Global trends toward clean energy and increasing public calls for decarbonization have created an extremely complex situation for utility companies. This level of change requires significant capital investment that will translate to rate increases. However, in our current economic circumstances, many utility leaders are unsure if they’ll get the approval they need to increase rates to give them the funds to deliver on the ask.

In spite of the uncertainty, the imperative to change is clear: The world is moving toward the adoption of cleaner sources of energy, and to retain their critical role in the energy ecosystem, utilities must figure out how to navigate this new environment. Everyone is in agreement on the destination – a decarbonized energy ecosystem – but most have less clarity on how they will actually get there. The ability to navigate this tension will be one of the major deciding factors as to whether utilities can successfully execute their decarbonization plans.

Right now, there’s a bit of a perfect storm happening. Utilities are spending more on capital to fund the renewables transition, but they aren’t saving on operations and maintenance (O&M) because inflation is driving it up. This is passing unsustainable rate increases on to customers and making energy transition timeframes seem increasingly optimistic.

Para leer más ingrese a:

https://www.utilitydive.com/spons/how-utilities-can-navigate-the-energy-transition-with-near-term-and-long-te-1/731171/