The mission of this group is to bring together utility professionals in the power industry who are in the thick of the digital utility transformation. 


Navigant: Electric Utilities to Spend $247 Billion on IT, Cybersecurity Through 2028

image credit: Navigant Research
Peter Key's picture
Freelance Writer, Editor, Consultant Lansdowne, Pa.

I've been a business journalist since 1985 when I received an MBA from Penn State. I covered energy, technology, and venture capital for The Philadelphia Business Journal from 1998 through 2013....

  • Member since 2015
  • 413 items added with 226,266 views
  • Feb 12, 2020 2:01 pm GMT

If you’re involved in making decisions about information technology systems for an electric distribution utility, don’t be surprised if you suddenly experience an upswing in your popularity with IT vendors.

The reason is a report by Navigant Research that says utilities worldwide will spend nearly $247 billion on energy IT and cybersecurity software and services from 2019 through 2028. “Energy IT and Cybersecurity Overview” says spending on those types of software and services will rise from $18 billion last year to more than $19 billion this year and surpass $32 billion in 2028.

In its press release about the report, Navigant said it “expects IT systems and analytics to account for a significant — and growing — portion of utility investment over the next decade.”

Your access to Member Features is limited.

Navigant identified three drivers for the increase in IT spending:

• The sheer amount of data being generated by the sensors that have been deployed throughout the grid;

• The growth in distributed energy resources, which Navigant said is forcing utilities to invest in technology such as advanced distribution management systems, distributed energy resource management systems and various types of analytics;

• And heightened expectations by customers used to being able to deal with companies through apps on their mobile phones and computers.

“The common thread in these industry shifts is digital disruption,” Navigant said in its executive summary of the report.

Smart meters, which have helped make that digital disruption possible, also are responsible for the increase in cybersecurity spending that Navigant is expecting.

As a result of their deployment, “the surface area [for cyberattacks] has gotten exponentially larger with weaker end points,” Michael Kelly, the Navigant research analyst who wrote the report, told me.

“It creates an environment in which utilities are much more vulnerable to attack,” Kelly said.

Peter Key's picture
Thank Peter for the Post!
Energy Central contributors share their experience and insights for the benefit of other Members (like you). Please show them your appreciation by leaving a comment, 'liking' this post, or following this Member.
More posts from this member
Spell checking: Press the CTRL or COMMAND key then click on the underlined misspelled word.

No discussions yet. Start a discussion below.

Get Published - Build a Following

The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »