Energy, Resources & Water – Australia & New Zealand
The world’s energy markets are transforming; transitioning from fossil fuels to renewable energy, from centralised to distributed generation, from supply-led to demand-driven use. How do you stay competitive against this backdrop? What are the most pressing risks for big energy consumers? And what does this mean for energy suppliers, power producers, new projects and government?
To navigate these risks and harness opportunities, there is a need for clear business strategy and informed engagement in market reform. This will reduce uncertainty, increase price stability and improve long-term decision-making capabilities.
The Australian energy system is large and multi-faceted, with different market and policy forces operating on the participants and a variety of technologies and business models being deployed to deal with transition and disruption.
We have grouped survey respondents into five distinct energy market participants, with most respondents being big energy consumers and project developers and owners, to find their current concerns and preferred future directions.
Many also see the impact of policy on stability as a secondary risk in the current market.
When you think about the risks to your customers' business, which of the following is top of mind?
There is a roughly even split between these approaches which shows that there are a range of viable options, depending on the individual situation. Many big energy users also identify energy efficiency measures as a secondary course of action to back-up their major mitigation approaches.
Right now your customers are moving to manage their electricity related risks by:
While 50% of big energy consumers/users see themselves purely as market participants, the other half aspire to be leaders and advocates.
Since big energy users are price-takers, there is a desire for innovation, perhaps driven by uncertainty in the energy industry. With more options becoming available to big energy users, it is important that they can get ahead of the changes to be able to establish the best deals.
What do you see as your role in the future of energy in Australia?
As networks enable and shape the energy transition it is important that they have accepted the magnitude of their influence.
Electricity retailers are an important contact point between consumers, the electricity sector and new business models that are entering the market. New types of leaders are required as innovation from new entrants and incumbents disrupt the status quo.
My role in the future of energy is as a leader driving a low cost and low carbon energy future.