T h e F u t u r e o f E n e r g y & M o b i l i t y S e p t - - PowerPoint PPT Presentation

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T h e F u t u r e o f E n e r g y & M o b i l i t y

S e p t e m b e r 1 7 2 0 1 9 A u s t i n , T X

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§ Illustrate technology trends through expert analysis and startups shaping the future § The presentation is focused on “The Future of Energy & Mobility” because after nearly 100 years of structural stability, the electricity and automotive sectors are being transformed, creating new opportunities to innovate and capture value in those sectors

E x e c u t i v e S u m m a r y

Westinghouse AC power plant at Chicago World’s Fair (1893) Ford Model T Production (1913)

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T h e v e r t i c a l l y i n t e g r a t e d u t i l i t y m o d e l h a s e x i s t e d s i n c e t h e a d v e n t o f e l e c t r i c i t y

Services Generation Transmission Distribution Customer

• Limited role for

demand-side services

• Monopolistic but regulated control of generation, transmission and

distribution

• Costs are “rate-based”, i.e., spread across ratepayers/ consumers to

provide utilities with an allowed rate of return

• Limited to no competition
• Weak incentive for innovation or customer service

Regulated areas Profit pools

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F o u r t r e n d s a r e r e s h a p i n g t h e p o w e r i n d u s t r y

Impact

• Environmental concerns and improving

technology costs are driving a shift from fossil fuels to renewables

• New technologies and a need for resilience

lead to a more distributed power system at the expense of centralized assets

• Proliferation of digital technologies enables a

more dynamic grid, more precise power management, and new customer value propositions

• Deregulation is advancing at different paces in

different regions, ultimately leading to more competition in generation, energy retailing and services

• Power markets are opening up to new players with

new strategies

• The market demands solutions that complement solar

and wind

• The future power system is increasingly determined by

choices of end-customers v. utilities

• The number of assets in the power system is increasing

and creating greater complexity

Trends

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T h e f u t u r e o f t h e p o w e r i n d u s t r y i s m o r e d y n a m i c a n d c u s t o m e r - f o c u s e d

Storage Transmission Generation Customer Distribution Orchestration/ Trading

Regulated areas Profit pools

Retail, Services, Distributed Generation, Flexibility & Storage

• Traditional vertically integrated utilities shift to become transmission and distribution “network” providers
• Customer choice increases and demand-side solutions become more attractive
• Going forward, the value will be created primarily in 2 main areas:

✔ The packaging of Distributed Energy Resources (DERs) as solutions to end customers

• Electric vehicles, distributed generation assets, storage, demand flexibility

✔ The platform that enables the orchestration of those resources

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§ The transformation of the automotive sector is even more dramatic and surprising

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• Basic inputs like steel,

aluminum, polyurethane

• Make sub-components

for Tier 1’s

• Well-integrated into

Tier 1 supply chain

• Thin margins
• Make major

components for OEMs

• Highly integrated into

OEM supply chain

• Assembles

components and produces automobile

• Few/ specialized

players

• Critical link in value

chain

• Drives industry

innovation

• Strong consumer

brands

• Consumer-facing

brands selling parts, services and fuels/ lubricants

T h e c o n v e n t i o n a l a u t o m o t i v e s u p p l y c h a i n h a s e x i s t e d f o r a c e n t u r y

Raw Materials Tier 2+ Supplier Tier 1 Supplier OEM Customer Fuel/ Maintenance

Profit pools

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F o u r k e y t r e n d s a r e r e d e f i n i n g t h e c o n v e n t i o n a l a u t o m o t i v e v a l u e c h a i n

Trends Impact

§ Major OEMs are investing billions of dollars to develop autonomous vehicle (AV) technology § Advanced connectivity continues to penetrate into new vehicles enabling future applications and monetization opportunities § Most major OEMs have unveiled aggressive electrification plans § Didi, Uber, Lyft & other ride hailing companies have changed the way consumers access mobility and continue to grow rapidly § This sector is open to new entrants and disruption—the future value chain and business models are uncertain § Consumer mindset is shifting from buying a vehicle to buying mobility-as-a-service § Fleets serving multiple customers are becoming prominent, requiring new dedicated services § Demand is shifting from liquid fuels to electrons, creating opportunities to build infrastructure and

• ptimize power flows

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T h e n e w m o b i l i t y v a l u e c h a i n i s s t a r t i n g t o c o m e i n t o f o c u s

Tier 1 OEM Provider Integrator Customer

Raw Materials Tier 2+ Supplier

Fuel/ Charging Maintenance

✔ Power is shifting from OEMs to mobility Providers and Integrators ✔ There’s a big opportunity to evolve fueling/charging and maintenance services from their current state to serve the fleets of the future

Profit pools

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§ The energy and mobility sectors are both in an early phase of transformation § Electric mobility ties the two sectors together in a fundamental way

E x e c u t i v e S u m m a r y

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