Author: Staffan Andersson
A beginning of a new era
According to World Energy Council, the global demand for energy (transport fuels, heating etc.) will peak in 2030 due to efficiencies created by new technologies and more stringent energy polices while the global demand of electricity is expected double by 2060. The reason for this is that electricity is the most efficient way to transport all kind of different energy sources to consumers by making it available when needed through the grid. In addition, by utilizing new technologies for energy storage, off-grid solutions are being developed that will be a “game changer” and create new business models. However, the demand will require large investments in smart systems that promote energy efficiency.
There are several different key drivers that push the need for new investments in our global power systems. Political agreed targets for reducing CO2emissions, integration of large amounts of new intermittent renewable power generation e.g. wind and solar power, electrification of the transportation sector and upgrading the aging and sometimes obsolete T&D assets mainly in Europe and North America, just to name a few. In many countries and regions, the power systems have been developed over many decades based on the power generation and power consumption pattern that existed at that time. With all these changes that are currently happening, the people at system planning departments at TSO’s, regulators, power equipment and system suppliers as well as other key players are busy in defining the impact and the investments needed to meet these new requirements.
Transformation of the T&D industry – the world is shrinking
Historically, power equipment sales have been quite a local business i.e. many countries used to have its own domestic suppliers of power transformers and other equipment. Even the large multinational companies like ABB, Siemens and GE were mainly supplying the domestic and regional markets from its different factories. Power generation and grid companies only focused on its home market and did not even think about investing abroad. Today, the situation is completely different. Focused factories serving global customers and new suppliers from low cost countries making its products available for export are today a natural part of the business. Many of the power generation and grid companies are today investing in assets outside its home countries and markets. The industry is global and the globalization is making the world smaller.
This transformation leads to increased competition, both for the asset owners and for the suppliers. Buyers are looking for new suppliers globally that meet its requirements and are cost competitive while sellers are looking for new channels to get its products out to new markets. The challenge is to achieve this in a cost-effective manner without compromising on quality. To develop a global supplier base could be very costly and could lead to complex structures and processes. Same goes for developing global sales channels. As a supplier that want to grow by export, should you build up own resources or rely on external sales agents? This is where the new digital global marketplace, PowerTender could be the solution. PowerTender connects buyers and sellers of power products fast, easy, safe and cost-effective. However, PowerTender is more than a tool for finding new buyers and sellers. By using PowerTender you will get a system that would handle and collect information and documentation in a structured way. All gathered in one system.
Golden opportunity for Buyers and Sellers of power products
Living in times of changes could sometimes seem scary and difficult. However, if you take a professional approach to the new market conditions and make sure that you understand the needs and requirements, you are well positioned for being successful. As described above, we are in the beginning of a new era that will support a strong market for power products.
One thing is very clear: Being part of the electricity business provides golden opportunities to develop good businesses. If you take advantage of the ongoing changes, the future is yours.
Staffan has more than 20 years of experience from the power transmission industry. Specific experience from large High Voltage Direct Current (HVDC) multi-national projects. He has experience from several senior management positions including marketing and sales, business development, operations and general management.