Will storage disrupt the utility business model?

Many view storage as a transformative force that could truly disrupt the energy industry and empower consumers in a way that was previously impossible. The question is, will the prominent utilities of today be part of tomorrow’s energy landscape? If so, what will they look like?

The recent formation of the Office of Climate Change and Renewable Innovation (which has already identified the deployment storage as a priority for the Australian energy market) is the latest in a string of moves by both government and industry that reaffirm the view that storage will play a key role in the future of the energy market.

With a new wave of technological disruption imminent, incumbent utilities are reassessing their business models and realigning themselves to be able to respond to the challenges that a widespread uptake of storage will bring as well as position themselves to take advantage of the opportunities it creates.

Each part of the supply chain, and each company, is responding to the advent of storage differently, with the battle to capture this new market. One of the key questions that remains is how this transformation will unfold and who will lead it.

At this point in time, many within the industry believe there are three clear pathways for storage to be rolled out into the market — through private purchase and ownership, through a retailer-led rollout (which could include innovative financing models), as an extension of existing electricity infrastructure (a scenario which would heavily involve networks) or as a combination of these avenues.

How storage will penetrate the market, at what rate and the implications of this for utilities are three of the core questions to be posed to speakers at the Electricity Storage Future Forum, to be held in Sydney from 23–25 February. The conference is gathering over 25 industry experts to examine storage technology, economics, policy and implications for Australian utilities.

On 24 February, there will be a session on handling the challenges of adopting new business models, and the disruption storage could cause, with contributions from Frank Tudor, CEO of Horizon Power; Phil Mackey, GM of Solar and Emerging Businesses at Origin; and Gerard Reiter, Executive GM of Asset Management at TransGrid.

The conference will also feature all three key regulatory bodies — AER, AEMC and AEMO.

Attend the Electricity Storage Future Forum to hear from industry experts about the outlook for electricity storage.