The digitalization of utility companies is becoming increasingly important as the Internet and disruptive technologies expand into almost every sector of the economy. Traditional utility companies have seen significant erosion of share-price value, ranging from 2-8x the value of the stock market index, due to the growth of decentralized renewable resources and the consequent decrease in electricity wholesale prices. Electricity companies are not an exception to the digitalization wave, and several internal and external triggers should warn utilities that digitalization is vital for their survival. Utilities are struggling to deliver healthy financial performances, and the decline in on-grid consumption is shrinking profit margins. Decentralized generation of renewable electricity will drive changes in the utilities industry due to reaching grid parity.
