The global energy landscape is undergoing a transformation that is redefining the role of the traditional energy supplier. What was once solely an energy business is rapidly evolving into a technology-driven service and business model.
Triggered by the energy crisis that followed Russia’s invasion of Ukraine, businesses and individuals alike have re-evaluated their relationship with energy. In the UK, prices remain 75% higher than in 2021, making energy a focus area for all groups of consumers. In parallel, we’ve seen a global push toward cleaner, more sustainable energy systems.
In a market where returns from energy supply are low and technology-enabled solutions are more dynamic, the opportunity for energy suppliers to move from commodity traders to technology partners has never been clearer.
The suppliers at the forefront of this shift are bundling five emerging capabilities to capture this opportunity.
1) Unlocking the power of local energy
Clean technologies like solar panels, heat pumps and electric vehicle chargers are no longer just tools to reduce costs; they’re assets that can generate revenue. When connected and managed intelligently, they can function like a virtual power plant, competing with large-scale energy providers during times of high demand and proving 60% more cost-effective during peak periods.
2) Turning energy data into business intelligence
Some forward-thinking companies are already cutting their energy use per product by up to 50%. How? By combining smart sensors with artificial intelligence to track, analyse and respond to energy usage in real-time.
This kind of predictive insight turns energy from a passive cost into a competitive advantage. Suppliers offering these tools and platforms are evolving from vendors into trusted advisors.
3) Making sustainability reporting simple
As carbon reporting requirements tighten across Europe and the UK, many businesses are facing new levels of complexity and accountability.
Energy suppliers that offer automated emissions tracking and carbon accounting tools are helping customers stay compliant and ahead of the curve. In the process, they’re building recurring software revenue and becoming key players in their clients’ sustainability journeys.
4) Creating clarity through digital platforms
Clean energy technology can be fragmented and overwhelming. Without the right digital tools, managing it all can quickly become a complex challenge.
That’s why leading suppliers are building user-friendly platforms that bring everything together. Real-time dashboards, automated alerts and simple controls help customers stay on top of their energy use without adding administrative burden.
5) Financial innovation
Even when the economics of clean energy make sense, the upfront costs can still hold businesses back. This is where innovation comes in.
Energy-as-a-service models, where customers pay a predictable monthly fee rather than upfront capital, are removing barriers. This model is growing fast, with the sector expanding at over 12% annually. For example, solar and battery prices have fallen so dramatically that capital constraints, rather than economics, now represent the primary adoption barrier. So much so that Octopus Energy has committed to building 100,000 zero-bills homes by 2030, based on the notion that renewable energy can not only be provided in abundance but, when delivered correctly and in collaboration, freely.
For suppliers, it’s a way to build stable and long-term revenue streams.
So, what does this all mean?
The future belongs to those who can offer flexible technology platforms, tailored services and a more consultative approach to energy.
This means building modular systems that can adapt as regulations evolve, prioritising proven scalable technologies like solar and designing customised solutions proportionate to a range of customers. They should focus on proven, resilient technologies rather than those more dependent on further government support. They should also develop different approaches for different customers, reflecting the fact that large corporations want bespoke solutions with dedicated account teams, whilst SMEs prefer standardised packages with predictable pricing – more on this to come!
Energy suppliers now have a chance to move beyond commodity competition and become strategic partners, helping businesses turn energy from a cost into a source of value. Those who move first will shape not just the market but the future of energy itself.
Read our five-part series on succeeding in the energy transition
This article is the first in our five-part series on succeeding in the energy transition. In the next part, Britain’s Energy Transition: Strong foundations, shaky confidence, we explore the UK’s position on the global stage - and the strategies that deliver results regardless of political cycles.
To explore how your business can lead the shift from energy supplier to strategic technology partner, contact David Watson or Hannah Sword.
Sources:
Office for National Statistics, The impact of higher energy costs on UK businesses, 19 May 2025.
The Business Research Company: Energy as a Service Market Growth Outlook, April 2025.
Octopus Energy, 100,000 Zero Bills homes by 2030, 2024.
David Watson
Principal
As Principal at BFY, David leads client engagements on energy strategy, policy and commercial excellence, helping them to navigate a complex policy and regulatory landscape, capitalise on emerging opportunities in the energy transition and optimise their operating models for long-term success.
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