IFS research finds utilities shift investment focus to grid resilience, energy affordability
XLU•A study of 850 senior utility executives found investment priorities shifting toward grid resilience, reliability and affordability. Grid hardening ranked as the top operational priority, while 57% said industrial AI was critical to cutting costs.
1. Utilities’ shifting priorities
IFS analysis found utilities shifting investment from decarbonization-first plans toward grid resilience, reliability and energy affordability. Executives cited load growth, electrification and extreme weather as key sources of operational pressure. Grid hardening ranked as the top operational priority, and 26% said they were re-evaluating asset portfolios to prioritize investment in existing infrastructure. While 57% viewed industrial AI as critical to cutting operating costs, 49% cited siloed operational data as a modernization constraint, and 33% rated asset lifecycle management as advanced.
