Modern Grid Operations Depend on Advanced Planning

Growth of variable energy resources, rapid load increases from electrification and industry, accelerating technological innovation, and the shift to bidirectional power flow due to distributed energy resources are transforming utility grid planning into an “integrated grid planning process.” In the past, siloed planning was generally sufficient when investments in one planning domain had a limited impact on other planning needs. But today’s electric grid is becoming increasingly complex. For a holistic solution to today’s grid operation challenges, utilities need to look at advanced integration planning to continue to deliver on reliability, resiliency, and affordability for consumers.

Growing and evolving customer demand

For close to two decades now, we have seen continuing growth in generation interconnections, distributed energy resources (DERs), and the adoption of electric vehicles and heat pumps—a clear indication of the ongoing transformation across the energy landscape. This evolution of customer demand is fundamentally altering the shape, timing, and location of electricity demand.

In parallel, over the past year alone, we’ve witnessed a surge in the construction of hyperscale data centers to support artificial intelligence (AI) applications, such as processing vast volumes of data and running deep learning models. These AI data centers represent just one category of large load interconnections. We’re also seeing the electrification across buildings (heating and cooling); industrial processes (manufacturing and refining); and transportation (electric forklifts and electric buses).

What this means

Traditional utility planning has been largely deterministic, shaped by stable supply chains, predictable demand, and siloed decision-making. However, the needs of the evolving grid require a shift toward more dynamic, risk-informed planning that embraces uncertainty. This includes recognizing flexibility—through load shaping, DERs, and customer participation—as a valuable tool for mitigating risk. While this shift challenges existing processes, tools, and data requirements, it is a necessary evolution, and the industry is increasingly prepared to manage the change.

Rapid load growth is resulting in new resource planning requirements, and it increases pressure on existing transmission and distribution infrastructure. As grid capacity thins, the risk of congestion grows and makes it harder for electricity to flow efficiently from generation to demand. Some regions in the U.S. are expecting to double their peak load capacity within the next 5 years, intensifying the need to procure additional capacity and requiring significantly higher capital allocation to expand and modernize grid infrastructure. Advanced integrated planning––and tying it to operations––is a necessity for coordinated and optimized grid investments.

Introducing integrated grid planning

In the 1990s, a major turning point came with the move toward deregulation and the formal unbundling of generation, transmission, and distribution. Each planning discipline operates with its own specialized team, terminology, data sources, modeling tools, constraints—whether physical or economic—and distinct regulatory frameworks guiding decision-making.

The industry is realizing the need to evolve today’s modern grid operations to depend on holistic and data-driven long-term planning (see Figure 1) for resources, transmission and distribution grid infrastructure, as well as consumer programs and rates. This approach is critical to ensuring efficient and effective planning, optimizing utility investments, and fostering the transparency and trust needed to serve customers and stakeholders responsibly.

Figure 1. Integrated grid planning is holistic and co-optimizes end to end, from behind the meter to the power system, across all quadrants.

Looking closer at integrated

So, what does “integrated” look like in practice? Utilities need an integrated planning process that analyzes different sources of energy, their benefits to the grid and its participants and users, and how the sources reliably serve load. 

Integrating operational strategies into grid planning is essential as rising complexity from electrification, intermittent renewables demand, and new large loads necessitates a shift from static, siloed approaches to more dynamic decision-making. By embedding flexibility, digital tools and AI into planning, utilities can better manage uncertainty, optimize resources, and enhance grid reliability and resilience.

Integrating non-electric sectors like gas, hydrogen, and transportation into grid planning is crucial to ensure coordinated infrastructure development, optimize energy flows, and manage cross-sector dependencies as electrification and sector coupling accelerate. This holistic approach enhances system efficiency, resilience, and supports societal goals across the entire energy ecosystem.

The drivers for utilities

Timely and repeatable coordinated planning frameworks enable utilities to optimize decision-making across all aspects of operations, planning, and non-electric sectors. By supporting efficient and strategic capital allocation, these frameworks help minimize the risk of stranded assets and reduce the risk of the potential for sharply rising electricity costs. Advanced planning also strengthens internal and external stakeholder engagement, which is becoming increasingly important, particularly as large load connections emerge as critical stakeholders in the process.

Moreover, a proactive, transparent approach to medium- and long-term planning enhances trust and alignment. Increasing grid flexibility and expanding consumer choice empower utilities to innovate and respond more effectively to unprecedented load growth.

Putting it all together

Borrowing the words from a client, what’s needed is “putting it all together” into one framework, with common datasets and future forecasting scenarios, in which utilities can see how everything fits, from policy impacts and extreme weather events to operational changes, alternative technologies, rate design and customer programs–– and move toward more coordinated decision-making across the traditional planning silos.

At EPE, this is our focus: to work with clients on solutions and tools that support the needs of big data and scenario analysis for grid planning across domains. The foundation of advanced planning lies in the use of common, standardized data sets. Equally critical is adopting a long-term perspective that transcends departmental boundaries and extending the view to a 20-year timeframe across departments. Additionally, scenario planning plays a vital role. Given the profound uncertainties the industry faces, it is essential to modernize planning methodologies. This includes leveraging advanced forecasting tools and modeling techniques to explore a wide range of possible futures and identify flexible, adaptive solutions.

Ready to talk about holistic planning? Our team of engineers, planners, and consultants are ready to guide you through every step, from offering support with road mapping and strategic change management activities, as well as the development and implementation of customized integrated grid planning framework. IGP is not a one-size-fits-all approach—it's inherently shaped by the unique circumstances and priorities of each utility. The drivers behind IGP can vary widely, from regulatory requirements and policy-driven goals to load growth, aging infrastructure, and the need to increase capital efficiency. As a result, each utility’s planning framework, tools, and timelines must be tailored to reflect its specific challenges, opportunities, and stakeholder expectations. This flexibility is what makes IGP both powerful and an essential risk-management tool in today’s evolving energy landscape. Let’s shape a reliable, resilient and affordable electric grid together.