Deloitte identifies grid modernization as the top trend for power and utilities sector

Published
January 11, 2023
Last Updated
June 19, 2023
Powergrid under the blue sky

Overcoming challenges by using innovative strategies, investing in new initiatives, and integrating different industries.

The power and utilities sector is expected to face challenges in 2023 due to supply chain issues, higher costs, and extreme weather. However, there are positive developments in innovation and investment, supported by recent laws, that can assist the industry in delivering secure, dependable, eco-friendly, and reasonably priced electricity. Our 2023 report explores the most recent trends in the power and utilities sector to assist your organization in seizing opportunities throughout the clean energy sector.

Amidst climate and cost-related challenges, the electric power industry is considering favorable developments.

The electric power industry experienced both challenges and opportunities in 2022. Despite the global pandemic, electricity sales in the United States increased by 3.6% in the first eight months compared to the previous year. However, the industry faced a significant increase in costs, primarily due to the global shortage of natural gas caused by Russia's invasion of Ukraine. Moreover, the industry had to cope with extreme climate events such as droughts, hurricanes, heat waves, and wildfires that tested the resilience of the regional grid. As a response, the industry and policymakers took measures to improve reserves, deploy energy storage and microgrids, reinforce infrastructure, and enhance flexible load options.

Renewables energy sources
Renewables energy sources

Amidst climate and cost-related challenges, the electric power industry is considering favorable developments.

The electric power industry experienced both challenges and opportunities in 2022. Despite the global pandemic, electricity sales in the United States increased by 3.6% in the first eight months compared to the previous year. However, the industry faced a significant increase in costs, primarily due to the global shortage of natural gas caused by Russia's invasion of Ukraine. Moreover, the industry had to cope with extreme climate events such as droughts, hurricanes, heat waves, and wildfires that tested the resilience of the regional grid. As a response, the industry and policymakers took measures to improve reserves, deploy energy storage and microgrids, reinforce infrastructure, and enhance flexible load options.

Electric grids for energy distribution

The electric power sector is likely to experience further promising developments in 2023, but the challenge of providing secure, reliable, affordable, and clean electricity may become more difficult due to inflation, high fuel costs, and supply chain issues. In addition, extreme weather, cybersecurity threats, and the increasing use of variable renewables and distributed energy resources may require innovative management to maintain grid reliability. However, new technologies and supportive policies could create opportunities in 2023 and assist the industry in achieving its objectives. The report explores the five trends that are expected to impact the industry's direction over the next year.

Read Full Report
Read Full Report

‍About Deloitte Touche Tohmatsu Limited

Deloitte is an international professional services network headquartered in London, England. Deloitte is the largest professional services network by revenue and number of professionals in the world and is considered one of the Big Four accounting firms along with EY (Ernst & Young), KPMG and PricewaterhouseCoopers (PWC). Deloitte provides audit, consulting, financial advisory, risk advisory, tax, and legal services with approximately 415,000 professionals globally.[5] In FY 2021, the network earned revenues of US$50.2 billion in aggregate.[4] As of 2020, Deloitte is the third-largest privately-owned company in the United States, according to Forbes.

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