West Monroe Research: Navigating the Challenges of the New Energy Economy
A recent study conducted by West Monroe, a global business and technology consulting firm, has shed light on the evolving landscape of energy utilities. The research, based on insights from 500 energy executives, highlights the significant shift in the energy sector from a phase of transition to one of execution.
The report titled “The New Energy Economy” underscores the complexities faced by utility leaders in adapting to a rapidly changing environment where factors like disruption, artificial intelligence (AI), and surging demand are reshaping the industry dynamics. It reveals that utilities are no longer merely preparing for changes in energy delivery and consumption but are grappling with unprecedented challenges.
The Transition to Execution
According to the study, nearly 8 in 10 utilities are under regulatory pressure to decarbonize, yet only 18% feel adequately prepared to meet state targets. This disparity between aspiration and readiness underscores the urgent need for utilities to bridge the gap.
Key findings from the research include:
- Escalating costs and project delays due to tariffs
- Challenges in keeping pace with demand growth
- Limited preparedness in integrating distributed energy resources
- Slow progress in measuring ROI from AI integration
Insights and Recommendations
Paul DeCotis, senior partner in West Monroe’s Energy & Utilities practice, emphasizes that utilities must focus on operational excellence and adopt proven technologies like renewables, electric vehicles, and storage to navigate the evolving landscape effectively. Successful utilities are prioritizing capabilities in execution, data management, regulatory strategy, and workforce readiness.
The report provides a roadmap for utility leaders to enhance AI governance, modernize grid infrastructure, and drive innovation to succeed in the new energy economy.
About West Monroe
West Monroe is committed to delivering value through collaborative solutions that drive immediate results and prepare industries for the future challenges. With a focus on innovation and client success, the firm excels at the convergence of industry expertise, strategic insights, technology, and people.
For more information, access the full report here.
Media Contact:
Christina Galoozis
Director, Communications & Public Relations
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847-302-1762
