Performance Benchmarking
Comparing the company’s performance against industry standards and leading practices to identify areas for improvement.
Momentum toward a clean energy future continues. When we consider the various commitments to clean energy being made by both utilities and other corporations, efforts to electrify transportation, and the significant strides in development of clean technologies, the transition has seemed certain, manageable, and near-at-hand.
However, as the industry begins to take action to achieve these goals, the difficulty of the task ahead has become evident. No one thought this transition would be easy, but challenges are emerging that were difficult to anticipate, whether significant weather events, geopolitical conflict, sticky inflation, or enduring supply chain and labor challenges.
Utilities and regulators across the United States continue to focus on ambitious greenhouse gas reduction targets, and the energy industry is strategizing how to achieve the clean energy transition. The “how” matters a lot as investments will have to be made across the utility value chain—from energy generation to transmission & distribution to the grid edge. These investments will come in the form of new technologies being deployed at scale (like energy storage and hydrogen) and traditional infrastructure investments deployed for new purposes (transmission to interconnect renewables). And this all needs to be done while maintaining reliable service and keeping customer rates affordable.
Importantly, as the industry focuses on the electrification of transportation and end-use heat, electric loads are expected to increase by 40% to 60% (or more) between now and 2050.1 Not only will new investments across the value chain be required, but they will have to be installed to meet amounts and types of loads the power system has never seen and demand that will behave differently than it used to.
As we contemplate the energy generation mix, significant investments are expected in intermittent renewables, which raises the question of the role of baseload power and the need for the minimum amount of electric power needed to be supplied to the electrical grid at any given time.
The new generation mix will be different but how and when matters. Natural gas generation will likely continue to play a significant role for the foreseeable future. How does this complement of resources meet the electric loads anticipated in the coming decades? How will new technologies such as advanced nuclear reactors and fusion develop to help meet these needs? What role will grid-scale storage play? How do generators manage their assets for an uncertain retirement date depending upon reliability needs?
Transmission is once again literally and figuratively at the center of the energy future (and yes, some of us remember when it took center stage 20 years ago). Without transmission connecting new generation resources, including those distant from load centers, the United States will not meet its clean energy goals. As such, incentivizing the right transmission to be built in the right places is critical. FERC is working on several fronts to address the various challenges facing transmission development. Will that be enough?
As customers purchase electric cars and add solar panels and batteries to their homes, the distribution side of the grid is rapidly changing. Utilities are learning to manage the grid differently and are investing in technologies that enable capabilities not even contemplated 20 years ago. The combination of customer demand, regulatory enablement, enhanced demand management, and energy efficiency are shifting how the grid is operated.
As companies contemplate the “how” of this transition, ScottMadden can help. We work in every business unit and every function and understand how these changes will impact you and your team. We work with you to meet these strategic imperatives while continuing to focus on what you and your team have always done—keeping the lights on and customer costs reasonable.
We don’t solve problems with canned methodologies. We help you solve the right problem in the right way. Our experience ensures that the solution works for you.
Distribution investment has been growing steadily for at least a decade and is expected to comprise the most significant portion of utility capital spending over the next…
Episode 2: In this episode, the model uncovers challenges and capacity demand that regulators, utility executives, and customer advocacy groups should consider as coal phases out and…
Absent major policy changes, transmission development will be a significant obstacle to an orderly clean energy transition.
Recent headwinds from regulators in some states have shown that the grid modernization proposals of utilities are by no means guaranteed approval. This white paper highlights the…
The evolution of energy markets presents financial and operational benefits for participating utilities. Access this ScottMadden article to learn about key considerations for potential market participants.
This report, prepared by ScottMadden for WIRES, includes a comprehensive overview of the state of play of transmission. It examines, region by region, the challenges posed by…
The following video features Cristin Lyons, partner and energy practice leader and Justin Stevens, partner as they discuss the ScottMadden Grid Modernization Road Map – a set…
Access this white paper for an in-depth comparison of utility-scale and distributed renewables. Learn how to best integrate and effectively manage these resources to maximize benefits to…
This update profiles continued progress in smart grid investments, reliability achievements under the Energy Infrastructure Modernization Act (EIMA), and the recently completed NextGrid Illinois of the Future…
Themed "Don’t Stop Believin'," this issue explores the growth strategies energy and utility companies are undertaking and how they are developing and modernizing needed infrastructure. We also…
During the 2019 Utility Supply Chain Conference, Cristin Lyons reviewed the latest Energy Industry Update and shared key highlights for topics including electrification, wholesale energy infrastructure development,…
This webinar recording reviews bid-based wholesale power markets, the future of utility-scale solar, and grid investment. View this recording to hear from our expert leads.
Are you wondering how New York’s Reforming the Energy Vision proceedings will impact the market for energy storage? ScottMadden recently moderated a panel on the role of…
Grid modernization efforts will play a critical role in today’s changing energy landscape. Demonstrating the value of grid modernization investments is necessary to gain regulatory approval of…
A Brief History of Utility Planning Prior to the 1990s, investor-owned utilities (IOUs) were largely vertically integrated, housing each utility function—generation, transmission, and distribution—under one roof. This…
A national developer, owner, and operator of utility-scale wind, solar, and battery storage assets recently completed a major acquisition, expanding their asset portfolio and project pipeline to…
To take advantage of an acquisition opportunity, our client, a power generation investment firm, contacted ScottMadden to support the diligence of an in development utility-scale wind energy…
Before setting any carbon reduction goals or developing a roadmap to achieve targets, organizations must first understand their emissions profile. Carbon accounting is the process of identifying…
While this roadmap is specific to Massachusetts, as an early mover in developing various pathways and sector analysis, the Commonwealth’s approach may provide a framework for other…
As owners and operators of vehicle fleets as well as providers of electricity, utilities have a unique opportunity to take advantage of fleet electrification. Through their own…
What are the implications of the potential loss of carbon-free generation? This article examines key issues and what it means for the energy future.
This report explores how the progress created by solar and wind carbon-free generation is “at risk” of being reversed due to early retirement of currently operating nuclear…
The energy industry is changing, and its regulatory and financial moorings are shifting. Competitive markets combined with other factors may lead to early nuclear unit retirement. Continuing…
The electric industry seems to be on the cusp of great change. Regulators are rethinking the hundred-year-old rate-of-return paradigm, renewables costs are falling (especially for solar photovoltaic…
This report explores the shift in nuclear carbon-free generation in the U.S. and implications for our energy future.
Energy Industry Update – A Strategic Overview
The ScottMadden Energy Industry Update – Winter 2015 Changes: Turn and Face the Strange
State of the Energy Industry: A Mid-Year Review (or “I Feel the Earth Move under My Feet” – with apologies to Carole King)
This case study highlights how ScottMadden was able to successfully assist one of the nation’s largest municipally owned electric utility in updating its solar program.
The ScottMadden Energy Industry Update – Winter 2013-2014 Here Comes the Sun and I Say...It’s Alright
ScottMadden recently joined the Solar Electric Power Association to lead a group of U.S. energy industry executives to Germany to exchange information with electricity and solar market…
The Energy Industry Update – Spring 2012 Managing with Uncertainty Fatigue
Greening the Grid-a study of the trends and drivers impacting the United States electric grid and its movement towards renewable energy.
The latest Energy Industry Update examines the direction and magnitude of some of the changes and what utilities are doing to prepare for and thrive in a…
This Update, themed “Generation to Generation: An Energy Evolution,” examines the strategic drivers that are challenging, and propelling, our industry and what utilities are doing to anticipate,…
Themed “Recalibration,” this Update examines some of the emerging and continuing trends in the industry, with the hope that it will help energy executives “recalibrate” as our…
In this section of the Energy Industry Update, we share lessons from Australia's experience with high levels of rooftop solar and differing approaches to structuring and pricing…
This section of the Energy Industry Update reviews energy and utility companies and how they are accommodating larger penetration of renewable resources (including distributed PV) on their…
The Energy Industry Update (EIU) is a compendium of breaking news, emerging issues, and recent developments in the energy industry.
The ScottMadden Energy Industry Update – Early Fall 2013 The Times They Are a-Changin’ (or Serenity Now!)
The Energy Industry Update is a semi-annual publication features our view of recent significant events and emerging trends in the energy industry.
ScottMadden Insight: Supply Trends – What Are the Impacts on Transmission? Infocast’s Transmission Summit West Executive Forum
In the January 2010 issue of The ScottMadden Energy Industry Update, we look at areas engaging the industry during these uncertain times—investor views, the generation mix, gas…
How does Hawaii plan to achieve its ambitious goal of 100% renewable energy by 2045? This ScottMadden and SEPA article, featured in the April 2020 Public Utilities…
Decarbonization has become an increasingly important issue in the United States as more states, cities, and utilities commit to net-zero carbon-emissions goals. This report analyzes historical carbon…