Energy Transition

Energy Transition Overview

Societal shifts and global trends are steering countries away from centralized energy models toward local sustainability. The industry is aligning with global goals for a sustainable, CO2-emission free energy system. The traditional Low Cost vs. High Security of Supply dilemma is evolving into a trilemma, with Low Carbon Footprint as a new stakeholder demand.

Business transformations, driven by the Internet of Things, Big Data, and Robotics, further underscore the need for change. These rapid shifts profoundly impact the energy and utility market. The decentralized influx of “green power” affects the entire value chain, while energy storage capabilities, embodied in initiatives like Large Scale Batteries, The Smart Grid, and The Hydrogen Economy, emerge as disruptive game changers gaining significant traction.

Acquaint yourself with our Performance Improvement service with this short (3 minute) introductory video.

Understanding and Navigating the Decarbonization Movement as an Energy Provider

Let Us Help You Lead the Way Forward

The Energy Transition is poised for accelerated progress in the coming decade, driven by significant changes in technological advancements, regulatory landscapes, consumer preferences, and investor sentiments within the world’s energy systems. Leveraging over 30 years of industry expertise, OHROS Consulting Group is well-equipped to provide research-driven insights, data-based recommendations, and, most importantly, expertise to assist you in achieving significant milestones throughout your Energy Transition journey. Whether your focus is on specific concerns, such as evaluating Electric Vehicle (EV) Penetration and circuit load impact, or you are pursuing a holistic transformation into a “Utility of the Future,” our experienced team is dedicated to guiding you through every step, ensuring the swiftest path to success.

Planning for the Future: Are You Ready for the New Risks and Challenges Ahead?

Becoming a ‘Utility of the Future’: How to Define a Successful Path Forward?

Decarbonization
  • Green Subsidies
  • DER Proliferation – Solar & Battery
  • Electrification (EV’s)
  • Energy Efficiency (LED’s, ZFH’s, etc.)
  • Wind Investments, Coal Retirements
  • Demand Management

De-Coupling Costs

  • OPEX Pressure
  • De-layer and De-staff
  • Eliminate Work, Automate, Optimize Planning & Scheduling
  • Leverage Artificial Intelligence to Automate Decisions
  • Asset Management
  • Operational Efficiency

Decentralization

  • Community Aggregators
  • Embrace Contestability
  • Outsource – Match Cost Structure to Market Value of Skills
  • Block Chain to Empower Prosumers
  • New Skills/Staffing Strategies

Diversification

  • Non-Regulated Activities
  • Asset Mgmt for Others
  • Beyond the Meter Services
  • Integrated Storage
  • Tools/Tech Investments
  • Leverage Energy Information
  • Wind Park Maintenance
  • Consulting

Digitalization

  • Leverage Operational Analytics & Big Data
  • Strengthen Situational Awareness
  • Real-time Asset Management
  • Build Predictive Analytics
  • Optimize Reliability and Power Quality

Decapitalization

  • Accelerate Depreciation
  • Infrastructure Consolidation and Removal
  • Shift Focus to Beyond-The-Meter Services
  • Require All New Capital to Be Bid
  • Drive Toward Lower Cost-of-Capital Investors

The future may seem challenging for many, marked by ongoing cost-cutting, reduced staff, constant performance pressure, gradual unbundling, loss of autonomy, and a shrinking business. It can feel like living under constant scrutiny, with every move subject to second-guessing.

Resisting or delaying this transformation may be tempting, but the compelling forces behind it are robust and will eventually prevail. For entities in our industry owned by the government, compliance may be mandatory. However, for those of us with shareholders expecting ongoing innovation and increased earnings,what can we do?

Considering all strategic dimensions (17D’s) and taking immediate action is crucial. This proactive stance aims to earn the opportunity to cultivate greater potential in this swiftly evolving industry.

How OHROS Can Help Accelerate Your Energy Transition Journey

Over the last 5 years, OHROS Consulting Group has assembled a robust team of experts specializing in Energy Transition and ‘UoF’ (Utility of the Future) Strategy and Planning. During this period, we have successfully undertaken numerous ‘UoF’ Readiness and Planning Engagements, and we are pleased to offer the following services:

Readiness Assessment & Recommendations

To determine where organizations stand in light of the energy transition, OHROS Consulting Group can support by performing a comprehensive review of their environment and current strategy.

Strategy Development & Stakeholder Messaging

Establishing a clear ET strategy is key for any utility striving to become a Utility of the Future. In over twenty-five years of business, we have helped develop and implement strategies on a global scale.

Comprehensive Implementation Plan Development

We see it as our mission to close the gap between strategy and operations. We support and guide companies into reaching their goals and fulfilling their missions. To help navigate companies on their ET route, OHROS Consulting Group develops Roadmaps and Implementation Plans to support you in reaching your sustainability and transformation goals.

Change Management Support

Change Management strategy and planning is crucial in any large scale transformation like becoming a “Utility of the Future”. OHROS Consulting Group has over 30 years of experience in supporting key change areas and enablers of a smooth transition.

Smaller, Targeted Projects or Initiatives

These smaller, targeted projects are usually focused on a single topic for investigation or to provide analytic modeling and/or decision-making support within the broader Energy Transition context. Examples include: Utility of the Future Fossil Exit/Transition Optimization, DER/Electric Vehicle Penetration Advanced Modeling, Custom Modeling / Proof of Value Studies, Capturing Value from Pilots, Data Enhancement and Enrichment, etc.

Client Case Study Examples

  • OHROS Consulting Group performed a comprehensive review of the company’s strategic planning analysis, documents and plans to identify any gaps in the underlying data, analysis, thinking or drivers and factors considered.
  • We also conducted wide ranging interviews across the organization’s Executives, Directors and relevant Subject Matter Experts to assess the current state of organizational capabilities in strategic thinking, issue identification/evaluation and decision-making.
  • We then worked with the Strategy group within Finance to assemble a comprehensive action plan (with tasks, actions, deliverables, timelines and ownership / accountabilities) for use in monitoring / managing plan execution over the next 5 years.
  • Finally, we created several Toward 2050 Scenarios to focus the thinking and discussions of the Executive Team and to aid in strengthening alignment across the group on near term strategic priorities for the organization.

OHROS Consulting Group supported the development of a Utility-of-the-Future (UoF) Strategy and Plan that offers dynamically evolving guiding documents to lead our client into the future. It sets the stage for an operational plan with individual accountability specified for each major milestone / investment growth enabler and targeted outcome. The strategy document:

  • Provides a foundation for understanding the current direction and drivers of change in the utility industry,
  • Defines the core values and principles of the utility, which will guide its focus, efforts, and plans for navigating these drivers, and
  • Articulates the utility’s goals and commitments – both for how it will operate the business and achieve the clean, safe, and affordable energy and other related outcome to which it aspires.

Key elements of the above initiatives set the stage for the company’s compliance with the State’s Energy Master Plan and development of a complementary Integrated Distribution plan (IDP).

Connect With Our Experts

The magnitude of change to come with the Energy Transition and decarbonization efforts will require sustainable partnerships and engagement throughout the entire value chain proposition. At OHROS Consulting Group, we acknowledge the necessity of global knowledge-sharing and are known for facilitating this.

We have helped utility clients prepare for the future for more than 30 years

We are able to quickly and capably analyze & assess client needs

We assemble Best Practices and turn them into World-Class Solutions

Fast-Track Your Transition Now

At OHROS Consulting Group we are able to support businesses to assess their current standing in light of the Energy Transition. By reviewing your environment, current strategy, asset base, data management and workforce, and identifying and prioritizing gaps, we can help you to first focus on the quick wins and then calibrated long term improvements.

“To know where you need to go you must first know where you stand.”

A typical Readiness Assessment consists of a comprehensive review of latest thinking on drivers and factors for consideration, strategic planning analysis, documents and plans to identify any gaps in the underlying data, and peer benchmark assessments.  This creates a well defined end-state in the form of required capabilities and a list of Strategic Gaps (Vision, strategy and capabilities).

Gap Assessment Drill-down: Strategic Thinking

We have helped numerous companies by constructing Strategy white papers that serve as a vehicle to organize thinking, priorities and actions / investments of the organization, as well as to communicate strategic intent to all relevant internal and external stakeholders.

The white papers play a large role in socializing strategies with the executive team and identifying accountabilities among executives. Our team of industry experts has supported numerous engagements to drive Executive Strategy with regard to Business and Market Evolution.  We will work to ensure an optimal blend of industry relevance and strategic insight.

We can also help build strategic messaging documents, informed by executive alignment meetings and workshops, that can serve as a vehicle to organize the thinking, priorities and actions of the organization around communicating your strategic intent to all relevant (internal and external) stakeholders.  

Would you prefer to have a sparring partner to explore and validate ideas and issues regarding your Energy Transition Strategy? Through one-on-one ‘OHROS Group Counseling Sessions” you have the opportunity to gain clarity on your issues and to examine these against a wider global context.  Get in touch with one of our experts now.

Setting your strategies and goals is a great starting point to becoming a Utility of the Future. We help to build detailed roadmaps and comprehensive implementation plans which lay out required actions, organizational accountabilities for each major initiative or outcome, dependencies between actions, work streams, required investments, and expected outcomes.

A typical roadmap will consist of clear and concise steps plotted over a set timeline to deliver a multi-year strategy. Each step tells you what it is, why it is needed, critical aspects for consideration, and who owns it- with specific title and name. Creating accountability results in urgency.

Sample of Future State Vision Statements as Input to the Strategic Roadmap

Prior to roadmap creation, we recommend establishing detailed “Future State Vision Statements”. These will help to guide and formulate the overall Strategic Roadmap, which will consist of clear and concise steps plotted over a set timeline to deliver a multi-year strategy. Each step tells you what it is, why it is needed, critical aspects for consideration, and who owns it- with specific title and name. Creating accountability results in urgency.

Sample of Utility-of-the-Future Implementation Plan Excerpt

 

A detailed Implementation Plan, in support of the Overall Strategic Roadmap, should consider key external and internal factors such as:

– Regulatory / Legislative Mandates (and Advocacy development)
– New Technology
– Customer Expectations and Behaviors
– Potential Competitor Actions

– Workforce-of-the-Future initiatives, etc.

At a minimum, the plan will include the following components:

 

 

 

• The role of each Functional Organization in positioning the company to achieve its vision vis-a-vis the Utility of the Future, (i.e., organizational accountability for achievement of each identified milestone over the next 5 years).
 
• Scenario Analyses to address any identified alternatives and rationale for their inclusion / exclusion from the Plan,
 
• Implications of identified threats and opportunities,
 
• Key Variables and Risks/Uncertainties to manage during implementation,
 
• Milestone Schedule including Identification of Dependencies / Mapping Sequence of Events
 
• Next Steps (Short-Term perspective)

The level of change needed for becoming a Utility of the Future during this Energy Transition is nothing short of “Transformational”. Coordinating, navigating, organizing and driving all this work represents, in and of itself, an exceptional project management challenge. However, when we layer atop each initiative the level of change required of our employees, i.e. understanding and accepting the impact to process, culture, information flows and work practices, and the myriad personnel changes involved, the complexity seems extraordinary. At OHROS Consulting Group, we understand this challenge and can help you navigate through it with ease.

Change Management strategy and planning is crucial in a transformation like this. OHROS Consulting Group can support key change areas and enablers such as:

• Strategic planning and interdepartmental alignment
• Distribution Planning
• Organizational structure and accountabilities
• Process Improvements
• Communication (messaging, Education / awareness)
• Culture and Commitment
• Employee Skillbuilding (i.e., Digital, Data Literacy, Analytic Sophistication, and Data (quality, democratization, and access)
 

OHROS Consulting Group also offers coaching and training options to broaden and deepen your awareness and knowledge of responsibilities regarding the Energy Transition. Together, we can identify company implications and pitfalls and formulate a plan of action. We can educate board members on potential impacts throughout the organizations and suggest best practices for implementing a successful transition from current to future business models. Bottom line: We can help manage change.

Would you rather prefer to have a sparring partner to explore and validate ideas about issues regarding your strategy in the Energy Transition? Through one-on-one counseling sessions you have the possibility to get a clear picture of your issues and to examine these against a wider context then your own organization. Get in touch with one of our experts now.

These smaller, targeted projects are usually focused on a single topic for investigation or to provide analytic modeling and/or decision-making support within the broader Energy Transition context. Examples include:

Utility of the Future Fossil Exit/Transition Optimization

– Compare your current strategies an plans against innovative approaches at other leading utilities in the process of phasing out fossil plants, providing “best practices” for plant operations, dispatch, maintenance and outage planning / lifecycle management. Build an optimal transition

program considering costs, risk, resources, and timing of various scenarios as well as communication strategies.

DER/Electric Vehicle Penetration Advanced Modeling

 

– As an example, EVs are coming sooner than most utilities are planning for them to arrive and they will disrupt the distribution grid by several multiples above the current planning levels. By starting at the customer meter level, we can help predict “where and when” needs for circuit upgrades, capacity upgrades, and new distribution substations to be ready for the demand when it comes online.

Custom Modeling / Proof of Value Studies

– We can help you to scale up pilots or proof of value engagements with custom modeling, software builds, and/or consulting roll-out support
 

– Improve your digitalization capabilities via our existing digital solutions (digital strategies, advanced modeling, asset management and reliability improvement software, and data services) using a process-based gated approach to pilot or full implementation.

Capturing Value from Pilots

 
 

– Support in areas such as analyzing the value case, prioritizing amongst initiatives, and conducting effective rollout processes of selected pilot initiatives.

Data Enhancement and Enrichment

 
 
– We provide (at an attractive cost) data capture, transformation and enrichment services to large utilities. (e.g., create shape files for asset locations in GIS, validate asset location, elevation, and proximity to other assets or geographic features).

 

Total Added EV Load by Year and Cumulative

Data Enhancement and Enrichment: Example visualization of a client transmission line – showing each structure and its sequenced path, overlaid with an OH line shape file. This was primarily used for checking for data quality issues. Sample data with span length shown as well.