Integrate program management and unlock the grid

Grid network operators are under growing pressure to transform the industry in response to major shifts in generation and load. Managing this transition while ‘keeping the lights’ on for millions of users can be a challenge. Our United States (U.S.) grid modernization and digital innovation lead, Pat Graves and our Europe grid modernization strategy lead, Steven Whyte, share how innovative program management approaches can help unlock the grid. 

Transmission and distribution systems around the world are rapidly undergoing upgrades in response to growing demand. This increase is driven by several factors, including the electrification of transportation and buildings and growth in energy-intensive data center and manufacturing operations. The call for more resilient and secure transmission solutions to safeguard the grid against natural disasters and cyber-attacks has also grown louder. Network operators must re-align infrastructure to address these challenges while connecting new and varied forms of generation to meet the increased demand.

The scale of these upgrades — the number of individual projects, the rate of change and the overall capital expenditure — is unprecedented. In the U.S., National Grid announced a five-year US$35 billion investment in the states of New York and Massachusetts to meet local decarbonization goals. In the United Kingdom (U.K.), the government set ambitious energy goals for 2030, where the Great Grid Upgrade aims to deliver five times more electricity infrastructure over the next six years than what was constructed over the prior 30. And the Australian Government, through its Rewiring the Nation Fund, committed A$19 billion (~US$11.9 billion) for transmission and distribution network infrastructure.   

In Europe, transmission giant TenneT forecasts spending €160 billion (US$170 billion) from 2020 to 2030 to triple its network capacity and support carbon neutrality goals. Electricity operators, such as the U.K.’s National Grid Electricity Transmission (NGET), forecast demand doubling by 2050. Despite significant investment, there are several hurdles to clear before grids can meet all the current and future demands placed upon them. 

Key challenges to enhancing the grid

Sizeable infrastructure projects often come with equally sizeable challenges. Those associated with the grid must be addressed early on if they are to transform quickly enough to handle the increased demand and requirement for decentralized generation.  

The skills gap. A significant hiring need accompanies the growing scale of these modernization projects. The U.K.’s National Grid reported a gap of 400,000 people necessary across the country’s energy sector to achieve net zero by 2050. This represents an uplift of more than 50 percent of the current workforce.

Supply chain issues. As networks worldwide conduct upgrades, the materials and components currently being manufactured are insufficient to meet demand, often resulting in project setbacks. According to the U.S. National Renewable Energy Laboratory (NREL), transformer lead times have quadrupled since before 2022, with utilities experiencing delays of up to two years.

Complex planning processes. Large-scale transmission projects can take several years to progress. Before getting off the ground, local and national planning requirements must be met and meaningful community engagement work undertaken to ensure on-time delivery of project milestones. 

Implementing a programmatic approach  

Utility companies have traditionally managed new connection programs with in-house resources for everything from investment planning to design and delivery. Conversely, the scale and complexity of today’s grid upgrades has led some to outsource entire projects, relying on contractors for turnkey delivery.  

As is often the case, the most effective approach lies somewhere in-between. When it comes to modernizing the grid, an integrated program management model has several benefits: 

1. Capacity. Larger projects require more skilled people. Implementing a programmatic partnership can bolster the utility’s workforce for the duration of a project or during peaks in demand throughout a program’s lifespan. Having a partner simultaneously manage resources across multiple projects and activities leads to efficiencies in scheduling, cost and risk management. 

New York Power Authority (NYPA). Transitioning from a staff augmentation model to a program management approach is an exercise in organizational change management. Building on more than a decade of collaboration with NYPA, we’re supporting their shift to a value-driven, long-term programmatic approach. As their program partner, we’re providing structure, oversight and coordination in alignment with NYPA’s desired outcomes. Together, we’re enhancing their capacity by streamlining operations, improving knowledge-sharing and increasing access to global expertise. 

2. Expertise. Utility companies can take advantage of technical expertise and project management skills they might not otherwise have in-house. This can range from adopting best practices for small individual grid modernization projects to implementing an operating model based on several smaller, high-volume projects across an entire network. 

 3. A fresh eye. An outside program partner can bring a unique outlook that improves project outcomes. They can offer new perspectives on program management or digital enhancements from prior experience, leading to greater efficiency and performance. 

 4. De-risking. Working with a partner who has ‘skin in the game’ provides reassurance that they are invested for the entire program lifecycle. Using key performance indicators (KPIs) can help establish that capacity hits promised levels, timelines are met and costs controlled.  

 5. Unlocking the supply chain. Competition for materials is at an all-time high. The right partner can look across the entire program landscape and flag where lead times might be an issue. They can then engage with suppliers earlier and provide accurate forecasts to minimize holdups. 

 6. Community liaison. Community outreach is vital for the timely start and completion of any major project. A program partner can engage the community, communicate the benefits of the project and address concerns at an early stage to ensure the entire program or project runs as planned. 

San Diego Gas & Electric (SDG&E). SDG&E takes a programmatic approach to community engagement that builds in the resources and processes necessary to be proactive and transparent, fostering open communication and trust. Without this approach, engagement at the project-level can be fragmented, rushed and unclear. By integrating projects into a broader program-level strategy, stakeholders are identified and engaged sooner allowing their concerns to be heard and addressed. This upfront investment in coordination has reduced barriers, saved costs and paved the way for smoother project execution. Ultimately, this approach transformed community engagement into a long-term partnership, creating a replicable model for future community initiatives. 

A resilient energy future 

A programmatic approach to grid modernization equips utility companies with the expertise and resources needed to modernize their grid infrastructure and meet rising energy demands. Utility companies can increase the scale of their projects, mitigate supply chain constraints, enhance workforce capacity and reduce their own risks. These benefits can lead to accelerated project delivery, optimized costs and authentic community engagement — securing a more resilient and reliable energy future for all.

If you would like to learn more, please contact our grid modernization team.