Smart grid technologies and the development of a decision making framework for market entry

Abstract

This thesis explores business opportunities in the "smart grid" environment for the Power Electronics Global Product Group (PE GPG) of ABB, Ltd. The goal of this thesis is three-fold: 1) Provide a detailed definition of the smart grid landscape. 2) Create a framework for decision makers in the face of uncertainty, providing a view of both current initiatives and growth opportunities. 3) Use this framework to identify areas where the PE GPG can have the greatest market success in terms of revenue and profit; and perform a high-level analysis of those key opportunities, including a preliminary market, technical, and financial assessment. Working with key stakeholders across the unit and corporate level, the smart grid was defined, with a technologies map created, and key opportunities identified. With the opportunity set defined, a framework was developed to aid senior management in finding the best opportunities in the smart grid market. By subsequently applying this framework, two segments were identified as the most promising: plug-in electric vehicle charging and battery energy storage. While straightforward to identify opportunities in this manner, this process really highlighted the need for a comprehensive framework for decision makers, as well as the importance of such tools in identifying promising new projects, allocating resources efficiently, and communicating the strategic vision throughout the organization on an ongoing basis.