Over the last few years, electric grids have been decentralizing, resulting in wider use of distributed resources with energy flow happening bi-directionally as well as laterally. Utility companies are increasingly implementing solutions such as advanced distribution management systems (ADMS), distributed energy resources management systems (DERMS), virtual power plants, and the internet of things (IoT). Additionally, innovations in the field of artificial intelligence (AI) and machine language (ML) as well as smart sensors becoming cheaper with time are enabling new operational capabilities and business models.
However, there are other factors beyond technology that play a critical role in decarbonizing the electric grid. Government policies play a crucial role in the business strategies of energy and utilities (E&U) companies. Similarly, these companies also need to factor evolving customer expectations and preferences while planning their offerings. Moreover, the emergence of renewable and alternative energy sources, and the economics around them, has given E&U companies plenty to think about. In short, E&U providers are faced with the need to revisit their business models and redefine their offerings in order to not just stay relevant in the changed paradigm, but also to champion the environmental cause.