The director of innovation for Npower Neil Pennington told Utility Week that its parent company has already sent a “small, hand-picked” team to Silicon Valley for an initial six month period but the company may also decide to establish a permanent presence in the Californian tech mecca.
“Our primary focus is on products and services for decentralised energy management,” Pennington said.
“Their mission is to identify new partners, technologies and solutions so we can come up with an initial business model for our markets in Europe,” he added.
A focus on customer-facing technology innovation is emerging as a key trend within the utilities space as profits from traditional generation assets have come under pressure in recent years, with German energy rival Eon announcing plans last year to spin-off its centralised energy business in favour of supply and network innovation.
Last week Centrica echoed the move announcing a billion pound strategy swing away from centralized power generation and its long-standing interests in oil and gas E&P to focus on British Gas and its ‘connected home’ offerings.
RWE’s move to Silicon Valley was first reported in the Germany media earlier this year, meaning RWE’s initial stint in the US is expected to conclude by the end of the year.