Energy sector prepares for transformation: the battle to satisfy future energy needs
Logica white paper reveals step-change required by traditional utility businesses to win in a world driven by sustainability
The energy sector is entering an period of dramatic change with far-reaching implications for the way consumers and businesses meet their energy needs, reveals a White Paper issued today by Logica, the IT and business services company. The paper lays out the challenge faced by the sector to deliver sustainable energy security through the next decade, driving the need for a radical new approach and investment in smart technologies, which will provide the foundations of this new era. It also asserts that energy companies will need to embrace the opportunities that arise from this transformation of how energy needs are satisfied. This transformation will be underpinned by a fundamental remodelling in the way energy production, distribution, trading and supply is funded and structured.
Experts agree that the world will face an “energy crunch” within a few years as our ability to meet demand for traditional primary energy sources outstrips their supply. This will be further fuelled by increasing energy prices, uncertain funding and the high priority of climate change on the political agenda. New methods of generating power must be increased and utilities need to start making the change now rather than focussing on the immediate challenge of delivering day-to-day operational performance.
Through energy companies embracing this opportunity for the sector to evolve, by 2020, wind tidal and solar production methods will be well on their way to being commercialised enabling globally viable industries to make a major contribution to our energy needs. Nuclear fission will also remain a vital part of the energy mix with a large number of new plants already planned. Significant progress will have been made with regards to developing sophisticated electricity storage solutions that can mitigate the constant fluctuations in the levels of energy generated by renewable sources. Solving this problem is an essential step towards the eventual phasing out of carbon intensive fossil fuel power plants.
Ultimately, solar energy – the most abundant form of energy for earth - offers the greatest potential. Logica expects to see a ‘rush to the sun’ in the first half of this century, as solar becomes the predominant source of electricity — with solar production growing at a fast rate between now and 2020, albeit from a low base.
Ken Whittaker, Global Practice Leader, Smart Metering and Smart Grids at Logica, states:
“2020 will be the tipping point. There will be a shift to empower consumers looking to manage and produce their own energy. Energy companies will have to respond by moving from being commodity supply businesses to integrated energy services companies, allowing consumers to take more responsibility to meet their energy needs.
“Ensuring new clean ways of providing energy are implemented is the best way for utility companies to be able to ensure their survival. In doing this they will also need to give more power to the consumer. Artificial intelligence should help establish exactly how much energy each consumer is using and smart grids will ensure that consumers can sell energy back to the utility companies as well as buying from them. There must be a fundamental shift in power to ensure the survival of the industry.”
To read the full report and find out more about the end of the utility as we know it and the new breed of energy services company, please go to: www.logica.com/smartmetering
Notes to Editors
About Logica
Logica is a leading IT and business services company, employing 39,000 people across 36 countries. It provides business consulting, systems integration, and IT and business process outsourcing services. Logica works closely with its customers to release their potential - enabling change that increases their efficiency, accelerates growth and manages risk. It applies its deep industry knowledge, technical excellence and global delivery expertise to help its customers build leadership positions in their markets. Logica is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE: LOG; Euronext: LOG).
Press contacts
For further information please contact Louise Fisk on +44 (0)20 7446 2887 or louise.fisk@logica.com
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