3FOOD

Third Industrial Revolution Consulting Group
economic, and regulatory platforms. As with the IT cloud, a dynamic platform is emerging to
enhance the efficient allocation of DER—including distributed generation (DG), energy storage
systems, energy efficiency, demand response (DR), plug-in electric vehicle (EV) charging, and
microgrids—across a broad customer base.
The energy sector is adapting to this evolving landscape through business model transformation
and a general rethinking of traditional stakeholder engagement strategies. In addition, energy
consumers and vendors alike are experiencing unprecedented opportunity to enhance and, in
some cases, replace the status quo.
Six key trends underpin the energy sector’s evolution to the Energy Cloud:
Greater customer engagement and demand for more sustainable energy options
Increasing number of policies and regulations aimed at reducing carbon emissions
Shareholders seeking value through new ventures and mergers and acquisitions
The regionalization of energy import and export of oil and natural gas, growing
regionalization of power markets, and increasing interconnection over land and sea
Mega industries emerging around growth opportunities such as smart cities,
transportation, and building and home energy management
Old infrastructure being replaced and geared toward an increasingly distributed and
smarter power grid architecture
This architecture will enable a two-way power flow such that distinctions between distribution
and transmission grids will blur. The acceleration in the sophistication and pervasiveness of
remote monitoring and automation equipment, combined with robust data analytics, is already
allowing more granular and real-time control over generation and consumption, even at the
edges of the grid. This mix of hardware and software enables greater precision with respect to
matching localized supply and demand with higher levels of frequency, all of which is required
for cost-optimal functioning of the Energy Cloud architecture, as well as for capturing the
resource efficiencies anticipated from the Third Industrial Revolution by 2050.
Global Technology Trends 29
Technology innovations are largely driven by policy and regulation, climate change, sustainable
use of resources, and the digitization of the energy system. Table 1 summarizes two global
impact scenarios resulting from contrasting policy and regulatory approaches. Given the focus
on COP21 and regional and country-specific environmental policy and regulatory mandates,
29 See http://to2025.dnvgl.com/energy/
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