Utilities of future

In the present and ever evolving world of energy, it is necessary for utilities to constantly monitor new products and technologies that companies are offering to the market. Heavy investments in smart grid research, supported by government grants, have caused changes in the energy sector in the last few years that have not been seen in decades. In the future, utilities will have to make major decisions when it comes to adopting new technologies and/or products. Not understanding thoroughly the pros and cons of each of those technologies/products and how they can be integrated into the utility's existing grid can have damaging effect on the business' bottom line. In addition, the final version of the Waxman-Markey Climate Bill will have a major effect on electric utilities and shape not only their future, but also the future of the American economy as a whole. This paper presents seven major challenges that utilities are facing in the short term: reliability, government regulation, long-term investment, adaptation of new technologies, smart grid network implementation, asset management and aging workforce.