How Forward-Looking Utilities Are Rethinking Grid Performance with IoT
The grid is a dynamic, distributed platform with rising expectations for resilience, efficiency, and adaptability. Transmission and distribution (T&D) utilities now operate in a landscape shaped by increasingly volatile weather events, workforce constraints, aging infrastructure, and mounting pressure to integrate renewable generation.
In this environment, the question isn’t whether to modernize, it’s how to do it without compromising safety, reliability, or financial discipline.
For many innovation and strategy leaders in the utility sector, the answer increasingly involves the strategic application of Industrial IoT (IIoT), not as a standalone technology project, but as a foundational enabler of operational change.
How are utilities leveraging IoT to reduce truck rolls and operational strain?
Every time a crew is dispatched to inspect equipment, verify switch positions, or troubleshoot performance anomalies, utilities incur hard costs, safety risks, and opportunity costs. These truck rolls are often precautionary or inconclusive, meaning the cost of the visit exceeds the value of the information gained.
This is precisely the kind of inefficiency IIoT was designed to solve. When sensor-based systems provide continuous visibility into the health and status of critical infrastructure, utilities can begin to shift away from time-based inspections toward condition-based decisions.
Utilities exploring this shift are finding value in distributed sensing platforms that collect thermal and visual data from substations and remote assets. These tools provide contextual information in real time, enabling operators to verify conditions remotely, identify trends, and dispatch crews based on actual need rather than schedule. The outcome is fewer truck rolls, better use of technical labor, and faster response when intervention is truly required.
What are the implications for safety in a remote-monitoring model?
Safety is deeply ingrained in utility culture, and for good reason. Field work, particularly at substations or energized equipment, carries inherent risk. The traditional reliance on in-person inspection and diagnostics means that crews are often deployed without full awareness of site conditions, potentially exposing them to avoidable hazards.
Remote monitoring changes the equation. By providing visual and thermal data before anyone steps foot on-site, utilities can assess not only the status of the asset but also the environment surrounding it. This allows them to make informed decisions about whether to delay, reroute, or prepare differently for an on-site visit.
It’s not just about automation, it’s about giving operations teams better situational awareness to protect people. And in a labor market where attracting and retaining skilled technicians is increasingly difficult, prioritizing safety also becomes a retention strategy.
Where does IoT fit within the broader grid modernization strategy?
IoT is not a silver bullet, nor should it be treated as a one-off deployment. The most successful utilities treat IoT infrastructure as a strategic layer, a data-rich foundation that enables better asset management, smarter investment planning, and tighter coordination across departments.
This is particularly relevant for transmission and distribution networks, where traditional SCADA systems provide valuable telemetry but often lack high-resolution visibility at the asset level. IoT fills that gap.
A modern approach typically includes:
- Edge-based sensors that collect data on thermal anomalies, equipment status, and site conditions
- Distributed processing that reduces bandwidth requirements and allows for local decision-making
- Integration with existing systems (SCADA, APM, GIS) to eliminate silos and support enterprise-wide visibility
- Cloud dashboards or centralized video servers that consolidate insights and enable rapid decision support
Utilities investing in this architecture aren’t just adopting new tools—they’re building a digital operating model that can flex with evolving conditions, whether it’s integrating DERs, managing extreme weather, or responding to cybersecurity threats.
What barriers still exist, and how are leading utilities overcoming them?
Adoption of IoT in utilities isn’t without its challenges. Questions around interoperability, cybersecurity, data ownership, and change management still loom large. But increasingly, those questions are being addressed through industry collaboration, vendor partnerships, and internal alignment between IT, OT, and executive leadership.
One of the most effective strategies utilities are using is to start with targeted deployments in high-value or high-risk areas—such as remote substations, aging transformers, or known bottlenecks. These pilots not only demonstrate technical feasibility but also produce real operational data that can inform larger rollout plans.
The lesson: Don’t wait for a perfect system, start where the business case is clear. Use those results to drive internal buy-in and refine your long-term architecture.
Why is IoT becoming essential, not optional, for utilities?
The utility business model is being stretched in every direction. Reliability expectations are rising, costs are under scrutiny, and traditional staffing models are becoming unsustainable. Utilities must now manage complexity not by working harder, but by working smarter, with the right data, at the right time, in the right hands.
That’s what IoT enables when applied thoughtfully: the ability to see more, act sooner, and operate leaner.
Whether it's optimizing field operations, protecting frontline workers, or building the digital backbone for a more flexible grid, IoT is no longer a pilot, it’s infrastructure.
The utilities that recognize this are already reaping the rewards in operational efficiency, risk reduction, and long-term resiliency.
Further Reading:
Reducing O&M Costs: Lessons from Utilities Implementing Remote Monitoring
Modernizing the Grid’s Nerve Centers: A Digital Playbook for Substation Strategy Leaders
How Utilities Can Transition from Scheduled Maintenance to a Condition-Based Maintenance Strategy