DEGREE PROJECT IN INDUSTRIAL ENGINEERING AND MANAGEMENT, SECOND CYCLE, 30 CREDITS STOCKHOLM, SWEDEN 2017 The transformations of the major French energy players induced by the energy transition, the emergence of new actors, digitization from an organizational, structural, cultural point of view. The transformations of major energy players accompanied by the weave consulting firm. HÉLÈNE PAPILLAUD KTH ROYAL INSTITUTE OF TECHNOLOGY SCHOOL OF INDUSTRIAL ENGINEERING AND MANAGEMENT Papillaud Hélène 2 Papillaud Hélène ABSTRACT Today, the current energy situation is particularly difficult for major French energy players. Indeed, they have to face high energy prices - that go up and down -, have to look at renewable energies – by integrating them into their energy mix or into their distribution model - and digitize to manage their customer relations - customers’ behavior has changed and utilities have to adapt to this new behavior. They must respond to these problems while being confronted with the arrival of new entrants to the energy market: multiplication of energy players but also appearance of players in telecommunications, data…. To cope with this energy revolution, the great French utilities have no choice but to transform themselves. They must evolve technologically, digitally and also organically, structurally and culturally. The strategy of major historical energy players is therefore completely redesigned in order to give them the possibility of remaining competitive in their market and not losing their place in this revolution. They have to adapt to these new challenges and to transform themselves. Major French energy players, as ENGIE, EDF and RTE, have already started to imagine and implement new strategies to face the current energy challenges. Operational strategy consulting firms such as Weave are there to assist them in their transformation. The consultants of Weave carry out indeed numerous missions to answer the problems of these companies. Weave is here to help these companies to evolve and transform by giving them accompaniment throughout a good overview of the current energy market and current challenges of the society. Weave helps the major French energy actors to deploy new strategies, from the design of the strategy to its implementation. Indeed, Weave has developed a recognized expertise to accompany its clients in the energy transition and respond to the challenges of development and transformation of their value chain. On the basis of innovative offers, Weave intervenes with general management and dedicated businesses. Key words: utilities; digital; energy transition; energy revolution; transformation; consulting firm, transform 3 Papillaud Hélène SAMMANFATTNING Den nuvarande situationen på energimarkanden är en utmaning för många stora franska energiaktörer. Huvudutmaningarna består idag av höga elpriser som går upp och ned på en volatil marknad, en övergång till förnyelsebara energikällor samt en nödvändig och omfattande digitalisering där särkslit kundrelationerna förändras och utvecklas. Nya aktörer från andra branscher etablerar sig på energimarknaden med nya typer av tjänster och detta innebär att befintliga aktörer måste utveckla nya affärsmodeller. Nya preferenser och beteenden hos kunderna ställer även det nya krav. För att klara denna energirevolution, har franska etablerade energibolag inget annat val än att transformera sig. De måste utvecklas teknologiskt, digitalt men också organisatorisk, strukturellt och kulturellt. Stora historiska energiaktörer behöver därför nya strategier för att förbli konkurrenskraftiga på sina marknader och inte förlora marknadsandelar. Stora franska energiaktörer som ENGIE, EUF och RTE har redan påbörjat detta arbete och nya strategier utvecklas för att möta de aktuella utmaningarna på energiområdet. Strategikonsultföretag som Weave finns där för att hjälpa energibranschens aktörer i denna omvandling. Weave har redan genomfört många uppdrag inom detta område och kan med sin breda kompentens och erfarenhet hjälpa dessa företag att utvecklas och förändras via en god översikt av nuvarande energimarknad och aktuella utmaningar i samhället i allmänhet. Weave kan bistå de stora franska energiaktörerna i framtagande av nya strategier inklusive genomförande. Genom långsiktigt arbete har Weave utvecklat sin expertis och är därför väl lämpade att leda sina kunder i energiomställningen och svara på de utmaningar som en utveckling och omvandling av kundernas värdekedjor innebär. Nyckelord: Energibolag; digitalisering; energiomställning; energirevolution; omvandling; konsultföretag, 4 Papillaud Hélène TABLE OF CONTENTS Abstract .................................................................................................................................................................................. 3 SAMMANFATTNING.......................................................................................................................................................... 4 Foreword ............................................................................................................................................................................... 7 1. CONTEXT AND PROBLEM FORMULATION ................................................................................................... 9 1.1. Background: ...................................................................................................................................................... 9 1.1.1. Presentation of the energy mix in France ................................................................................... 9 1.1.2. Presentation of the different major energy players in France ........................................ 10 1.1.3. The evolution of the energy value chain in France – The history of energy market in France 12 1.1.4. Presentation of the current regulation ..................................................................................... 13 1.2. Energy context and problem formulation ......................................................................................... 14 1.3. Expected contribution ............................................................................................................................... 15 1.4. Disposition ...................................................................................................................................................... 15 2. METHODOLOGY ..................................................................................................................................................... 17 2.1. State of the art of the current energy context and the induced transformations for major French energy actors ................................................................................................................................... 18 2.1.1. Bibliographic researches ................................................................................................................ 18 2.1.2. Conference ............................................................................................................................................ 19 2.2. Analysis and Synthesis of the strategies engaged by the major French energy players 19 2.2.1. Utilities literature ............................................................................................................................... 19 2.2.2. Interviews of people working in the major French utilities ............................................. 20 2.3. Collection and analysis of the various commercial proposals, studies and missions carried out by Weave with and for major French energy players ......................................................... 20 2.3.1. Interviews of people working in Weave with and for major French energy players 20 2.3.2. Collection of commercial proposals, market studies and missions carried out for major French energy players. ........................................................................................................................... 20 2.4. Planning of the study .................................................................................................................................. 21 3. RESULTS .................................................................................................................................................................... 23 3.1. Current energy challenges ....................................................................................................................... 23 3.1.1. Energy Price ......................................................................................................................................... 23 3.1.2. Renewable Energies .......................................................................................................................... 23 3.1.3. Digitalization ........................................................................................................................................ 25 3.2. Transformations .......................................................................................................................................... 27 3.2.1. A technological revolution ............................................................................................................. 27 3.2.2. A digital revolution ............................................................................................................................ 28 3.2.3. A cultural and societal revolution ..............................................................................................