The effect of the US elections on the American utility industry’s grid modernization investments

At this year’s Itron Inspire in Palm Desert, CA, I noticed that many of the conversations I was having with utilities and partner vendors were markedly different. What became clear was that as the U.S. prepares for election day, industry folks are wondering what the impact will be on grid modernization progress. The Biden administration has introduced transformative funding through the Justice40 initiative and the Infrastructure Investment and Jobs Act (IIJA) to empower utilities with grants designed to help them reduce energy poverty, promote equitable energy access, and build a resilient grid. On the flip side, while utilities now have an unprecedented opportunity to leverage this funding for critical advancements, political uncertainty around the upcoming election has created uncertainty on whether funding regimes like this will continue, thus prompting a more cautious approach toward long-term investments. Despite this, utilities that have already secured funding have a clear path to modernization, making this a pivotal time for strategic action.

One pivotal industry trend to highlight in the face of this uncertainty is that 2024 has marked a significant milestone in the implementation of Advanced Metering Infrastructure (AMI) 2.0 technology throughout North America. For instance, check out what Hydro One is doing with Itron and NET2GRID leveraging Itron’s AMI 2.0 solution, Itron Riva, to enable a smarter, customer-centered infrastructure that enhances service reliability and operational efficiency. Notable US-based examples of utilities embarking on their AMI 2.0 journeys are CPS Energy, National Grid, and Snohomish PUD. These movements underscore why staying committed to the vision of investing in grid modernization technologies now could yield measurable benefits for years to come.

In this critical period, utility leaders are looking for ways to stay the course of modernization while also facing unprecedented uncertainties in the funding and regulatory landscape. The advancements driven by Justice40 and IIJA funds have already paved the way and soon will start to deliver value, showing that even amidst political flux, the benefits of a modernized grid— like improved reliability, customer satisfaction, and equity— are substantial. For utilities able to act now, the opportunity is clear: modernization investments today will secure a resilient, customer-focused future.