Across cities and industrial hubs, the lifelines of our power systems are aging out of their prime. Beneath our streets, 70-year-old paper-insulated cables still hum with electricity. On poles and in substations, transformers built before the internet was born—older than many of the engineers maintaining them—stand guard against cascading blackouts.
For utilities and energy-intensive industries, modernization (or refurbishment) is the strategic process of transforming aging assets into intelligent, connected systems that strengthen reliability, resilience, and sustainability performance. Rather than patching up old equipment, modernization builds agile, reliable energy systems capable of adapting to demand shifts, resilient to weather disruption, and intelligent enough to make split-second decisions.
The route to sustainable, reliable power runs straight through smarter infrastructure—rethinking how we generate, distribute, and manage electricity. It’s enhanced by pairing that with lifecycle strategies, data-driven planning, and digital tools that extend asset life while accelerating decarbonization.
Here’s how to replace fragility with agility using nine strategic imperatives.
9 essentials to build more agile energy infrastructures
1. Audit your assets with precision
True modernization starts with understanding what’s in the field. Many key components, like transformers, low-voltage cables, and electrical distribution panels, have been in service for decades. That’s not inherently bad, but without visibility, it’s impossible to make informed decisions. Audits can uncover hidden opportunities—for example, how transformer upgrades reduce downstream losses, or how voltage optimization at a single node eases stress across multiple facilities. They document physical infrastructure and create digital twins of facilities. Instead of relying on educated guesses, audits help prioritize interventions, allocate budgets more effectively, and develop a phased roadmap based on real-world conditions.
2. Prioritize with data, not assumptions
Data transforms insights into actionable steps. A combination of data from audits and analytics reflecting historical performance can pinpoint which assets should be replaced, which can be refurbished, and which are still functioning effectively. This approach minimizes waste and directs budgets toward high-impact areas. For example, one operator used condition-based data to avoid millions in unnecessary replacements—freeing up capital for strategic upgrades elsewhere.
3. Embrace digital tools as non-negotiable
The days of treating software and connectivity as optional add-ons are over; they have become essential. Embedded sensors, connectivity gateways, and digital dashboards are now critical for prolonging asset life and preventing failures. Modernization follows a clear digitization sequence: sensors embedded at the asset level, communication devices to transmit data, and an advisor layer powered by AI and analytics. This, combined with expert services, turns raw data into actionable insights and extends equipment lifetimes. These tools provide early warnings, track health metrics, and support continuous optimization. Digital tools are the foundation of an agile grid and a cornerstone of any energy modernization roadmap.
4. Shift from reactive to condition-based maintenance
In many facilities, maintenance still follows rigid schedules or happens only after something breaks. That’s both expensive and risky. Today, AI-powered condition-based maintenance allows operators to act only when equipment data shows it’s needed. This shift can cut on-site intrusive maintenance activities by up to 40%, as demonstrated in the Compass Data Centers case study from Schneider Electric. Predictive models build on this foundation, using advanced analytics to forecast issues even earlier. When combined with 24/7 expert monitoring of critical systems, operators can reduce the risk of electrical failures by as much as 75% (Schneider Electric data).
5. Design for circularity and longevity
With transformer lead times hitting up to 4 years and copper prices nearly doubling since 2020, circularity is now an economic necessity. It begins with EcoDesign principles; designing equipment from the outset with future refurbishment, reuse, and recycling in mind. This reduces environmental impact while ensuring compliance with evolving regulations. Initiatives such as Schneider Electric’s France Take Back Center, for instance, recover up to 90% of materials from retired gear for reuse. As material scarcity intensifies, designing with circularity from the outset ensures compliance with evolving regulations while future-proofing operations.
6. Link modernization to decarbonization goals
Refurbishment is a decarbonization lever, and a stealth climate solution. For example, transformer upgrades can reduce core losses by up to 80%, while refurbishment also opens the door to meaningful Scope 2 emissions tracking, making it easier to align modernization efforts with sustainability goals. Reliability and measurable climate impact go hand-in-hand.
7. Build agility through systems, not just assets
Agility is a grid’s ability to adapt to shifting demands, integrate renewables, and respond to disruptions. It involves smart coordination between physical assets, digital infrastructure, and organizational mindset. Digital twins, for example, can optimize the integration of renewable energy sources and support more dynamic system-wide planning. Understanding your systems-level capability is a more comprehensive approach to address agility. Organizations that invest now can adapt faster, avoid outages, and meet future regulatory demands with confidence.
8. Evolve workforce capabilities alongside technology
Tools evolve faster than people, and with almost 62% of utility workers near retirement, new technologies such as augmented reality (AR) are helping to close the skills gap. The gap between operational technology (OT) and information technology (IT) expertise can stall progress. To succeed, organizations must invest in training and change management to ensure teams are ready to operate and maintain increasingly smart systems.
9. Build strategic partnerships to accelerate success
No organization can maintain deep expertise across all aspects of modern energy systems. Utilities and energy-intensive industries that make the fastest progress usually do so by collaborating with experienced partners who bring specialized knowledge, tools, and implementation support. These partnerships help avoid common pitfalls like incompatible technologies or misaligned priorities and can accelerate timelines by aligning technical and organizational roadmaps. The most successful efforts pair external expertise with internal know-how, creating modernization programs that are ambitious, achievable, and resilient to change.
Don’t wait for failure
Digital modernization strengthens reliability and unlocks resilience. With a strategy grounded in audits, analytics, digitization, and circular thinking, organizations can turn today’s aging assets into tomorrow’s advantage. The scarcity and growing lead times of materials alone make refurbishment a necessity. But the real win is transforming grids from passive pipelines into active, adaptive networks.
Need help mapping your journey to reliable energy? Contact our experts to explore how refurbishment can become your smartest investment.
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