Performance management and optimization for the electric-power industry

Utilityx helps electric-power utilities improve performance and reduce costs by unlocking the value of digital and advanced analytics. 
Decarbonization, affordability, and security of supply are putting stress on traditional electric-power operating models. Emerging digital and advanced-analytics techniques present an opportunity for utilities to overcome these challenges, enhancing performance across the energy chain and capturing hidden value from business strategy and operations. Utilityx helps utilities transform the way they operate by using benchmarking and advanced analytics to make better asset, portfolio, and customer decisions.

How we help clients

Asset Management

Improve performance and reliability and reduce costs by focusing time and resources on the assets that matter most. We transform network data into a condition-based asset-management strategy driven by the health and criticality of a utility’s assets.

Generation-portfolio management

Extract more value from generation portfolios by optimizing scheduling and dispatching strategy. We use machine learning and advanced analytics to determine a utility’s maximum income potential, identify value gaps, and create a continuous-improvement program.

Customer-value management

Identify hidden value pools. Our advanced-analytics modules help utilities minimize lost value from situations like payment delinquency and pinpoint incremental value potential through churn management, cross-selling, or customer segmentation.

Featured Capabilities

Utilityx

Power-grid benchmarking

Our power-grid benchmarking helps utilities understand their competitive position, achieve operational potential, and drive sustainable improvements. We bring over 10 years’ experience running electric-power benchmarks supported by a global database of more than 100 individual contributions from nearly 60 operators. We also have additional tailored diagnostic tools for specific areas, such as maintenance and asset management.

Advanced analytics

Our advanced-analytics and machine-learning capabilities help utilities improve operational performance while reducing costs. Our analytics are founded in rigorous electrical-engineering and technical models on which we leverage McKinsey’s extensive advanced-analytics capabilities and electric-power experts to help utilities better predict asset risk, identify improvement opportunities, and capture portfolio value.
Utilityx

Utilityx By the numbers

10-25%

maintenance and replacement cost savings

$1.5-3.5 million

in savings per 10 terawatt-hours distributed

$1-1.5 million

in savings per million end customers

Why Utilityx

Fast implementation

Utilityx plugs into utilities’ existing work flows while avoiding IT integration challenges. We work from each organization’s unique starting position and tailor our analytics solution to their timeline and needs to help utilities quickly implement recommendations that improve performance and save costs.

Integrated, bottom-up models

Our comprehensive methodologies are built on a foundation of industry expertise, proprietary intelligence, and internal and external data sources. We constantly refine our methods and models to produce the most relevant and valuable insights possible.

McKinsey expertise

Utilityx is backed by McKinsey’s Electric Power & Natural Gas Practice, which has worked with 450 global power and gas utility clients since 2014. Our experts serve industry leaders globally, including eight of the top ten North American electric-power leaders, nine of the top ten European electric-power leaders, and four of the top ten Asian electric-power leaders.

Our Impact

Utilityx

~$8.5 million in annual savings

in power transformers and circuit breakers for a transmission system operator with 10 million-plus end users

$25 million in free cash flow

generated in the first 5 years for a transmission system operator with more than 40 million end users

>80% accuracy

of failure and anomaly prediction for a European transmission system operator with more than 40 million end users

Want to learn more about how Utilityx can help your organization?

Featured Insights

Article

Harnessing the power of advanced analytics in transmission and distribution asset management

– Advanced analytics is helping T&D operators improve performance, reduce asset-management costs, and capture value. Here’s... how successful utilities approach the transition.
Article

How analytics can improve asset management in electric-power networks

– New technologies and advanced computational methods can help transmission and distribution companies save money, reduce risk,... and improve the reliability of their critical assets.

Related practices

Electric Power & Natural Gas

Discover how we help clients in the energy industry rethink strategies, build capabilities, and improve performance for sustained,... competitive advantage.

McKinsey Analytics

Learn how we work together with clients to build analytics-driven organizations and achieve better performance through data.

Internet of Things

IoT gives our clients the opportunity to solve some of their most intractable business challenges; to improve the way they work... internally and the way their products and services work for their customers.