How the era of the digitally enabled

grid is changing collaboration between

utility distribution and regulators
FOUR BUSINESS MODEL CHOICES FOR THE FUTURE
As a smart grid operator, deploying technologies within the existing regulatory model is a business-critical first
step. But until regulatory models evolve, opportunities for new services and higher value will remain limited.

Decoupled Platform access

integrated utility provider
Volume bias removal Access and network
supports improved services focused
optimization

Smart grid operator Distribution

Enhanced visibility in a platform optimizer
traditional model Enhanced optimization
over all timescales

Copyright 2017 Accenture. All rights reserved. 2

THE DISTRIBUTION PLATFORM OPTIMIZER (DPO) IS THE
MODEL ACCENTURE BELIEVES WILL DOMINATE OVER
TIME
The DPO model involves managing
and coordinating all elements end to
end, to provide the optimal outcome
for the whole energy system.

But to realize the full potential of

their transformation to a DPO,
distribution utilities will need to more
closely collaborate with regulators
across many areas of their
business.

Copyright 2017 Accenture. All rights reserved. 3

COLLABORATION WITH REGULATORS IS A KEY
IMPERATIVE TO A DPO WORLD
Our Digitally Enabled Grid research confirms this imperative will be particularly key in areas such as new tariff
and pricing model creation, and in moving to an outcome-based, competitive revenue model.

Which of the following NEW TARIFF/PRICING MODEL OUTCOME-BASED

COMPETITIVE REVENUE MODEL
regulatory changes do
you believe will be
Already No
necessary in the next in 9%
10 years (i.e., between place 7%
now and 2025)?
No
Yes 41% Yes

84% 44%

Already
in place 15%

Copyright 2017 Accenture. All rights reserved. 4

COLLABORATION WILL ALSO BE KEY TO EFFECTIVELY
MANAGE DISTRIBUTED ENERGY RESOURCES
Additionally, DPOs will use demand response to optimize network efficiency and reliability.

Which of the following regulatory changes do you believe will be necessary in the next 10 years. (i.e., between now and 2025)?

Greater role for the Mandate to use

distribution business in demand response
the permitting and to optimize the
authorization of network/manage Yes

distributed energy constraints 56% Mandate to apply

resource connections operational controls
on third-party
Yes Yes
distributed
66% generation and/or
storage
55%

Locational pricing for

new distributed
generation (medium-
or low-voltage Yes

connection) 56%

Copyright 2017 Accenture. All rights reserved. 5

WHAT IS NEEDED: THE DEPLOYMENT OF INNOVATIVE
NETWORK TECHNOLOGIES

Which of the following regulatory changes do you believe will be necessary in the next 10 years. (i.e., between now and 2025)?

Incentives for the deployment

of innovative technologies in
the network

Yes

64%

Copyright 2017 Accenture. All rights reserved. 6

NEW NETWORK OPTIMIZATION RESPONSIBILITIES FORM
THE BASIS FOR NEXT-GENERATION SERVICES FROM THE
DPO

Do you expect to be able GLOBAL

to purchase energy or
ancillary services from
distributed generation, No EUROPE NORTH AMERICA
storage, demand- 20%
response providers or 9%
electric vehicle owners 12%
within the next 10 years?
(i.e., between now and Already
purchased 40% 44%
2025)? these
15% Yes
65% 16%
79%

Copyright 2017 Accenture. All rights reserved. 7

MOST UTILITY EXECUTIVES EXPECT A BLENDED
MARKET MODEL TO EMERGE WITHIN 10 YEARS
This blended market model will trigger a move toward a greater role for a new market model based on incentives
and competitive markets.

Which of the following GLOBAL

Regulated Competitive
market model incentive market
approaches will form mechanisms approaches
EUROPE NORTH AMERICA
the basis for new 16% 16%
distribution
7% 7%
optimization services 20% 20%
within the next 10
years?
(i.e., between now
and 2025)?

60% 86%

68%

A blend of regulated incentive mechanisms

and competitive market approaches

Copyright 2017 Accenture. All rights reserved. 8

FOLLOW US ABOUT ACCENTURE
Accenture is a leading global professional services company, providing a broad
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ENABLED GRID RESEARCH PROGRAM
Accentures Digitally Enabled Grid program provides actionable insights and
recommendations around the challenges and opportunities utilities face along the
path to a smarter grid. Drawing upon primary research insights from utilities
executives around the world as well as Accenture analysis, The Digitally Enabled
Grid examines how utilities executives expect smart grid technologies and solutions
to contribute to their future networks. Learn more about The Digitally Enabled Grid.