Transmission & Distribution
Transmission and distribution companies face a range of complex business problems and questions that include:
- What are the right growth strategies for T&D organizations? How do they balance regulated and nonregulated growth?
- What are the main dynamics of Australian, European and U.S. grids, and what is the impact of bringing online large renewable capacity?
- What are the key issues facing the grid operators — for example, balancing wind power intermittency, determining the right equipment to reinforce the transmission grid and the evolution of the distribution grid?
- Which T&D segments are the most attractive?
- How do T&D organizations drive efficiency while positioning the network to address future market needs?
L.E.K. offers extensive expertise in the transmission and distribution sector across geographies and market segments (HV and MV products, automation and control, power electronics and systems, smart grid, and various services). Through the use of proven methodologies, we are well-positioned to provide assistance to T&D and smart grid companies facing critical issues. We help clients grow and invest successfully in the sector, focusing on M&A support services, growth strategy development, post-merger integration, organization strategy, performance improvement and market evaluation work.
How We Help
T&D utility strategy should be developed with reference to a number of external industry-specific forces and internal settings.
L.E.K. leverages the Network Full Potential framework when assessing the cost-efficiency of T&D utilities.
Examples of Our Work
To learn more about how we help our clients, please refer to these case examples:
- A leading multi-asset T&D network business was seeking to refresh its corporate strategy in order to identify growth within a very dynamic market and an uncertain future regulatory environment. L.E.K. worked collaboratively with the CEO and the management team to develop a new corporate strategy that gave clarity to the company’s portfolio, clearly identified growth targets and instilled confidence for building new capabilities in the right areas.
- One of the largest electricity distribution networks in the Southern Hemisphere was facing significant cost pressure due to changes in the regulatory environment. L.E.K. led the client through a cost transformation, helping determine the appropriate cost targets and coaching management to identify, deliver and realize value from hundreds of cost-reduction initiatives across the business, all while building the capability to continuously drive long-term improvement. The client identified a more than 25% increase in cost-efficiency opportunities.
- A private equity investor was considering the sale of a worldwide specialist of shell-type transformers (>100MVA) for the utilities and railway industries, which also had a presence in the core-type technology for MV applications. L.E.K. provided the vendor due diligence to facilitate the sale process via an independent assessment of the portfolio company’s markets and competitive position. Armed with this independent analysis, the client successfully sold its assets.