The following partner insight was authored by Todd Durocher, Principal, Power and Utilities Transformation Leader, KPMG US. KPMG invites utility leaders to connect at SAP for Utilities, Presented by ASUG.
The utility industry is facing a perfect storm of rising demand, aging infrastructure, and accelerating climate pressures. According to the U.S. National Power Demand Study, electricity demand in the United States is projected to surge by 35% to 50% between 2024 and 2040, driven by the rapid expansion of AI-powered data centers, increasing electric vehicle adoption, and the electrification of heating and manufacturing sectors. In 2023, the U.S. Department of Energy reported that data centers accounted for 4.4% of U.S. electricity consumption, a figure expected to reach as high as 12% by 2028 as digital infrastructure scales to meet the needs of a driven economy.
In 2024, climate-fueled disasters inflicted $182.7 billion in damage across the country, making it one of the most expensive years on record for infrastructure losses. For utilities, the challenge is twofold: keep the lights on during these crises while charting a course through a fast-changing energy landscape that calls for decarbonization, flexibility, and a sharper focus on customer needs.
To respond effectively, utilities must look past incremental updates and instead rethink their business model from the ground up. The KPMG perspective, built upon its foundational insights in The Energy Orchestrator: Redefining the Future of Utilities and Inside the Energy Orchestrator: A New Operating Model, positions utilities to become Energy Orchestrators— leaders that coordinate, optimize, and innovate across complex, distributed energy ecosystems.
From Integrator to Orchestrator
Over the past several decades, utilities have progressed from vertically integrated monopolies to deregulated market participants and network integrators.
Today, they face a new wave of disruption as tech giants like Google and Microsoft invest over $100 billion in renewable and nuclear infrastructure, shifting from energy consumers to active participants and owners in the energy system. Google, for example, has partnered with Kairos Power to add 500 megawatts of carbon-free nuclear power by 2035, while Microsoft has announced a $30 billion investment in global AI and energy infrastructure to support its expanding data center footprint.
It opens the door for utilities to build energy marketplaces, support flexible demand programs, and facilitate peer-to-peer trading that connect utility strategies with the evolving needs of customers and partners.
To drive this shift, utilities are redefining roles within their organizations. Positions like data orchestration officer, ecosystem architect, and customer value orchestrator are emerging to oversee seamless data flow, integrate distributed energy resources, and adapt services to meet changing customer expectations. In doing so, utilities move from being commodity suppliers to becoming partners in generating value across the energy system.
Enabling the Orchestrator Vision with SAP S/4HANA and SAP Joule
Achieving the Energy Orchestrator vision calls for a strong digital backbone, and SAP S/4HANA offers the platform needed to support this evolution. SAP S/4HANA’s in-memory architecture allows utilities to process operational data instantly. This real-time view—covering everything from weather forecasts to grid health—helps teams anticipate and respond to shifting demands as they happen.
Through integrated process management, SAP S/4HANA breaks down operational silos, unifying functions such as asset management, customer operations, and finance within a single platform. With its API-first structure, S/4HANA enables smooth integration with external systems and partners, giving utilities the connectivity needed to manage distributed energy systems and emerging technologies efficiently.
Having this flexibility allows utilities to roll out new business models quickly—like performance contracts, shared capacity services, and tailored offerings for large partners—without getting bogged down by complex custom development.
SAP Joule builds on this foundation, bringing advanced AI capabilities that combine generative, agentic, and traditional AI to enhance utility operations. Joule’s natural language interfaces allow field technicians and customer service teams to interact with complex systems easily, while its cognitive process automation capabilities streamline workflows and improve data accuracy in regulatory filings and operational processes.
Utilities are already seeing the benefits of these technologies:
- Florida Power & Light has reduced outage response times by 40% using intelligent automation.
- San Diego Gas & Electric reduced maintenance costs by 35% with predictive analytics.
- Vibrant Energy, using S/4HANA Cloud Private Edition, enables field technicians to update maintenance records via voice commands, reducing administrative overhead and increasing responsiveness.
- ENGIE, operating S/4HANA on AWS, has shifted finance teams from routine transactions to strategic initiatives aligned with its low-carbon transition goals.
Together, S/4HANA and Joule help utilities put the Energy Orchestrator model into action, transforming live data into clear insights and creating value throughout the energy ecosystem.
The KPMG SAP Journey Makers program brings together leaders in utilities—spanning finance, IT, and program management—to collaborate, learn, and share practical insights on SAP transformation journeys. The program includes in-person and virtual sessions where peers can collaborate on various aspects of their transformation journey, while also obtaining guidance from SAP leaders and subject matter experts in their field of interest and deep education in support of the SAP journey. To learn more, visit KPMG SAP Journey Makers.
The Human Element
Adopting advanced technology is essential, but without cultural change, progress will stall. Utilities need to break from centralized control and encourage decision-making at all levels to keep pace with the demands of a dynamic grid. Digital fluency across the workforce is essential, enabling employees to see technology as a tool for value creation and innovation.
Silos stifle progress. For utilities to succeed in this next era, they need teams that work across traditional boundaries, aiming for system-wide outcomes instead of narrow departmental goals. That shift hinges on people: providing opportunities for upskilling, supporting emerging leaders, and encouraging curiosity and experimentation in everyday work.
Culture change may be the toughest hurdle in any transformation, but it’s what turns technology investments into real-world agility and resilience.
The industry knowledge and structured approach of KPMG can equip utilities to manage this transformation successfully.
Through its Powered Enterprise for Utilities framework, KPMG offers pre-configured solutions, AI-driven accelerators, and structured roadmaps that align SAP S/4HANA deployments with organizational goals while accelerating value realization. As an early adopter and co-developer of SAP Joule capabilities, KPMG helps utilities embed AI across operations, enabling predictive analytics, automation, and customer-centric engagement strategies.
KPMG supports utilities through roadmap planning, AI and SAP integration, change management, and ongoing improvement, helping them achieve measurable results while gaining the agility needed to navigate shifting market demands. By aligning technology with strategy and culture, KPMG helps utilities move beyond incremental improvements to fully embrace the Energy Orchestrator model.
Clean energy goals and rapid digital shifts have turned the Energy Orchestrator model into a priority rather than a long-term aspiration. By leveraging SAP S/4HANA, SAP Joule, and KPMG expertise, utilities can take the lead in providing dependable, flexible, and sustainable services to their customers.
For a deeper dive into this topic, read Powering the Energy Orchestrator: How SAP S/4HANA Enables Utility Transformation.
As this future rapidly takes shape, KPMG invites utility leaders to connect at SAP for Utilities, Presented by ASUG, to discuss how adopting the Energy Orchestrator model can drive growth and resilience in a complex energy landscape.
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Todd Durocher is Principal, Power and Utilities Transformation Leader, KPMG US.