Report examines impact of transformation initiatives
A recent Black & Veatch report has determined utilities are poised to undergo their most visible transformation in more than a century.
Citing the manner in which utilities are faced with the evolution of generation, transmission and distribution technology, the utility infrastructure firm’s 2019 Strategic Directions: Smart Utilities Report revealed utility business models are changing to accommodate the growing volume of renewable energy coming onto the grid.
“Sharp planning and management will be essential as grid modernization spreads and technologies such as smart meters, automation technology, and energy storage get added to the power grid,” John Janchar, president of Black & Veatch’s Telecommunications business, said. “This is the new normal, with distribution energy resources (DER) and the march of technology changing the game of electricity delivery. Utilities can’t afford to stay on the sidelines.”
The report maintains utilities can remain ahead of the upgrading curve by actively pursuing grid modernization efforts now including deploying smart devices, predictive analytics, and active network management strategies, as a means of overcoming aging infrastructure assets pitfalls and meeting rising customer demand for clean energy, reliability, and a lowered carbon footprint.
The analysis was based on a survey of more than 200 participants across utilities that provide electric, natural gas or water services. It showed 20 percent of survey respondents said their utility plans to allocate more than $200 million into modernization investments over the next three years. An additional 26 percent reported they would devote $100 million to $200 million.
