eBooks & Guides

DISRUPTIVE FORCES RESHAPING THE UTILITY INDUSTRY INCREASED LOAD AND STRESS ON THE GRID: The grid infrastructure is severely outdated in most regions, which has led to costly repair issues and in turn, unreliable service. In addition, electricity demand is increasing as electrification from the energy transition takes its toll. Already the electric power industry is preparing for as much as a tripling of US electricity demand within the next couple of decades. In order to combat this, utilities are leveraging massive investments in grid modernization projects for customer benefits, resilience against the physical risks from climate change, and increased utilization of renewables. Utilities are also taking advantage of opportunities for demand response and load shedding in place of carbon-fueled reserve power plants to meet peak demand. THE CLEAN ENERGY TRANSITION AND GRID MODERNIZATION: Decarbonization is a focal point for energy and utilities leaders as regulations and public pressure push the sector toward cleaner energy sources. This transition requires the aging U.S. power grid to be updated and for new high- voltage transmission lines to be installed. In 2024, massive investments to expand and modernize utility infrastructure are already underway. The 2021 Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) of 2022 were introduced to provide historic federal investment in electric grid enhancements and the clean energy economy. These will eventually deliver $97 billion in funding to companies researching, developing, and deploying clean energy projects and technologies. CLIMATE CHANGE: Climate-related disaster events have helped fuel record-breaking wildfires and cold snaps that damage power lines and disrupt service to thousands of utility customers. In recent years, the North American Electric Reliability Corporation (NERC) has warned that as much as two-thirds of North America could risk energy shortfalls during periods of extreme summer demand or peak winter conditions. As electrification potentially boosts demand, renewables and DERs add variability, baseload coal- and gas-fired plants continue to retire, and renewable generation and storage projects face delays coming online, reliability risks could rise if not addressed. In addition, prolonged drought conditions can reduce hydroelectric output, decrease thermal plant efficiency and output, raise carbon emissions, and potentially lead to plant shutdowns. INCREASING CUSTOMER DEMAND: With the increasing emphasis on environmental sustainability, many customers are concerned about the impact of their energy use. Providers that are unable to demonstrate a commitment to renewable energy sources or sustainable practices, as well as to credibly talk about them and enable their customers to enact emissions reductions, may find it more difficult to retain customers. When utility companies have enough renewable energy sources connected, then they can offer consumers a choice of using traditional or renewable energy on their utility bills. As more eco-invested consumers choose green power, it increases the demand for renewable energy sources. Additionally, as renewable energy becomes less expensive to generate, it increasingly becomes the source of choice for a growing number of utility companies because it satisfies government regulations, consumer demand, and the cost of doing business. Sustainability & Energy Management Simplified HIGHER BILLS IMPACTING CSAT: Overall residential utility customer satisfaction has dropped as customers face higher energy bills and greater financial hardship. The ability to distribute cleaner energy safely, affordably and reliably to all customers is the key to solving this issue. Currently, infrastructure, change management and customer experience, or CX, barriers are currently delaying companies from distributing clean energy across our nation's electric grid. Utilities must provide consumers with greater choice around consumption and conservation through offerings like smart meters and self-service portals — even digital payment channels.

• Cover