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Global - Smart Grid Analysis August 2010

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Last updated: 11 Aug 2010 Update History

Report Status: Archived

Report Pages: 6

Analyst: Kylie Wansink

Synopsis

Archived report. This report was archived in 2010 and has not been updated since. Smart is now well and truly on the agenda of most electricity companies, and indeed on many of their governments’ political agendas. It has become increasingly clear that smart grids are able to transform the energy industry, and that a much broader group of industries are also affected by this. The other industries involved are IT, telecoms, white goods, renewables, management consultants, storage, transport, etc. The electricity grid is becoming the enabler in all these changes, and by making it an intelligent grid and adding telecoms to it, the power will shift away from the electricity companies to the customers – and the appliances that will be developed will assist this process; some of that on a M2M basis.

This industry transformation will lead to a regulated monopoly in relation to the infrastructure, while a range of new services and applications that are becoming available over the infrastructure will create increased competition, as, with many new companies entering this retail field, that market will become truly contestable. This will, of course, also lead to friction with the existing players. Disruptive energy developments from new energy service providers, who will build new business models around distributed (renewable) energy, will also add to the dynamics of the emerging market.

A significantly large part of the population is interested in reducing energy costs and lowering their CO2 footprint and there is evidence that savings of around 30% are possible. This could largely offset the increases in electricity prices.

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