European Utilities Accelerate Digital Transformation

Key Terms

decarbonization technical

Decarbonization is the process of cutting a company’s greenhouse gas emissions across its operations, supply chain and products by switching to cleaner energy, improving efficiency and changing materials or processes. For investors it matters because lower emissions can reduce regulatory and energy costs, limit legal and reputational risks, and signal long-term competitiveness—like a business replacing a gas-guzzling fleet with fuel-efficient or electric vehicles to save money and stay compliant.

predictive maintenance technical

Predictive maintenance involves using data and technology to monitor equipment or machinery in real time, identifying potential problems before they cause failures or breakdowns. By predicting when maintenance is needed, it helps prevent costly repairs and downtime. For investors, it highlights how companies can reduce expenses, improve efficiency, and maintain reliable operations, which can positively impact financial performance.

energy-as-a-service technical

A business model where customers pay a provider for delivered energy services—such as electricity, heating, charging or efficiency improvements—instead of buying and running the equipment themselves. Like leasing a car with the manufacturer handling maintenance and fuel, the provider installs, operates and guarantees performance, creating predictable, subscription-style revenue for the provider and shifting upfront cost, maintenance and performance risk away from the customer, which investors watch for recurring income, contract stability and growth potential.

hybrid microgrids technical

A hybrid microgrid is a small, local power system that combines different energy sources—such as solar or wind, batteries, and a conventional generator—and can run independently or connected to the main grid. Like a neighborhood with its own rooftop panels, storage and a backup generator, it boosts reliability and can lower fuel and electricity costs; for investors, it affects project economics, operating risk, resilience and potential returns tied to energy savings and incentives.

grid-interactive technical

Grid-interactive describes electrical equipment or systems that can both use power from the utility grid and send power back into it, similar to a two-way street for electricity. Investors care because grid-interactive devices—such as solar inverters, batteries, or smart appliances—can create new revenue streams (selling energy or grid services), cut operating costs, and qualify for incentives or contracts tied to reliability and demand management, affecting a company's earnings and growth prospects.

ISG Provider Lens technical

ISG Provider Lens is a recurring market report from an independent technology and services research firm that rates and compares companies that sell IT, cloud, outsourcing and related services. Investors use it like a product review or buyer’s guide: it highlights which vendors are strongest in particular areas, flags market trends and competitive shifts, and can affect how well a supplier is seen to win contracts and grow revenue.

Rising electricity demand, technological innovation, regulatory requirements drive industry modernization, ISG Provider Lens^® report says

LONDON--(BUSINESS WIRE)-- European power and utilities companies are increasing investments in advanced analytics and AI-enabled operations to achieve grid modernization, decarbonization and digitalization, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2025 ISG Provider Lens^® Power and Utilities Industry — Services and Solutions report for Europe finds that utilities are responding to stricter clean energy regulations and decarbonization targets by expanding renewable generation and investing in grid infrastructure. These trends are also prompting utilities to reassess operating models, capital priorities and long-term planning as market and regulatory conditions continue to evolve across Europe.

“Enterprises are moving beyond commodity electricity procurement to pursue new, value-driven revenue models,” said Julien Escribe, partner and managing director of SEMEA for ISG. “By partnering on demand response, storage and grid-interactive platforms, they gain flexibility and reduce risk.”

Power companies face ongoing challenges from the variability and intermittency of wind and solar energy, which complicate real-time balancing of electricity supply and demand and increase risks to grid stability. To address this, enterprises are making IT and operational systems more flexible and data-driven for power generation forecasting and coordination with the electricity market. Providers support utilities by modernizing grids and strengthening integration between IT and operational systems, utilizing data analytics and AI to improve forecasting, operational coordination and investment planning.

Utilities across Europe are placing a greater emphasis on modernizing their transmission and distribution networks and digitalizing grid operations to enhance resilience and add renewable energy sources. They are upgrading assets and making IT and operational systems more data-driven to enhance system visibility and improve maintenance planning and control. Providers offer consulting and technology services for using data analytics and AI to enable predictive maintenance, better outage management and higher grid reliability.

Decarbonization planning is becoming more structured and investment-driven as energy companies prepare for long-term shifts in generation, storage and network design. Enterprises are relying on consulting support and structured planning approaches to guide their technology choices, investment priorities and risk assessments. Providers inform clients’ decisions on grid reinforcement, battery deployment and distributed generation. They are also helping utilities implement new operating and commercial models, including energy-as-a-service, capacity platforms and hybrid microgrids that strengthen regional resilience.

“Grid investment remains the top priority for European utilities as networks adapt to higher renewable penetration and electrification,” said Harish B., principal analyst, ISG Research, and lead author of the report. “Modular and scalable grid architectures are coming online to integrate new connections and deliver the flexibility needed for transport, heating and industrial growth.”

The report also explores other trends in the European power and utilities industry, including growing workforce shortages in digital and engineering and the increasing use of innovative financing models to fund large-scale grid and generation investments.

For more insights into the challenges European power and utilities companies face, along with ISG’s advice for addressing them, see the ISG Provider Lens^® Focal Points briefing here.

The 2025 ISG Provider Lens^® Power and Utilities Industry — Services and Solutions report for Europe evaluates 39 providers across four quadrants: Enterprise Asset Management, Process and Customer Experience Management, Smart Metering and Grid Modernization, and Technology, Transformation and Consulting.

The report names Accenture, Capgemini, Cognizant, Deloitte, IBM, Infosys, NTT DATA, TCS and Wipro as Leaders in four quadrants each. It names DXC Technology and Tech Mahindra as Leaders in two quadrants each. It names Atos, EXL, HCLTech, Hitachi Digital Services, PwC, TP and WNS as Leaders in one quadrant each.

In addition, Atos, Firstsource and PwC are recognized as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, Capgemini is named the global ISG CX Star Performer for 2025 among power and utilities service providers. Capgemini earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

A customized version of the report is available from WNS.

The 2025 ISG Provider Lens^® Power and Utilities Industry — Services and Solutions report for Europe is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens^® Research

The ISG Provider Lens^® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260120165852/en/

Laura Hupprich, ISG

+1 203-517-3100

laura.hupprich@isg-one.com



Philipp Jaensch, ISG

+49 151 730 365 76

philipp.jaensch@isg-one.com

Source: Information Services Group, Inc.