ISG report on European utilities investing in solutions to meet energy challenges

European power and utilities are focusing on modernization and technology adoption to tackle energy security and climate issues, according to recent research by Information Services Group (ISG). The ongoing impacts of the Russia-Ukraine war have prompted a reevaluation of energy strategies, leading to calls for diverse energy supply sources and enhanced renewable energy capacities.

ISG highlights that as Europe aims for climate neutrality by 2050, grid modernization is essential. “Utilities are transforming grid software to accommodate more connections, higher efficiency and reliable service,” stated Mark Smith, partner, software research at ISG.

ISG has released a comprehensive set of reports, including the 2024 ISG Provider Lens™ Power & Utilities Industry — Services and Solutions report, aimed at assisting utilities in navigating their software and service options. The reports cover essential categories such as Grid Management and Enterprise Asset Management.

The transition to renewable sources and the growing integration of technologies like solar, wind, and hydrogen is making grid management increasingly complex. Utilities are expected to invest significantly in platforms that enhance grid orchestration and connectivity, leveraging Artificial Intelligence (AI) for better integration and optimization of energy sources.

Asset management systems are also crucial, with utilities seeking advanced technologies to ensure operational efficiency while reducing costs. ISG anticipates that by 2027, many utilities will be modernizing their asset management systems to support reliable power delivery.

Furthermore, the ISG Provider Lens report identifies key service providers, naming GE Vernova, Schneider Electric, and Siemens as leaders in Grid Management solutions, while Situational Awareness Platform (SAP), IBM, and Hitachi Energy lead in Enterprise Asset Management. The report evaluates 36 providers across different service categories to help utilities make informed decisions as they adapt to the changing energy landscape.

“Europe’s energy transformation requires long-term strategy, implementation, and management,” noted Julien Escribe, ISG partner and utilities industry lead, emphasizing the role of service providers in guiding utilities through these changes.