Google: Positioned To Energize Power Sector Evolution

BMI View: Technology companies like Google will increasingly utilise their financial resources and technological expertise to capitalise on structural changes in the power sector. Traditional utilities have been slow to respond to demand for products that support the granular control and movement of electricity, but Google is well placed to utilise its smart technology and capitalise on this trend.

Technology companies such as Google will increasingly play a bigger role in the global power market - a view that is gaining momentum. In Europe and the US, the centralised power generation model that has traditionally been adopted by utilities is under threat - in large part due to an influx of intermittent renewables technologies and distributed energy solutions (such as rooftop solar) that require better management of electricity supply and demand ( see 'Smart Operators To Challenge Power Generation Model' June 3 2014).

We believe traditional utilities that utilise coal and gas-fired power plants to generate electricity for delivery via the grid have been slow to respond to this evolution of the power market. Many of these utilities have not only seen the influx of renewables damage the profitability of their coal and gas-fired generation assets, but have also been behind the curve as electricity has started to flow in new ways across the grid. Consumers are demanding new services that allow them to manage the distribution of electricity more efficiently.

Renewables Growth Driving Structural Changes
Global Renewables Growth

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This article is tagged to:
Sector: Power, Renewables
Geography: United States

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