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Creating the new power generation business

Optimize production. Enhance market position. Transform the portfolio.

As you sit in your office or home, how many lights are on around you? How many computers, peripheral equipment and appliances are drawing power? Despite the widening focus on sustainability, the global appetite for electricity will continue to grow.

Between now and 2035, net electricity generation worldwide is expected to grow by 84%. 1

Between now and 2035, net electricity generation worldwide is expected to grow by 84%. 1

At the same time, more than 80 countries have signed on to produce this power with lower and lower emissions.2 Renewable technologies are becoming mainstream in some areas due to government incentives and private investment, changing the dynamics of the energy value chain.3

So what hasn’t changed? Citizens continue to expect safe, reliable and clean electricity to power the local economy and upward mobility.

These realities open new opportunities for generators. The company that can continuously extract the most value from their existing portfolio while being able to “follow the money” as they invest in the future will be the leader in this changing marketplace.

This new, agile power generation enterprise―one that is highly adaptive and optimized for production and investment performance―is what we call a smarter generation business.

Smarter energy offers an adaptive and optimized roadmap to transform today’s power generation business model

Source: “Smarter Energy Value Quantification.” IBM Center for Applied Insights and the IBM global energy and utilities industry team, 2011.

The IBM Center for Applied Insights, along with global energy and utilities experts, identified four key competencies that can help your company achieve this adaptive, optimized power generation business:

  • Manage and operate each of your fleet assets more efficiently and increase workforce productivity, while delivering better compliance, security and visibility.
  • Leverage economies of scale, close gaps and eliminate silos between your operations and maintenance, bringing a common view of the plant floor to the fleet level.
  • Apply advanced analytical tools to help optimize fuel supply, emissions and wholesale electricity markets.
  • Minimize uncertainty and reduce portfolio risk as you improve fleet agility and drive investment through scalable scenario-based analyses.

The executive report, Smarter energy and utilities: creating the new power generation business (PDF,1.73MB), provides an in-depth look at how developing these competencies can improve your production and profit performance in this changing generation marketplace. And it demonstrates how adaptability will be the key to future performance.

In fact, our research shows that a typical 10,000 MW generator operating in a mature market may be able to reduce downtime and maintenance cost by 15% and improve profit by as much as 9%.

Of course, no generator’s roadmap is precisely the same, but the benefits are real. Production savings, profit and emissions improvements along with capital expense deferrals are all possible. Let us show you how, building on what you already do today.



1. US Energy Information Administration, International Energy Outlook, 2011,

2. Pew Center for Global Climate Change (PDF,661KB), September 2011

3. WindFacts,, October 2009