Digital Grid: Utility Industry Trends Worldwide 2017

The traditionally stable electricity sector is being transformed by distributed and digital technologies and a push to decarbonize. 1. DECARBONIZATION: Energy production and use account for two thirds of global GHG emissions. The energy industry is under pressure to decarbonize. Policy and regulatory action have been driving decarbonization, however economics is becoming the main driver as clean technologies become more competitive. Wind costs have fallen 50% since 2009; solar module costs have fallen 80% since 2008; PPA for wind: $30 / MWh (Morocco); PPA for solar: $36 / MWh (Mexico) 2. DECENTRALIZATION: At the same time, rapid technological development is making decentralization possible through distributed generation and storage solutions. Decentralized energy will grow 40% faster than global electricity demand to 2020. EV lithium-Ion battery pack prices will have fallen 77% between 2010 and 2018; Global distributed solar PV grew ~16% annually since 2011 . AMI adoption is currently ~40% in the United States (>60% in the West) 3. DECRNTRALIZATION An explosion in the number of connected power-consuming devices and of smart sensors on the power grid now enables data and electrons to flow both ways along the grid, allowing in return consumer decision making based on dynamic prices.