In an ICF survey, utility leaders cite importance of distributed generation, management systems and artificial intelligence.
Virginia-based consulting company ICF released a report saying utility leaders are looking to energy efficiency programs to help manage existing and future demand.
To meet new demand from data centers, EV charging and electrification efforts, utilities said they had to implement modern energy management systems and artificial intelligence (AI). At the same time, utilities said they need to do more to enlist the participation of existing customers to save electricity and embrace green energy in order to achieve decarbonization goals.
The report, based on a survey of 100 utility program leaders (with minimum seniority of director) between Oct. 16 and Oct. 28, 2024, said respondents unanimously agreed that energy efficiency and green energy targets would not be attainable without financial incentives for customers.
Improved participation in efficiency and green energy programs by ratepayers, especially those in economically burdened communities, is a way of preparing the grid for increasing demand imposed on commercial customers that pay higher tariffs. According to the report, nearly all respondents (98%) said increased participation in energy efficiency programs is important to realize a return on investment.
Over two-thirds (68%) of utility program leaders said increasing electrification is a moderate or significant challenge, the report said.
“Utilities play an increasingly vital role in managing electricity demand and ensuring customers have access to reliable and affordable power as we continue to face surging demand in the U.S.,” said Anne Choate, ICF executive vice president for energy, environment and infrastructure.
Most utility leaders said a combination of distributed energy resources (such as solar generation and battery storage) and automated energy management systems are important for providing demand response services. The increasing complexity of distributed sources, monitoring and management is causing many utilities to invest in training for their workers. About 57% of respondents said that improving the skills and training of existing workers is a priority.
In terms of specific technologies emerging to assist utilities into the future, AI is showing up in some aspects of operations for all the leaders surveyed. According to the report, top AI use cases include the identification of customer segments and targets (48%), planning programs (45%), monitoring energy consumption (43%), and dynamic pricing/demand response (41%). While 65% of respondents said AI is a “game changer” in its potential to help utilities, 35% said they view it as overhyped.
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