The industry is now moving towards a more complex system with both centralized and decentralized generation sources and bi-directional power flows. Business models and the role of different players in the industry are also evolving as increasingly diverse energy sources all interact.
Smart demand response could provide 185GW of system flexibility globally, which could save USD 270 billion of investment in new electricity infrastructure that would otherwise be needed.
Businesses can also reap the benefits of digitalization. According to a study by McKinsey, energy companies that successfully applied digital experienced two to 10% improvements in production and yield and 10 to 30% improvements in cost.8 At scale, detailed digital data lowers the cost of monitoring assets, optimizes energy systems and enhances competitiveness and business performance.