More likely than not, your utility is already or soon will be procuring battery energy storage as part of its grid modernization strategy. In fact, according to BCC Research, the global market for grid-scale battery storage technologies is projected to reach nearly $4.0 billion in 2025, up from $716 million in 2015. Battery costs have fallen dramatically over the past decade. However, events in the Democratic Republic of the Congo are putting the brakes on further cost reductions. Here’s a look at what’s happening and how you can approach your battery procurement planning in light of these events.
As the Texas and Louisiana Gulf Coast recovers from Hurricane Harvey, Supply Chain organizations face the challenge of navigating its effects, from chemicals to logistics to labor.
Do you manage a utility supply chain, procurement process, or supplier relationships? Or collaborate with and depend on teams that do? If so you know how heavy a lift it can be to effectively manage asset-intensive energy sector costs. Should-cost analysis helps address two key challenges that get in the way of delivering even more value for your organization.
The Chief Procurement Officer’s organization has become a central driver of utility competitiveness and operational efficiency. During the EEI Annual Conference 2017 in Boston earlier this month, we had a number of discussions with CFOs around how Finance and Supply Chain can collaborate more closely to drive enterprise-wide value and efficiencies. Here's what we're seeing.
Making any change to an organization requires proactive management to ensure a smooth transition. There are many potential pitfalls that can arise if all affected stakeholders are not aligned and actively engaged in the process.
Trade policies have a way of changing the domestic and global supply chain landscape. A complex mix of duty rates, trade agreements, and federal policies put various pressures on supply and price dynamics. The US import exposure to any NAFTA renegotiations, for example, has been top of mind for many of our utility clients.
The foundation for an optimal utility capital project delivery model is built on a thorough understanding of the expected portfolio of work that the organization needs to accomplish. Portfolio spend profile analysis provides capital program organizations with the insight needed to determine the appropriate resourcing and risk mitigation strategies to employ in its delivery model.
Maintaining profitability in a rapidly fluctuating market environment is a challenge for any firm. For utilities, structuring a Capital Program Office to meet the specific needs of projected workload is a key success factor. Achieving the optimal Delivery Model requires considering a wide range of factors – and a significant investment of time and resources. Before refining an existing or transitioning to a new Delivery Model, it pays to first understand the transitional costs, value, and ongoing savings opportunities.
The Trump Administration has ushered in a new era of policy uncertainty for your sector. While it’s not yet clear how “America First” proposals will translate into actual policy, there’s a lot at stake for utility and power companies.
PowerAdvocate’s Energy Intelligence Group has assessed the potential implications of Trump Administration proposals on the global Supply Chain, what it could mean for your organization, and courses of action you can take to mitigate risk.
There has been no shortage of discussion about the new White House Administration’s policy change. But how will anticipated trade and market-related shifts affect your Supply Chain options and planning?
Watch our Q4 2016 Quarterly Market Outlook webinar on-demand to get answers to questions like these and more.