A new report issued by global technology research firm Technavio forecasts the global electric utilities market to grow by 3.55% over the next five years.In a press statement, Technavio states that the growth of the electric utilities market between 2017 and 2021 will be driven by an increase in population and industrial activities.
Angad Singh, lead procurement specialist at Technavio, said: “During the forecast period, the expansion of the market will be fueled by growing dependency on technology and high demand for electricity.
“In addition, hike in subsidies for clean energy, and growing retail electricity will also drive the market.”
Technavio states that the increase in adoption of smart grid technologies, rising competition amongst utilities, adoption of negotiation strategies and the bundling of services will help utilities improve their operations, customer services and the energy efficiency of their consumers.
The research firm predicts that an increase in the development and adoption of technologies in the smart grid, distributed energy resources and energy storage sectors will help energy providers to optimise the management of their grid assets and improve cost savings by as much as 9%.
Smart grid solutions are expected to help utility firms reduce non-revenue energy through real-time operation of transmission and distribution networks.
An increase in consumer flexibility in choosing energy providers of their choice will result in utilities investing more in improving their services and energy tariffs, states Technavio.
DER integration in electric utility markets
The emergence of smart grid technologies and distributed energy resources has paved way for an increase in adoption of new utility business models such as regional energy markets under efforts to stabilise regional grid networks and help utility firms improve their revenue collection.
Regional markets are also allowing an increase in the adoption of renewable energy resources to help energy companies reduce their carbon footprints and meet recommendations set under environmental policies.
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