Implement decision-making support for successful megaproject management


Energy & Utilities

Professional insight into every level of the business
Energy enables countries, companies and individuals to grow, develop and change. Now the energy sector itself must evolve. We see five important trends: The energy transition, further integration of energy markets and globalisation, efficient use of resources, regulation leading to free market systems and liberalisation, and new technologies.
At Roland Berger, we work with both clients and investors and are a global authority with local knowledge and professional insight into every level of the energy and utilities business. In volatile times, one thing is certain: Energy markets will soon be very different. How do you plan to advance your business?
Trend 1: New Energy transition
The replacement of fossil fuels with renewable energy is underway. At the forefront of the pack is the electricity sector. Wind and solar in particular are increasing their share in the fuel mix. Replacement of fossil fuels by sustainable alternatives for heating and transport will follow. The advent of renewables causes disruptions for utility companies and energy users and new corporate strategies are called for.
At Roland Berger, we dare to plan for the unexpected, partnering with clients to develop a novel mindset, phasing out the old world, while setting up new assets and business models. Our project experience has taught us how to reshuffle organizations and processes, bringing new business models into reality. Customers are the driving force behind the energy revolution and existing businesses will be transformed or will disappear. We are market leaders in the field of restructuring and corporate performance. In good times and bad, we support our clients to transform their business and concentrate on new activities to offset lost revenues and create growth.
Trend 2: Market integration and globalization
Globalization is a driving force uniting previously separate energy markets. The advent of shale gas in the US coupled with the permission to export LNG to other markets is leading to a global convergence in energy prices. In Europe, on-going efforts to increase interconnection capacity between countries are bringing the single energy market closer. Plans have even been developed to connect the Chinese electricity grid to Europe, or connect North African CSP to the European continent. For players in energy, globalization means the competitive environment will be determined by global competitors and events.
Energy requires large infrastructure to flow freely between countries. At Roland Berger we support you in setting up, evaluating and managing these large projects. With the advent of new players, existing energy contracts may no longer be attractive. We help you renegotiate these contracts. Likewise, we assist you in improving your operations to be competitive in a changing landscape.
Trend 3: Efficient use of resources
Using resources more efficiently saves costs and reduces environmental damage. This is not limited to reducing CO2 emissions. Countries and industries seek ways to save, treat and re-use water, raw materials and waste. China has set specific goals for the energy intensity of its economy. Other countries have strict policies on resource efficiency. For energy and utility companies, resource efficiency implies lower growth in some regions and decline in others.

Lower volumes of energy put pressure on company margins. The assets of the DSOs and TSOs will be used less, while costs remain the same. We support infrastructure companies in improving their performance. Improvement of the procurement function is an important lever for energy companies to reduce their cost base and better compete in volatile markets.
Trend 4: Regulation and deregulation
Energy has always been a strategic resource for countries. In many regions governments are redesigning their rules and regulations, for example with the introduction of free market systems for energy with the theoretical aim to reduce costs and improve service quality for the end user. Lagging behind the US by about 10 years, the European Commission is striving for a single liberalized European Energy market. Japan, China, Mexico and other countries are on a similar path. Changes in rules and regulations have a drastic impact on the competitive landscape. Incumbents need to change their way of working, meeting competition. Others have the opportunity to enter the energy market in a new region.

Utilizing our global experience, we help you design the right strategies to benefit from the new competitive environment. For example we can assist you in setting up, developing, or framing portfolio management and trading activities and grasp the opportunities from liberalization. For bolder moves, we support you in the full merger and acquisition process, from deal identification to capturing the value creation anticipated in the merger rationale.
Trend 5: New technologies and digitalization
The digital age is highly relevant for energy companies, as common rules of the game are changing at an incredible speed and to an unbelievable extent. For instance, players from outside the industry are claiming the household consumer for themselves – this is happening in the field of energy as well. An abundance of de-centralized micro power stations and so-called "prosumers" are turning the energy flow upside down. First blockchain applications lead to an autonomous administration of the participants in these pilot projects, leaving the established utility firm out. However, there are new fields of business opportunities for emerging energy firms as well. To capture these, cooperation with start-up firms needs to be built up systematically and aligned with internal fields of innovation. In addition, there is often the need to make the own organization more agile and to initiate and foster cultural change.
As a consequence, energy companies are increasing their expenditures on research and development, designing new business models and starting corporate venturing. By giving insights into new technologies, linking these technologies to business models and analyzing the new competitive landscape, you can devise strategies to prepare for the future.
At Roland Berger, we help you redesign your innovative activities and reshape your business models. We help you capture these opportunities and prepare for the ongoing digitization of the economy. Benefiting from our Terra Numerata platform, we assemble the right partners and the right team for you.
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At Roland Berger, we dare to plan for the unexpected.
