The region of the Asia Pacific has become renowned as one of the most dynamic and diverse energy markets on the planet (Hong, Lugg, 2010). It is to be expected that countries existing in the region will proceed in to a multitude of directions in the future; specifically, both maturing markets that are targeted to become far more sophisticated with respect to value proposition and consumer engagement and in upcoming markets that inherit incredible potential in terms of distribution and generation. Despite the fact that utility corporations are estimated to remain as the primary force of the Asia Pacific’s consumption market, they continue to risk losing the share of the market to new players over time (Hong, Lugg, 2010). According to Greg Guthridge of Accenture Consulting, there exist four practical measures from a strategic outlook that answers how exactly utilities consumed address new challenges from emerging market forces. Firstly, utilities are expected to reduce overall cost and improve efficiency of daily operation (Guthridge, n.d.). They often contain a long, complex history in big company structures. Conversely, startup corporations lack such complications and therefore their utilities should allow their structure more agility by streamlining them (Downie, 2017). Secondly, regardless of size, the structure of the economy requires the companies to entirely rethink the customer experience. For future clientele, utilities must succeed in engaging their customers on digital terms only (Guthridge, n.d.). Third, innovation and overall improvement to existing technologies is critical to maintain a competitive position in the industry (Guthridge, n.d.). As such, utility corporations must consistently construct new value propositions such as the bundling of services and products including but not limited to digital equipment, renewable energy, and connected home. Lastly, the proper selection and timing of strategic partners will allow growth and sustainability to occur simultaneously (Guthridge, n.d.). Given the development of new breakthroughs in energy technology, storage, and gas-free automobiles, strategic collaboration will grant utilities the opportunity to transcend traditional models of business and create new economic systems that focus on establishing a life style experience for consumers (Downie, 2017).
By the year 2030, energy demand in the Asia Pacific region is projected to nearly double; creating an urgent necessity to develop new innovative methodologies to generate power and electricity in an economically, environmentally, and socially sustainable way (Hong, Lugg, 2010). In addition to this issue lies the widespread poverty across the continent, as nearly a seventh of the entire human population and over 1 billion people lacking access to power. Energy efficiency continues to emerge as one of the fundamental options to assist nations in the Asia Pacific to meet growing power needs (Downie, 2017). Increasing efficiency lowers supply costs, maximizes availability, improves security of energy, and reduces the rate of greenhouse gas emissions. Despite the fact that energy is a primary concern of the Millennium Development Goals, no particular plan exists to focus solely on access to it (Asian Development Bank, n.d.). Affordable energy improves overall quality of life by leaving more time for families to pursue activities that are of higher productivity rate and substantially reduces poverty rates. Successful models of access that already exist should be replicated and expanded on a larger scale with the facilitation of development organizations and the private sector. In order to secure access to power for every citizen (including and especially the poor), developing nations must guarantee proper government funding in the power sector (Asian Development Bank, n.d.). When consumers benefit from efficient, transparent, predictable, and accountable operations, so too does the economy. Reform activities include the establishment of competitive markets, regulating existing monopolies and adopting fair pricing mechanisms (Downie, 2017). Along with the encouragement of the private sector to participate is a growing need to adopt tariffs that promote conservation and supporting correct regulation (Asian Development Bank, n.d.).
- Asian Development Bank. (n.d.). Energy Issues in Asia and the Pacific. Retrieved July 21, 2017, from https://www.adb.org/sectors/energy/issues
- Downie, C., PhD. (2017, July 6). Call for G20 action on energy issues. Retrieved July 21, 2017, from http://asiapacific.anu.edu.au/news-events/all-stories/call-g20-action-energy-issues
- Guthridge, G. (n.d.). TRANSFORMATION AHEAD FOR THE ASIA PACIFIC ENERGY MARKET. Retrieved July 21, 2017, from https://www.accenture.com/se-en/insight-highlights-utilities-transformation-asia-pacific-energy
- Hong, M., & Lugg, A. (2010). Energy Issues in the Asia-Pacific Region. Institute of Southeast Asian Studies.