Navigating the energy transition

How energy companies are shaping their future

Foreword

Dear readers,

The preparation for this edition of our periodic Energy Journal started just before the Covid-19 pandemic hit global society six months ago. We have since then realized that energy companies are showing particular resilience to address the mega-trends of the industry and continuing their journey to transform their business models and value chain architectures.

Covid-19 might have slowed down the pace of this transition in parts of the value chain to some extent, but overall the need to innovate is still intact and even essential. In fact, we have experienced how agile companies navigated through the crisis by re-defining their ways of working and by establishing new ways of interacting with their customers and suppliers. Clearly, Covid-19 is not the driver for the energy transition but it has provided energy companies with opportunities to rapidly transform parts of their value creation ecosystem.

We are certain that all players within the energy and utilities sector such as national and international oil companies, power producers, transmission and distribution system operators as well as energy wholesalers and retailers must build on the current industry dynamics.

We believe that the current edition of Arthur D. Little’s flagship report is a relevant and valuable body of knowledge and expertise to reflect on the key business issues that are critical to the energy transition. These include discussions about the need for hydrogen and e-fuels to decarbonize societies, the end of the traditional gasoline retail model, demystification of electric charging, but also controversial discussions about delivering the nuclear promise and the energy consumer of the future.

Arthur D. Little helps clients navigate through their journey. We have always been at the forefront of innovation and we are now more than ever at the vanguard of delivering practical and forwardlooking solutions that uncover new growth opportunities in the changing energy ecosystem.

Michael Kruse
Managing Partner, Global Leader Energy & Utilities Practice

Table of Contents

Shift in business models

Getting ready for the energy consumer of the future

Potential pathways and frameworks to help business leaders develop new essential capabilities

Aurelien Guichard, Paola Carvajal, Carl Bate, Greg Smith, Michael Kruse, Matthias von Bechtolsheim, Felix Keck

Weathering the perfect storm

COVID-19 and the future of the oil & gas industry

Daniel Monzon, Rodolfo Guzman, Aurelien Guichard

What’s next for TSOs?

Leading the way in the energy transition

Kurt Baes, Florence Carlot, Maxime Dehaene

Energy retailers: Facing the toughest transition in the energy sector

Energy retailers in Europe need to leverage an increasingly open energy ecosystem to differentiate and stay competitive

Kurt Baes, Andrea Romboli, Florence Carlot, Loïc Vervaeke

On utility-mobility convergence

The forecourt of the future

With a disruptive lifestyle and technological changes ahead, the fuel retail business will need to create a new customer experience on the forecourt

Daniel Monzon, Catalina De Stefano, Carlo Stella

Digital and operations excellence

Upscaling digital pilots in oil and gas

How are oil and gas companies adopting digital in their operations and how can they shift from pilots to full-scale implementation?

Adnan Merhaba, Amer Hage Chahine, Theresa Karam

Nuclear Lean

Combining safety culture and operational excellence

Tommaso Sacco, Michael Kruse, Bernd Schreiber, Kai-Oliver Zander

Looking ahead at energy offerings

Flexibility services: Catch me if you can!

Why and how utilities should seize the opportunity before others do

Kurt Baes, Florence Carlot, Maxime Dehaene