Deloitte identifies grid modernization as the top trend for power and utilities sector
With supply chain snags, rising costs, and extreme weather are still likely to continue plaguing the power and utilities sector, the latest report released by Deloitte outlined the most promising trends in innovation and investment, buoyed by recent legislation, that can help the sector fulfill its mission to provide increasingly secure, reliable, clean, and affordable electricity.
2022 was a year of perils and promise for the electric power sector. US electricity sales continued to rise as the pandemic recovery progressed, increasing 3.6% in the first eight months compared to the prior year. But costs also spiked, largely due to natural gas prices more than doubling on global shortages exacerbated by Russia’s invasion of Ukraine. Extreme climate events—from droughts to hurricanes, heat waves and wildfires—continued to test regional grid resilience. In response, the industry and policymakers worked to bolster reserves, deploy energy storage and microgrids, harden infrastructure, and strengthen flexible load options.
In 2023, these promising developments will likely evolve further. But providing secure, reliable, affordable, and clean electricity could become even more challenging. Inflation, high fuel costs, and supply chain snarls may keep electricity prices elevated, while extreme weather, cybersecurity threats, and the growth of variable renewables and distributed energy resources may continue to require innovative management to ensure grid reliability. Despite these challenges, new technologies and supportive policies could ripen opportunities in 2023 and help the industry achieve its goals. Explore the five trends that will likely influence the direction of the industry over the next 12 months.
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. In FY 2021, the network earned revenues of US$50.2 billion in aggregate. As of 2020, Deloitte is the third-largest privately-owned company in the United States, according to Forbes.