Executive Search & Leadership Advisory
The world is at the crossroads of economic development and environmental sustainability. To address the risks posed by climate change and establish their identity as a responsible corporate citizen, power and utility companies are seeking new ways to make their energy production, delivery, and consumption processes more efficient and environment-friendly. However, due to declining revenue growth, most energy companies do not have enough capital to invest in research and development. As a result, they are partnering with venture-backed energy and cleantech companies to close the demand gap and provide value to customers, while maintaining their profitability.
Customers today have become more aware of the risks associated with climate change. As a result, they are looking for new ways to analyze and manage their energy use patterns to regulate consumption. Because of the changes in customer demand, technology adoption has become a necessity for power and utility companies.
To build customer confidence and achieve revenue objectives, power companies must utilize digital technologies that can help both business and consumer energy users analyze their energy use. While the use of microgrids, analytics software, and intelligent substations is currently limited to businesses, the technologies are likely to trickle down to the residential sector as well. Therefore, power and utility companies should expand their portfolio and include energy management services to fulfill customers’ needs.
While expanding the portfolio is a viable strategy energy companies can use to stay competitive in the marketplace, it might be difficult for some utilities financially. An alternative is to partner with cleantech startups and key suppliers with unique capabilities. By partnering with or buying other businesses, power and utility companies can leverage on their established market presence, technology expertise, and unique distribution channels to serve their customers in a more effective and environmentally friendly manner.
To best leverage partnerships and M&A opportunities available, power and utility companies should focus on identifying cleantech startups with mature business models. It is important to partner with companies that have the capability to scale technologies to critical mass, as well as a visible path to cash flow generation.
Allen Austin understands the profound changes taking place in the energy sector. To capitalize on these changes and leverage on the growing demand for renewable energy, power and utility companies require leaders with the experience, skills, and insight to commercialize new technologies and reposition their business as an industry leader.
To help power and utility companies find such leaders, we provide executive search and leadership development services that are tailored to the unique needs, challenges, and goals of a client. Utilizing our tailored, outcome-oriented approach, we help our clients identify, select, and train leaders who are capable of taking their business to new heights.