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National Grid Partners

With the energy industry facing rapid transformation, National Grid Partners’ second annual Utility Innovation Survey offers a timely snapshot of how utilities are moving from talk to action.

The survey, which gathered perspectives from 166 industry leaders, reveals a sector that’s not only embracing innovation but accelerating its implementation.

Electrification, decarbonization, and digitalization are reshaping customer demand and expectations. Utilities are under pressure to modernize the grid, meet ambitious net-zero goals and continue delivering affordable and reliable service. Against this backdrop, our survey aims to benchmark progress, uncover challenges, and foster cross-industry collaboration.

Why Conduct an Innovation Survey?

The share of utilities actively executing innovation projects jumped from 24% to 32% in just one year. 64% of respondents increased their innovation budgets, fuelling a 15% rise in overall spending among surveyed utilities.

Another notable shift: 69% of utility companies now embed innovation across business units, moving away from centralized, siloed teams. This signals a commitment to making innovation part of everyday operations.

Key Findings: Innovation in Motion

Utilities continue to balance three top priorities: affordability and customer experience; emissions reduction; and grid modernization. Last year, emissions reduction led the agenda. This year, grid modernization surged to the forefront (from 6% in 2024 to 40% in 2025).

Another new strategic focus, according to 96% of respondents, is artificial intelligence (AI). Only a tiny fraction (4%) say their companies have a mature, well-funded AI program, with dedicated teams and enterprise-wide implementation. But many respondents (42%) plan to deploy AI within the next two years, targeting use cases such as regulatory reporting, compliance, worker training, and remote equipment monitoring.

As both users of AI and power providers to AI data centers, utilities are uniquely positioned in this new technological frontier. The soaring energy needs of data centers are sharpening the urgency to embrace innovation and adopt new strategies. Yet AI also gives utilities new tools to improve operations and boost customer engagement.

Navigating the Dynamic Energy Trilemma

The biggest hurdle to advancing AI projects? 66% of respondents cited a shortage of skilled personnel. (Utilities can help fill this gap by partnering with startups, which offer specialized expertise and solutions.)

Other challenges include data privacy, implementation costs, internal resistance to change, and integration with legacy systems. Despite these obstacles, utilities continue to evaluate AI through the lens of financial return and cost savings.

Barriers and Opportunities

Among other industry priorities, safety has gained prominence: 30% of companies ranked it as their highest priority, up from 10% last year. And regulatory compliance remains a consistent focus.

Over the next year, the NextGrid Alliance (NGA), the global peer network founded by National Grid, will host workshops and working groups to translate these insights into action. In-person and online sessions will tackle specific industry challenges and opportunities.

Evolving Priorities

With electrification accelerating, the pace of change in our industry will only increase. National Grid Partners aims to establish the Utility Innovation Survey as the definitive global benchmark for industry innovation – and a trusted resource for solving our toughest problems collaboratively and at scale.

Download the full Utility Innovation Survey white paper to learn more about the latest trends and insights.

Looking Ahead

Register now to participate in our 2026 Utility Innovation Survey.

Shun Sakaguchi is a Manager of Innovation & Venture Acceleration at National Grid Partners, the venture investment and innovation arm of National Grid. 

Want to shape the future of utility innovation?

By Shun Sakaguchi, National Grid Partners

Innovation in Action: Key Findings from the 2025 Utility Innovation Survey