Jul 07, 2022

Overview of Energy and Utility Industry: Challenges and Solutions

  • By Samatha Drake,
  • 331 Views
Energy and Utility Industry Challenges and Solutions

Current Position of Energy and Utility Industry

New technological and ecological trends are driving the digital transformation of the power and utility sector. Businesses are obliged to try a proactive approach as the demand for clean energy and decarbonization policies are increasing. The energy and utility sector must overcome bottlenecks and try to achieve significant cost savings to achieve their market goals.

The advent of new and advanced technologies and digital transformation has compelled the power and utility sector to redefine themselves and survive in the world of revolution, and stay competitive in the market. An utterly digital solution is necessary to survive the evolving challenges and succeed in the industry by improving productivity. The Energy and Utility industry must strive to develop actionable insights and energy efficiency in their own operations, while also establishing safe and protective environment today and in the future.

Challenged Faced by Energy and Utility Industry

Digital Transformation

In recent years, digital transformation has been influencing the utility business more than in other industries. As a result of digital adoption and swift technological change, utility providers are being forced to redefine how they operate, the services they offer, and their current business models.

Customers today are more inclined in using online channels and they demand a seamless and personalized experience with precise data on their rates and consumption. It is critical for businesses to devise their own effective customer-centric strategy, digitizing processes and innovative technologies to adapt to customer needs. To adopt the strategic shift to digital transformation, the utility industries have already started to employ technologies to facilitate omnichannel communication with their customers.

Climate and Weather Events

The unprecedented climate and weather events in 2021 has driven towards the utility resiliency strategies in 2022. Resiliency planning is significant for electric utilities as extreme climate disruptions can both have a substantial impact on electricity supply and demand.

“According to a report by Deloitte, 51 percent of survey respondents stated that weather events has impacted electricity delivery reliability in their territory more than usual in the last year, while 38 percent stated that the impact has stayed the same.”

Utilities are anticipated to be strategically preparing for the uncertain future in 2022. Employing energy sustainability initiatives will result in significant financial benefits. In order to ensure higher sustainability and increased energy savings, utilities should embrace digitization strategies that facilitate the design, deployment, and operation of new sustainable technologies, in which customers play a pivotal role.

Wrapping Up

The energy and utility industry is experiencing unprecedented challenges. Failing to address all these challenges might waste the majority of the profits. Postponing the changes that will highly benefit the business in the long run, may have a significant impact on customer satisfaction and profitability. Establishing a consistent, long-term strategy that incorporates profitable technology and allows firms to track their KPIs year after year is critical in addressing these challenges. This is pivotal for business growth in an era when the environment is both volatile and demanding.

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