Electric utility companies in North America are modernizing infrastructure and adopting advanced software solutions to meet the growing emphasis on sustainability and manage changing energy demands, according to ISG Research.

The shift towards distributed renewable energy and rising customer expectations compels utilities to invest in new technologies and services to ensure reliable energy delivery. This modernization addresses challenges such as grid stability and the need for efficient operations as climate impacts intensify.

ISG reports that utilities are focusing on upgrading their grids and leveraging innovative asset and grid management software, coupled with consulting and implementation services, to enhance resilience.

“North America’s existing power grids cannot support the ongoing energy transition,” stated Korey Barnard, ISG partner and industry lead. He highlighted that many utilities are undertaking significant renovations while embracing new technologies and software.

To assist utilities in navigating their software and service selections, ISG has released the 2024 ISG Provider Lens™ Power & Utilities Industry — Services and Solutions report along with two ISG Buyers Guides™. These resources aim to inform decision-makers about the different software solutions and service providers available.

Effective management of these complex energy grids demands interoperable software designed to handle diverse technologies. Advanced solutions are central for integrating various energy sources, optimizing grid operations, and achieving cost efficiencies.

Asset management systems also play a critical role in maintaining grid stability, prompting utilities to seek updated platforms capable of utilizing innovative technologies for improved asset management and reduced costs. Many utilities intend to refresh their asset management systems by 2027 to ensure efficient power delivery.

Qualified service providers are essential for helping utilities implement new technologies and optimize their grid management and asset strategies. The ISG report emphasizes the importance of service providers in the modernization process amid workforce challenges.

ISG identified several industry leaders in its evaluations, naming GE Vernova, Schneider Electric, and Siemens as top performers in grid management software. In asset management, SAP, IBM, and Hitachi Energy were likewise recognized as leaders.

The 2024 Provider Lens report assesses 34 service providers across various categories and highlights companies such as Accenture and IBM Consulting as leaders in multiple quadrants.

The comprehensive insights from ISG’s reports may assist utility companies in making informed decisions to adapt to the evolving energy landscape.