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Analysis
Empowering your advantage in a changing energy world
Unlock new opportunities in the future of power and utilities
Our 2025 power and utilities industry outlook shines light on how rising electricity demand and strategic decarbonization efforts are reshaping the energy landscape. Leverage key insights to help navigate challenges, drive growth, and build competitive industry advantage as you advance a more sustainable future.
At a glance: Forces transforming the industry
- Higher electricity demand: Accelerated growth fueled by data centers, electric vehicle adoption, and industrial reshoring.
- Decarbonization imperatives: Renewables, nuclear, and emerging technologies are driving clean energy targets and shaping power portfolios.
- Evolving grid dynamics: Investments in infrastructure, supply chain constraints, and weather events underline the importance of modernization.
- Focus on resilience: Utilities face record capital expenditures to help fortify transmission and distribution systems against growing vulnerabilities.
- Shifting workforce needs: Rapid hiring and new skill sets are important to delivering on expanding and diversifying energy demands.
Five trends defining the future of power and utilities
Data centers—fueled by the rise of artificial intelligence (AI), machine learning, and other digital innovations—are consuming an ever-larger share of electricity. Utilities are using varied approaches to handle higher demand, from advanced grid technologies and rate structures to multiple sources of electricity to closer collaboration with large energy users. This can help balance reliability with affordability while exploring cleaner alternatives.
Some utilities are extending the life of existing nuclear plants or exploring new nuclear technologies, including small modular reactors. Nuclear energy’s clean baseload power can help address electric grid issues by stabilizing supply as renewables expand. Federal incentives and rising inventor interest are further spurring innovation and deployment in this area.
Incorporating distributed energy resources (DERs)—such as rooftop solar, electric vehicle storage, and battery storage—can offer flexibility, reliability, and potential cost savings. Virtual power plants (VPPs) and microgrids can optimize these resources, enhance grid resilience, and help meet evolving electricity demand. Stakeholders who view these diverse technologies as a sum of parts can enhance their operational efficiencies and competitive advantage.
From nuclear specialists to smart grid analysts, the race to recruit and retain skilled talent is intensifying. Some utilities are launching specialized training academies, upskilling current employees, and partnering with educational institutions. This focus on workforce transformation can help support the integration of new technologies and manage dynamic shifts in the energy landscape.
Beyond fuel switching and renewables, some utilities are pursuing carbon capture, carbon offsets, and direct air capture to address “last mile” emissions. As policy and innovation evolve, a diverse carbon management toolkit can help utilities pave the way for cleaner, more sustainable operations.
Gain an industry advantage with strategic, actionable insights
Dive deeper into these ideas and learn how electric power utilities are positioning themselves for the path ahead.
Anticipating tomorrow’s energy progress
Power and utilities organizations are facing unprecedented opportunities and obstacles as they respond to intensifying energy needs, emergent technologies, and mounting calls for cleaner energy.
Our outlook explores how strategic planning, digital innovation, and collaboration with public and private stakeholders can help accelerate progress. By examining these trends, leaders can maintain a sharper edge on the future of electric power utilities while staying ready to adapt to unforeseen shifts.
Illuminate new possibilities in energy
Insights and targeted transformation solutions that can help your business create a competitive advantage.
Connect with our leaders
As the power and utilities industry evolves, it’s important to collaborate with professionals who provide not only deep experience and robust digital capabilities but also tailored business strategies. Deloitte stands ready to navigate this transformation, helping your company create a competitive edge through bespoke solutions.
