​Megatrends shaping the energy sector

Fortum's strategy is anchored in megatrends that are shaping the energy sector. Fortum is responding to these global challenges and aims to be the forerunner in clean energy. Its strategy towards the vision focuses on solutions for sustainable cities, growth in solar and wind, building new energy ventures, as well as driving productivity of its current fleet and energy industry transformation. 

Megatrends 
  
​MEGATREND ​Impact on the industry and Fortum ​Our response

Climate change and resource efficiency
2/3 of global emissions are from the production and use of energy
(Source: World Energy Outlook Special Report on Energy and Climate Change, IEA, June 2015)

2/3 of global power production from fossil fuels (Source: Bloomberg New Energy Finance)

  • Transition to low-carbon and renewable generation; high emissions and/or inefficient generation losing value
  • The rise of a circular economy
  • New renewable technologies maturing and becoming cost competitive
  • Need for higher overall system efficiency
  • Policy development
  • Cleaner, smarter and more efficient solutions for production and use of electricity, heating and cooling
  • Enhanced use of waste and biomass in energy generation
  • Investments in wind, solar and hydro
  • Development of new energy-saving and low-emitting technologies and customer solutions
  • Improved productivity, availability and profitability of production (hydro, gas, nuclear)
  • Proactive suggestions to drive market-based solutions and emissions trading scheme
Urbanisation
2/3 of the world's population will live in urban areas by 2050
(source: World Urbanization Prospects by United Nations, Department of Economic and Social Affairs, Population Division, 2014)
  • Demand for sustainable, efficient and reliable utility services grows faster than the economy on average
  • High emissions from inefficient heating, cooling and electricity production; inefficient use of energy
  • New solutions needed for urban problems, e.g. waste, transportation
  • Increased pace of electrification
  • Clean, efficient and reliable energy
  • Integrated customer solutions, e.g. smart heating, cooling and electricity solutions for homes, demand-response aggregation, solar kits, heat pumps
  • Development of waste-to-energy solutions
  • Smart charging solutions for electric vehicles
Active customers
More conscious customers, an increasing share become prosumers producing their own energy
  • Demand for new innovative services to manage energy consumption
  • Demand for own/decentralised production and demand-response
  • New technologies and applications; new companies entering the market, start-ups
  • Enhanced understanding of customer expectations and preferences; development of the customer experience
  • Development of smart solutions, services and applications (e.g. demand-response, open district heating) that give customers choices and help them better manage their energy consumption; customer access to flexibility markets
  • New energy ventures to increase the speed of innovation
Digitalisation, new technologies
Rapid technology development is fundamentally changing the way energy is produced and consumed
  • Rapid development and cost decrease of new solutions in, e.g., wind, solar and storage, demand-response
  • New digitally-enabled solutions
  • New ways to produce, market, sell and deliver products and services
  • New technologies and applications; new companies entering the market, start-ups
  • Strengthened in-house focus on innovation
  • Intensified cooperation with start-ups, research institutions and technology companies
  • Development of new digital touchpoints and solutions for customers
  • Use of digitalisation to enhance productivity of the production fleet
  • Drive wide acceptability of new solutions among politicians and decision-makers
 
 
 

2/24/2016