Perspectives

The CFO’s guide to cloud computing for power and utilities

Embracing digitalization and the future of energy

The future of energy is digital. How can CFOs in the power, utilities, and renewables (PU&R) industry use cloud computing to make a more significant impact? Our CFO guide to cloud answers frequently asked questions and shares real-world examples of cloud in action. See how cloud can enhance the role of finance teams in the digitalization of PU&R.

Cloud computing for power and utilities can solve common challenges

The finance model in the PU&R industry is incredibly complex and because of that, finance leaders must constantly balance their responses to three groups of challenges shared below. In each case, cloud technology has the potential to help with digitalization and lead the future of energy.

  • Expand all
  • Collapse All

Historic challenges include aging physical and digital infrastructure—and the resulting standard of system performance that makes processes such as consolidations, reporting, and forecasting inefficient; massive amounts of data; and a shifting workforce.

In contrast, escalating challenges arise from events such as global public health threats, climate change, and cybersecurity. Remote work due to COVID-19, severe weather events, and attacks on distributed networks fall into this category.

Then there are the constant challenges caused by disruptive information and operations technologies, shifting customer expectations, and regulatory guidelines for the energy industry. Business model changes, such as moving from an integrated utility to a single-capability model or the aftermath of acquisitions, can also change needs and assumptions. Even positive, useful changes can bring disruption—such as cognitive computing or advances in distributed generation.

Enhancing the role of the CFO in digitalization and the future of energy

Finance leaders need to understand the challenges outlined above and the opportunities cloud computing for power and utilities can offer in meeting them. Effective approaches can make operations more efficient, agile, and innovative. In our CFO guide to cloud for PU&R, we share insights into questions CFOs frequently ask about cloud investments, whether they are intended for finance, other corporate areas, or operational parts of the value chain. Some of the most pressing questions we hear include:

  • Value proposition. How can we realize sustainable savings by moving to the cloud?
  • Accounting treatments. What are others doing to address the accounting and tax implications of moving to the cloud?
  • Finance opportunities. Are cloud versions of ERP software “ready for prime time” in a company like ours?

At the end of the CFO guide to cloud, you’ll find additional material aimed squarely at finance leaders in the PU&R industry, including areas where cloud can provide real value for PU&R, from stability to capital efficiency.

Download the full report and see how an African energy transmission company and a North American multimodal power generator producer are putting cloud to work for PU&R.

Contacts

Kevin Simmons
Principal,
Enterprise Performance Energy Resources and Industrials
Deloitte Consulting LLP
Tel: +1 404 220 1113
Email: kevsimmons@deloitte.com

Mark Dolson
Senior Manager,
Enterprise Performance Energy Resources and Industrials
Deloitte Consulting LLP
Tel: +1 212 436 4896
Email: mdolson@deloitte.com

Affuembey Affuembey
Manager,
Enterprise Performance Energy Resources and Industrials
Deloitte Consulting LLP
Tel: +1 404 631 3862
Email: aaffuembey@deloitte.com

Did you find this useful?
2025 power and utilities industry outlook

The industry will likely seek to harness new policies, technologies, and market innovations as they navigate an evolving landscape of opportunities, complexity, and challenges.

The CFO (finance executive) guide to cloud

Answers to seven pressing questions