Stepping into 2025, shifting global power dynamics, new policies, mandates, standards and politics are driving grid enhancing technology adoption around the globe. While new regulations and a new administration take effect in the U.S., geopolitical tensions across Europe and the Middle East will reshape energy generation, distribution, and policy. Utilities must address climate change, new regulations and mandates, aging infrastructure and unprecedented demand for energy. Here’s a look at what we’re watching as we start 2025.
1. GETs Adoption Will Accelerate to Remediate Grid Capacity, Safety, and Modernization Challenges
Mandates and incentives are propelling GETs adoption across the U.S., Europe, South America, and the Middle East. These technologies are critical to increasing grid capacity, reducing costs, and achieving decarbonization goals. Governments are providing incentives, implementing regulations, and finding funding for GETs at a record pace. This will continue through the year, and for years to come.
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U.S. Focus: Anticipated Federal Energy Regulatory Commission (FERC) policies including incentives like higher return-on-equity (ROE) adders and performance-based measures, aim to boost technologies like Dynamic Line Ratings (DLR) and Advanced Power Flow Control. Pending regulatory reforms are expected to pass this year and will address grid congestion and improve reliability. Additionally, FERC 881 compliance becomes mandatory in July 2025, requiring utilities to adopt Ambient Adjusted Ratings to improve transmission. AAR is widely accepted as a steppingstone to DLR implementation for congested transmission lines.
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Europe’s Strategy: The European Union’s €700 billion Green Deal, with €175 billion allocated to digital technologies, supports the integration of renewable energy through GETs like DLR, AAR, and flow control for enhanced grid monitoring.
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Middle Eastern Modernization: Saudi Arabia and UAE will continue to prioritize grid sustainability under Vision 2030, committing $17.6 billion to smart grid initiatives by 2027, with a strong focus on solar energy and distributed systems.
These actions underline GETs as cost-effective, solutions for modernizing transmission infrastructure, supporting the interconnection of clean energy sources to meet decarbonization goals, and safely meeting the increasing demand for energy.
2. GETs Implementation Will Reduce Grid Bottlenecks
The urgency to meet decarbonization goals is evident, as the world inches closer to the critical 1.5°C – 2.0°C temperature rise threshold. The backlog for interconnecting clean generation sources in both the U.S. and the EU highlights the urgent need for grid modernization. GETs implementation will accelerate as utilities strive to bring more clean energy online this year.
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United States: The U.S. interconnection queues include nearly 2.6 terawatts (TW) of proposed projects as of 2023. This includes over 1,000 gigawatts (GW) of solar, 366 GW of wind, and 1,030 GW of energy storage (more than double the current U.S. generating capacity). The interconnection process remains a significant bottleneck, with delays averaging more than three years in many regions. Many U.S. utilities are adopting AAR and DLR to facilitate more accurate transmission grid capacity ratings and enable optimal transmission line utilization by revealing between 10%-40% additional safe capacity on existing lines. This is expected to support accelerated adoption of these technologies in 2025.
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EU Leadership: In the EU, the backlog for wind and solar energy connections is substantial, with many grid operators handling hundreds of GW in pending connection requests. Structural issues, such as a “first-come, first-served” approach and lack of capacity prioritization for mature projects, contribute to long delays. The EU’s Grid Action Plan aims to address these issues with €584 billion in planned investments by 2030, emphasizing anticipatory grid upgrades and better integration of renewable projects. The “Fit for 55” targets aim to cut emissions by 55% by 2030, leveraging GETs to enhance grid flexibility and reduce renewable curtailment. In Germany, employing the “connect and manage” model, has achieved comparatively shorter interconnection wait times, between one and two years.
These aggressive programs are essential to decarbonization and efficiency. Neil Chatterjee, former U.S. FERC Chairman, highlights: “FERC’s Order 881, which requires compliance by July of 2025, is a significant step towards requiring utilities to adopt Ambient Adjusted Ratings (AAR), a precursor to DLR. The adoption of these technologies can substantially increase the accuracy of transmission line ratings and reduce renewable energy curtailment as well as provide savings and environmental benefits.”
3. 2025 Will See Public-Private Partnerships Boost GETs Investments
With government funding under scrutiny, utilities are forming partnerships with private companies to drive GETs adoption. More public-private partnerships will drive GETs adoption next year by involving commercial companies in technology deployment and funding. As these partnerships are expanded, utilities may find easier access to capital for adopting technologies like Dynamic Line Ratings and other GETs.
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Emerging Markets: Shared funding models are accelerating deployment in South America and parts of the Middle East where technology providers are exploring shared funding models or leasing options to ease GETs adoption. These partnerships are enabling regions with limited resources to modernize their grids.
These collaborations mitigate risks and facilitate faster technology integration.
4. AI Adoption will Surge in 2025
The adoption of AI in grid management will grow rapidly, with 60–70% of utilities expected to leverage AI by 2030. DLR, predictive maintenance systems, and renewable integration are key drivers of this trend. AI is increasingly used to analyze real-time and historical sensor data to predict and prevent failures and reduce costs through proactive repairs. AI-powered DLR optimizes electricity flow and adjusts capacity in real-time, based on environmental factors. AI is widely used to analyze and predict power generation needs, ensuring a balanced and uninterrupted supply. AI-driven demand forecasting helps utilities allocate resources effectively, while cybersecurity tools identify and mitigate network threats. Additionally, AI streamlines energy trading and pricing, allowing for dynamic strategies that optimize revenue and balance loads during fluctuating demand.
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AI applications include real-time analytics, predictive maintenance, and renewable energy integration.
AI’s role in optimizing energy flow and improving resilience underscores its increasing importance and will fuel its accelerated adoption around the globe.
5. Localized Climate Resilience Will Remain a Priority, Regardless of Administrative Changes
Localized climate resilience efforts continue to thrive, regardless of federal mandates. Many European countries and U.S. states continue to enact their own mandates, clean energy targets, and resilience standards. California, New York, and states in the Midwest and Northeast United States will continue leading in GETs adoption, even if federal support wanes.
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Technology Support: GETs, particularly DLR, provide utilities with tools to manage extreme weather impacts effectively.
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State Leadership: U.S. states like California and New York are driving grid modernization through ambitious clean energy goals and independent mandates. California’s SB 100 (2018) and New York’s Climate Leadership and Community Protection Act (2019) are examples of state-level legislation driving GETs adoption through aggressive renewable and grid modernization mandates.
This localized approach ensures adaptation to climate challenges.
6. Grid Technology Innovation Will Intensify in 2025
GETs innovations are accelerating, addressing aging infrastructure and growing energy demands. GETs innovations will accelerate in 2025 as vendors, including Ampacimon, mitigate capacity constraints with DLR and AAR solutions and AI-driven analytics that reveal unused capacity. DLR reduces congestion costs, improves reliability and safety, and reduces congestion barriers that prevent the interconnection of clean, lower-cost energy sources. Advanced techniques for line and facility ratings give utilities the information they need to optimize existing infrastructure for efficiency and resiliency. Finally condition monitoring solutions prioritize and locate issues in aging grid infrastructure with real-time data. Innovation in grid enhancing technology is expected to accelerate in the coming year.
Conclusion
2025 is set to be a transformative year for utilities worldwide. With strong regulatory frameworks, emerging partnerships, and technological advancements, GETs and AI are shaping a more efficient and sustainable energy future. Collaboration and innovation will be key to overcoming obstacles and achieving global decarbonization and modernization goals.
