Transformation of the energy industry
Solutions for regional energy supply companies and municipal utilities
We explore the opportunities and challenges that regional energy providers and municipal utilities face during the energy transition. Energy companies must advance decarbonisation while responding to external developments and digital competition. Internally, flexible structures and a modern corporate culture are essential to mastering change.
With practical solutions, we support companies in positioning themselves for the future and actively shaping the energy transition.
The demands are increasing…
Balancing act between proven revenue drivers and future-proof solutions
Energy companies face the daunting task of developing and implementing a decarbonisation strategy. At the same time, customers and society demand new services, such as operating charging infrastructure and expanding renewable energy offerings. This puts many energy providers in a dilemma: they need to innovate with new business models without immediately abandoning their proven revenue sources (e.g., natural gas).
Significant investment need for the grid infrastructure
Renewable energies, due to their volatility, impose new stabilisation demands on the power grid (e.g., the "duck curve"). At the same time, increased energy needs and capacity gaps between generation and the grid are expected. Solutions ranging from redispatch to smart grids and overall network expansion must be managed, with some providers also supporting municipal heat planning.
... while competitive pressure intensifies
Competition from "digital first" companies
New market players with a “digital-first” approach (e.g., Enpal, 1KOMMA5°) and strong marketing strategies appeal to customers with seemingly clearer offerings. In an era of price volatility and decentralised energy markets, established providers must rethink their customer engagement and sales strategies, leveraging their regional presence as an advantage.
Consolidation pressure on smaller energy supply companies
Not all energy companies can meet the required investment levels, leading to more mergers, acquisitions, or partial sales of business units, particularly in rural areas. Market integrations along the value chain further complicate the competitive landscape, posing strategic challenges like make-or-buy decisions for services (e.g., installation, metering).
Common challenges during the transition from the “old” to the “new” model.
Strategic challenges
- No mandate: Regional/municipal involvement can hinder economically sound decisions.
- Lack of resources: Expected revenue declines from traditional sectors make investment decisions harder.
- No differentiation: More consumers use comparison platforms, reducing the value of local ties and necessitating strategic marketing and a strong USP.
Structural challenges
- Outdated structures: Legacy organisational models do not meet new market needs, especially in sales.
- Insufficient processes: A lack of process digitalisation slows data evaluation and hinders scalable, efficient operations.
- Standardisation gaps: Missing project work standards, which are increasingly needed (e.g., product development, policy implementation, heat planning).
Cultural challenges
- Insufficient appeal: With a growing skills shortage, energy companies need to build a compelling employer brand to attract innovative talent.
- “Not my job” mentality: New demands (e.g., EDL sales, dynamic pricing) require a culture of learning and a willingness to develop new skills.
- Resistance to change: Record revenues in recent years have created a false sense of security, reducing employees’ readiness for transformation.
"The energy transition is not just a technical challenge, but above all a cultural one. It's about progressing forward with shared responsibility."
Director of Renewable Energies,
Supra-regional Energy Supplier
Driving change at all levels - a holistic approach to success
An organisation is much more than an org chart; it ensures that strategy is implemented effectively using available resources. This requires…
Strategy and mission statement
... clear direction: an understandable strategy
Which services should be invested in? A strategy must have full buy-in from management and division leaders to ensure unified action.
Framework for the organisation
... clear structures: from frameworks to systems
Standard processes support growth and ensure efficient information transfer. Early planning for knowledge transfer is crucial, especially with an aging workforce.
Collaboration within the organisation
... the right toolkit: from leadership to skills
Employees need the right training to meet new challenges and good leadership to drive motivation and willpower.
Execution
... Clear implementation: from action plans to communication
Change can be uncomfortable and met with resistance. A clear narrative that explains the “why” of the change can make a significant difference, supported by a well-structured change and communication plan.
Choose your path now, rather than being compelled to do so in a few years.
If you and your team are seeking support, let’s connect. Together, we can explore how our holistic approach and functional expertise can help make your organisation more successful, with a focus on sustainability, implementation, and efficiency.
Our experts look forward to hearing from you. You are also welcome to make an appointment to get to know us directly!
Download the information on this topic with further client examples here.
Please note that the download is available in German.
