Riding out the immediate pressures

Energy security is back at the top of the agenda, and with it, the cost of living pressures that had started to ease. For utilities, the immediate priority is supporting customers who are struggling with bills while managing how they are perceived to be acting during this period. Jonathan Robinson, Practice Area Leader for Energy and Buildings at Frost & Sullivan, argues that for many utilities this will take focus away from longer-term initiatives in the short term. The number one thing, he says, is to ride through whatever happens in the ripple effects of the next six months.

Europe’s position: better than it looks, but the benchmark is low
On the question of how Europe compares globally, Jonathan pushes back on the idea that the continent is falling behind. Smart meter deployment is solid, liberalisation is relatively advanced, and flexibility provisions are further ahead than most other regions. Europe is probably up there with Australia as one of the most advanced markets. But the caveat is significant: the overall benchmark is still low, and the sector is not yet capturing the opportunities in front of it across flexibility, renewables build-out, grid connections and energy storage.

The infrastructure and customer relationship challenge
Looking further ahead, two things stand out. First, the fundamental relationship between utility and customer is changing as more distributed assets come onto the grid. Flexibility platforms and CIS and billing systems have the potential to increase consumer engagement and deliver real benefits for utilities, but adoption across the European supply base is still relatively low. Second, upgrading and expanding grid infrastructure is paramount: deploying grid-enhancing technologies and storage will be critical to handling what is coming.

Watch the video to hear Jonathan’s full perspective on where the sector stands and what utilities should be focused on.