Global electricity demand continues to rise at an unprecedented rate and is expected to reach record levels in the next decade. This surge is attributed to factors such as the expansion of data centers, new residential and commercial construction, sustainability mandates, the increasing adoption of electric vehicles (EVs) and the electrification of heating and cooling. Meanwhile, the integration of renewables like solar photovoltaic, wind turbines and batteries is accelerating and predicted to surpass the amount of electricity generated by coal for the first time in 2025.[1]
At Itron Inspire 2024, from Oct. 4-10, leaders in energy, water, IIoT and smart cities will come together to address these growing demands and the challenges they present—while exploring the next steps in advancing the clean energy and water transition.
As we prepare to address these challenges, let’s take a closer look at the solutions to solve them, which will be central to our discussions at Itron Inspire.
Meeting the Energy Demands of a Data-Driven World
The increasing electricity demand brought on by data centers, crypto mining, machine learning (ML) and artificial intelligence (AI) is substantial. In 2022, these sectors consumed approximately 460 TWh of electricity globally, which is projected to double by 2026.[2] A generative AI query (such as a request to ChatGPT) needs 10X more energy than a Google search and consumes 33X more energy than other task-specific requests.[3]
This growth is already straining grid stability, particularly in regions with concentrated energy use, and increasing carbon emissions when non-renewable sources are involved. Additionally, energy-intensive cooling and 24/7 data processing require costly grid upgrades and modernization to handle higher loads and ensure reliability. While data centers and AI are critical to enabling utility digitalization, the increasing volume of digital data necessitates expansion and evolution of data center infrastructure as well as greater visibility and control for utilities tasked with managing this rising demand.
Falling Through the Cracks of Aging Infrastructure
Aging infrastructure poses significant challenges for utilities working to deliver reliable services to their communities. The installed base of electric transmission infrastructure in the United States is over 40 years old on average, with more than a quarter of the grid older than 50 years.[4] In addition, utilities face deteriorating hardware and pipelines that demand constant repairs, driving up maintenance costs on already tight budgets. These aging systems can lead to frequent breakdowns and service interruptions, disrupting daily life and eroding customer satisfaction. Furthermore, the inefficiencies of these aging systems cause significant energy and water losses during transmission, placing additional strain on energy and water resources. The need for modernization is urgent to ensure continued reliability.
Power Grid Growing Pains
As infrastructure keeps aging, increasing demand will continue to strain it. Wood Mackenzie’s 2024 U.S. DER Outlook report predicts a 217 GW increase in distributed energy resource (DER) capacity by 2028, representing 70% of the anticipated generation additions during this period. Curtailment-based resources, such as electric vehicle (EV) charging and building automation systems, are expected to make up half of the total U.S. DER capacity by 2028, while the other half will come from generation-based resources like distributed solar and energy storage. The growing presence of EV fleets further compounds these complexities—especially when fleets of large EVs charge simultaneously at central depots. This concentrated demand can create challenges with hosting capacity, grid instability and potential power outages, posing a significant challenge for utilities striving to maintain a stable power supply. As utilities work to ensure the grid can accommodate the surge of intermittent resources, traditional methods alone, like expanding grid infrastructure, are no longer sufficient. Real-time data collection, distributed intelligence (DI) at the grid edge and advanced grid analytics will continue to play an increasingly critical role in grid management.
Surging Demand of a Diminishing Resource
Utilities are grappling with the dual challenge of water scarcity and loss, forcing them to rethink management strategies in the face of diminishing availability and increasing demand. A recent study reported that approximately one-quarter of the world's population is experiencing extreme water stress. Climate disruption continues to worsen these conditions, contributing to further scarcity and loss. Unpredictable rainfall, melting glaciers, rising sea levels, floods and droughts are all impacts of climate disruption that directly affect water sources. Moving forward, utilities and municipalities need to fundamentally change and accelerate how they are addressing these emerging water challenges. Conventional approaches, such as manually monitoring pipes for leaks, are not enough to address these escalating water demands. Advanced technologies, such as AMI and leak sensors, will allow water utilities to pinpoint leaks and reduce non-revenue water losses.
Ever Increasing Regulatory Mandates
Increasing regulatory mandates for carbon reduction and sustainability are requiring utilities to modernize their operations. The shift toward net-zero demands substantial upgrades to infrastructure, integration of renewable energy sources and the deployment of advanced technologies to monitor, manage and report on emissions. In addition, utilities must navigate the complexities of compliance while maintaining reliable and resilient service to their communities. Balancing these demands with the financial pressures of modernization is a formidable task, requiring a new wave of strategic planning, innovation and collaboration across the industry unlike ever before.
A Growing Population with Higher Expectations
In the 2023 International Energy Outlook, the U.S. Energy Information Administration predicted that global energy-related CO2 emissions will increase through 2050 as a result of global population growth. This growth, in combination with evolving consumer expectations, particularly in an era where instant service and visibility are the norms set by companies like Amazon and Uber Eats, present utilities with a unique set of challenges. Consumers today expect real-time information, seamless communication and immediate responsiveness in all aspects of their lives, including from their utility providers. They want to know exactly what’s happening with their service —whether it’s understanding their energy usage in real time, receiving immediate updates on outages or getting rapid responses to their inquiries. This shift in consumer behavior is pushing utilities to adapt quickly through the integration of advanced technologies and enhancement of customer service models to meet these heightened expectations. Balancing the need for instant, transparent service with the complexities and uncertainties of utility operations is a significant undertaking, requiring a strategic overhaul of utility operations to keep pace with the modern consumer.
Explore the Possibilities with Intelligence at the Edge
At Itron, we understand the growing challenges utilities are facing can be overwhelming. To ensure the continued delivery of resilient and reliable service, utilities must take a comprehensive approach that leverages intelligence at the edge. This enables utilities to take advantage of real-time data and insights from the grid edge, from endpoints such as smart meters, sensors, IoT devices, DERs and customer-generated data, providing more visibility than ever before. Grid edge intelligence technology allows sub-second autonomous control at the edges of the electric grid to promote maximum reliability and stability of the delivery system. With near real-time, automated distribution-level grid management, utilities can gain protection over the impact of EVs and downstream DERs as well as control of substation voltage to maintain reliability, reduce transformer overload and preserve existing infrastructure. By harnessing these data streams both locally and centrally, utilities can gain unprecedented visibility into and control of the modern distribution grid.
Edge intelligence also plays a critical role in helping utilities address challenges through the use of AI and ML, which relies on data inputs that need to be continually generated, refined and fed into utility-accessible platforms. That data must also be trustworthy, complete and timely. This is where edge intelligence comes in. Edge intelligence generates high-resolution, real-time data that creates a foundation for applications and uses of AI that were previously not possible. AI and ML can enhance edge intelligence environments through real-time anomaly detection, improve distribution system efficiency and enable better management of demand response, load shedding and shifting.
While grid edge intelligence is a critical component for utilities aiming to address these pressing challenges, success will require more than just technological advancements. An industry-scale response with collaboration and strategic partnerships are pivotal in driving innovation and efficiency. Working together, obstacles are easier to overcome and more solutions are available.
Join Us at our Premier, Customer-Focused Event
Itron is leading the movement toward more intelligent, resilient and reliable electricity, gas and water systems by empowering utilities with greater visibility and control at the edge of their distribution networks. From our smart devices and intelligent, foundational networks to real-time data analytics, software and services, we are innovating new ways for utilities and cities to better manage energy and water. At Itron Inspire 2024, we’ll show you how.