T H E 1 2 T H U THE MOST PRESSING CHALLENGES UTILITIES CROSS INDUSTRY N I T E D N A 1 INFLATION & PRICE VOLATILITY 2 TALENT SCARCITY 3 THREATS TO PUBLIC HEALTH T I O N S G L 5% O B A 2% L C O 57% M 52% P 42% 42% 42% 40% A C T - The utility industry must continue A C C E to deliver on its obligation to serve N T U – ensuring reliability of basic R CURRENT LANDSCAPE E C E resources, such as water and S O S T electricity, at an affordable rate TOP RESILIENCE ACTIONS FOR UTILITIES CEOS U D – while facing new challenges, Y such as climate change and of CEOs are of CEOs are of CEOs are digitizing offering physical/ engaging in 69% 69% 64% decarbonization pressure, business processes mental resources to long-term strategic which have quickly risen to the their workforce partnerships top of CEO agendas. A radical IE transformation to a modern, Utility businesses sit at the forefront of private sector decarbonization and sustainability. In the short term, companies are investing more flexible grid is imperative in digital processes and technologies to better understand resource usage to make more informed decisions and empower customers to make more sustainable choices. For example, water utilities are working to bring attention to the ongoing water crisis. Paddy to support a clean energy future.Padmanathan, Vice Chairman & CEO of ACWA Power, notes, “We need to elevate this water crisis into the global consciousness and create a level of attention and recognition that this is going to become a big, all-consuming issue as time goes by.” One way water utilities companies are making strides to safeguard the water supply is by leveraging technologies such as Internet of Things, which helps proactively monitor leaks and water security issues, as well as make suggestions for usage changes to consumers. In addition, to transition the industry towards a digital, tech-enabled future, CEOs are focused on their people, leading the industry to focus IT more than most on the physical and mental well-being of their workforce. WHERE IS THE INDUSTRY GOING? TOP SUSTAINABILITY PRIORITIES FOR UTILITIES CEOS “I see us increasing our pace IL of CEOs are of CEOs are of CEOs are investing in lowering advancing 64% 54% 53% of investment in renewables skills development GHG emissions digital transformation and networks to allow for for sustainability the energy transition. From a climate perspective, there are new solutions emerging and TAs the industry shifts to embrace renewables, utilities are evaluating different opportunities to strengthen the grid and bring more opportunities to invest in a more renewables online, from battery efficiency improvements to interconnected grids. One area of interest is distributed energy resources (DERs), alternatives that enable utility companies to bring electricity production closer to the end user through options such as rooftop sustainable economy.”solar panels and wind-generating units. To unlock the true power of smart-grid technologies, utilities are undergoing a massive digital transformation to adopt advanced distribution management systems (ADMS), which provide real-time visibility and control over multiple Solange Ribeiro, devices – including DERs, such as renewable facility plants or batteries for storage – to enable smart decision-making and load control. Vice-president of Neoenergia and Vice-chair of the Board U of the UN Global Compact TRANSFORMATIVE INNOVATIONS Renewables 56% Battery efficiency improvements 46% Smart-grid technologies 43% Interconnected grids (cross-country) 34% Underground power lines 13% HIGH IMPACT MODERATE IMPACT LOW IMPACT NO IMPACT 120 121