Solmar Insights
Utilities in the United States are shifting away from costly hardware buildouts and undergrounding to enhance grid resilience, embracing advanced operational and automation tools that utilize existing capacity more efficiently. Charles Murray, CEO of Switched Source, emphasized that automating dynamic power-flow control is emerging as a key solution to balance affordability, flexibility, and reliability amid rising load growth and extreme weather risks.
Key figures
20% to 50% of circuits out of balance
40-year asset lifetimes for traditional upgrades
Capital cost of full undergrounding described as “incredibly expensive”
Hardware limits and rising costs
For decades, utilities have predominantly invested in new physical infrastructure and undergrounding to deliver reliable electricity in all conditions. However, Murray outlined how this strategy creates rigid, long-life assets that might only address localized or immediate constraints, leading to potential system overbuild and stranded costs. Undergrounding in particular is highly costly, often dependent on local conditions, and is not always practical for large-scale deployment.
With accelerating demand from electric vehicles, data centers, and industrial electrification, the conventional reliance on expensive buildouts is becoming impractical for both grid planners and ratepayers. System-wide upgrades risk overspending without ensuring long-term value, forcing utilities to seek smarter approaches for capacity and resilience enhancements.
This shift is driving new market scrutiny of capital deployment and asset utilization, especially in areas anticipating rapid load growth. Utilities are weighing not only the immediate need for resilience, but the adaptability and economic efficiency of their investments over the long term.
Underused capacity and operational bottlenecks
Distribution network constraints often arise not from the wires themselves, but from imbalanced phase loading and outdated operational practices. According to Murray, 20% to 50% of distribution circuits regularly operate outside their design parameters due to uneven distribution of single-phase loads, causing neutral current issues and artificial limits on throughput.
This underutilization is exacerbated during peak demand and extreme stress events, when rigidly planned systems can’t easily adapt to shifting load profiles. Instead of automatically rebalancing, these networks require manual intervention or expensive upgrades to avoid service interruptions or degraded performance during crises.
Murray pointed to the potential of employing fast-acting power electronics and stand-alone power-flow controllers to dynamically rebalance circuit loads. These technologies, initially developed as interfaces for energy storage, can be deployed independently to unlock latent capacity in existing distribution assets.
Automated controls and passive solutions
A major challenge for utilities is integrating new technology into the operational workflow without increasing complexity for control room staff. Murray highlighted the need for solutions that operate with passive, real-time automation, adapting to grid conditions without constant human intervention or scenario management, especially during emergencies such as post-storm restoration.
Automated phase-balancing equipment can maintain circuit stability even when repairs force non-ideal grid configurations. By removing the need for manual re-tapping or tuning, utilities reduce restoration time and risk for field crews while maintaining service quality for customers.
Passive automation represents a structural shift: instead of adding layers of manual controls, these systems rely on embedded intelligence to monitor and optimize power flows. For utilities, this means both a lower total cost of ownership and the ability to defer or avoid capital-intensive upgrades.
AI and predictive grid optimization
The advent of AI-driven automation offers even greater efficiencies. Pairing real-time power flow controls with predictive analytics allows utilities to anticipate congestion, detect emerging imbalances, and optimize the sequence and timing of their capital improvements.
By integrating these digital tools, utilities can shift from a reactive, hardware-centric approach to one focused on proactive operational intelligence. This process puts less strain on existing infrastructure, preserves customer reliability, and better aligns capital investment with actual on-the-ground needs.
Early adopters in the US are experimenting with layering adaptive distributions systems and software-driven platforms atop their legacy networks, setting a precedent for utilities confronting evolving load shapes due to electrification, distributed energy, and climate-driven reliability threats.
Market significance and next steps
The migration toward flexible operational solutions has clear implications for capital budgeting, asset management, and future project decisions. Utilities that embrace these capabilities stand to maximize system-wide value and avoid expending ratepayer dollars on overbuilt, soon-to-be-underutilized physical assets.
As resilience demands accelerate, technology partners like Switched Source are positioned to play a more prominent role in distribution system planning. Success depends on seamless system integration, passive functionality, and open collaboration between utilities and solution vendors, with a focus on measurable outcomes for load-serving capability and reliability.
For institutional developers and investors, this marks a transition point in grid modernization: asset-light, software-enhanced operational models are increasingly central to capacity expansion and risk mitigation strategies in North American distribution networks.
What this means for buyers
This development directly impacts grid operations and distribution asset planning in US utility territories. With 20% to 50% of circuits currently out of balance and automated power-flow solutions available, buyers and developers can prioritize operational upgrades over expensive hardware deployments. This quarter, asset buyers should evaluate passive automation offerings and factor their potential cost savings into capital planning.
Reporting via the original publisher
