Did you catch this piece on the Utility Management Network? I figured members of The Energy Collective would also be quite interested:
As of this writing, we are well over three years beyond the initial shock of the COVID-19 pandemic. Utilities have been dealing with post-COVID whipsaw effects of higher prices, higher interest rates, and evolving objectives.
During and before the pandemic—from 2019 through 2021 and beyond—many states and utilities adopted 100% clean energy or net-zero policies. As they pursue these net-zero strategies, utilities are facing large investment needs.
- For example, gas utilities are seeking ways to reduce methane emission profiles, through both lower emissions fuels (hydrogen and renewable natural gas) and replacement of leak-prone pipes.
- Power utilities are preparing for increased vehicle and building electrification, which some believe could increase electricity demand by 50% or more over the long term.
- Power generators are under pressure with lower spark spreads, while facing increasing sustenance capital and ongoing O&M needs as they continue to be called upon by system operators to balance more variable-output renewables. Those generators are investing in renewables as well.
With anticipated high capital spending ahead, the utilities industry faces both tailwinds and headwinds in planning and deploying capital.
Read the rest at the link below