Most utilities today are handling asset management with “what amounts to a run-to-fail strategy”, according to a new report.

The study says that “despite the growing availability of new solutions, many utilities have not yet incorporated sensing or monitoring technology into their networks”. 

However it adds that smart grid technological innovations are starting to make “compelling economic sense” for the inclusion of sensing and monitoring systems.

And because of this, the report predicts that cumulative utility spending on asset management and condition monitoring systems for the power grid will reach $49.2bn by 2023.

The study has been released by Navigant Research and its senior research analyst Richelle Elberg said: “Emerging sensor technology and analytics solutions have the potential to completely revolutionise the way the power grid is managed and maintained.” 

She added: “The proliferation of distributed generation and electric vehicles means that soon, business-as-usual strategies will no longer be viable for effective asset management. Fortunately, the price of sensors and solutions is set to fall dramatically over the next few years.”