… it’s inevitable that the energy sector will be affected by the same consumer and technology trends that are sweeping through every major segment of the economy, from telecommunication to health care to transportation.

 

For McBee, a true energy 2.0 company has to offer sustainable resources and distributed energy services, organized 100 percent around the consumer — not the meter. The company also has to have top-notch predictive analytics and offer innovative, upfront financing for both commercial and residential customers.

 

“In addition to all of that, you have to have investors aligned around the kind of business that you’re trying to build, which is a disruptive, high-growth business that’s focused on accumulating a large share of the market and positioning itself as that first 2.0 energy provider,” said McBee. “Those are not investors that typically invest in the energy space.”

 

The same goes for personnel, he said. The creators of Uber didn’t come from the transportation sector, and the founders of Airbnb didn’t come from the hospitality industry. It’s unlikely that whoever launches a leading energy 2.0 company will have a traditional energy background, he said.

 

McBee acknowledged that the energy industry is unusual. At the end of the day, providers have to move electrons around safely with a high degree of reliability. There’s also a lot of sunk cost in the grid’s physical infrastructure and a high level of regulatory oversight. But in McBee’s view, even the energy industry can’t escape the effects of overarching consumer and technology trends.

1. In the energy industry, it is time that we build an energy business– all aspects of it– around consumers– both residential and commercial. No part of the energy supply chain has truly been built to serve clients or customers nor has a business been built that is entirely focused on client or customer needs.
2. Customers of all sizes typically don’t understand what they’re buying, they haven’t received products that demonstrate consistent benefits. This is true for both commercial and residential clients. The residential and small commercial sector has been so poorly served in the State of New York, in fact, that the NY Public Service Commission has taken steps to rein in residential suppliers.
3. The energy industry has over promised and under delivered, until now. Recently, a few companies have emerged that are starting to focus more exclusively on the needs of customers. These are exciting developments*, but there is much more work to do.
4. Technology has not been employed effectively yet in our industry. Information has the potential to unlock significant value for customers large and small.
5. Finally, some of the best ideas are sure to come from non-energy professionals and expertise– technologists, marketers, sales and consumer experts.