Organizational Strategy How Utilities are Restructuring
Renewable Energy Organizational Strategy Staff Resources & Organizational Structures
Mike Taylor, SEPA John Pang, Scott Madden
April 29, 2014
About Us Mike Taylor Director of Research SEPA
John Pang Partner ScottMadden
[email protected]
[email protected]
Additional project research: • Scott Madden: Paul Quinlan, Kevin Hernandez, Mike Morley • SEPA: John Sterling
Context • Request from the industry to look at how renewable organizations were organized • Other industry benchmarks and efforts • Past ScottMadden research
Renewables Benchmarking • Recruited, surveyed & interviewed 14 utility participants – Diversity of utility types, geographies, renewable market maturities • Survey components – Company and technology demographics – Staff resources (FTEs) – Organizational structure • Preliminary results at USC
Renewable Accountability Distributed Renewables Other 33%
Customer Service 42%
Energy Innov. 25%
Utility Scale Renewables
A few utilities colocate; a few have broken them up over time…
High degree of restructuring and business structure uncertainty
Other 42%
Generation 33% Regulatory 25%
Greater stability, but not fully patterned. Hydro & wind aligned more with traditional generation
On the Move Distributed Renewables
Key Same Function
New to Dist. Renew.
Move from Cust. Serv.
Audience Poll
Work Effort By Technology
Other 10% Wind 7%
General 17%
Solar 19%
Solar 66%
Other: small hydro, biomass, fuel cell, geothermal
Planning & Procurement
22%
16%
24% 19%
Regulatory & Compliance Operations & Maintenance Stakeholder & Customers General Support
Solar FTEs 140 120 Very large 100 range of 80 solar FTEs across the 60 different 40 utilities 20
Median
0 7 10 11 2
1
5
4
6 12 3
8
Solar FTEs by Number of Solar Interconnections (>500)
Interconnections
140 120
20000
100
15000
80
10000
60 40
5000
20
0
0 7 11 2 1 5 4 6 3 8
Solar Interconnections
Solar FTEs
Solar interconnections are driving staffing requirements
Renewable FTEs by Solar Capacity per Interconnection (Customer Side) 0.100
50
0.080
40
0.060
30
0.040
20
0.020
10
0.000
0 5
2
11
1
6
Renewable FTEs
25000
FTEs Customer-sited Solar Capacity per Interconnection (MW-ac)
Solar FTEs (Cont’d)
12
Solar Capacity per Interconnection
Larger systems (more MW per interconnection) require more staffing
FTEs
Staffing and Skills Business Unit
Skill Gap
Meter
• Understanding customer perspectives for billing / payments • General call center training • Understanding new technology • Understanding interconnection requirements • Understanding of State & National Policy • Staying current with technology & market trends • General industry knowledge • Understanding new technology • Best practices for safety • Interconnection requirements, field training
Rates and Regulatory
• Understanding the technical aspects of regulatory requirements
Resource Planning Finance and Accounting Supply Chain
• Forecasting of solar adoption and pricing • Industry knowledge • Renewables contracts negotiation
Customer Service Renewables Group Environmental Generation
Variation by utility size, DG solar, RPS, and interconnection automation.
Full Assimilation of Renewables
Collateral accountabilities for staff Renewables are treated as unique, requiring special attention
Core accountabilities for staff Renewables are treated as unique, requiring special attention
Core accountabilities for staff Renewables are treated as normal part of business growth and operations
Market Profile
Dedicated Renewable Energy Group(s)
Limited number of distributed interconnections Utility scale renewables used to meet RPS policies
Critical mass and strong growth in distributed generation Utility-scale renewables used to meet RPS policies
Significant penetration of distributed generation Utility scale renewables competitive with other sources of new generation
Typical Utility Experience Drivers
Matrix Team
Minimal Interconnection requests or impact from RPS policies
Growing impacts and potential of distributed generation utility-scale renewables
Renewable capacity additions slow to allow focus on steady state operations
Secures and manages PPA contracts for utility scale renewables Outsources O&M responsibilities
Leverages lessons from operational experience; include in strategic planning Owns and operates renewable assets
Explores opportunities to improve operations (e.g., O&M)
Renewable Organization
Stage
Renewable Maturity Model
Utility incorporates renewable functions into work flow of existing functional teams to solve tactical needs in reactive approach
Utility establishes core teams dedicated to distributed and/or utility-scale renewables
Utility manages renewable capacity similar to other generation assets
Maturity Model FTEs Renewable FTEs per Utility 120 100 80
Integrated = 69
60
Renewables Group = 47
40 Matrixed = 8
20 0 7
3
4
12
Fully Integrated
6
1
11
5
2
10
Q&A Mike Taylor Director of Research SEPA
John Pang Partner ScottMadden
Next Steps • • • •
Today’s results are preliminary… May 19 - full results for participants May 22 - SEPA member summary Additional participants welcome – contact Mike Taylor
Mike Taylor, SEPA John Pang, Scott Madden
April 29, 2014
About Us Mike Taylor Director of Research SEPA
John Pang Partner ScottMadden
[email protected]
[email protected]
Additional project research: • Scott Madden: Paul Quinlan, Kevin Hernandez, Mike Morley • SEPA: John Sterling
Context • Request from the industry to look at how renewable organizations were organized • Other industry benchmarks and efforts • Past ScottMadden research
Renewables Benchmarking • Recruited, surveyed & interviewed 14 utility participants – Diversity of utility types, geographies, renewable market maturities • Survey components – Company and technology demographics – Staff resources (FTEs) – Organizational structure • Preliminary results at USC
Renewable Accountability Distributed Renewables Other 33%
Customer Service 42%
Energy Innov. 25%
Utility Scale Renewables
A few utilities colocate; a few have broken them up over time…
High degree of restructuring and business structure uncertainty
Other 42%
Generation 33% Regulatory 25%
Greater stability, but not fully patterned. Hydro & wind aligned more with traditional generation
On the Move Distributed Renewables
Key Same Function
New to Dist. Renew.
Move from Cust. Serv.
Audience Poll
Work Effort By Technology
Other 10% Wind 7%
General 17%
Solar 19%
Solar 66%
Other: small hydro, biomass, fuel cell, geothermal
Planning & Procurement
22%
16%
24% 19%
Regulatory & Compliance Operations & Maintenance Stakeholder & Customers General Support
Solar FTEs 140 120 Very large 100 range of 80 solar FTEs across the 60 different 40 utilities 20
Median
0 7 10 11 2
1
5
4
6 12 3
8
Solar FTEs by Number of Solar Interconnections (>500)
Interconnections
140 120
20000
100
15000
80
10000
60 40
5000
20
0
0 7 11 2 1 5 4 6 3 8
Solar Interconnections
Solar FTEs
Solar interconnections are driving staffing requirements
Renewable FTEs by Solar Capacity per Interconnection (Customer Side) 0.100
50
0.080
40
0.060
30
0.040
20
0.020
10
0.000
0 5
2
11
1
6
Renewable FTEs
25000
FTEs Customer-sited Solar Capacity per Interconnection (MW-ac)
Solar FTEs (Cont’d)
12
Solar Capacity per Interconnection
Larger systems (more MW per interconnection) require more staffing
FTEs
Staffing and Skills Business Unit
Skill Gap
Meter
• Understanding customer perspectives for billing / payments • General call center training • Understanding new technology • Understanding interconnection requirements • Understanding of State & National Policy • Staying current with technology & market trends • General industry knowledge • Understanding new technology • Best practices for safety • Interconnection requirements, field training
Rates and Regulatory
• Understanding the technical aspects of regulatory requirements
Resource Planning Finance and Accounting Supply Chain
• Forecasting of solar adoption and pricing • Industry knowledge • Renewables contracts negotiation
Customer Service Renewables Group Environmental Generation
Variation by utility size, DG solar, RPS, and interconnection automation.
Full Assimilation of Renewables
Collateral accountabilities for staff Renewables are treated as unique, requiring special attention
Core accountabilities for staff Renewables are treated as unique, requiring special attention
Core accountabilities for staff Renewables are treated as normal part of business growth and operations
Market Profile
Dedicated Renewable Energy Group(s)
Limited number of distributed interconnections Utility scale renewables used to meet RPS policies
Critical mass and strong growth in distributed generation Utility-scale renewables used to meet RPS policies
Significant penetration of distributed generation Utility scale renewables competitive with other sources of new generation
Typical Utility Experience Drivers
Matrix Team
Minimal Interconnection requests or impact from RPS policies
Growing impacts and potential of distributed generation utility-scale renewables
Renewable capacity additions slow to allow focus on steady state operations
Secures and manages PPA contracts for utility scale renewables Outsources O&M responsibilities
Leverages lessons from operational experience; include in strategic planning Owns and operates renewable assets
Explores opportunities to improve operations (e.g., O&M)
Renewable Organization
Stage
Renewable Maturity Model
Utility incorporates renewable functions into work flow of existing functional teams to solve tactical needs in reactive approach
Utility establishes core teams dedicated to distributed and/or utility-scale renewables
Utility manages renewable capacity similar to other generation assets
Maturity Model FTEs Renewable FTEs per Utility 120 100 80
Integrated = 69
60
Renewables Group = 47
40 Matrixed = 8
20 0 7
3
4
12
Fully Integrated
6
1
11
5
2
10
Q&A Mike Taylor Director of Research SEPA
John Pang Partner ScottMadden
Next Steps • • • •
Today’s results are preliminary… May 19 - full results for participants May 22 - SEPA member summary Additional participants welcome – contact Mike Taylor
