The global utility in a new energy paradigm

As Ryan O’Keeffe pointed out during his presentation at the CHARGE Energy Branding Conference last September, large energy companies with a long legacy of generating and selling electricity, are not normally considered cool.

The company has and is going through a comprehensive overhaul of its image, meaning and role in the fast-changing energy environment. As Mr O’Keeffe pointed out, it was a change in strategy that was long overdue, the company’s old logo was designed when Google was still operating out of a garage in Silicon Valley.

We as a power company can and must play a key role in tackling these challenges.

Enel found itself working in a new energy paradigm and found that how it had been conducting itself for the last fifty years was not going to work in the next fifty years. During the rebranding process, there were some strengths that the brand possessed that would become valuable in the changing energy landscape. By taking a humble approach and acknowledging that a big corporation with a big corporation culture might not foster innovation that could keep up with the time. The brand turned this weakness into a strength by using its global scale and resources to foster open innovation; helping entrepreneurs that are set out to change the energy paradigm even further.

Ryan’s presentation from CHARGE – The World’s First Energy Branding conference can be seen below. Enel was one of the finalists for the 2016 CHARGE Awards as one of the world’s best energy brands. The report on the best utility brands has been published by LarsEn Energy Branding and can be found here. The 2017 CHARGE Energy Branding conference takes place in Reykjavik October 9-10 where the CHARGE Awards will be presented for the second time.

New York Energy Week

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The CHARGE Energy Branding Conference is collaborating with partners around the world that have similar objectives as the conference. From trade associations in the energy space, media and events related to the energy space, we are very grateful for having such a strong group of allies that find our message relevant.

One of our partners is the New York Energy Week – a week of events that takes place around New York City. The event is hosted by the industry for the industry. Instead of one centralized location, the events are hosted by various companies in the energy sector. These events feature speakers from organisations and institutions such as National Grid, NYISO, Con Edison, Enerknol, NYC Mayor’s Office, Rocky Mountain Institute and the State of New York.

Like CHARGE, the New York Energy Week is a cross-sector event. While the industry has had a silo-mindset, the event encourages a dialogue between various fields of the energy sector to create an understanding, inviting all energy stakeholders to come together and help drive forward the global energy economy.

Friends of CHARGE are the friends of the New York Energy week and receive 20% off early bird tickets. There is no secret handshake, only a secret code which is CHARGE20.

Communicating a Green Energy Value Proposition

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Landsvirkjun is Iceland’s biggest power generation company, generating over 70% of electricity in the country. There has been a lot of changes in the Icelandic power market and Landsvirkjun has moved from focusing on low-cost electricity buyers market to a more balanced seller’s market, offering competitive prices.

The company offers 100% renewable power on the wholesale market, having only a few customers, meaning that their branding and image building is a bit different from other traditional power companies. It is, however, important for the largest power company in Iceland to deliver a clear message to their stakeholders (the company is owned by the Icelandic authorities) and their customers.

Landsvirkjun’s mission statement is:

Landsvirkjun’s role is to maximise the potential yield and value of the natural resources it has been entrusted with in a sustainable, responsible and efficient manner.

The role of the company has changed in the last years. Instead of focusing on growth and creating new jobs, its focus is today on more value creation than before. The energy transition and the way renewable resources have become more valuable for end consumers has enabled Landsvirkjun to focus more on the Green value proposition.

Can the incumbent utility brand itself green?

Jim Rogers, the retired former CEO of Duke Energy was the first CEO of a major utility to address environmental issues and once named by Newsweek as one of the “50 Most Powerful People in the World”.

In his presentation at the Green Energy track at CHARGE 2016, Jim talked about the customer relationship during the transformation of the Power Industry in the United States.

Duke Energy has the reputation of being affordable, reliable and safe. No one would say that they were green, they were the highest contributors of Co2 in the United States.

You can’t brand yourself unless you walk the talk.

Duke Energy has cut down Co2 emissions by almost 30 per cent but Jim admits that although the number seems high and the amount of emissions cut is quite large, the company is still a major contributor of Co2 emissions in the United States. For the effort, the company has been on the Dow Jones sustainability index for eleven years.

Branding: it’s not what you say about yourself, but what others say about you.

In addition to cutting down emissions, the company has made some considerable investments in wind and solar as well as investing in solutions that provide customers with rooftop solar.

The key point in adapting to and investing in green technology is to be able to communicate with and educate different stakeholders. The customer expects affordability and the investor want to see that the company will see a return on their green energy investment.

As Jim put it, the company invested in where the wind blows and the sun shines as well as looking at opportunities where the regulatory environment is favourable towards green investment.

 

 

 

The 2017 CHARGE Awards

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Stedin from The Netherlands won the 2016 CHARGE Energy Branding Awards in the category of Transmission and Distribution

The CHARGE team is in full swing reaching out to the brands that were shortlisted by a panel of experts as the World’s Best Energy Brands. The panel consists of specialists in marketing and branding as well as energy professionals around the world. The panel has members in academia, energy companies, energy associations, energy innovation, advertising agencies and marketing consultancies.

We are reaching out to 90 brands in 6 categories of the best energy brands in the world. The categories are established brands, challenger brands, green brands, transmission brands, distribution brands and energy product brands.

The methodology derives from decades of academic research and studies in the fields of marketing and branding to determine how consumers perceive brands in general. To make the measurement more relevant to the energy space, knowledge from recent research on consumer perception of energy utilities was added to make the methodology more specific for the energy space. The methodology is also the basis for the Energy Branding Benchmarking Index (EBBI) which is used by power companies around the world to measure their energy brands.

We will reveal the finalists later this summer, each category can have up to five finalists. The finalists will be featured in the next edition of the best brands report. The report might also feature a selection of shortlisted brands that will not make it into the final selection.

The CHARGE Awards were a great success at the inaugural CHARGE Energy Branding Conference which was the world’s first conference to focus on branding in the energy space. Following the success of last year’s event- we have decided to expand the awards from three categories to six this year.

Energizing opportunities at IKEA

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Sustainability has been a part IKEA’s identity since it’s humble beginnings in Sweden decades ago. Guðný Camilla Aradóttir is the Sustainability Responsible at IKEA Iceland, taking care of sustainability issues. The goal of the brand is to eliminate waste at all time.

IKEA’s sustainability strategy, titled People & Planet Positive, set out some ambitious goals for the brand to head towards more sustainability. IKEA operates wind farms around the world and has installed solar panels on the rooftops of its store locations around the world, installed panels on office buildings and even sold solar panels for homes at some of its locations.

Report on the Best Energy Brands

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LarsEn Energy Branding and CHARGE Energy Branding Conference have released the first comprehensive report on the world’s best energy brands. The report contains case studies from 14 of the best energy brands in the world, selected by a panel of 30 experts from around the world from different sectors of energy and marketing spectrum. Details on how the best energy brands in Green Energy, energy retail, transmission and distribution are facing the challenging and changing energy landscape by putting the customer at the centre of their business strategy.

Research has shown that one of the hindering factors that are standing in the way of powerful energy brands and marketing orientation is both the lack of support and understanding of branding of management. The cases in the report show that the best energy brands don’t leave their energy marketing at the hands of their marketing departments, not only is top management involved but everyone else in the organisation. Branding involves the marketing and branding departments and top management as well as every employee – branding is an issue for marketing, management and human resources as well.

The companies in the report go beyond transactional relationships, they speak to the hearts of the consumer. While more and more organisations in the utility-sector have become more consumer-oriented, the brands featured in the report have gone beyond supplying electricity or offering smart thermostats, storage or solar panels by speaking to the minds and hearts of their customers.

The report is just over 100 pages long, rich with graphics and information about the best-in-class companies in the world – both competing in deregulated markets as well as customer-centric brands in monopoly markets. While being a required reading for any power company or a utility that puts the customer first, it looks damn good and can double as a coffee-table book at any respected energy company.

The report is released in a limited quantity and can be ordered at larsen.energy/bestbrands.

Untapping Geothermal brand power

According to Dr. Jefferson Tester of Cornell University, geothermal energy is the most underrated or unknown green energy source. Despite having the biggest output of geothermal energy in the world, most Americans don’t realise how much geothermal production goes on in the country.

It can be said that geothermal energy is a mostly untapped source of power, not only in the traditional sense of power generation but in terms of storytelling for the energy brand. The source of energy is often an underrated brand asset and geothermal has great potential to become a valuable part of powerful energy branding and marketing.

Dr. Kevin Lane Keller on Energy Branding (Video)

Dr. Keller set the stage in Reykjavik last September during the kick-off session. His keynote connected the fundamentals of branding to the energy space and set the tone for the conference in general.

Dr. Keller is an internationally renowned scholar and has worked with some of the biggest brands in the world. He is the co-author of the number one best selling MBA textbook on branding and companies have successfully implemented his academic findings in the professional world of branding and marketing.

We are adding videos from the conference to our Youtube channel. Make sure to subscribe and hit the alerts button to get regular updates.

Marketing for electric utilities

There is a lot of misunderstanding on the nature and role of branding as well as how to define marketing. Many think that marketing is just about fun and games – something that is about advertising and events – a thing that funds can be allocated to during a boom cycle. For many, the concept of branding means something that is a more elaborate version of marketing.

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The Energy Brand

Marketing is any signal a company sends out to the market. It can of course be a nice commercial or a Tweet but it is also price signals through the resources they buy and the products they sell, it is the voice that answers at the end of the line and the bills sent out. Every organisation both in regulated and deregulated markets should be aware that everything a company does is marketing in one way or another, direct or indirect – just as everyone is in customer service in one way or another.

Branding defines the How of marketing and the Why. It is a strategic tool and it should define how the customer experiences the brand. But neither branding nor marketing can define the brand. A brand can be defined at a company level but the real definition of a brand comes from the customer – it is the customer who really perceives the brand as it really is.

Marketing for the electric utility or the energy brand should not only be thought of as advertising or social media appearance. It should be thought of everything a brand or a company does and any touchpoint with both internal and external audiences and stakeholders.