The power and utilities sector is at a pivotal moment. Across North America and Europe, companies face mounting pressure to decarbonize, modernize aging infrastructure, and meet rising customer expectations—all while maintaining profitability in an era of unprecedented volatility. The path forward is clear: value chain modernization (VCM) is no longer optional, but essential. Yet, the journey is not one-size-fits-all. Regional differences in regulation, market structure, and operational realities demand tailored approaches to VCM that reflect the unique challenges and opportunities of each market.
In North America, the regulatory landscape is shaped by powerful incentives and a patchwork of market structures. The U.S. Inflation Reduction Act, for example, has unlocked nearly $400 billion in funding for renewable energy investments, accelerating the shift toward clean power. Utilities must navigate a complex mix of regulated and deregulated markets, with independent system operators (ISOs) and regional transmission organizations (RTOs) playing a central role in grid management. The result is a dynamic environment where utilities are incentivized to innovate, but must also contend with legacy systems, fragmented data, and the need for seamless integration across diverse business units.
Key challenges include:
Europe’s power and utilities sector is defined by ambitious policy targets and a highly interconnected grid. The EU Renewable Energy Directive mandates that at least 42.5% of energy comes from renewables by 2030, driving utilities to rapidly scale wind, solar, and other low-carbon assets. Market structures are often more centralized, but the diversity of national regulations and the need to balance intermittent renewables across borders add layers of complexity.
Key challenges include:
Despite regional differences, one truth is universal: persistent silos—whether in data, organization, or process—are the gravest threat to value chain modernization. Utilities that operate as collections of semi-autonomous business units, each with their own systems and incentives, struggle to respond to market shocks, regulatory changes, and new customer demands. The solution lies in unifying data, processes, and teams across the entire value chain, from generation to consumption.
Modern VCM is powered by digital platforms that centralize data, automate workflows, and enable real-time analytics. In both North America and Europe, leading utilities are:
A global power and utilities leader operating in North America partnered with Publicis Sapient to modernize its trading and risk management for renewable assets. The company faced the challenge of integrating commercial capabilities acquired through multiple acquisitions, each with its own systems and processes. By implementing a unified ETRM (Energy Trading and Risk Management) platform, the organization:
In Europe, a multinational utility sought to maximize wholesale margins and manage risk in increasingly volatile markets. With a €55 billion investment in renewables and a goal to be climate-neutral by 2040, the company needed to harmonize operations across multiple countries. Publicis Sapient helped design a phased integration roadmap, resulting in:
Regional policy is a powerful driver of VCM strategy. In the U.S., incentives like the Inflation Reduction Act create opportunities for utilities to invest in renewables and grid modernization, but also introduce uncertainty around the longevity of government support. In Europe, binding decarbonization targets and evolving market rules require utilities to be agile and proactive in their transformation efforts.
Customer expectations are also converging across regions. Today’s utility customers—whether in Texas or Germany—demand reliability, transparency, and digital experiences. The rise of DERs, EVs, and smart home technologies is turning consumers into active participants in the energy value chain, further blurring the lines between supply and demand.
Value chain modernization is not a one-time project, but a journey—one that must be tailored to the regulatory, market, and operational realities of each region. The most successful utilities will be those that break down silos, build connections, and harness the full power of digital to create resilient, profitable, and sustainable businesses.
By partnering with Publicis Sapient, power and utilities leaders in North America and Europe can define and execute a VCM roadmap that is regionally relevant, future-proof, and designed to unlock new value at every stage of the energy transition.
Ready to modernize your value chain for the realities of your region? Connect with Publicis Sapient’s experts to start your transformation journey.