Why Utilities Are Modernizing Operations with Real-time Systems

Why Utilities Are Modernizing Operations with Real-time Systems

utilities modernization

Others are piloting virtual power plants that tap into distributed assets like home and vehicle batteries to meet peak demand without new infrastructure. Some utilities are deploying new technologies to monitor for risks like wildfires and other natural disasters. At the same time, the adoption of smart grids and advanced grid tech is becoming increasingly vital, as grid performance remains essential for energy security, economic competitiveness and the low-carbon transition.

For many organizations, https://open-innovation-projects.org/blog/where-open-source-software-thrives-exploring-its-impact-and-potential-across-industries the journey begins with digitization and centralized operational control through ADMS deployment. In Egypt and Serbia, utilities are combining intelligent field devices with substation upgrades to improve fault isolation, restoration performance and service continuity. In many cases, relatively focused upgrades can produce major improvements in reliability and customer satisfaction.

  • He holds bachelor’s and master’s degrees in civil engineering, along with professional engineering licensure in multiple states.
  • One of our most visible and extensive Grid Modernization projects will be the deployment of Advanced Metering Infrastructure (AMI) smart metering technology throughout our service territory.
  • Overcoming these obstacles and truly quantifying the long-term benefits requires a patient, forward-looking perspective that numerous organizations have taken.
  • With a central source of truth, decision‑makers can prioritize modernization capex more effectively, based on condition, risk and value.

The imperative for change is clear, but effectively utilizing tools and strategies to enable it can be complicated by policy or funding challenges. In light of increasing demand and aging infrastructure, utilities don’t have the luxury of tolerating inefficiencies or delaying modernization efforts. In their role protecting the public interest, state regulators who oversee these utility investments seek to balance benefits and costs. In recent years, state regulators have seen a surge in utility smart grid investments, from advanced metering infrastructure to smart appliances and distributed energy resources. He has overseen major technology and process overhauls, including AMI deployments (10M+ meters), modernization of customer operations (billing, contact centers, and customer channels), and upgrades to asset management systems and processes. The partnership has established a robust compliance strategy that significantly reduces the risk of regulatory penalties.

Technological opportunities provide potential solutions:

From managing distributed energy resources to predicting and preventing outages, real-time systems provide utilities with the agility and insights to navigate an increasingly complex and dynamic energy ecosystem. “With this Order, we require the electric utilities to adopt a new business model that is more forward thinking,” said DPU Commissioner David Cash, “and it encourages the continued expansion of clean energy technologies like solar, wind, storage and electric vehicles.” The investigation will include the potential for electric vehicle batteries to back up intermittent sources of power, like wind and solar. “Developing a policy to fully realize the benefits of a modern grid is part of the DPU’s mission to increase the reliability of electric service for residents across the Commonwealth and facilitate the integration of renewable power.” “Grid modernization will allow customers to gain more control over their electricity usage and save money on their electricity bills,” said DPU Chair Ann Berwick. The order follows a study into the potential for grid modernization technologies such as advanced meters, cell phone applications and smart appliances.

utilities modernization

Our straightforward methodology to assess, analyze, create/refine and provide http://romj.org/2025-0302 an actionable plan works. Grid and asset modernization is the foundation to build lasting reductions in O&M costs, increased safety, and effective capital spending. Generator interconnection remains a barrier for project development in the United States, despite improvements since FERC Order No. 2023. It’s creating new kinds of demand around the exact amount of value that needs to be created by everyone involved.

“Utilities assume a certain percentage increase in revenue requirement in relation to the inflation rate is affordable, but stakeholders, regulators and legislators will likely differ,” he added. The best metrics reflect both “the priority ranking of the objective” and “the contribution of the proposed solution to addressing each objective,” it added. Benefit-cost analysis is best if benefits “are discrete and assignable, quantitatively measurable, and do not materially change” with usage, the report added. A regulator’s priority should be “modernizations that can create the most value,” LBNL’s report said. Planning “must address multiple objectives” and “they need to be prioritized,” even though “most distribution grid investments solve more than one objective,” it added. The Georgia Public Service Commission recently initiated a solution to balance costs for new large load customers that many state regulators are adopting, said Georgia Commissioner Tricia Pridemore.

Its core platforms for managing grid operations and energy resources lacked the integration needed to meet regulatory standards and support innovation in areas such as AI-driven forecasting and cybersecurity. The utility’s existing systems weren’t communicating with each other, and this lack of interoperability hindered its ability to innovate and respond effectively to regulatory demands. A major U.S. utility joined forces with Wipro to tackle the strategic and regulatory demands of FERC Order 2222.

utilities modernization

Customer-owned battery systems enable customers to store surplus energy created by their solar systems for later use. As our customers use more electric building technologies and electric vehicles, and demand for electricity increases, a more flexible and resilient grid ensures power is available when needed and outages are minimized. Due to its age, grid infrastructure faces increasing challenges and risks across generation, transmission, distribution, and the communication and data assets that govern them. IBR tie utility revenues to performance metrics rather than solely to capital investments. One of the most significant issues utilities face today is the aging infrastructure of the electric grid. And the Middle East signals how corporate treasurers are recalibrating risk, managing liquidity and building digital roadmaps for the rest of 2026.

utilities modernization

Grid modernization capabilities

  • TRC takes a holistic yet agile approach to utility modernization, enabling organizations to transform their operations, optimize their processes and unlock the full potential of real-time data.
  • DTE Energy has made foundational investments in a new system operations center, and over the next five years, plans to invest more than $9 billion to make its grid safer and more reliable for customers.
  • Due to its age, grid infrastructure faces increasing challenges and risks across generation, transmission, distribution, and the communication and data assets that govern them.
  • In addition, managing large datasets requires protection from cyberattacks and security threats, securing vital customer and asset information alongside physical infrastructure.
  • Pacific Gas & Electric is using a system that addresses capacity issues by providing real-time, accurate line ratings that consider real-world conditions to enhance operational safety and efficiency.

These advanced technologies include advanced sensors known as Phasor Measurement Units (PMUs) that allow operators to assess grid stability, advanced digital meters that give consumers better information and automatically report outages, relays that sense and recover from faults in the substation automatically, automated feeder switches that re-route power around problems, and batteries that store excess energy and make it available later to the grid to meet customer demand. The Office of Electricity (OE) is working with its public and private partners to strengthen, transform, and improve energy infrastructure to ensure access to reliable, secure, and clean sources of energy. The U.S. electric grid is an engineering marvel with more than 9,200 electric generating units having more than 1 million megawatts of generating capacity connected to more than 600,000 miles of transmission lines. DERMS complements this by forecasting and orchestrating distributed energy resources, including solar, wind, and storage.

  • It bolsters your system where it’s needed most, proving value at each step, and scaling as conditions warrant.
  • We built a new content management service to fix invalid pricing issues and push relevant offers to customers as we enhanced processes and operational efficiency with a consolidation program.
  • A similar strategy is underway in Serbia, where ElektroDistribucija Srbije is modernizing one of Southeast Europe’s largest distribution networks, which serves 3.8 million customers.
  • In many cases, relatively focused upgrades can produce major improvements in reliability and customer satisfaction.

That’s why utilities are employing the transformative power of modern real-time systems in more use cases than ever to ensure grid stability, safety and efficiency. AI is reshaping utility operations, boosting grid performance, improving customer satisfaction, and powering new energy business models. Utilities are integrating operational and information technologies to transform operations, build resilience, and accelerate innovation. To accelerate decarbonization and achieve sustainability, electric utilities need mature capabilities, especially in technology and grid operations. Transform your business and manage risk with a global industry leader in cybersecurity consulting, cloud and managed security services The National Council of State Legislatures estimates that the US will have to spend up to $2 trillion on grid modernization by 2030 — just to maintain electric grid’s reliability.

Modernized grids improve efficiency, reduce outages, accelerate restoration, and support the integration of distributed energy resources, including solar, wind, and battery storage. Our end-to-end IT/OT consulting and integration services ensure seamless implementation of real-time solutions that address specific challenges. These recommendations can help any organization, regardless of size or location, navigate the complexities of real-time system implementation, ensuring a successful deployment while minimizing risks. Modern real-time systems are not just theoretical improvements but practical solutions addressing real-world challenges that utilities face daily. In addition, managing large datasets requires protection from cyberattacks and security threats, securing vital customer and asset information alongside physical infrastructure. With more sensors, IoT-based appliances, and bi-directional networks, managing and protecting the ever-growing volumes of data demands an enterprise approach that transcends traditional legacy applications.

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