Publications

Summary:

Booming Renewables, accelerated nuclear phase-out and increased application of efficiency measures have significantly shortened the reaction time for German energy companies to cope with declining demand and market disruptions. Long known electricity price patterns like the mid-day peak are disappearing. Utilization of (carbon) power plants is uncertain in the long run. Not all technologies required to master the change (e.g. storage) are available at marketable prices. Experts estimate investments in distribution grids to total 1.000€ per household. As a consequence, CEOs of energy companies search for the optimal way to reposition the company. In a recent study allocate International has identified four basic strategy patterns pursued by successful energy companies: 1. Increase customer value, 2. Efficiency as business, 3. Operational excellence to secure cash flow, 4. Redesign of business model to control the part of the value chain that is critical to value creation.

Summary:

The third quarter 2011 has not seen the expected relief of overcapacities by recovering demand in key PV markets. Profits decline and module prices have reached levels well below manufacturing costs. Solyndra, Evergreen and the ongoing restructuring of German suppliers indicate that too many suppliers have too few market shares. To reach a more healthy concentration level ten from the Top 15 PV module suppliers have to lose sovereignty or disappear.

Summary:

Increasing PV production capacities from less than 40MW to 50MW and relative small growth in demand to 22 MW created overcapacities of approximately 50%. Declining feed-in tariffs in key markets and unreliable project financing conditions unveil weaknesses in PV suppliers’ competitive position relentlessly. While for some suppliers profits still rise, European PV stock levels signal severe challenges to come.

Summary:

Electromobility and electric vehicles play significant roles in future scenarios for utilities as they both represent new demand and an option for distributed energy storage. While utilities (Energieversorger) were long seen in the pole position for this extra business, the challenges are significant: Bidirectional current and information flows, more volatile demand, high investments in unproven charging technologies and competitors with new business systems challenge strategy and operational processes of utilities in a unknown magnitude.