Can she survive – or thrive? Rethinking the utility business model in the age of DERs - African School of Regulation

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Can she survive – or thrive? Rethinking the utility business model in the age of DERs

February 4, 2026

The African School of Regulation (ASR), in collaboration with Sustainable Energy Africa and GET.transform, hosted a webinar that explored how Distributed Energy Resources (DERs) were reshaping utility service delivery, remuneration, and regulation.

For over a century, utilities operated on a simple model: supply electricity to passive consumers and recover costs through tariffs. Today, that model is under pressure. Distributed Energy Resources (DERs), from rooftop solar to battery storage are transforming how electricity is produced, consumed, and valued.

Across Africa, this shift meets a fragile foundation. Distribution companies already face financial strain from low-cost recovery and high losses. DERs could deepen these challenges by reducing sales volumes and disrupting revenue flows. Yet, they also offer opportunities: new sources of flexibility, reliability, and grid support if properly valued.

This raises a critical question: Can the traditional utility model survive—or even thrive—in a decentralised energy landscape?

This session opened a forward-looking conversation on how DERs were reshaping utility service, remuneration, and regulation. It explored:

  • How DERs disrupted traditional cost-recovery models
  • What fair value exchange looked like in a multi-actor system
  • How tariff and remuneration frameworks needed to evolve

Designed for regulators, utilities, policymakers, and energy professionals, the webinar challenged long-standing assumptions and set the stage for practical solutions in future capacity-building programs.