utility killers or saviors?

Global Power & Utilities

Digital disruption

of utilities

Will microgrids be

utility killers or

saviors?

October 2015

Our research shows that in

2020, the use of microgrids

can provide anywhere from

US$64b to US$171b in

electricity cost savings to

commercial companies in 20

countries we analyzed.

Everything comes full circle. In 1882,

non-existent.

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Will microgrids be utility killers or saviors?

What is a

microgrid?

energy sources or

source.

A powerful incentive for

change

2

A jolt of reality for utilities

Solar photovoltaic

prices have fallen

by

80%

since 2008

and are expected

to keep dropping

Global installed energy storage

for the grid and ancillary services

power capacity will grow from

538 MW

in 2014

21GW

in 2024

Battery prices are

forecasted to drop

between

40% to 60%

by 2020

Approximately

346 GW

of new distributed solar

photovoltaic panels will

be installed globally

by 2024

2 | Digital disruption of utilities October 2015

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Will microgrids be utility killers or saviors?

What could happen in the year 2020?

Cost savings and operational value potential for commercial entities

Cost savings and operational value potential for industrial entities

Digital disruption of utilities October 2015 |

3

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Will microgrids be utility killers or saviors?

Microgrid research methodology

• Cannibalization of the existing

business.

• Change in the role of the grid.

• New entrants from outside the

utilities sector.

A path for utilities to

electrify the future

Lead by collaborating rather than

competing

4 | Digital disruption of utilities October 2015

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Will microgrids be utility killers or saviors?

investments.

Accelerate the development of new

products and services

their customers. Once on site, utilities

Work with regulators to keep pace

with change

Shift focus to emerging markets

A call to action

Digital disruption of utilities October 2015 |

5

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About EY

About EY’s Global Power & Utilities Sector

ey.com/powerandutilities

For more information, please contact:

Mike Wilks

Thomas Christiansen