Grid modernisation top challenge for US utility executives
Image: Itron
Itron’s 2023 industry insight report finds that half of utility executives cite grid modernisation and infrastructure upgrades as the top barrier to the energy transition.
The new Resourcefulness Insight Report, an annual assessment of the industry, finds other top barriers are the regulatory approval process, which can be lengthy, a lack of funding for upfront investment and – a top concern of regulators – reliability and resilience.
The report is based on a survey of 250 utility executives at electric, gas and water utilities and a cross-selection of 10 state utility respondents.
The report finds that the energy transition is gaining momentum in the US, primarily driven by public demand, the lower cost of renewables and environmental legislation.
Have you read?
How 10 key energy efficiency actions could save industry $437bn – report
‘The global energy transition is a collaboration, not a competition’ says Wartsila’s Malin Östman
However, while utilities are embracing the transition, progress is slow with 88% of the utility executives saying it is extremely or very important but only 45% of utilities actively moving toward that goal. Another 17% have a plan but haven’t started implementing it, 32% are just in the early stages of planning and 6% have not started planning.
Commissioners for their part say the transition is risky, ensuring there is adequate supply to meet burgeoning demand as well as meeting customer expectations for reliability and affordability, alongside building renewable generation and transmission capacity to meet new clean energy standards.
Overcoming the barriers
The utility executives say the best way to overcome the barriers is to make technology/infrastructure investments, educate and advocate for clean energy policies with state regulatory commissioners and policy makers and educate consumers about clean energy and efficiency.
Today, utilities are investing in technology/infrastructure, training their workforce with new skills, and seeking outside investment in renewable projects.
Four out of 10 of the utility executives think consumers are a critical part of the solution and can help speed the transition by understanding the importance of sustainable energy, adopting more energy efficient appliances, participating in demand response programmes and changing their daily consumption behaviour to align with grid needs.
But one in three say they present a mixed bag given that some generate power.
Technology priorities
The utility executives also name the top technology priorities for the energy transition as infrastructure upgrades/grid modernisation, developing renewable energy sources, energy storage and managing intermittency.
The most common technologies utilities have deployed today include advanced metering infrastructure (AMI), grid battery storage, residential electric vehicle (EV) charging infrastructure and solar photovoltaic (PV) arrays.
Over the next five years, they intend to invest in load monitoring/voltage management, solar PV/arrays, distribution automation, consumer pricing programmes and grid battery storage.
Marina Donovan, vice president of global marketing, ESG and public affairs at Itron, says the report underscores the pivotal moment we’re at in shaping the future of the US grid.
“What’s clear is that utilities are looking to address the challenges and the study uncovers where they are on this journey.”
The report concludes with pointing to steps that utilities can take today to position them for success down the line.
These include investing in an intelligent, responsive grid that will accommodate the use cases likely
to come their way, exploring new business models such as ownership of solar and wind generation and working with partners to make the most of available funds from Infrastructure Investment and Jobs Act programmes and other federal initiatives.
