Accelerating the journey to net zero

upgrading their core systems, and others have made great progress in specific journeys or domains. While it’s difficult to estimate exactly how much investment is required, it is likely to be between $500 million and $1 billion. A winner with across-the-board, industry-leading performance and a compelling M&A platform could build a $200-billion-plus value company—one that consistently delivers top-quartile reliability and customer experience while keeping customer rates among the lowest in the industry.

This is a once-in-a-generation moment. Significant step change in performance could be achieved in a consolidated, regulated industry that is asset intensive, engineering focused, and safety conscious. The first few leaders who recognize the end-to-end opportunity in a greenfield digital utility platform—one that drives an M&A strategy to bring a better and more affordable energy product to millions of customers—could accrue disproportionate value. Why wait?

Adrian Booth is a senior partner in McKinsey’s Bay Area office, where Aditya Pande is a partner; Eelco de Jong is a partner in the Charlotte office; and Ben Elder is a senior director of engineering in the Atlanta office.

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