The utility sector stands at a crossroads. On the one hand, the sector faces the most significant load growth and affordability pressures in most of our lifetimes. On the other, shrinking federal and even state budgets to support low-cost power and grid innovation leave utilities with less room to maneuver.
In this article written by Realize 2050 Partner Chris Richardson for Latitude Media, Chris calls for utilities to address these growing pressures through problem-driven innovation, rapid testing and iteration, and creativity under real constraints.
Gas utilities confront a dual crisis: aging infrastructure and declining gas throughput are driving up costs, especially for customers least able to electrify.
Realize 2050 proposes three concepts that utilities could adopt to move from here to the gas system of 2050: 1) prioritizing zonal electrification, 2) addressing leak-prone pipes, and 3) integrating gas and electric utilities.
Realize 2050 approach to utility innovation roadmaps, from pilot to procurement to scale
Realize 2050 approach to provide utilities with the quantitative analysis they require to shift from demand management to load management based on customer segmentation and elasticities.
The digital age has given rise to an unprecedented demand for data centers, those critical hubs that store, process, and disseminate our world's expanding sea of data. However, with great power comes great responsibility, and great power requires great power! The opportunity now lies with data center developers, especially mid-sized companies, to lead the way in adopting clean, firm power solutions.
While much more T&D will need to be deployed in order to meet growing electric load, that utility CapEx will be increasingly borne by lower-income customers as wealthier customers deploy onsite renewables. Utility partnerships with AI and ML technology companies can make more out of this growing infrastructure, but some AI solutions are window-dressing while others are transformational. Utilities must conduct a clear-eyed assessment of existing and burgeoning technologies, focusing primarily on those that address the biggest cost centers of the utility in coming decades, starting with the CapEx associated with the >100,000 miles of T&D that will need to be installed in coming years. The single best way to improve affordability for ratepayers is to provide the same energy services with the least amount of incremental T&D and the most advanced grid orchestration. AI can be a path toward that future. And where solutions don’t exist today, utilities should partner with technology companies to co-develop those solutions.
