Utilities need to adapt quickly amid threat from tech firms, warns industry research chief
Power utilities firms will need to change the way they operate to meet the challenges from emerging energy technologies that would change the competitive landscape, warns the head of a global industry research association.
Greg Tosen, chairman of International Electric Research Exchange (IERE) whose 63 members comprise global utilities and power generation equipment makers, said energy companies will face rising competition from technology firms that have come up with applications that can better meet consumers’ needs.
“The utilities of the future are going to be very different from what they are today ... the pendulum is swinging to pro-sumer [consumer friendly] or distributed [energy] resources, as well as internet based and software solutions,” Tosen told the Post in an exclusive interview.
“It is not the typical utilities that are going to drive the change...the Amazons and the Googles of the world and the Elon Musks [CEO of Tesla] are now becoming our competitors.”
Tesla recently completed its US$2.6 billion acquisition of SolarCity, allowing the electric car giant to integrate the businesses of selling electric cars and installing solar panels, while start-ups such as US-based Stem are getting funded by venture capitalists to come up with consumer friendly energy storage and predictive energy software.
