Itron Report Reveals Current State of Energy Transition Amongst U.S. Utilities

Rhea-AI Summary

Itron, Inc. has released its 2023 Resourcefulness Insight Report on the challenges and opportunities of the energy transition. The report reveals that utilities and regulators embrace the transition, with 88% of utility executives saying it is extremely or very important. Utilities are actively implementing plans to address the transition, with 45% in the implementation stage. Key findings include public demand as the top driver of the energy transition, infrastructure upgrades and grid modernization as top technology priorities, and the need for stakeholder education.

Positive

• Utilities and regulators embrace the energy transition, with 88% of utility executives considering it extremely or very important.
• 45% of utilities are actively implementing plans to address the energy transition.
• Infrastructure upgrades and grid modernization are top technology priorities for utilities.

Negative

• None.

Survey Uncovers Top Challenges and Opportunities of the Energy Transition from the Perspectives of U.S. Utilities and Commissioners

LIBERTY LAKE, Wash.--(BUSINESS WIRE)-- Itron, Inc. (NASDAQ: ITRI), which is innovating the way utilities and cities manage energy and water, today released its 2023 Resourcefulness Insight Report that explores the implications of the energy transition—the shift away from a reliance on fossil fuels and associated influx of distributed energy resources. The report, Powering the Energy Transition: Insights from Utilities and Commissioners on Creating the Future U.S. Grid, summarizes key findings from 250 U.S. utility executives and 10 state public utility commissioners on topics relating to the energy transition, including the challenges they see coming and how they expect to meet them.

“This year’s report underscores the pivotal moment we're at in shaping the future of the U.S. grid. By surveying commissioners and utility executives, the research offers a unique lens into the challenges and opportunities of the energy transition. What’s clear is that utilities are looking to address those challenges, and the study uncovers where they are on this journey,” said Marina Donovan, vice president of global marketing, ESG and public affairs at Itron. “We hope this report provides utilities and commissioners with valuable insights that will help them navigate today’s complex energy landscape.”

Published today at Itron Inspire 2023, the company’s premier customer-focused event, the report reveals what both groups think about how the grid is changing—and the important work still to be done. The findings indicate that utilities and regulators embrace the transition—with nearly nine in 10 (88%) utility executives saying that the energy transition is extremely or very important and seven in 10 commissioners saying policies are supportive of the energy transition. According to the survey, 45% of utilities are actively implementing plans to address it, 49% are in the planning stages and the rest have not started planning. Additional key findings in the report show:

• Public demand is seen as the top driver of the energy transition for utilities at 37%, with cost savings (36%) and environmental concerns (34%) also at the top of the list.
• Utilities’ top technology priorities include infrastructure upgrades and grid modernization, ranking the highest at 48%, while developing renewable energy sources is right behind at 47%.
• 61% of utility executives believe current policies are supportive of transition initiatives, though 20% say they hinder progress.

The report also found that utility executives and commissioners have similar perspectives on the types of challenges that utilities will face as the grid transitions:

	Commissioner Perspective	Utility Perspective
1	Affordability/economics	Infrastructure upgrades and grid modernization
2	Infrastructure siting	Regulatory approval process Lack of funding for upfront investment
3	Interconnection/transmission	Grid reliability/resilience

When asked about the most effective ways to overcome these barriers, utility executives say that investing in technology and infrastructure to integrate renewables is the top strategy for overcoming challenges and it’s also the top activity that they are engaged in today. The key technology priorities that utilities believe will enable the energy transition are infrastructure upgrades and grid modernization, developing renewable energy sources, and energy storage and managing intermittency. Over the next five years, utilities plan to invest the most in technologies to manage load monitoring, voltage management and solar.

Both utilities and commissioners agree that consumers will play an important role in the transition but are concerned that they will add complexity due to their diverse needs and varying acceptance levels of new technologies. According to utilities, there are four key ways that consumers can make a difference:

1. Greater understanding of the importance of sustainable energy.
2. Higher adoption of energy-efficient appliances and systems.
3. More participation in demand response programs.
4. Changes in daily consumption behavior to align with grid needs.

“Utilities have a critical role to play in accelerating the energy transition, and stakeholder education is an important part of that effort. By educating consumers, policymakers and regulators about clean energy, conservation and energy management programs, utilities can help overcome these challenges,” added Donovan. “As utilities start their energy transition journey, there are steps they can take to position themselves for success, including investing in an intelligent, responsive grid and taking advantage of funding opportunities like the Infrastructure Investment and Jobs Act (IIJA). Everyone has a role to play in addressing the energy transition. By working together, we can create a more sustainable energy future.”

To download a full copy of the Itron Resourcefulness Insight Report as well as the research, visit www.itron.com/rir.

Methodology

The 2023 Resourcefulness Insight Report consolidates perceptions of U.S. utility executives and state public utility commissioners on topics relating to the energy transition. A total of 250 online surveys were completed by utility executives, and 10 interviews with state commissioners were conducted by the editors of Public Utilities Fortnightly in July and August of 2023. Utility executive respondents were mid-level managers or higher who have input on decision making for electric, gas, and water utilities in the United States. State utility Commissioners represent a cross-section of currently serving U.S. state Commissioners in a sampling of states representing all four census regions of the U.S.

About Itron

Itron enables utilities and cities to safely, securely and reliably deliver critical infrastructure solutions to communities in more than 100 countries. Our portfolio of smart networks, software, services, meters and sensors helps our customers better manage electricity, gas and water resources for the people they serve. By working with our customers to ensure their success, we help improve the quality of life, ensure the safety and promote the well-being of millions of people around the globe. Itron is dedicated to creating a more resourceful world. Join us: www.itron.com.

Itron® is a registered trademark of Itron, Inc. All third-party trademarks are property of their respective owners and any usage herein does not suggest or imply any relationship between Itron and the third party unless expressly stated.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231025542346/en/

Alison Mallahan

Senior Manager, Corporate Communications

509-891-3802

PR@Itron.com

Source: Itron, Inc.

FAQ

What is the 2023 Resourcefulness Insight Report about?

The report explores the challenges and opportunities of the energy transition from the perspectives of U.S. utilities and commissioners.

What are the top technology priorities for utilities?

Infrastructure upgrades and grid modernization are ranked highest, followed by developing renewable energy sources.

What percentage of utilities are actively implementing plans to address the energy transition?

45% of utilities are actively implementing plans.