Power companies' strategy towards response to requirements of green transition

Power companies must adjust strategy towards response to requirements of green transition. The important issue is to implement business model and organizational structure prepared to new business environment. The option are changes in the organizational structure of business units and the creation of the separate business unit for green operations, being responsible for development of green business model within company. The final shape of business model shall aim to create cross-sector energy utility instead of power company. It requires building the network of partnerships with suppliers of green and digital competences, technologies and services, creating the new value for customers. Example can be development of green hydrogen business and partnership with customers by production of hydrogen in electrolyzers supplied with green power. Next issue is to introduce the digitalization of operational activity and processes supporting the costs optimization, value added creation, operations efficiency and productivity. Digitalization shall support the implementation of smart services for customers as well. Strategy must aim to upgrade the production and grid assets, preparing it for change of the daily and yearly demand seasonality and bidirectional power transmission. It is important to analyze the utilization of owned infrastructure to RES development, e. g. use of power plants and wind farms areas and localizations of grid infrastructure to developm the solar production. The global expansion of green assets creates potential to develop market risk hedging products dedicated to RES. Green transition changes the energy market. The target structure of this market shall base on following dimensions: local RES production and global green hydrogen market. Smart and green innovations develops local peer-to-peer power trading outside power system and virtual power plants basing on thousands of prosumers installation backed by power batteries. Power companies need to build competences enabling to be part of such reshaped energy market, expanding operations in areas of green products, changed trading techniques and new geographic markets using organic growth or mergers and acquisition.