Smart Cities Offer Utilities New Revenue Opportunities

In a Utility Week article, Guidehouse Insights discusses why it's important for utilities to enter the smart cities market

As energy efficiency increases and utilization of distributed energy resources continues, utilities are looking for new business opportunities to remain profitable in the 21st century. 

In a Utility Week article, Ryan Citron, senior research analyst at Guidehouse Insights, explains how utilities can better position themselves as innovators via smart cities to generate new revenue streams. 

According to Citron, “Smart cities represent a significant opportunity for utilities to exploit their skillsets and expand their footprint into additional markets.”

For utilities looking for a good entry point into this market, Citron suggests:

  1. Shifting to distributed energy resources 
  2. Developing and operating electric vehicle charging infrastructure needed for the global transition
  3. Deploying smart street lighting 
  4. Offering additional services to create smart buildings 

While utilities are becoming more interested in smart cities, several key barriers still remain including, regulatory challenges, utility business culture and organizational structure, technical and operational challenges, and more.

“The configuration of these challenges is unique to each utility given its history, location, culture and current asset base, but there are many lessons to learn from the early leaders who are already establishing their footprint in the smart cities market,” says Citron.

Read the Utility Week Article
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