini Research Institute report, Remodeling the future: How energy transition is driving new models in energy and utilities, we surveyed 530 organizations and conducted one-on-one interviews with a range of senior executives.
We found that there is a strong sense of urgency to transition to new business areas and 73% of executives expect new-energy models to be their mainstream businesses within five years. Those that have made the move are already seeing a 6% increase in new business revenue, a number that is set to nearly double in the next three years. However, adoption levels remain low. Today, only 25% of organizations are implementing energy platforms, 19% are implementing energy storage solutions, and a mere 16% are implementing grid-management services.
To accelerate the implementation of new-energy models, organizations should step up their ability to innovate and become more open to forging new partnerships while investing in technology and talent and developing new ways of measuring success of new businesses in order to account for the uncertainty that is inherent in them. Finally, they need to foster a global rather than local approach to monitoring game changers.
For more information on energy transition, download the report.
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