State and Future of the Power Industry report examines what’s next for energy companies as they harness innovation while facing mounting disruptive threats
A new survey of over 400 executives and influencers across the U.S. and Canadian utility industry shows a shift in priorities beyond decarbonization toward more resilience-focused investments.
For the ninth consecutive year, Guidehouse and Public Utilities Fortnightly have collaborated on a special report, State and Future of the Power Industry, which identifies key changes in the electric utility industry and provides the guidance organizations need to navigate a successful path forward. By interviewing and surveying industry leaders and experts, the report examines what’s next for utilities as they harness innovation in the face of mounting disruptive threats.
The 2024 report shows that resilience is top of mind for utility leaders. A third of respondents point to climate change and destructive climate-related disasters as the most disruptive existential threat to the power industry today, while slightly more (40%) cited aging infrastructure and an overall decline in the quality of life as the most pressing concerns.
“Coinciding with more of a risk-mitigation focus is a willingness among US utilities to lead by example and leverage innovation to power greater resilience. This includes investing in a more flexible, resilient, and ultimately, more reliable power grid,” said Dan Hahn, partner and leader of Guidehouse’s energy providers practice. “At the same time, utilities recognize the importance of balancing competing priorities and are keen to leverage partnerships with regulators as well as state and local governments in order to capitalize on opportunities within the energy transition.”
Other key findings of the State and Future of the Power Industry report include:
- Flexibility Investments Take Center Stage: Sixty-one percent of respondents say improving resilience requires integrating more flexible generation and digitalization into the system, noting that utility’s investments should prioritize increasing flexibility to improve energy system resilience.
- Building Regulatory Consensus: When asked which stakeholders utilities should prioritize partnering with to successfully navigate the energy transition, more than half (56%) pointed to state and local governments, including regulators.
- Bullish on Federal Investment Programs: When asked about the long-term impact of the historic Inflation Reduction Act, there is an even split (56%) between mainstreaming of transportation electrification and charging infrastructure and expanding clean power and renewables as the largest share of generation capacity in the US.
“Over the past decade, there’s a shift and increased focus on managing expanding clean, renewable, and distributed power toward resilience above all else,” said Michelle Fay, leader of Guidehouse’s Energy, Sustainability, and Infrastructure solutions practice. “Given the rising tide of existential threats, this comes as no surprise for a power industry that finds itself, on one hand, awash in exciting innovation, and on the other, facing a new era of daunting operational complexity.”
About Guidehouse’s Energy, Sustainability, and Infrastructure Segment
With more than 1,200 consultants and technologists, Guidehouse’s global Energy, Sustainability, and Infrastructure segment is the strongest in the industry. We are the experienced and preferred partner for leaders creating sustainable, resilient communities and infrastructure, serving as trusted advisors to utilities and energy companies, large corporations, investors, NGOs, and the public sector. We’ve solved big challenges with the world’s 60 largest electric, water, and gas utilities; the 20 largest independent power generators; five of the 10 largest oil & gas majors; the 20 largest gas distribution and pipeline companies; European governments; and the US federal government’s civilian agencies involved in the country’s land, resources, and infrastructure. For more information, please visit guidehouse.com/esi.
About Guidehouse
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has more than 16,000 professionals in over 55 locations globally. Guidehouse is led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit guidehouse.com.
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SOURCE Guidehouse & PR Newswire
