Industry Insights

Weathering the Storm: Building Utility Resilience Amid Increased Energy Demand

December 23, 2024

The NOAA’s U.S. 2024 Winter Outlook signals a tough season ahead, forecasting a high likelihood of severe winter storms across large sections of the United States. At the same time, utilities are grappling with unprecedented electricity demand, driven by data centers, the growing adoption of electric vehicles and a shift to electric heating systems. These factors place significant strain on the grid during peak weather events, highlighting the interconnected nature of today’s challenges.  

The convergence of extreme weather and surging energy demand creates new challenges for utilities in delivering safe and reliable energy and water to their communities, especially when disaster strikes. To address them, utilities must adopt a multifaceted approach that prioritizes resilience, embraces advanced technologies and enables real-time operational adaptability. Here are several steps they can take to prepare for the upcoming winter and beyond.  

Invest in Grid Modernization 

The key to building a more resilient grid begins with modernization. Utilities are increasingly adopting next generation Advanced Metering Infrastructure (AMI), which transforms traditional metering systems into intelligent, multi-sensor platforms. These advanced systems provide real-time data on grid performance, enabling utilities to monitor and respond to changing conditions with precision. 

Unlocking the full potential of this real-time data starts with reliable, Intelligent Connectivity. In the face of extreme weather, this expands beyond robust infrastructure—it demands an integrated network of advanced technologies designed to work together. By combining next generation AMI, public or private LTE networks and IoT sensors on a unified platform, utilities create a system that is both scalable and flexible for diverse use cases. Intelligent Connectivity ensures continuous, self-optimizing, reliable communication across the network, enabling quick responses to challenges and driving greater operational efficiency. 

Optimize Load Management with Distributed and Grid Edge Intelligence 

Layered on top of next-generation AMI is Grid Edge Intelligence, including distributed intelligence (DI), a transformative approach that brings data processing and decision-making to the grid edge. By enabling smart endpoints and sensors to analyze data and act locally, DI reduces latency and ensures near-instant responses to issues such as equipment failures or outages. For example, during a severe winter storm, DI-enabled devices can detect grid faults and reroute power autonomously, minimizing disruptions and improving resilience. This decentralized decision-making enhances reliability and operational efficiency while alleviating pressure on centralized systems. 

At the same time, rising energy demands—driven by data centers and the adoption of electric vehicles, heat pumps and other electrified systems—creates heightened challenges during extreme weather events. Cold snaps and other peak demand periods can strain infrastructure, increasing the risk of outages if not proactively managed. This is where grid edge intelligence becomes an indispensable tool for utilities. 

Grid Edge Intelligence provides real-time insights into energy consumption patterns, enabling utilities to optimize distribution and respond to localized surges in demand. When combined with DI, advanced load management strategies, such as demand response programs and behavioral energy management, empower customers to adjust their usage during critical periods. For instance, during a peak demand event, customers can delay electric charging or modify thermostat settings in response to utility incentives. Together, DI and Grid Edge Intelligence enable utilities to balance the grid, enhance service reliability and adapt to the growing demands of an electrified future. 

Enhance Water and Gas Systems with IoT and Edge Capabilities 

While much of the focus is on the electric grid, water and gas systems also face significant risks during extreme weather events. Frozen pipes, gas leaks and inefficiencies in distribution networks can disrupt service and create safety hazards. Proactive monitoring and management are critical for these systems to withstand severe conditions. 

IoT-connected sensors offer utilities a window into the real-time health of their water and gas networks. These sensors, when paired with edge computing capabilities, can detect leaks, pressure drops or other anomalies almost instantly. Edge devices process this data locally, allowing utilities to act quickly without relying on centralized systems. For example, a utility could isolate a gas leak or reroute water supplies in response to frozen infrastructure, minimizing service disruptions and preventing further damage.

Meeting the Challenges of Energy Demand and Severe Weather 

The dual pressures of rising energy demand and extreme weather events present both significant challenges and unique opportunities for utilities. Transitioning to a more electrified future requires forward-thinking strategies to meet increasing demand while ensuring reliability. At the same time, the growing severity of climate-related events calls for infrastructure that is resilient, intelligent and responsive. 

As the 2024 winter season kicks off, utilities must take decisive steps to prepare their networks for the challenges ahead. By embracing advanced technologies, fostering collaboration and implementing adaptive strategies, they can ensure communities stay powered, connected and safe when it matters most. 

By Matthew Smith


Matthew Smith has more than 25 years of entrepreneurial experience in the energy, home computer and consumer electronics industries. At Itron, Matthew sets the global business and product strategy for the grid management line-of-business. This involves managing company initiatives to provide networking solutions that enable utility use cases such as FLISR, CVR/IVVC, demand response, distributed energy resource (DER) management and outage management. Prior to Silver Spring Networks Matthew worked at Greenbox Technology, an early leader in customer-facing smart grid applications, where he was head of marketing and sales. Matthew earned his MBA from the Presidio School of Management and his B.S. degree in Computer Science from the University of Pittsburgh. Matt was selected to represent Itron in the ClimateForce Leadership-On-the-Edge program and spent 12 days in the Arctic for the 2019 expedition.


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