Power companies seek technology, expertise to modernize systems as climate, energy security take center stage, ISG research reports say
STAMFORD, Conn.–(BUSINESS WIRE) – The European power and utilities industry is undergoing a profound transformation in the face of increasing needs for energy security, sustainability and affordability, according to new research reports published today by Information Services Group (ISG), a global AI-centered technology research and advisory firm.
“Europe’s energy transformation requires long-term strategy, implementation and management”
The Russia-Ukraine war has triggered a deep reassessment of Europe’s energy security, ISG says. Governments and utilities are accelerating efforts to diversify energy sources following the disruption of Russian gas supplies, which came on top of the escalating climate crisis. The region’s dependence on imported gas and increasing need for renewable energy have exposed gaps in grid capacity and readiness for a carbon-neutral future.
“Europe’s commitment to become climate-neutral by 2050 will require grid modernization in addition to new energy sources,” said Mark Smith, partner, software research at ISG. “Utilities are transforming grid software to accommodate more connections, higher efficiency and reliable service.”
To guide utilities through the selection of software and services, ISG has published the 2024 ISG Provider Lens™ Power & Utilities Industry — Services and Solutions report for Europe and two ISG Buyers Guides™: Power and Utilities Grid Management and Power and Utilities Enterprise Asset Management. Together, the three reports assist companies in choosing both software solutions and providers of consulting, implementation, integration and management services.
Europe’s rapid energy transition has further complicated the requirements of electrical grids, already among the world’s most complex infrastructures, ISG says. Major trends include the introduction of intermittent power from solar and wind, hydrogen power to decarbonize transportation and storage technologies such as batteries and pumped-storage hydroelectricity. The growing number of EVs is increasing demand for electricity while introducing a potential decentralized energy source.
To manage grids, utilities are investing in platforms for orchestration and connectivity to the edges of the network, ISG says. AI-driven insights and automation are at the core of many software solutions utilities are using to integrate new energy sources and make decisions for grid optimization and cost savings.
Asset management software is also critical to the operation and stability of grids in Europe and other regions. Utilities are seeking platforms that use new technology, including AI, to increase the performance and extend the useful life of assets while reducing operating costs. Through 2027, a majority of utilities worldwide will modernize asset management systems to ensure reliable power delivery, ISG says.
Along with acquiring new software solutions, European utilities are investing in services for intelligent business process management, cloud engineering, customer experience and other needs, the ISG Provider Lens report says. Service providers are playing key roles in industry trends including increased adoption of cloud computing and comprehensive cybersecurity services.
“Europe’s energy transformation requires long-term strategy, implementation and management,” said Julien Escribe, ISG partner and utilities industry lead. “Leading service providers are essential partners to power and utility companies making this leap.”
