One of the biggest forces transforming the grid is the explosive growth of renewable energy. But as solar panels and wind turbines become more common, grid operators are contending with a new set of challenges.

Unlike fossil fuel plants, solar and wind installations can’t provide consistent base load power. Their output fluctuates depending on weather conditions, making them less reliable in terms of capacity factor (the percentage of time a plant can produce electricity at its maximum output). This intermittency poses a real threat to grid stability, especially as more distributed energy resources (DERs) come online.

These DERs, which include everything from solar, wind , other small low carbon power plants, battery storage to electric vehicles, and microgrids, are decentralizing power generation and shifting it to the grid edge. Managing such a dynamic, decentralized system requires smarter tools. That’s where technologies like Advanced Distribution Management Systems (ADMS) and Distributed Energy Management Systems (DERMS) come in. These platforms help utilities monitor and control distributed resources in real time, helping to maintain balance and avoid service disruptions.

The ADMS and DERMS are designed to handle multiple ways for DERs interact with the distribution network and the market. The ADMS and DERMS connects to DERs Plant Control System or Distributed Control System (DCS) for real-time data, monitoring, and control capabilities at the distribution level, enabling efficient grid management and optimization. The DCS integration allows for seamless integration of DERs, improve outage management and facilitates grid stability. Both Supervisory Control and Data Acquisition (SCADA) and Energy Management System (EMS) interact with DCS and provides a unified platform to DERMS and ADMS.

In addition, grid stability is being supported by solutions like synchronous condensers, static VAR compensators, and battery-based energy storage. These technologies provide the frequency control, short-circuit current, and inertia that renewables typically lack. To accommodate rapid renewable energy deployment and maximise the thermal power plant, some coal-fired and gas-fired plants scheduled for decommissioning are being repurposed as synchronous condensers to help stabilize the grid while still contributing to the energy mix.

Compliance also plays a crucial role. As grid configurations evolve, operators must meet increasingly strict regulatory standards. These include frequency response requirements, voltage control and system reliability metrics. As the share of renewables grows, grid operators must integrate compliance planning into every decision they make about modernization and capacity expansion.

While renewable intermittency and decentralized generation are reshaping how grids operate, they’re not the only challenges utilities face. Broader forces like extreme weather and shifting geopolitical landscapes are adding new layers of complexity and urgency. That brings us to the second key trend driving the need for resilience: energy security and supply chain risk.

Energy security has become a headline issue in recent years, and for good reason. Two major drivers are behind this concern: extreme weather events and geopolitical instability.

Climate change is producing more frequent and severe storms, wildfires and heatwaves. These events often damage critical power infrastructure and cause widespread blackouts. To build resilience, utilities are increasingly looking at hardening their assets. For instance, utilities are burying power lines and building stronger transmission towers that can withstand extreme weather.

At the same time, geopolitical tensions are affecting the availability and cost of fuels and equipment. Power companies that rely on imports for fuel or spare parts may face significant risks if those supply chains are disrupted. To mitigate these risks, some countries are exploring local, lower-carbon options that reduce reliance on volatile global markets.

While green energy sources like solar and wind remain central to decarbonization goals, many nations are broadening their focus to include low-carbon alternatives like geothermal, biomass, waste-to-energy, and small modular nuclear reactors. These sources can provide more predictable base load power while still supporting emissions reduction goals.

Hydrogen and ammonia are also emerging as promising fuels. By converting existing plants to run on these low-carbon options (often paired with carbon-capture technologies) utilities can strengthen energy security while supporting environmental objectives.

Even as utilities work to secure fuel sources and fortify infrastructure against global volatility, another challenge is quietly undermining reliability: the age and obsolescence of existing assets. Modernizing these systems is no longer optional it’s essential for long-term resilience and competitiveness.

Many power generation assets around the world are decades old. This aging infrastructure leads to higher risks of failure, increased operational costs and lower efficiency. Modernization is a matter of staying current, but it’s also becoming a financial imperative.

Rehabilitating and upgrading aging plants reduces downtime, minimizes operating expenses and extends asset life. For asset owners, these improvements translate into higher reliability and better profit margins. Projects that focus on control system upgrades, turbine retrofits and plant-wide digitalization often pay off through improved availability and performance.

One challenge, of course, is that some assets are simply too outdated or inefficient to justify further investment. In these cases, utilities may choose to decommission old plants. But decommissioning doesn’t always mean starting from scratch. Former coal-fired sites, for example, are being converted into locations for new nuclear plants, hydrogen hubs or even grid-stabilizing facilities. These locations already have valuable features, such as access to water and existing interconnects, making them ideal candidates for reuse.

Technology gaps remain a challenge. The pace of digital adoption in the power sector has historically lagged behind other industries. Whether due to cost, complexity or cultural inertia, many operators have been slow to implement newer technologies that significantly improve plant optimization, predictive maintenance and operational decision-making.

This delay in adopting digital tools limits performance, but it also impacts compliance and long-term planning. Utilities that move too slowly risk falling behind in terms of both efficiency and competitiveness. On the other hand, those that invest strategically in modernization are better positioned to reduce both operating and future capital expenditures.