Asset Management Gets a New Role in the Utility Sector

How utility companies' strategic thinking is changing with electrification

A service technician arrives at a substation for a scheduled inspection. The SF6 gas pressure is slightly lower than normal – not alarming, but worth noting. He records it in the protocol. Three months later, at the next inspection, the pressure looks fine again. Was it a measurement error? A temporary fluctuation? No one really knows, and the matter is set aside.

This is how maintenance work still operates at most utilities. Point interventions at predetermined intervals, where each observation is treated in isolation. Patterns that could indicate emerging problems remain invisible because the information lives in separate protocols, or at best in systems that don't communicate with each other.

But change is underway. Instead, it could look like this: the same deviation is continuously detected by sensors and triggers an automated process. The system identifies a trend pattern over time, compares it against similar components in the region, and generates a risk assessment. Information flows automatically to those affected: procurement receives signals about future component needs, operations and maintenance can prioritize resources, management sees the impact on investment plans – all based on actual condition rather than scheduled intervals.

The difference between these two scenarios isn't primarily about the technology. It's about asset management being moved from an administrative function to the core of strategic decision-making. The journey there has only just begun for most, but the direction is clear.

A Shift Is Underway

In conversations with energy companies around the world, we see a clear trend: asset management is evolving from a tool for managing existing assets to a function that shapes the entire company's future. It's a change that happens relatively quietly, but with far-reaching consequences.

Traditionally, asset management has been about keeping track of what exists, when it was installed, and when it needs to be replaced. Important work, but fundamentally reactive and administrative. Now we see the outlines of something different: organizations where asset management becomes the connecting function that enables smarter decisions across the entire operation.

This shift is naturally driven by electrification. When society's electricity needs increase dramatically, when new load patterns emerge from electric vehicles and heat pumps, when reliability requirements intensify – then it's no longer enough to simply manage what you have. You must actively shape your infrastructure for a future that looks completely different from today.

When Data Meets Strategy

What's interesting is what happens when modern tools for condition monitoring and predictive analytics are integrated with asset management. Suddenly the organization sits on a goldmine of information – but the value doesn't lie in the data itself, but in how it's used to make better decisions.

A procurement department that previously purchased components based on scheduled replacement intervals can now see actual condition development across the entire fleet and make more accurate forecasts. Investment managers get not just budget basis for next year's maintenance, but can model different investment scenarios based on real component status. The project organization can prioritize between new investments and renewal using risk assessments grounded in analyzed data rather than general assumptions.

This naturally requires that systems and processes are connected. In our work with utilities, we see that the most successful implementations are those where asset management becomes a natural bridge between different parts of the operation – where data flows smoothly from sensor to work order, and where insights reach the right people at the right time.

The Strategic Balancing Act

One of the most difficult challenges for today's utilities is finding the right balance between maintaining existing infrastructure and investing in new capacity. Electrification requires both robust existing grids and expansion to meet growing needs. Every dollar invested in maintenance is a dollar not going to expansion – and vice versa.

This is where asset management becomes critical. With better insight into actual condition and predictive models for future development, organizations can make more nuanced decisions. Which parts of the grid can have their lifespan extended? Where are the critical points that require immediate action? How do different investment choices affect the overall risk level?

This requires more than just good data – it requires tools and competence to transform data into decision support. Asset management then becomes the function that takes the holistic perspective and weighs different factors against each other: technical risk, economic optimization, regulatory requirements, and strategic business goals.

The Changing Competence Requirements

When asset management moves from back office to boardroom, the competence requirements also change. It's no longer enough to just understand technical specifications and lifecycle models. Now the ability to interpret data flows, communicate risk in business terms, and understand how asset management decisions affect the entire organization's strategy is needed.

In our dialogues with customers, we see different maturity levels in this development. Some organizations have already built cross-functional teams where asset management, IT, finance, operations, and maintenance work closely integrated. Others are at the beginning of the journey and are seeking the right approaches and tools to take the next step.

Those who succeed best see asset management as a strategic function, not just a cost to be managed.

The Future of Asset Management

Electrification isn't going to slow down – on the contrary. When the transportation sector electrifies on a larger scale, when industry transitions, when the heating sector connects to the power grid, then the demands for both capacity and reliability increase further.

We stand in the midst of a shift where asset management is evolving from an administrative necessity to a strategic core competence. The organizations that succeed in making this shift, that build bridges between data and decisions, between technology and economics, between operations and strategy – these are the ones that will be best equipped for the energy sector's next chapter.