By Steve Ferguson
After over a century of reliably supporting communities, electric utilities today find themselves at a very pivotal moment. The electric grid is being pushed far beyond its intended lifespan, handling more than double the activity of 50 years ago on nearly the same infrastructure. Simultaneously, technology is accelerating, customer expectations are rising, and regulatory pressures are increasing—all at a rapid pace.
In the face of this, utilities must now take decisive steps to modernize the grid. But once a utility commits to action, it faces the next hurdle: pinpointing the best place to start.
Where to Begin with Modernization
There is much at stake in the choice to modernize the grid—increased capital costs, years-long project timelines, customer perception, and the reality that the decisions made today will define how utilities operate decades from now.
On top of this, there are many definitions of the word “modernization.” Which one should a utility prioritize:
Strengthening resilience by upgrading the network to grid-hardened materials and creating a more responsive and dynamic electric system?
Integrating renewables to meet regulatory requirements and create sustainable operations?
Enhancing communication and response systems for more accurate data and faster damage recovery?
Just as every utility operates differently, so too will their modernization priorities vary. Fortunately, utilities can begin the search for answers in one place—by asking critical questions about their grid’s current state, community needs, and vision for the future.
Key Considerations to Determine Modernization Priorities
Below are five considerations to help utility leaders look inward on their operations and goals. By creating a holistic picture, teams can move toward modernization decisively and confidently.
Assessing Risk and Resilience
One of the first—and arguably most pressing—factors to consider is the vulnerability of one’s current infrastructure. How else can a utility consider upgrades without first pinpointing areas of improvement? Where possible, utilities should incorporate data from recent storms or operational failures to set benchmarks.
Key questions to guide the discussion:
- What areas are most prone to outages during extreme weather or high demand, and why?
- How does the current state of the grid impact damage recovery times?
- What are the potential consequences—financial, operational, reputational—of infrastructure failure, and what changes would mitigate those?
When listing areas for improvement, prioritizing high-risk and high-impact areas is ideal. Proactive maintenance often costs less than reactive measures and can free up resources more quickly for large projects.
Incorporating Regulatory Compliance
Mandates related to renewable energy, broadband expansion, cybersecurity, and other issues should all be factored into one’s grid modernization plan. Additionally, many of these programs are incentivized, and utilities can turn these challenges into opportunities for grid modernization.
Key questions to guide the discussion:
- What are the targets and timelines for meeting key mandates or incentives?
- Are state or federal programs offering funding for specific upgrades?
- What risks exist for failing to comply with regulatory requirements?
- How does current grid performance align with renewable integration goals?
Because compliance often aligns with public relations and funding, compliance projects should be framed as dual-purpose, strategic opportunities. For regulatory discussions, it can be worth consulting an outside expert to interpret compliance language and ensure the team fully understands all requirements and implications.
Weighing Return on Investment (ROI) and Value
Grid modernization projects are, by nature, designed for the long haul—but the lifespan, payback period, and quantifiable outcomes of different initiatives will vary greatly. To navigate this, utilities should seek a well-rounded view of project value, including financial metrics and softer benefits like improved public perception and reliability.
Key questions to guide the discussion:
- Are there existing inefficiencies (e.g., high line losses, maintenance costs) that a specific initiative could reduce?
- What is the expected payback period for high-priority projects?
- How can data analytics or pilot programs provide insight into potential ROI?
When calculating financial return, including the full effects of maintenance and operational costs is imperative.
Considering Customer Needs
While weighing these many factors, utilities must remember who grid upgrades ultimately support—the end user. Because every investment will affect the customer, it is essential to acutely consider their input when developing a grid modernization strategy.
Key questions to guide the discussion:
- What are the most common complaints or requests from end users?
- How can modernization projects enhance communication with customers during outages?
- How much would advanced metering infrastructure (AMI) or other technologies improve transparency or billing accuracy?
If the utility has a strong sense of the community’s needs, focus can be directed to how each modernization or technology option aligns with customer priorities.
Positioning for Scalability
A utility must determine how each technology positions it both for today’s needs and decades into the future. Long-term viability and flexibility to growing energy demand both play a key role in one’s strategy.
Key questions to guide the discussion:
- How well do potential projects integrate with existing systems?
- What is the estimated lifespan of the proposed technologies?
- How adaptable are these initiatives to emerging trends such as EVs, automation, demand response, distributed energy resources, and data center load growth?
The best projects will balance the aspirational, long-term goals of tomorrow with the highly impactful needs of today. It is critical to stay informed about advancements like AI and energy storage that could impact grid operations. Partnering with knowledgeable consultants can also clarify scalability options and risks.
The Path Forward for Modernization
With so many factors involved, every utility's modernization strategy will differ. By asking key questions to understand one’s priorities, a utility can identify the best blend of technology, investments, and timing for current and long-term success.
Step Confidently into Grid Modernization with Irby
From resilient materials to expert project management, Irby partners with utilities to simplify grid modernization and develop systems and solutions that allow for the ideal outcome. Here are a few ways we support utility success:
- Assess current infrastructure and recommend the best course of action
- Interpret, implement, and document government requirements to ensure compliance
- Support every aspect of grid modernization projects, including material and technology selection, project and material management, and ongoing updates to stay ahead of industry advancements
Grid modernization is a critical investment in every community's future. Trust the team with 99 years of utility expertise to get it right. Contact our team to learn more or get started.
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About the Author:
Steve Ferguson brings over 35 years of experience in the electric utility, enterprise, broadband, and optical fiber industries to his role as Irby's SVP of Communication Services. His expertise spans engineering, operations, manufacturing, and sales, where he supports highly engineered product and service solutions.