North American utilities modernizing with new software and services
Electric utility companies in North America are modernizing infrastructure, adopting new software and services to enhance sustainability while ensuring reliable energy delivery amid aging power grids, according to research from Information Services Group.
The shift towards distributed renewable energy resources and the increasing role of Artificial Intelligence (AI) pose challenges to grid stability, necessitating advances in grid and asset management software. North American utilities are investing in new technologies to improve resilience and efficiency, seeking consulting, implementation, integration, and management services to maximize software value.
“North America’s existing power grids cannot support the ongoing energy transition,” stated Korey Barnard, ISG partner and industry lead for utilities. “A majority of utilities are investing in major grid renovations and embracing rapid software innovation and an expanding array of enabling services.”
To assist these utilities, ISG published the 2024 ISG Provider Lens™ Power & Utilities Industry — Services and Solutions report, along with two ISG Buyers Guides™. These resources aim to guide companies in selecting suitable software solutions and service providers.
Advanced, interoperable software is essential for managing North America's complex energy grids, integrating multiple generations of technology. AI-driven insights and automation play a vital role in optimizing integration with new energy sources.
Asset management software further contributes to operational stability, helping utilities enhance asset performance and reduce costs. The ISG report indicates a majority of utilities will update their asset management systems by 2027, focusing on compatibility with legacy infrastructure.
Utilities depend on experienced service providers to implement new management software and technologies, especially amid a talent shortage related to an aging workforce. “Service providers are essential to modernizing utilities for the new energy age,” said Jan Erik Aase, ISG partner.
The report also evaluates 12 software providers in the Grid Management space, recognizing GE Vernova, Schneider Electric, and Siemens as Overall Leaders. In the Enterprise Asset Management category, Situational Awareness Platform (SAP), IBM, and Hitachi Energy are similarly noted as leaders.
For further insights and strategies for overcoming challenges facing North American electric utility companies, the complete ISG Provider Lens™ report and Buyers Guides are available for access.