2024 has been quite a year to be in the utility space.
It’s incredible to reflect on the transformative trends and moments we’ve seen in the sector this year. The pace of change and innovation is staggering, and the challenges and opportunities utilities face have never been more significant.
Some notable highlights from this past year include:
The astounding growth of data center energy needs: AI and cloud computing have driven exponential demand, with data centers projected to account for 8% of U.S. electricity consumption by 2030. AI is changing society and will have lasting impacts on the energy landscape as well.
The historic Newfoundland-Quebec electricity deal: This agreement not only replaces the contentious 1969 Churchill Falls contract but also paves the way for economic balance and energy security across both provinces—a shift that will undoubtedly shape energy dynamics across all of the Northeast. Can more regional collaboration follow?
The dawning recognition of the natural gas network’s critical role in energy supply: Policymakers are increasingly acknowledging the essential role natural gas utilities play in North America’s energy system, particularly in colder climates. Natural gas is a cornerstone of affordability, resiliency, energy security, and reliability.
Hydrogen’s potential gains traction (maybe?): Both green and blue hydrogen are advancing, with major projects in places like Atlantic Canada, Alberta and the U.S. Gulf Coast. Yet, challenges remain. Hydrogen still faces hurdles in cost reduction, securing offtake agreements, and sustaining government support—particularly in light of shifting political priorities in the U.S. (And likely Canada too).
Demand response and load shifting are becoming pillars of system health: Virtual Power Plants are now managing significant amounts of energy, leveraging distributed energy resources to enhance grid resilience and reduce energy costs. Expect this trend to continue as grid stability faces increasing challenges.
Innovations in rate design: Rate design is starting to catch up with the realities of more complex systems. For example, subscription-based pricing models introduced by some U.S. utilities are transforming customer relationships. Rate design will need to be high on the list of utility objectives if they truly believe in clean, reliable AND affordable energy.
And, of course, this is just the beginning. From groundbreaking technology to significant policy shifts and innovative solutions, the energy sector is rewriting the playbook on what it means to be a utility.
We’re proud to have worked alongside forward-thinking utilities and stakeholders across Canada and the U.S. this year, tackling challenges and advancing opportunities that make a difference. As we head into 2025, the drive for innovation and collaboration will only grow stronger.
Here’s to an exciting year ahead!