Power Sector Transformation Threatens Rigid Companies

The PWC report revealed that existing generation assets could be left stranded as local energy systems and self-generation by customers eat away at the traditional centralised grid and large-scale generation model.

Shell fuels and lubricants distributors Vivo Energy Uganda, clinic has partnered with Little Green Hands – My Kid is a Super Star to create a culture of environmental care among school children in the fight against climate change.

They conducted environmental symposiums in 30 schools that have come together on World Earth Day, story 22nd April 2015 at the Sheraton Hotel in Kampala to participate in a climate change conference.

The children presented messages on the theme of “The child citizen finding our own solutions to the climate change crisis”.

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Speaking at the opening of the conference, Vivo Energy’s managing director, Mr. Hans Paulsen, said this was aimed at instilling in young people a sense of ownership and pride in their environment. He noted that children and are the future and that their involvement in conservation is a necessity for the survival of the planet earth.

Paulsen cautioned citizens to avoid illegal tree harvesting, one of the leading causes of environmental degradation.

“Uganda has already lost two-thirds of its forests in the last 20 years and if action is not taken could lose all of its forested land by 2050.  This would have severe repercussions for the country’s poorest people.  Issues surrounding deforestation have to be addressed.” said Paulsen.

He added that as a company that deals in fuel, Vivo Energy has both a direct responsibility for the impact it makes and a business, and also a responsibility to educate local communities to help them protect the environment.

“In all our operations our target is goal zero which means zero harm to people, assets and environment. We have prioritized environmental management in the design of all our structures and in our operations.”

This conference saw 250 children join together to develop solutions to the existing climate change crisis. The brilliant presentations by the schools challenged policy makers to address issues of environmental management with urgency
A new report from PwC and Strategy warns that the Power Sector is transforming fast and companies that don’t stay ahead of change are in danger, more about ChimpBusiness reports.

New market models and new business models will become established as a result of energy transformation and could quickly eclipse current company and country strategies.

The report, story The Road Ahead: gaining momentum from energy transformation, page finds global megatrends such as technological breakthroughs, rapid urbanisation and resource shifts are creating new opportunities and challenges in customer behaviour, new forms of competition, different generation models and changes in regulation.

The report revealed that existing generation assets could be left stranded as local energy systems and self-generation by customers eat away at the traditional centralised grid and large-scale generation model.

It also pointed out that sector transformation could shrink the role of some power utility companies to providers of back-up power and that developing countries may ‘leapfrog’ conventional centralised system models in favour of local energy systems.

The PWC inquiry discovered that the existing grid and network systems may be unable to rapidly evolve to meet the needs of decentralised assets delaying the adoption of advanced technologies.

Angeli Hoekstra, Africa power and utilities leader, PwC, said: “The disruption taking hold in the power sector is just the start of a transformation in the energy industry.”

He added: “It’s not a question of whether new market models will be taken shape, as this is already happening around Africa and the world, but also which new business models will be pursued in the sector and what countries and regulators will do to increase access to reliable electricity supply and what existing power utilities will do to keep up with the change and alter their course.”

The report identifies a number of market models that could emerge such as Green Command and control – markets in which governments own and operate the energy sector and mandate the adoption of (renewable) or other forms of electricity generation.

The second model would be ultra-distributed generation – markets in which generators have invested in distributed (renewable) generation, with investment decisions based on policy incentives and/or economic business cases.

Local energy systems – markets in which there is significant fragmentation of existing  transmission and distribution grids and local communities demand greater control over their energy supply, or markets in which a local approach is adopted for serving remote communities is also likely to spring up.

Angeli further said: “We don’t believe there will be a single winning market or business model. We see a range of market and business models that build on existing models or fill new service or product needs. Incumbent companies may not be as nimble or focused as some new entrants.”

“But they have a number of potential advantages with regards to existing assets, relationships, pricing and partnering. New companies will mainly play in providing additional generation capacity, building self-sustainable local energy systems without grid connections or behind the meter solutions.”


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