Transforming utilities for a sustainable future

By Ismail Syed Mohammad, Managing Director, Accenture, and Samuel Harrell, Senior Director, Global Industry Strategy Group, Oracle

The urgent, global call to address climate change has spurred companies across every industry to rethink their approach to energy usage — yet none have been so impacted as utility providers. The increased demand for renewable energy sources and push for electrification have positioned utilities at the center of this momentous transition toward a net-zero world. While utility companies face considerable business challenges toward this end, they also stand to gain substantial competitive advantages and rewards for addressing evolving customer expectations.

Utilities that manage the “twin transformation,” integrating digital and sustainable solutions into their core businesses, will be at the forefront of the energy transition. This is a make-or-break moment for utilities, and Accenture’s utility solutions delivered on Oracle Cloud can help them lead the energy transition to a more sustainable future.

Converging trends in the era of electrification

Today, we see some sluggishness in energy demand growth and more opportunities for efficient consumption. At the same time, renewables are being deployed at a faster pace, and electrification is gaining rapid traction across industries.

We believe these trends are collectively signaling a pivotal opportunity for utilities and the energy industry at large to support their climate change commitments and further environmental, social and governance (ESG) goals. Utilities are uniquely positioned to take charge and play a more central role on the path to net zero but will need to develop a broader, more diverse set of business capabilities and relationships and gain entry to new industry sectors — an evolution that Accenture expresses as the concept of Utilities+.

In collaboration, Accenture and Oracle have identified some key steps that companies can take today to become Utilities+. First, they must use digital technology to help optimize their portfolios and assets to drive additional capacity. Then they can optimize the grid edge so that systems such as substation facilities can adapt to technological changes in real time.

As these technological changes gain traction, utilities can evolve their mindset to transform customer interactions and embrace the electrification of mobility. They can also offer modern financing options as they change their rate-based paradigms — all while keeping social and risk governance in mind. Finally, cloud innovation and data intelligence are driving factors behind all these transformations.

We believe that taking these steps can help utilities successfully enable and progress their digital and sustainable transformation journey.

Even in the most conservative scenarios, electricity is expected to increase from 25% of the energy mix to at least 50% — potentially reaching 75%[1].

The development of electric vehicles (EVs) and smart grids, as well as other markets steering away from fossil fuels, are all factors helping to drive this increase.

Why a twin transformation?

Global changes — from renewables, to microgrids, to cybersecurity — are pushing utilities to reimagine how they operate. When we look at how renewables penetration is going, how new policies are being taught and how investors are putting their money into new products, all these changes need large amounts of computing power and digitalization.

In short, as interest in sustainable technology solutions grows, so must the capacity to handle digital processes. A twin transformation applies layer upon layer of different approaches to the way utilities have always run. As EV charging stations begin to proliferate, for example, utilities must concurrently learn how to support this additional capacity while adjusting billing and usage operations. If a utility company is going to install 500,000 EV charging stations and a network built in its service territory, it will need to take multiple steps to make that solution a reality.

For EV charging at scale, your platform is key https://www.accenture.com/us-en/blogs/accenture-utilities-blog/for-ev-charging-at-scale-your-platform-is-key

However, utilities can’t afford to sit around and wait for this transformation to happen. They need to be active players in the process. Right now, many utilities are not capable of having these kinds of conversations at this level of sophistication, but they will need to in very short order.

How to accelerate your path to value

The foundation of a twin transformation for utilities is a unified technology platform with solutions that are automated and secure from end to end — solutions backed by solid utility experience and proven technologies. Increasingly, the cloud is how we can deliver computing capability and unlock greater business value faster for utilities customers.

As a utilities provider, you should look for a solution that emphasizes putting the customer at the center of your business. You need to provide meaningful solutions, products and offerings to your customers. More and more enterprise utility customers are looking to utilities for energy leadership — including industries such as construction, automotive, manufacturing and fast-moving consumer goods, as well as cities and municipalities with “smart city” initiatives in the works.

New energy consumer: transition on demand

To keep your focus on the customer, you need enabling operational technology. From networks to assets to connectivity, everything needs to run securely so utilities can safely integrate new technologies, such as distributed energy resources (DERs), into the main grid. As a utility company, you should be asking: “Can I bring all DERs in a unified manner into the main grid in a safe and secure way? How can I be sure that I’m not compromising any of the security and constructs that the industry has to abide by?”

Finally, you’ll need to extend the benefits of transformation across your enterprise. From the supply chain to human resources, financials, capital project management and more — all can benefit from a well-planned and executed twin transformation.

Accenture and Oracle have teamed up to meet these challenges, with Accenture delivering preconfigured industry-specific solutions on Oracle Cloud Infrastructure (OCI). Accenture myConcerto for Oracle brings together Accenture’s deep technical expertise, industry experience and functional business knowledge in delivering Oracle Energy and Water solutions for clients. These smart utility solutions enable a 360-degree view of the overall customer experience. This view — along with solutions that modernize the end-user experience — help utilities ensure they remain competitive in the future and cement sustainability and profitability.

Keep the customer at heart

Utilities have a multitude of complex problems to solve — and quickly. As they evolve beyond simply keeping the lights on and into roles that support innovation in multiple industries, one constant at the heart of their business is the customer. As customer expectations and preferences change, utilities must modernize the customer experience and bring new innovations on board to stay competitive.

Oracle is front and center in the effort to help utilities innovate. We’ve invested in a company called Live Energy Connect to bring data in and move analytical capabilities further out to the edge where DERs are sitting, which is revolutionary for utilities in this day and age. We are also developing aggregation-of-load approaches that will enhance utilities’ ability to manage DERs just as they would manage a power plant. This change in load management helps utilities to better forecast, plan for customer demand and be more dynamic in their market planning.

One of the ways utility companies can achieve modernization is by integrating renewables and DERs into the power grid. A Distributed Energy Resource Management System (DERMS) optimizes the use of DERs for economic, environmental and grid benefits. With Oracle DERMS, utilities can model, monitor, dispatch and manage all types of DERs, including customer and third-party resources.

By leveraging technology differentiators such as these, utilities can better plan for changing customer dynamics. As customers change what resources they’re using and when, utility companies can use these solutions to navigate the dynamics of market planning and explore emerging opportunities.

74% of energy providers believe customers are turning away from large utilities toward new, more innovative players.[2]

No time to wait

Industries are already scrambling for innovative, sustainable energy options — and they’re sourcing utility providers who can support their goals. The Accenture-Oracle alliance is forged with this urgency in mind. It’s our mission to empower utilities to build a brighter, more sustainable future, and we’re helping them make headway every day.

Visit Accenture and Oracle to learn more about how we can drive your utility’s twin transformation toward a brighter future.

[Author Bios]

Ismail Syed Mohammad, managing director at Accenture, is passionate about transforming the energy and utilities industry with digital automation and cognitive solutions. He traces his passion for energy to his childhood in India, where he experienced firsthand what happened when the country shut off electricity at times to conserve usage — piquing his curiosity and making him wonder if there was not enough electricity to go around. Eventually, this led him to a career in the energy sector.

Samuel Harrell, senior director of the Global Industry Strategy Group at Oracle, helps the leadership team develop global cross-industry vision and strategy, including creation of strategic business plans and ideation of big-bet solution strategies. He developed a childhood interest in energy when his father worked on the construction of nuclear power plants in Michigan. Sam remembers fishing on the side of Cook Nuclear Power Plant — the beginning of his journey to discover how utilities work and what they do.

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1 Accenture Utilities, “Taking charge: Empowering utilities and energy service providers to lead the change,” 2021, https://www.accenture.com/_acnmedia/PDF-155/Accenture-Taking-Charge-Industry-Narrative-for-Utilities.pdf

[2] Accenture, “New Energy Consumer Global Executive Summary,” 2022, https://www.accenture.com/_acnmedia/PDF-172/Accenture-New-Energy-Consumer.pdf