Yet many utilities have been slow to move; the time to do so is now Of the various megatrends inescapably driving the energy transition, one in particular—digitalization—has come onto the scene with impressive potential to cut costs in the power sector. For example, the application of data analytics in power plants and networks alone could save up to $80 billion annually through 2040 according to the International Energy Agency ( IEA ). This is certainly one driver for energy utilities, where we see digitalization influencing investment strategies. Since 2014, global investment in digital solutions by utilities has grown 20% annually, according to the 2017 report Digitalization & Energy from the IEA, reaching $47 billion in 2016. That year, such digitalization investment was 40% greater than worldwide investment in gas-fired power generation.
Investment in Big Data, artificial intelligence, and energy blockchain startups on the rise This growing investment in all things digitalization—including Big Data, artificial intelligence (AI), and blockchain—is reaching into every corner of the energy sector. For example, in an October 2017 report , accounting and business advisory firm BDO Global noted that mergers and acquisitions between energy / renewables enterprises and technology companies active in Big Data, artificial intelligence, etc. have been steadily increasing. Moreover, average deal size has jumped up significantly, from $500 million pre-2016 to $3.5 billion in Q2 2017. The trend is similar and no less striking in the energy blockchain space as well. At EventHorizon 2018 earlier this year, Jules Besnainou of Cleantech Group noted that investments in energy-related blockchain projects had skyrocketed from less than $10 million in 2016 to $739 million across 53 deals in 2017. Q1 2018 alone saw $359 million, with record average deal size. And although initial coin offerings (ICOs) accounted for more than 90% of 2017 investment, equity […]