2020 Utility Trends that will Help Define the Future

The folks at Advanced Energy Economy (AEE) published a list of the top 2020 utility trends, and although there is nothing totally Earth-shattering on the list, it definitely highlights where the industry is heading.

Summary of the Top 2020 Utility Trends

Here is an abridged version of the AEE’s list of the top 2020 utility trends (if you want to peruse the complete article, click here):

• FERC in flux: The transition from Trump to Biden will trigger massive changes to federal energy policy around wholesale electricity markets, distributed energy resources (DERs) and renewable energy sources, among other things.
• The COVID curveball: The coronavirus has wreaked havoc on the global economy, and the utility industry, while shielded from the worst of it, did not get off scot-free either. Utilities from all sectors have been forced to accelerate their transition into the digital age, and restrictions around disconnections continue to linger.
• The devil you know: In the 10 states where voters, not governors, appoint utility commissioners, every incumbent won reelection.
• Mean & clean: The momentum behind 100% clean energy continues to grow – a total of 18 states have now instituted 100% renewable mandates. The most recent state mandate came from Arizona, which is targeting 100% renewable energy by 2050.
• It’s electric: Over $1 billion in electric vehicle projects were approved across the U.S. in 2020. Leading the way is California, which aims to achieve 100% zero-emission light-duty vehicle sales by 2035.  New York, North Carolina and South Carolina are also making an aggressive push into the EV sector.
• Coal plant self-scheduling comes under fire: Some utilities use self-scheduling as a loophole to operate uneconomic coal plants and then charge customers the difference between what the power sells for in the wholesale market and what it actually cost to produce the power. For obvious reasons, regulators are not pleased with this loophole, and their disdain for it continues to grow.
• The future is now: Utility business model innovation is accelerating thanks to incentive-based rules introduced in several states.
• Distribution system planning on the rise: Utility commissions across the U.S. are pushing for more transparency around utility distribution investment initiatives to ensure they are aligned with consumer interests.
• Storage is getting unpacked: Many states are green-lighting the development of innovations in energy storage technologies like batteries and hydrogen energy storage to facilitate the implementation of clean energy and distributed generation assets on a much larger scale than is currently achievable.
• It’s the data, stupid: Multiple states are looking into the deployment of statewide data platforms to provide increased access to energy use data for customers, market players regulators and other stakeholders.

So, there you have it, my summary of the top 2020 utility trends according to AEE.  It will certainly be interesting to see how this list evolves between now and 2022!