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Perspective:
Perspective
13 Oct 2025
3 minute read

Advancing utilities’ smart operations: An integrated approach to grid modernization

Dr. Thomas Schlaak
Christian Grant
Dieter Vonken
Advancing utilities’ smart operations: An integrated approach in grid modernization
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Navigating the complexities of grid modernization in today’s dynamic energy environment requires utilities to rethink how they deliver safe, reliable, and sustainable electricity while balancing cost, resilience, and stakeholder expectations.

As utilities respond to shifting customer demand, driven by the rise of electric vehicles, renewables, and smart technologies, they should   address mounting challenges: grid congestion, reliability risks, and the imperative for enhanced resilience. Meeting these demands calls for more than incremental upgrades; it requires a holistic transformation that leverages digital innovation and data-driven decision-making across the enterprise.

To optimize the value of existing infrastructure and enable future-ready operations, utilities are moving beyond traditional expansion strategies. Instead, they are deploying advanced systems such as Advanced Distribution Management Systems (ADMS), Distributed Energy Resource Management Systems (DERMS), Advanced Metering Infrastructure (AMI), Geographic Information Systems (GIS), and Outage Management Systems (OMS) and integrating these technologies to unlock new efficiencies. This integrated approach empowers utilities to manage distributed energy resources, harness demand-side flexibility, and deliver on regulatory and shareholder expectations, while controlling costs and mitigating operational risks.

This report seeks to explore the key challenges for grid modernization, addresses concepts for smart operations in the grid context, as well as the steps needed to establish a modernized and digitalized electricity grid.

Learn how Deloitte is helping utility companies

Within many utilities, smart operations present a distinctive opportunity. Utility executives now recognize that ambitious targets cannot be met solely through traditional, incremental progress. Yet, despite regulatory and financial constraints, incremental changes alone are insufficient. Necessity drives innovation, making a deliberate and effective culture of innovation imperative. These are some steps utilities can take towards grid modernization:

  1. Vision-Driven Innovation: Utilities are embracing a culture of innovation, setting clear long-term goals and fostering adaptability to drive meaningful change.
  2. Automation & AI Integration: Smart operations leverage process automation, robotics, and agentic AI to boost efficiency, safety, and decision-making across the grid.
  3. Programmatic Transformation: A holistic, programmatic approach—combining technology, people, and processes—enables utilities to optimize reliability, affordability, and sustainability.
  4. Charting a Course for Grid Modernization: Practical steps utilities could consider when embarking on their grid modernization journey.
  5. Vision & Strategy Alignment: Unify leadership around a clear modernization vision linked to business goals.
  6. IT/OT Integration: Coordinate IT and OT systems for accurate data and seamless operations.
  7. Intelligent Asset Management: Adopt predictive maintenance and automation to optimize asset performance.
  8. Purposeful Data Use: Build strong data processes and standards for actionable insights.
  9. Workflow Modernization: Transform business processes for agility, efficiency, and resilience.
  10. Embedded Cybersecurity: Design security into every layer with zero-trust and advanced threat detection.
  11. Digital Twins: Simulate and optimize assets virtually for smarter investment decisions.
  12. Governance & Risk Intelligence: Strengthen frameworks and upskill teams for proactive risk management.
  13. Alliances and the strength of the ecosystem: Collaborate with technology partners and stakeholders to accelerate innovation.

These steps set utilities on a path to smarter, more resilient grid operations.

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Dr. Thomas Schlaak

Dr. Thomas Schlaak

Global Sector Leader | Power, Utilities & Renewables
+49 403 208 04894

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