5 Key Trends Shaping the Power Utility Industry in 2026
|
The global power utility industry is being shaped by a combination of grid resilience requirements, changing maintenance approaches, sustainability considerations, and the continued use of established technologies in critical infrastructure. As a result, many utilities are placing greater emphasis on long-term planning that supports system availability, operational efficiency, and lifecycle performance. In parallel, utilities are increasingly preparing for more demanding backup power requirements as grid stress and outage frequency rise, reenforcing the importance of robust continuity and resilience planning, as discussed in recent academic research on backup power distribution during extended outages.1 Several interconnected trends are influencing utility decision-making, including how resilience is considered earlier in infrastructure design, how space and installation constraints are managed, how maintenance resources are planned. Sustainability considerations are also playing a growing role in asset-level evaluations. Academic and industry analysis of utility-scale energy storage deployment suggests that utilities continue to value energy storage technologies with predictable performance and strong alignment with regulatory and operational requirements. As a global supplier of stored energy solutions for industrial and utility applications, EnerSys works with power utilities to align energy storage systems with resilience objectives, operational needs, and long-term sustainability goals, supporting the planning and operation of critical power infrastructure.2 Note from the Author: Through ongoing engagement with industry stakeholders, including utility operators, engineers, and infrastructure professions across different regions, a consistent set of themes emerges: how to maintain reliability while responding to new operational constraints; how to plan for resilience without over-engineering; and how to make infrastructure decisions that remain relevant over decades rather than years. From a market perspective, these insights help shape how the trends are understood and communicated, and they provide important context for the developments. |
INTRODUCTION
Power utilities around the world are operating in an environment shaped by ageing infrastructure, climate-related disruptions, evolving regulatory expectations, and increasing operational complexity, as highlighted in Deloitte’s Power and Utilities Industry Outlook.3 As a result, utilities are reassessing how critical systems are designed, maintained, and supported over their full lifecycle.
This article outlines five key trends shaping the global power utility industry, reflecting how utilities are approaching reliability, resilience, and long-term planning.
1. GRID RESILIENCE IS A CENTRAL PLANNING CONSIDERATION
Grid resilience has become a core consideration for power utilities when planning upgrades to critical infrastructure.
Utilities are preparing for a higher frequency of disruptive events, including extreme weather and network instability, which place additional demands on essential systems. Industry and policy analysis increasingly point to the need for improved grid resilience and flexibility to help maintain reliable electricity supply amid climate-related risks and system stress.4
Backup power systems are increasingly evaluated based on their ability to support:
■ Substation protection and control
■ Communications and SCADA continuity
■ Grid restoration and recovery processes
Rather than being treated as standalone safeguards, resilience measures are being integrated earlier into infrastructure planning to support continuity during extended or repeated events.
2. SPACE EFFICIENCY AND INSTALLATION FLEXIBILITY INFLUENCE DESIGN CHOICES
Utilities are now placing greater emphasis on how energy storage solutions can support efficient use of space and flexible installation. Substations, generation plants, and industrial sites often face physical and operational constraints, particularly when assets are upgraded or expanded.
Energy sector outlooks note that utilities are increasingly deploying energy storage in ways that support adaptable system design and efficient use of existing infrastructure.5
Key considerations increasingly include:
■ Footprint requirements within existing facilities
■ Installation flexibility near critical loads
■ Compatibility with established infrastructure layouts
Energy storage systems that can be integrated without extensive site modification are becoming an important factor in infrastructure decision-making.
3. MAINTENANCE STRATEGIES CONTINUE TO EVOLVE
Maintenance planning is evolving as utilities respond to changes in workforce availability and a broader range of operational risk considerations. Many utilities are reviewing how routine activities are scheduled and how resources are allocated across geographically dispersed assets.
According to Deloitte’s power and utilities analysis, workforce constraints and operational risk are influencing how utilities approach asset management and maintenance planning.6
Current focus areas include:
■ Reducing the need for frequent manual intervention
■ Minimising site visits to remote or unmanned locations
■ Supporting predictable and planned service intervals
Energy storage technologies that align with modern maintenance strategies can support reliability while helping utilities manage operational complexity.
4. SUSTAINABILITY IS INFLUENCING ASSET-LEVEL DECISIONS
Sustainability considerations are influencing how utilities evaluate infrastructure investments. Utilities are adopting broader lifecycle perspectives that consider environmental impact alongside operational performance.
Industry insights from Deloitte highlight that decarbonisation, resource efficiency, and lifecycle management are now integral to utility investment frameworks.7
Common evaluation factors include:
■ Energy efficiency during normal operation
■ Resource use over the service life of assets
■ End-of-life management and recycling pathways
This holistic approach reflects the growing alignment between operational planning and long-term environmental objectives.
5. PREFERENCE FOR ESTABLISHED AND WELL-UNDERSTOOD TECHNOLOGIES
For critical power applications, utilities continue to favour technologies with established operational histories and well-understood performance characteristics. While innovation remains important, infrastructure decisions are typically guided by the need for predictable performance and regulatory alignment.
Market analysis from S&P Global indicates that utility decision-making continues to prioritise reliability, proven performance, and integration with existing systems when selecting technologies for critical applications.8
Technologies selected for essential systems are expected to demonstrate:
■ Proven behaviour across diverse operating environments
■ Alignment with industry standards and regulations
■ Long-term suitability for critical infrastructure roles
This preference reflects the importance of reliability and consistency in utility operations worldwide.
WHY THESE TRENDS MATTER FOR POWER UTILITIES
Taken together, these trends point to a shift toward longer-term planning, greater operational resilience, and increased lifecycle awareness across utility organisations. Power utilities are increasingly evaluating infrastructure decisions based on reliability, maintainability, and overall system readiness rather than short-term considerations alone.
|
REFERENCES
1. “Minimum-cost grid distribution of backup power during long-duration outages,” Optimization and Engineering, October 2025: https://link.springer.com/article/10.1007/s11081-025-10029-6
2. International Journal of Energy Research, Science Direct, July 2024: https://www.sciencedirect.com/science/article/pii/S2211467X24001895
3. Deloitte, Power & Utilities Industry Outlook 2026: https://www.deloitte.com/us/en/insights/industry/power-and-utilities/power-and-utilities-industry-outlook.html
4. World Economic Forum, Grid flexibility for a resilient energy future, January 2025: https://www.weforum.org/stories/2025/01/grid-flexibility-for-resilient-equitable-digital-energy-future/
5. Wärtsilä, 2026 Energy Storage Outlook and Opportunities, December 2025: https://www.wartsila.com/insights/article/2026-energy-storage-outlook-and-opportunities
6. Deloitte: https://www.deloitte.com/global/en/Industries/power-utilities-renewables.html
7. Deloitte: https://www.deloitte.com/global/en/our-thinking/insights/industry/power-utilities-renewables.html
8. S&P Global, Global Energy Horizons – Top Trends 2026: https://www.spglobal.com/energy/en/news-research/special-reports/energy-transition/horizons-top-cleantech-trends-2026
contact an EnerSys® sales representative
Caution Concerning Forward-Looking Statements
EnerSys is making this statement in order to satisfy the “Safe Harbor” provision contained in the Private Securities Litigation Reform Act of 1995. Any of the statements contained in this article that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties. A forward-looking statement predicts, projects, or uses future events as expectations or possibilities. Forward-looking statements may be based on expectations concerning future events and are subject to risks and uncertainties relating to operations and the economic environment, all of which are difficult to predict and many of which are beyond our control. For a discussion of such risks and uncertainties that could cause actual results to differ materially from those matters expressed in or implied by forward-looking statements, please see our risk factors as disclosed in the “Risk Factors” section of our annual report on Form 10-K for the most recently ended fiscal year. The statements in this article are made as of the date of this article, even if subsequently made available by EnerSys on its website or otherwise. EnerSys does not undertake any obligation to update or revise these statements to reflect events or circumstances occurring after the date of the article.
Latest Blog Posts
22.01.26
Data Centers in 2026: 5 Trends Reshaping Power, Cost, and Resilience
12.12.25
Data Center Outages Are Declining, But Here’s Why You Still Need to Prepare
20.11.25
Data centers to power 520% rise in AI traffic this US holiday shopping season
15.10.25
Maximizing Data Center Whitespace Amid Soaring Prices
03.10.25
How Smarter Batteries Can Reduce Data Center Operating Costs
28.07.25
EU Battery Laws Are Changing: Is Your Data Center Ready?
14.04.25
Why Your Data Center's Biggest Threat Might Be The Power Grid
17.01.25
Data Centers in 2025: 5 Key Trends Shaping the Industry
UNLEASH YOUR POWER POTENTIAL
Powering the future requires more than legacy solutions. EnerSys® batteries are engineered to outperform conventional solutions, offering:
CONNECT WITH A MEMBER OF THE ENERSYS TEAM TODAY.
|