The Future of the Global Power Sector (2016)

Emerging opportunities and threats to the Power sector are reviewed in this report. Although no single vision exists for the way the global power sector will evolve in the future, one truth is clear: the industry sits on the cusp of massive change. Major changes may include:

• Energy demand
• Penetration of renewable energy
• Commitment to CO2 emissions reduction
• Changing role of the customer
• Ancient grid infrastructure and the need to adapt
• The different cost of fuels and generation mix infrastructure, and
• Pressure to reduce power prices

Power companies need to modify their management models to adapt to shifting realities, including price reductions that are leading to narrower margins, improvements in the quality of supply, demand for new services, a sharper focus on environmental protection, new technologies that modify traditional business scope by focusing on the technical management of assets, and many more.

It is suggested that the management team could focus on the following areas:

• Allocating investment resources effectively across the business
• Improving the delivery of value from capital projects
• Improving asset and infrastructure productivity
• Understanding and optimizing how operational costs link to value
• Taking advantage of innovation and new technologies across the value chain
• Planning and managing the adequate technical infrastructure to support business needs