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1、2025 Power and Utilities IndustryOutlookUtilities are navigating a new era of growth and transformation as they address emerging challengesand rising demandARTICLE19-MINREAD09 DECEMBER2024Deloi?e Center for Energy&IndustrialsThe United States is experiencing a surge in electricity demand,driven in p

2、art by a con?uence of unprecedented electri?cation,arti?cialintelligencedriven data center expansion,and a resurgence in industrial reshoring or manufacturing.In September 2024,year-to-date electricitydemand rebounded with a 1.8%increase,following a 1.7%decline during the same period in 2023 helped

3、by mild weather conditions.However,this surge isnt temporary;it is expected to be sustained growth after two decades of stagnant demand.This will likely fundamentally change theelectricity landscape in several ways.Data centers,fueled by the rise of generative AI,machine learning(ML),and cryptocurre

4、ncy-mining activities,are becoming major electricityconsumers.Power demand estimates vary widely.According to Deloitte analysis,by 2030,electricity demand from data centers is projected tosoar to approximately 515 to 720 terawatt-hour(TWh),up from about 180 to 290 TWh in 2024a 15%to 17%compound annu

5、al growthrate.Electri?cation continues to expand across transportation,industrial processes,and buildings and homes.Electric vehicle sales are up 8%yearover year(YoY),now accounting for 9%of new car sales in the?rst three quarters of 2024,despite a slight decline in the?rst quarter of2024.Government

6、 incentives in at least 25 states have accelerated the adoption of heat pumps.Federal policies promoting domestic content have further ampli?ed this demand surge by relocating o?shore manufacturing and expandingdomestic production in strategically important sectors.Between Jan.1,2021,and March 1,202

7、3,companies announced more than 150onshore manufacturing facilities in the United States,with an annual electricity usage exceeding 13,000 GWh,half of which is expected to beoperational by 2025.This increase in demand has contributed to a corresponding rise in power generation.As of September 2024,u

8、tility-scale power generationreached approximately 3,287 billion kWh,marking a 3%YoY increase.Concurrently,renewable energy,particularly solar,experienced growth,with a 30%increase,compared to 13%in the same period in 2023.It is expected to be the fastest-growing energy source by year-end,potentiall

9、yachieving a 34%growth rate,according to Deloitte analysis of US Energy Information Administration data.Natural gas,which generates about43%of US electricity,saw a 4.1%increase this year,maintaining its position as the dominant power source.Natural gas generation is expectedto rise by 3.5%by year-en

10、d,although its share is projected to decline to 40%in 2025 due to high fuel prices.2025 Energy,Resources,&Industrials OutlooksRead more from the Deloi?e Center for Energy&Industrials 2025 outlook collectionElectric power utilities are responding to this dynamic landscape with record capital expendit

11、ures,which could reach US$174 billion by the end of2024.Of these expenditures,42%are expected to be allocated to transmission and distribution systems.Many are revising their integratedresource plans(IRPs)to accommodate higher load growth projections.However,amid increasing demand,utilities are also

12、 facing challenges,such as:Supply chain disruptions,particularly the increase in lead times for procuring transformersfrom around 50 weeks in 2021 to 120 weeks(reaching up to 210 weeks for larger units)on average in 2024are impacting grid modernization e?orts.The escalating costs of extreme weather

13、events,with a record US$53 billion spent in the United States between January and August 2024roughly double that of the entire 2023places additional strain on grid infrastructure and?nances.The process for rate case approvals to recover capital investment costs may move more slowly than the dynamic

14、market in which the utilitiesnow?nd themselves as estimates for incremental demand continue to rise.123456789101112131415161718Energy&IndustrialsThese challenges are driving up costs.Rising wholesale prices,projected to increase by 19%on average between 2025 and 2028,combined withescalating distribu

15、tion expenses,are likely to result in higher electricity bills for consumers.As of August 2024,the year-to-date average powerprice across all sectors stood at 13.09 cents per kWh,re?ecting a 2.7%YoY increase due to rising demand.In 2025 and beyond,electric power utilities can consider the following

16、while making strategic choices as they keep a focus on reliability,a?ordability,and sustainability.Increasing data centers:Utilities are adopting a multifaceted approach to help meet increasing demandGreater nuclear integration:Utilities are implementing strategies to boost nuclear power useDistribu

17、ted energy resources integration:Utilities look at sum-of-parts solutionsWorkforce 2.0:Utilities are cultivating a new generation of talent and embracing new skillsCarbon management:Some utilities are exploring a toolkit to manage last mile emissions1.Increasing data centers:Utilities are adopting a

18、 multifaceted approach tohelp meet increasing demandApproximately 75%of the top 35 electric power utilities in the United States have reported a rise in electricity demand from data centers.Theseenergy-intensive facilities currently consume 6%to 8%of total annual electricity generation,and according

19、 to Deloitte analysis,this is expected torise to 11%to 15%by 2030.This rapid growth presents a complex challenge for electric power utilities:how to meet this escalating demandwhile simultaneously transitioning to a cleaner energy mix.In a Deloitte survey of power and utilities executives(see“About

20、the Deloitte survey”),grid infrastructure limitations emerged as the keychallenge in providing reliable power to data centers.Other challenges including regulatory constraints and resource limitations vary acrossregions(?gure 1).To help address these challenges,utilities are adopting a multipronged

21、approach.1920212223Increasing e?ciencies of current infrastructure by deploying advanced technologies:Utilities are deploying grid-enhancing technologies andadvanced conductors to add capacity and?exibility to the existing transmission system.These technologies o?er a cost-e?ective way to expandcapa

22、city compared to rebuilding transmission lines.Studies indicate that reconductoring US power lines with advanced conductors could helpquadruple the projected transmission capacity by 2035.A few states have signed bills mandating utilities to consider grid-enhancingtechnologies as a shorter-term solu

23、tion in their IRPs.Ensuring reliability through multiple sources of electricity:To ensure reliable baseload power,some utilities along with state or serviceterritory might consider extending the life of existing coal assets and proposing new gas-?red capacity,while simultaneously exploring cleaneral

24、ternatives in the regions of increased demand.The regulatory approval obtained by Georgia Power in April 2024 to build three new gas plantsand extend operations of two coal plants exempli?es this trend.Additionally,nuclear energys ability to provide clean baseload power makes itan attractive option

25、for many data centers(we explore this more in our next trend).For example,Microsoft secured a long-term power purchaseagreement with Constellation Energy for power from a decommissioned nuclear plant expected to restart by 2029although its pendingregulatory approval.24252627Addressing cost concerns

26、through tari?approaches:The expansion of data centers necessitates substantial investments in grid infrastructureand generation capacity,and estimates indicate that US utilities may need around US$36 billion to US$60 billionby the end of the decade.Thissigni?cant capital requirement may raise concer

27、ns about cost recovery and potential impacts on ratepayers.To help address these challenges,some utilities are introducing new wholesale power sales rate schedules for data centers and larger loads to distribute costs more equitably.Thisstrategy involves shifting transmission costs from residential

28、customers to larger energy users like data centers.Various tari?approaches arebeing considered to achieve this,including:a.New rate structures:AEP Ohios request for new rate structures was approved by the Public Utilities Commission of Ohio;however,payshare is yet to be agreed upon.Moreover,AEP Ohio

29、 has also requested large load tari?modi?cations in Indiana and West Virginia.b.Clean transition tari?s:Duke Energy proposed accelerating clean energy tari?s in partnership with tech companies to design new ratestructures that enable large customers to directly support clean energy investments.Boost

30、ing resilience and facilitating deployment with onsite generation:Some utilities and tech companies are increasingly partnering tocolocate data centers with power generation facilities on the same site.This strategy o?ers several potential bene?ts,such as easing transmissionconstraints,reducing cost

31、s,and ensuring resiliency with onsite power.However,this strategy could face regulatory scrutiny and communitypushback.Despite these obstacles,the potential for innovation and e?ciency is undeniable.Yet,there is a caveat:As the volume of data centerscontinues to rise,the number of suitable sites for

32、 this colocation strategy could be limited.Over time,the rapid expansion of data centers mayoutpace the capacity of these reliable sites.Balancing addressing demand with sustainability goalsAs data centers continue to demand reliable power to meet a share of their anticipated demand,some are seeking

33、 to power their operations withclean energy by supporting the buildout of renewable energy.Solar and wind capacity contracted to US data centers has grown to nearly 34 GWthrough 2024,representing close to half of the total renewable contracts in the United States,and could reach 41 GW by 2030.As the

34、 growth inrenewable power accelerates,energy storage solutions are also expected to increase penetration to address the intraday and seasonal variability.Water scarcity is another concern.Data centers are water-intensive,and their proliferation,especially in water-stressed regions,could exacerbateex

35、isting shortages.As noted in our 2024 Power and Utilities Outlook,electric power companies are increasingly monitoring water stress,withsome incorporating water risk into their?nancial disclosures,and this is expected to continue in the upcoming year.In 2025,utilities,policymakers,and data center op

36、erators will likely collaborate to balance priorities such as grid upgrades,renewable energyprocurement,water resource management,and equitable cost allocation.Di?erent business models will emerge,with large utilities partnering withlocal ones to manage data center loads.For example,Tennessee Valley

37、 Authority is collaborating with local distribution companies on demandresponse and energy e?ciency initiatives and has also partnered with Origis Energy to develop a power plant for Googles data centers inTennessee.At the same time,there may be a shift of hyperscalers moving ahead without utilities

38、 as key partners,based on an October 2023 estimation thatprojected one-third of data centers would likely be powered by independent power producers and other business structures in 2030.2.Greater nuclear integration:Utilities are implementing strategies to boostnuclear power useIn 2024,utilities beg

39、an rethinking the role of both existing and new nuclear,likely recognizing its potential to provide a di?erentiated valueproposition for a decarbonized grid.This shift is re?ected in actions and plans,in which they appear to be increasingly incorporating nuclearpower into their portfolios in multipl

40、e ways.Extending and enhancing existing sites:Utilities are actively extending reactor operating life,uprating existing capacity,and even restartingclosed reactors.A report prepared for the Department of Energy(DOE)indicates that an additional 60 GW to 95 GW could be built atexisting nuclear power p

41、lant sites across 31 states.Leading utilities are actively pursuing value from their nuclear assets.For example,DukeEnergy Carolinas and Duke Energy Progress have recommended extending the lives of existing nuclear plants,recognizing their role in providingreliable and carbon-free electricity.Public

42、 Service Enterprise Group Inc.is pursuing thermal and e?ciency upgrades at their co-owned nuclearfacilities,potentially increasing output by up to 200 MW and qualifying for tax credits.Even closed reactors are being reconsidered.In 2023,Holtec?led an application with the US Nuclear Regulatory Commis

43、sion to resume operations at the Palisades nuclear plant in Michigan,whichwas retired in 2022.Repurposing coal plant sites:Transitioning retiring coal plants to nuclear plants o?ers an opportunity to leverage existing infrastructure,accelerate deployment,and mitigate economic losses in coal-dependen

44、t communities.A study by the DOE estimates that 36 states have suitablecoal sites that could host 128 GW to 174 GW of nuclear capacity,including advanced reactors,potentially saving up to 35%of construction28293031323334353637383940414243444546costs.At least 11 states have publicly expressed interes

45、t in repurposing their coal sites with nuclear energy.This approach could also o?ersigni?cant carbon reduction bene?ts of up to 614 million to 835 million metric tons of carbon dioxide per year.Embracing advanced nuclear technologies:Small modular reactors(SMRs)and other advanced nuclear technologie

46、s hold potential forenhancing grid?exibility,safety,and resilience(?gure 2).Their smaller size,modular design,shorter time to market,and enhanced safetyfeatures can allow for deployment in locations not suitable for traditional reactors.Some SMR designs can operate for up to 40 years withoutthe need

47、 for refueling and can be located closer to energy consumers,overcoming grid constraints and enhancing safety.More utilities arelikely considering advanced nuclear to boost grid capacity as they o?er greater siting?exibility than traditional nuclear plants.A con?uence of factors is driving these act

48、ions.Nuclear as a base load resource:Despite the high construction costs,nuclear power plants can o?er a compelling solution for clean andreliable energy.With a single reactor typically generating 800 MW or more,these plants can easily meet the substantial power demands of datacenters,which range fr

49、om 50 MW to 100 MW(and up to 1000 MW for AI-related data facilities).This steady generation can ensure datacenters have ample,reliable electricity,aligning with sustainability goals and reducing carbon footprint.Supportive policy environment:Certain government incentives and research and development

50、 investments may be helping contribute to afavorable environment for nuclear energy development.This includes a signi?cant?nancial incentivefor instance,the US$2.5 billion AdvancedReactor Demonstration Projects that aim to accelerate the deployment of next-generation nuclear technologies.Tax credits

51、a 30%investmenttax credit for new nuclear projects and a production tax credit of US$27.5/MWh for the?rst 10 years of operationare helping make nuclearenergy more?nancially attractive.47484950515253Growing investor con?dence:Fourteen of the worlds largest banks and?nancial institutions are pledging

52、increased support for nuclear energyto meet the COP28 goal of tripling nuclear capacity by 2050.In 2024,Constellation Energy issued the?rst US corporate green bond fornuclear projects to be used for maintenance,expansion,and life extensions of nuclear energy projects.The share of nuclear-related bon

53、ds in theutilities sector has risen to 3%year-to-date,up from under 1%in 2021 and 2022.Financing has focused on refurbishing existing reactors,butsustainability-themed bonds now also support new builds.Despite this momentum,challenges remain.Deloitte 2024 power and utilities industry survey responde

54、nts recognized waste management anddisposal concerns and high initial capital costs as the top challenges to adoption of advanced nuclear technology(?gure 3).Additionally,the United States may need to strengthen its domestic uranium supply chain.The bipartisan Prohibiting Russian Uranium ImportsAct,

55、enacted in May 2024,banned the import of unirradiated low-enriched uranium from Russia and allocated nearly US$3 billion in federalfunding to enhance domestic uranium production.This legislation aims to strengthen US energy security and stimulate the domestic uraniumindustry.In 2025,utilities are ex

56、pected to continue to:Seek partnerships to accelerate the deployment of advanced reactors to drive innovation and cost reductions.Find creative ways to share?nancial risks between public and private sectors and unlock capital.Engage proactively with communities and stakeholders to address concerns a

57、bout safety and waste management.3.Distributed energy resources integration:Utilities look at sum-of-partssolutionsIn 2024,some states and electric utilities integrated behind-the-meter distributed energy resources(DERs)and?exible loads throughcompensations,rate designs,and other models.This occurre

58、d against the backdrop of rising electricity demand,on one hand,with DERsproviding reliability to the grid and challenges such as permitting,and interconnection with building utility-scale resources increasing,on theother.Additionally,extreme weather events,which have been increasing due to climate

59、change,are also impacting the electricity system andcausing power failures.Between 2000 and 2023,80%of all major power outages were due to severe storms,wild?res,and extreme heat.As utilities address these challenges,DERs can provide a variety of capabilities,including energy e?ciency,demand respons

60、e,power generation,and energy storage to the grid.By combining these capabilities,utilities can create smart systems such as non-wire alternatives,microgrids,and545556575859virtual power plants(VPPs),optimizing grid operations and enhancing resilience.For example:DERs used as non-wire alternatives,r

61、egardless of ownership,have the potential to reduce system operating costs and delay the need forsystem upgrades.For example,Xcel Energy recently proposed to state regulators the construction of a network of strategically located solar-powered energy storage hubs.These hubs would be linked with tech

62、nology to operate in concert,designed to enhance grid e?ciency andreliability.The increasing availability of battery electric storage systems has strengthened the case for microgrids to enhance grid resilience and reliability.In February 2024,SDG&E introduced four advanced microgrids capable of oper

63、ating independently or in conjunction with the larger regionalgrid,which provide a combined storage capacity of 180 MWh across four substations.By combining high-capacity,low-deployment DERs like EV storage with vehicle-to-grid technology and low-capacity,ubiquitous DERs likesmart thermostats,utilit

64、ies can create VPPs to optimize peak load management.Deloittes recent analysis points out that residentialelectri?cation creates a load that could potentially serve itself by 2035.Combination of such capabilities can help not only strengthen the grid at its most vulnerable points supporting reliabil

65、ity,particularly in areasexperiencing high energy demand,but also provide resiliency,mitigating the risk of disruptions.Additionally,utilities may still have an opportunity to unlock potential from commercial and industrial customers.The immense energy demandof data centers,often seen as a challenge

66、,can become an asset for the future grid.Their ability to rapidly adjust power consumption levels andlocation can make them candidates for participation in VPPs,enhancing grid stability and supporting the integration of renewable energysources.The introduction ofFERC 2222,which allows DERs to partic

67、ipate in the energy market,would expand the services that VPPs canprovide.Though there have been delays in the implementation across Independent System Operators,in April 2024,New York launched thenations?rst program to integrate aggregations of DERs into wholesale markets.While these solutions may

68、seem isolated,they are expected to continue to converge and could continue to create synergies for a more reliable andsustainable electricity infrastructure.This integration can deliver economic bene?ts to both the grid and customers.As the industry prepares forrising demand from data centers,VPP pl

69、atforms leveraging AI and ML algorithms can aid in managing power generation assets,understandingcustomer behavior,and adjusting output levels based on demand and forecast consumption.However,currently,there are hurdles that need to be overcome to facilitate greater investment in VPP infrastructure.

70、According to Deloitte surveyrespondents,technology integration,cyber,and operation complexities are the top three challenges in scaling VPPs(?gure 4).60616263646566676869In 2025,utilities will likely continue to integrate DERs into the grid with emphasis on the following:Adopting advanced forecastin

71、g techniques for DERs and integrating their impacts into utility load forecasting processesPartnering with DER aggregators to create new business modelsEnhancing customer engagement to tap into that potentialHowever,the success of DER integration could also hinge on robust community engagement.This

72、is likely important for enhancing regulatoryoutcomes by working to ensure that DER projects address the speci?c reliability needs of the community.By involving local stakeholders in thedecision-making process,building trust,and fostering participation,regulators and utilities might help develop more

73、 e?ective and equitable energysolutions that can bene?t both the community and the broader energy system.4.Workforce 2.0:Utilities are cultivating a new generation of talent andembracing new skillsIn the last two years,utilities saw the fastest employment growth compared to employment across traditi

74、onal industrial sectors.ConsolidatedEdison,for example,hired more than 1,600 new employees in 2024 alone,the most since 1973.However,despite recent employment growth,which has helped alleviate some aging workforce concerns,a skills gap is emerging.Over half of the current utility workforce has less

75、than 10years of experience,indicating a need for upskilling and development.Competition for workforce from other sectors and the importance ofretention given the pace of changes in the industry landscape are additional challenges.To meet the challenges of the evolving energy landscape,some utilities

76、 are implementing various initiatives,including record hiring e?orts anddeveloping integrated workforce development programs,while also balancing cost management and e?ciency.Record hiring e?orts:Analysis of job posting data shows a rise in occupations,especially around the key trends identi?ed(?gur

77、e 5).The increase in data centers may require talent with specialized expertise for their operation,management,and energy optimization.Utilitiesare actively seeking engineers,analysts,technicians,and support sta?to help these facilities become integrated into the grid.In fact,job postings7071727374f

78、or data centerrelated roles are surging in key growth markets like Arizona,New Jersey,and Texas.With renewed interest in nuclear power,the demand for a skilled nuclear workforce is rising.Estimates suggest the need to grow the nuclearworkforce by approximately 275%to support new reactor construction

79、,operations,and supply chain needs.Seventy percent of DOEs science,technology,engineering,math workforce programming investments target nuclear,including security priorities and programs forundergraduates,graduates,and students,as well as faculty of minority-serving institutions.Utilities are often

80、competing with other sectors thatare also looking at similar skills to address their power needs.The rise of DERs needs a workforce capable of integrating these technologies into the grid while navigating increasingly complex regulatoryenvironments.The DOEs grid connection road map highlights the ne

81、ed for professionals with expertise in both engineering and policy tomanage the interconnection of DERs.This has led to a surge in job openings for engineers,cybersecurity specialists,regulatory specialists,andattorneys specializing in this area.Integrated workforce development programs:Some utiliti

82、es are implementing a variety of workforce development programs to support thegrowing demand,especially demand for clean energy and energy-e?cient services.Specialized training academies:Focused programs designed to equip employees with the skills needed for speci?c roles,such as DERintegration,cybe

83、rsecurity,and data analytics.DTE Energy,for example,is expanding its energy e?ciency academy to train workers in energy-e?cient home repairs,supporting both community needs and the growing demand for energy e?ciency expertise.Technology integration:Leveraging AI,virtual reality,and other technologie

84、s to enhance training and provide employees with the tools theyneed to succeed.Southern California Edison,for instance,is investing in technologies to improve their data analytics skills,enhancing decision-making and operational excellence using digital and AI capabilities.Financial investments:Fund

85、ing for scholarships,apprenticeships,and other programs helps support the development of a skilled workforce.Community partnerships:Collaboration with educational institutions and community organizations can create pathways for individuals toenter the energy industry,particularly individuals belongi

86、ng to underrepresented groups.Exelon has partnered with the Cal Ripken,Sr.Foundation to open 81 science,technology,engineering,and math centers across various cities they serve,providing students with opportunitiesto gain hands-on knowledge and skills in areas like coding and engineering.As the ener

87、gy transition accelerates,utilities should consider ways to further adapt their workforce strategies.Key areas of focus could include:Technology empowerment:Leveraging AI and advanced analytics can help optimize operations,enable?exible work arrangements,andprovide employees with the tools and insig

88、hts needed to manage a decarbonized grid.Modular skills development:Utilities can adopt a modular approach to training to allow employees to acquire targeted skills and requiredexpertise,keeping pace with technological advancements.75767778798081Cultivating a culture of innovation:It is important to

89、 foster a workplace that encourages continuous learning,experimentation,andcollaboration to drive innovation and address the challenges of the energy transition.5.Carbon management:Some utilities are exploring a toolkit to manage lastmile emissionsEven as utilities transition to cleaner energy sourc

90、es,they face the challenge of addressing“last mile”emissionsgreenhouse gas emissions thatpersist despite best e?orts.These emissions arise from various sources including residual fossil fuel useemissions from natural gas power plants,carbon footprint associated with manufacturing and transporting of

91、 power-generation components,methane leaks from natural gas infrastructure,and emissions from natural gas combustion in homes and businesses.To help address these challenges,utilities are exploring a diverse toolkit of carbon management strategies.Carbon capture and storage(CCS),carbon o?sets,and ca

92、rbon dioxide removal(CDR)are emerging as key components of the comprehensive carbon reduction plans of utilities.Initiatives like the Low-Carbon Resources Initiative are considering potential o?set or carbon removal strategies.1.Some utilities may be considering carbon o?set markets to compensate fo

93、r residual emissions and achieve announced targets by integratingo?set measures into broader emission reduction plans.This involves investing in projects that reduce or remove greenhouse gas emissionselsewhere,such as forestation,land?ll gas capture,and hydro?uorocarbon refrigerant reclamation.Some

94、utilities are even integratingcarbon o?sets into customer-facing programs,o?ering immediate action on emissions while longer-term infrastructure changes areimplemented.However,challenges remain for survey respondents in ensuring project credibility and obtaining regulatory approvals(?gure6).2.CCS te

95、chnologies can capture carbon dioxide emissions from power plants and other sources and store them underground.Utilities areincreasingly investing in CCS projects,driven by technological advancements and policy incentives,including tax credits and grantprograms.However,CCS faces challenges related t

96、o geologic suitability,pipeline infrastructure,permitting,long-term liability,waterintensity,and public acceptance.3.CDR technologies go beyond capturing emissions from speci?c sources and aim to remove carbon dioxide directly from the atmosphere.Some utilities are exploring investments in direct ai

97、r capture technologystart-ups and others are piloting co-location of customer load anddirect air capture(DAC)of CO2.In fact,energy-adjacent activities can enable utilities to generate revenue with CDR opportunities.Forexample,mechanical tree thinning,as a part of vegetation management,produces milli

98、ons of tons of waste biomass.Instead of wasting thewood,it can be buried,used for biochar to improve soil,or even reused in utility operations as a power generation fuel with bioenergy andcarbon capture and storage.In 2025 and beyond,utilities will likely continue to explore economically viable carb

99、on reduction and removal technologies.However,carbonstrategies may evolve with potential policy changes from a new administration.In any event,full-scale deployment is likely still several years away828384858687888990but progress on these?rst-of-a-kind projects is expected to continue.Navigating 202

100、5:Companies focus on grid e?ciency and workforcedevelopment to ful?ll rising demandThe year 2025 could be a real in?ection point for power and utility companies.Amid potential policy and economic uncertainty,utilities areexpected to navigate an unprecedented increase in power demand,which could nece

101、ssitate expedited investment in generation,transmission,anddistribution.Simultaneously,new technologies such as SMR and new energy storage technologies may continue to progress as the industryconsiders a mix of solutions to address this rising demand.Leveraging AI and other digital tools is also exp

102、ected to also be important forintegrating DERs into the grid.Meanwhile,workforce development in existing?elds such as nuclear and in newer renewable technologies couldbe crucial for success in this evolving landscape.Finally,accelerating electri?cation and data center demand may usher in new entrant

103、s and newbusiness models,reshaping the landscape for utility companies.To understand the outlook and perspectives of organizations across the power and utilities industry,Deloi?e?elded a survey of 60 US executives and other senior leaders inSeptember 2024.The survey captured insights from respondent

104、s in the generation,transmission,and distribution segments.About the Deloi?e survey2024 power and utilities industry outlook2023 power and utilities industry outlook2022 power and utilities industry outlook2021 power and utilities industry outlookMidyear 2020 power and utilities industry outlook2020

105、 power and utilities industry outlookAccess the archiveLets make this work.Change your Analytics and performance cookie se?ings to access this feature.BYThomas L.KeefeUnited StatesKate HardinUnited StatesJaya NagdeoIndiaContinue the conversationMeet the industry leadersTom KeefeUS Power,Utilities&Re

106、newables leader|Deloi?e&Touche LLPKate HardinExecutive director,Deloi?e Center for Energy and IndustrialsEndnotes?.Deloitte analysis of Energy Information Administration(EIA)sEnergy Power Monthly(data for September 2024),accessed Nov.22,2024.View in Article?.Deloitte analysis based on multiple resou

107、rces:Electric Power Research Institute(EPRI),“Powering intelligence:Analyzing arti?cialintelligence and data center energy consumption,”May 28,2024;S&P Global Market Intelligence,“2024 US datacenters and energyreport,”accessed Nov.22,2024;S&P Global Market Intelligence,“Datacenters and energy 101:Po

108、wering through renewableintermittency,”October 2024;and Chris Seiple,“Gridlock:The demand dilemma facing the US power industry,”Wood Mackenzie,October 2024.View in Article?.Stephanie Valdez Streaty,Q3 2024 Industry insights and sales forecast call,Cox Automotive,Sept.25 2024,p.26.View in Article?.Ja

109、e Haroldsen,“U.S.climate alliance commits to 20 million installed heat pumps by 2030;No word on use of natural refrigerants,”R,Sept.29,2023.View in Article?.EPRI,“Reindustrialization,decarbonization,and prospects for demand growth,”July 25,2024.View in Article?.Deloitte analysis of EIAsEnergy Power

110、Monthly(data for September 2024).View in Article?.Ibid.View in Article?.Deloitte analysis of EIAs Short-term energy outlook data browser,Nov.13,2024.View in Article?.Deloitte analysis of EIAsEnergy Power Monthly(data for September 2024).View in Article?.Ibid.View in Article?.Deloitte analysis of EIA

111、s Short-term energy outlook data browser.View in Article?.Ibid.View in Article?.Regulatory Research Associates(a group within S&P Global Commodity Insights),“Utility capital expenditure update databookH2 2024:20132028f as of Oct.31,2024(excluding gas and water utilities),”accessed Nov.5,2024.View in

112、 Article?.Ibid.View in Article?.Jon Rea and Ryan Foelske,“Whats the state of utility planning halfway through 2024?”RMI,July 12,2024.View in Article?.National Infrastructure Advisory Council(NIAC),“Addressing the critical shortage of power transformers to ensure reliability of the USgrid,”Cybersecur

113、ity&Infrastructure Security Agency,June 2024.View in Article?.National Centers for Environmental Information,“Assessing the U.S.climate in August 2024,”National Oceanic and AtmosphericAdministration,September 2024.View in Article?.Dan Lowrey,“Underearning spread widens for gas,electric utilities in

114、ROE analysis,”S&P Global,May 29,2024.View in Article?.Shankar Chandramowli,Patty Cook,Justin Mackovyak,Himali Parmar,and Maria Scheller,“Power surge:Navigating US electricitydemand growth,”ICF,August 2024,p.13.View in Article?.Deloitte analysis of EIAsEnergy Power Monthly(data for August 2024).View

115、in Article?.Deloitte insights via AlphaSense.View in Article?.Deloitte analysis based on multiple resources:EPRI,“Powering intelligence”;S&P Global Market Intelligence,“2024 US Datacenters andEnergy Report”;S&P Global Market Intelligence,“Datacenters and energy 101”;Chris Seiple,“Gridlock.”View in A

116、rticle?.Deloitte 2024 power and utilities industry survey.View in Article?.Mike OBoyle,Casey Baker,and Michelle Solomon,“Supporting advanced conductor deployment:Barriers and policy solutions,”EnergyInnovation Policy&Technology and GridLab,April 9,2024;Emilia Chojkiewicz,Umed Paliwal,Nikit Abhyankar

117、,Casey Baker,RicOConnell,Duncan Callaway,Amol Phadke,“2035 and beyond-reconductoring with advanced conductors can accelerate the rapidtransmission expansion required for a clean grid,”GridLab,pp.4.Reconductoring transmission lines could add approximately 64 Terawatt(TW)miles of new interzonal transm

118、ission capacity by 2035,compared to about 16 TW miles from building new transmission lines alone.View in Article?.Ethan Howard,“21 states,DOE launch initiative to spur grid-enhancing technologies,advanced conductors,”Utility Dive,May 29,2024.View in Article?.Je?John,“Data centers want clean electric

119、ity.Can Georgia Power deliver it?”Canary Media,April 22,2024.View in Article?.Constellation,“Constellation to launch Crane Clean Energy Center,restoring jobs and carbon-free power to the grid,”press release,Sept.20,2024.View in Article?.This range is based on the assumption that the demand is met 50

120、%through natural gas and 50%through renewables(solar).Deloittesanalysis of multiple sources:EPRI,“Powering intelligence:Analyzing arti?cial intelligence and data center energy consumption,”May 2024;S&P Global Market Intelligence,“2024 US datacenters and energy report,”May 2024;S&P Global Market Inte

121、lligence,“Datacenters andenergy 101:Powering through renewable intermittency,”October 2024;Wood Mackenzie,“Gridlock:The demand dilemma facing the USpower industry,”October 2024;Energy Information Administration,”Construction cost data for electric generators installed in 2022,”September 2024.View in

122、 Article?.Geert De Lombaerde,“AEP,PUCO sta?agree on data center rate plan,”T&D World,Oct.25,2024.View in Article?.Sean Wolfe,“Utilities are grappling with data center growth.One plan could also help scale clean energy,”Powergrid International,May29,2024.View in Article?.Caitlin Flanagan,“Clean trans

123、ition tari?s:An innovative way to accelerate power sector emission reductions,”Center for Climate andEnergy Solutions,Aug.20,2024.View in Article?.Dan Swinhoe,”Nuclear-owning utilities in US primed for more data center energy deals,”Data Center Dynamics,June 24,2024.View in Article?.Laila Kearney,“U

124、.S.regulators raise questions about siting data centers at power plants,”Reuters,Nov.1,2024.View in Article?.S&P Global Market Intelligence,“2024 US datacenters and energy report,”accessed Nov.22,2024.View in Article?.Solomon Klappholz,”Data center water consumption is spiraling out of control,”IT P

125、ro,August 2024View in Article?.Kate Hardin and Suzanna Sanborn,2024 Power and Utilities Industry Outlook,Deloitte Insights,Dec.4,2023.View in Article?.Adam Bruns,“Top utilities provide exclusive insights into the pressing need for more power,”Site Selection,September 2024.View in Article?.Origis Ene

126、rgy,“TVA,Origis Energy to power Google data centers with 100%renewable energy,”press release,Nov.9,2020.View in Article?.Jared Anderson,Darren Sweeney,and Rocco Canonica,”Power of AI:Wild predictions of power demand from AI put industry on edge,”S&P Global,Oct.16,2023.View in Article?.Deloitte analy

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128、fto?:Advanced nuclear,”September 2024.View in Article?.Femi Omitaomu,R.Belles,E.Davidson,and T.K.Kim,“Evaluation of nuclear power plant and coal power plant sites for new nuclearcapacity,”US DOE Systems Analysis and Integration Campaign,Sept.3,2024.View in Article?.World Nuclear Association,“Nuclear

129、 is bedrock of Dukes energy roadmap,”World Nuclear News,Aug.17,2023.View in Article?.Ethan Howland,“PSEG in talks to sell nuclear power to data centers:CEO LaRossa,”Utility Dive,May 1,2024.View in Article?.Justine Calma,“The US could bring a shuttered nuclear power plant back to life next year,”The

130、Verge,Oct.1,2024.View in Article?.Brian Martucci,“US nuclear,coal power sites could host up to 269 GWe of new nuclear capacity:DOE,”Utility Dive,Sept.16,2024.View in Article?.DOE,“8 things to know about converting coal plants to nuclear power,”March 5,2024.View in Article?.Deloitte analysis of EIA,F

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132、e horizon,”Omdia,Dec.8,2022.View in Article?.Chuck Ross,“Get a load of these megawatts:Data center energy demand going nuclear,”Electrical Contractor,Sept.11,2024.View in Article?.DOE,“The O?ce of Clean Energy Demonstrations,”January 2024.View in Article?.DOE,“Pathways to commercial lifto?.”View in

133、Article?.Lee Harris and Malcolm Moore,“Worlds biggest banks pledge support for nuclear power,”Financial Times,Sept.23,2024.View in Article?.Constellation,“Constellation o?ers nations?rst corporate green bond for nuclear energy,”press release,March 18,2024.View in Article?.Deloitte analysis of AlphaS

134、ense data.View in Article?.2024 power and utilities industry survey.View in Article?.Congress.gov,“All information(Except Text)for H.R.1042-Prohibiting Russian Uranium Imports Act,”accessed Oct.29,2024.View in Article?.Climate Central,“Weather-related power outages rising,”April 24,2024.View in Arti

135、cle?.Nicholas D.Laws,Michael E.Webber,and Dongmei Chen,“Valuing distributed energy resources for non-wires alternatives,”ElectricPower Systems Research 234(2024).View in Article?.Frank Jossi,“Xcel Minnesota looks to mimic power plants with solar and storage,”Canary Media,Aug.28,2024.View in Article?

136、.Smart Energy Decisions,“SDG&E unveils four advanced microgrids,”Feb.16,2024.View in Article?.Christian Grant,Craig Rizzo,Kate Hardin,and Carolyn Amon,“Households transforming the grid:Distributed energy resources are key toa?ordable clean power,”Deloitte Insights,June 12,2024.View in Article?.Julia

137、 Hamm and Chase Weir,“C&I customer needs are rapidly changing.How can utilities maximize their relationship?”Utility Dive,Sept.26,2024.View in Article?.Florian Kolb,“Digital economy meets energy transition:Data centers as an asset in energy?exibility and virtual power plants(VPPs),”Energy Central,Oc

138、t.2,2024.View in Article?.Brittany Speetles,Eric Lockhart,and Adam Warren,“Virtual Power Plants and Energy Justice,”National Renewable Energy Laboratory,October 2023.View in Article?.Rao Konidena,“SPPs Order 2222 proposal is taking too long,”Renewable Energy World,July 18,2024.View in Article?.Rober

139、t Walton,“NYISO launches?rst-in-nation DER integration program in move toward FERC Order 2222 compliance,”Utility Dive,April 19,2024.View in Article?.Deloitte 2024 power and utilities industry survey.View in Article?.DOE,“2024 U.S.Energy&Employment Jobs Report(USEER),”September 2024.View in Article?

140、.Deloittes analysis of Consolidated Edison,Inc.-Special Call accessed via AlphaSense.View in Article?.Center for Energy Workforce Development,“2023 Energy workforce survey results,”December 2023.View in Article?.Deloitte analysis of Consolidated Edison,Inc.-Special Call accessed via AlphaSense.View

141、in Article?.Deloitte analysis via AlphaSense.View in Article?.Deloitte analysis of Lightcast database,accessed September 2024.View in Article?.DOE,“Pathways to commercial lifto?.”View in Article?.DOE,“Department of Energy Workforce Development and Readiness Programs,?scal years 2011 to 2022,”May 202

142、4.View in Article?.Diane Baldwin et al,“Distributed energy resource interconnection roadmap:Identifying solutions to transform interconnection by 2035(Draft report),”September 2024.View in Article?.Deloitte analysis of DTE Energy Companys Q2 2024 earnings calls.View in Article?.Deloitte analysis of

143、Edison Internationals Q4 2023 Event Transcript.View in Article?.Lily Baughan,“Accessing STEM Education:CRSF and Exelons transformative partnership,”press release,The Cal Ripken,Sr.Foundation,April 25,2024.View in Article?.Deloittes analysis via AlphaSense.View in Article?.EPRI,“Low-Carbon Resources

144、Initiative(LCRI)Research Vision:An outline for research,development,and demonstration activities toenable economy-wide decarbonization by midcentury,”Aug.19,2022.View in Article?.Deloittes analysis via AlphaSense.View in Article?.Ibid.View in Article?.Deloitte 2024 power and utilities industry surve

145、y.View in Article?.Sonal Patel,“Carbon capture projects at gas-?red Cane Run 7,coal-?red Four Corners get federal awards,”Power Magazine,Sept.19,2024.View in Article?.Maria Gallucci,“Avnos raises$36M to pull CO2 and water from the sky,”Canary Media,Feb.6,2024.View in Article?.O?ceof Fossil Energy an

146、d Carbon Management,“Selections for funding opportunity announcement 2560:Direct air capture combinedwith dedicated long-term carbon storage,coupled to existing low-carbon energy,”April 14,2022.View in Article?.Nick Pappas,Jon Martindill,Ben Rubin,and Isabella Corpora,“Utilities and carbon removal:A

147、 gigaton scale opportunity,”OurEnergyPolicy,Oct.8,2024.View in ArticleAcknowledgmentsThe authors would like to thank Akash Cha?erjee for his role as key contributor to this report,including research,analysis,and writing.The authors would also like to thank Christian Grant,Patricia Tuite,Susan Goldsm

148、ith,Julia Tavlas,Catherine King,and Patrick Howard for theirsubject matter input and review.Finally,the authors would like to acknowledge the support of Clayton Wilkerson for orchestrating resources related to the report;Randy Brodeurand Kim Buchanan who drove the marketing strategy and related assets to bring the story to life;Alyssa Weir for her leadership in publicrelations;Aparna Prusty and Pubali Dey from the Deloitte Insights team who edited the report and supported its publication;and Harry Wedel forthe visual design.Cover image by:Rahul Bagotia