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At the end of 2019 Europe presented its Green Deal with the ambition to become the first climate neutral continent by 2050. The switch to a decarbonized society brings fundamental challenges for the electricity system: the share of renewables in the capacity mix will further increase and some conventional generation will disappear, creating the need for more flexibility in the system. Besides this, Belgium needs to determine a clear strategy as its nuclear reactors are set to be phased out between 2022 and 2025.

There are significant changes underway in the Belgian Energy sector, and organizations must adapt, transform their businesses in order to satisfy changing customer demands and to take advantage of new opportunities.

The energy transition is no longer a matter for energy companies alone. Consumers are increasingly independently looking to make their energy needs 100% sustainable and are considering alternative decentralized technologies to reduce CO2 as much as possible. In addition, more and more internationally operating companies are actively taking charge of their own energy transition and monitoring and/or accelerating it where possible. This trend will have an impact on the entire Energy market and the role that the various parties play in this.

Everyone is confronted with the same trilemma: 1) how do we achieve the climate objectives, 2) how do we keep energy affordable, 3) how do we guarantee a reliable, safe energy supply? This puts all energy players - regulators, government, investors and the energy companies themselves - under pressure to transform.

Jorn De Neve
Partner – Head of Energy & Natural Resources

Technology also has a significant impact on power and utilities. As the European Union (EU) looks to decarbonize its energy supply, the rise of distributed energy, energy storage and smart metering to capture real-time usage data, are presenting opportunities for new entrants from other sectors. With the market share of the existing providers shrinking, many are re-evaluating their operating models and their relationship with customers, to ensure their long-term survival. Innovations like data analytics and intelligent automation have the potential to improve productivity and give rise to new products and services—as long as the right risk management measures are in place.

Regulation and policy change in energy is complex and navigating the ever-changing landscape is challenging. From EU regulation on energy trading through to the opening up of regulated markets to competition - how do companies comply and capitalize without losing their competitive edge?

Our goal is to help clients understand the impact of these matters on their businesses and to identify opportunities. Our multidisciplinary team of more than 19,000 dedicated energy experts worldwide help clients create robust, sustainable and flexible strategies, teams and operating models that can quickly adapt in a dynamically unfolding future.

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Challenges & trends

Our clients in the Energy sector all face the challenges of the unprecedented energy transition which we can capture in the so-called 4 D’s: 

Decarbonization

Decarbonization

Ambitious climate targets and related regulatory pressure drive the Energy players away from fossil fuels towards renewable sources, investments & divestments, innovative business models, strategic repositioning, technological evolution and security of supply.

Decentralized production

Decentralized production

Moving from large central units to smaller decentralized units creates the necessity for smart, intelligent networks, flexibility and “prosumers”. This, in turn, puts pressure on distribution system operators and transmission system operators, requiring innovation (“multi-utility”), efficiency and consolidation in the sector.

Digitization

Digitization

“Energy as a service” requires new ways of connecting technologies (Internet of Energy), the use of Artificial Intelligence (AI) and creating a customer centric energy system affecting all stakeholders.

Decreasing consumption

Decreasing consumption

Energy efficiency as a key target, energy efficient buildings, storage, demand side management, smart cities, circular economy, etc.

Energy divider

Key Services involved in the Energy sector

The KPMG Energy Sector service offering aims at helping numerous global Water & Power and Utilities businesses, state-owned providers, national businesses, services companies and public sector bodies charged with regulating and advocacy within the sector.

Strategy

Strategy

We provide a new perspective on how to design and implement strategies that win in today’s markets. From corporate governance support, ESG strategy development, alignment with international standards, carbon footprint calculation and decarbonization, to ultimately implementing your strategy.

Business services

Business Services

We have a team of highly motivated, driven professionals with specialties in Energy sourcing (PPA & Virtual PPA), Energy efficiency and mobility (E-vehicle, Fleet), business process improvement, capital and operating expenditure monitoring. We also cover capital structure efficiency and debt advisory.

Technology

Technology

Let your technology management help you grow and push your business to new heights. Our services can help you combat cyber security, manage your digital documentation and drive a business-led transformation enabled by technology including Powered Enterprise (ERP CRM, EAM systems). Furthermore, we offer IT capability optimization, IT sourcing, cloud transformation, IT architecture and assurance and advisory services.

We create a vision and strategy around data to help you build trust in your data by establishing governance and management, automated reporting, dashboarding and data management, through the use of the latest technologies such as AI and blockchain.

Deals

Deals

Businesses today are under more pressure than ever to deliver better results for stakeholders. Whether you’re buying, selling, partnering, funding or fixing a company, the process can be complex and risky. We offer due diligence services – both from a buy side and a vendor perspective – to help you achieve the results you and your stakeholders desire. We do so with a forward-thinking approach to onshore/offshore windfarms, solar PV, hydropower, heat networks, to deal planning, execution and integration.

Based on our up-to-date understanding of the Energy market conditions, responsible corporate finance, valuations and cost of capital, funding structures, debt instruments and liquidity providers, we assist you in making the right funding choices in order to achieve your optimal capital structure. We can also assist you in executing your Green Finance Strategy.

RIsk & Regulatory

Risk & Regulatory

Managing risk well is strategically important and essential to the success of any business. Internal audit, risk and control, forensic support and dispute advisory, financial statement audit and accounting advice are services our teams have experience with.

Tax

Tax

Our multidisciplinary approach can help you manage your company’s tax compliance issues by providing advice on corporate, indirect and expatriate tax as well as on tax structuring in Belgium and internationally.

Energy divider

We advise energy clients on a broad spectrum of issues as well as through the following integrated solutions

Technology enabled business transformation

Digitalization and market fluctuations present a lot of challenges for organizations with business executives wondering whether their current processes are ready for the future. Investing in the right technologies allows these processes to become more efficient, agile and competitive.

We help you to maximize value across the entire value chain to keep up with evolutions in the market. By defining your enterprise strategy, improving processes and implementing core technologies, we help you to operate efficiently while exploring untapped potential.

Digital transformation

Modern organizations must be agile, competitive and customer-centric. Changing customer expectations, new market entrants, technology disruption and the speed of change have forced brands to reinvent themselves and the experiences they deliver to their customers.

We lead you through a customer-led transformation by improving customer strategies and implementing powerful analytical and digital solutions. This will allow you to unlock your customer value and become a data-driven organization, thriving in the digital age.

Transformation through deals

Strategies that facilitate the right investments can help organizations grow and develop the necessary agility to respond to changes in the new reality.

Our multidisciplinary team  will support you from the strategic conception phase, to deal execution to implementation and post-merger advice. Looking at your ultimate goal and strategy, our team will work with you to determine how a transaction or deal can support your objectives, helping you adapt your strategy and align your purpose and values to complete the transformation process.

Regulatory driven transformation

Adapting to the ever-changing regulatory landscape in any sector can be challenging and forward thinking leaders see regulatory change as an opportunity, rather than a constraint.

Our solution, driven by a team of multidisciplinary experts, offer a complete approach to help your organization better deal with regulatory changes. With outstanding expertise in compliance, combined with access to technology-driven solutions, we offer a holistic view of the challenges and opportunities on the regulatory horizon.

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