As the global energy sector accelerates its transition to low-carbon sources, power transmission and distribution companies are confronting a complex and fast-changing landscape.
The integration of distributed energy resources such as solar and wind, aging infrastructure, increasing environmental regulations, and a shrinking skilled workforce are all combining to create a perfect storm.
To navigate these challenges while improving resilience, decarbonising operations, and maintaining profitability, utilities are turning to digital transformation as a strategic imperative.
According to global management consultancy McKinsey & Company, the world’s transmission and distribution lines will need to grow by more than one-third to an estimated ninety-four million kilometers by 2035.
The cost of this expansion is projected to be around $310-billion yearly, though the infrastructure currently in place was largely built for a one-way flow of electricity. As power now flows in multiple directions due to the rise in distributed generation, grid complexity increases and so does the need for smarter, more agile operations.
Resilience, Empowerment, and Decarbonisation
Digital tools are proving essential in improving grid resilience and operational agility. They allow utilities to reduce unplanned outages, optimise infrastructure performance, and make better use of real-time data to enhance situational awareness.
Australian utility Energy Queensland provides a compelling example. With the influx of large-scale solar farms and increasingly unpredictable weather conditions, the utility turned to AVEVA’s PI System to create a virtual model of its grid.
This digital twin integrated real-time environmental data with technical information about each asset, enabling the calculation of dynamic ratings for grid sections. This approach allowed the utility to unlock unused capacity and safely integrate more renewable energy sources, while also improving the reliability of its network.
At the same time, digital technologies are playing a crucial role in addressing workforce challenges. With many experienced employees nearing retirement, utilities are under pressure to transfer institutional knowledge and equip new hires with the tools they need to succeed.
US-based utility DTE Energy, which serves more than two-million customers, adopted a real-time sensor monitoring and alert system using the AVEVA PI System.
The system enables field crews to respond more rapidly to incidents like fallen trees or equipment failures. Since implementation, the company has reduced outage times by about five hundred thousand minutes each year and significantly improved customer satisfaction.
Furthermore, centralising operational data in digital repositories allows employees to access critical insights regardless of tenure or location, reducing burnout and supporting continuity of operations.
The push toward sustainability is also driving digital innovation. Utilities must not only invest in infrastructure that supports renewable energy, but also demonstrate progress to regulators, investors, and customers.
US-based energy company Dominion Energy has embraced a cloud-based data management solution that gathers and shares performance and energy sourcing data across its network.
This transparency allows customers to validate Dominion’s use of clean energy and align the data with their own environmental, social, and governance (ESG) goals. In doing so, Dominion has turned sustainability reporting into a competitive advantage and a potential revenue generator.
Laying the Digital Foundation
For utilities looking to begin or accelerate their digital transformation journey, four foundational initiatives are key. First, companies must build a strong industrial information infrastructure by centralising and contextualising operations data to create a digital backbone for decision-making.
Second, improving visibility and awareness across the organisation—through dashboards, mobile access, and role-specific data views—can break down silos and improve responsiveness.
Third, utilities can enhance asset health and performance by using artificial intelligence and predictive analytics to identify maintenance needs early and minimise unplanned downtime.
And lastly, by tracking and sharing energy sourcing information through cloud-enabled tools, utilities can unlock new business models tied to green energy and carbon transparency.
These efforts are underpinned by technologies such as artificial intelligence, cloud computing, big data, and the Industrial Internet-of-Things.
Crucially, open and interoperable software platforms allow utilities to scale digital solutions in line with their specific needs, helping them manage risk while preparing for future demands.
McKinsey’s Global Energy Perspective 2022 report anticipates that investment in energy supply and production will double by 2035, with the vast majority of this growth coming from decarbonization technologies.
For transmission and distribution companies, this presents both a challenge and an opportunity. The grid of the future will be more complex, more interconnected, and more reliant on real-time data and digital collaboration.
By adopting these strategies—improving data infrastructure, enhancing operational tools, supporting workforce agility, and enabling transparent reporting—utilities can improve their resilience and competitiveness.
In doing so, they will not only support a more reliable and sustainable energy supply but also accelerate the global transition to cleaner power.
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