Gartner: Electricity Spending Is Shifting from Utilities to Microgrid Providers
FinTech BizNews Service
Mumbai, 7 November, 2024: Gartner, Inc. predicts that through 2027, Fortune 500 companies will shift $500 billion from energy operating expenditure (opex) to microgrids to mitigate chronic energy risks and AI demand.
“We are seeing warning signals that electricity demand is outstripping supply due to delays in investment and permitting,” said Lloyd Jones, VP Analyst at Gartner.
Fortune 500 companies are already investing in infrastructure, such as microgrids, as energy pricing and availability are reaching a tipping point. “In doing so, they are shifting their operational electricity spending from utilities to capital investment in dedicated electricity infrastructure projects,” said Jones. “This allows them to meet their own energy needs and better control their costs going forward.”
Microgrids Offer Better ROI
Microgrids are power networks that connect generation, storage and loads in an independent energy system. The system can operate on its own or with the main grid to meet the electricity needs of a specific area or facility.
“Microgrids are challenging the traditional business model of utility-provisioned electricity,” said Jones. “They offer companies a secured independent electricity system that may synchronize with the grid to trade energy resources when market conditions are favorable. As well as improving resilience, microgrids will provide renewable energy, lowering the carbon footprint.”
Investing in a microgrid involves significant upfront costs. Organizations should consider the long-term benefits which include uninterrupted operations and protection against grid failures.
“For Fortune 500 organizations, who spend a fair amount of their operating expenses on energy, investing in microgrids offers a better return than continuing to pay volatile utility bills,” said Jones. “It also creates competitive advantage for day-to-day operations and derisk energy supply in the future.”
Electricity Systems to Become More Dynamic
Whether organizations invest in microgrids or other power supply options, organizations should take action in switching up their power supply. “Delaying action exposes businesses to mounting costs and constraints caused by an outdated grid, as high demand outpaces the availability of the existing system and its supply chains,” said Jones.
Gartner analysts expect the electricity systems will become more dynamic. Utilities, tech giants and the industry need to act now:
Gartner clients can read more in “Gartner’s Top Strategic Predictions for 2025 and Beyond: Riding the AI Whirlwind.”
Gartner IT Symposium/Xpo
Gartner IT Symposium/Xpo is the world's most important gathering for CIOs and other IT executives. IT executives rely on these conferences to learn how to amplify the impact of the technology, insights and trends shaping the future of IT and business. Follow news and updates from the conferences on X using #GartnerSYM, and on the Gartner Newsroom.
Upcoming dates and locations for Gartner IT Symposium/Xpo include:
November 11-13 in Kochi, India.
