Energy markets & resources (fundamentals)
Strategies for utilities to monetize non traditional assets such as flexibility, resilience, and customer data, exploring practical approaches, risks, and long term value creation across evolving markets and regulatory environments.
For utility providers, turning intangible capabilities into revenue requires strategy, disciplined data governance, and collaborative models with customers, policymakers, and technology partners that translate flexibility, resilience, and data into economic gains.
August 11, 2025 - 3 min Read
Utilities are increasingly asked to monetize capabilities that were once treated as byproducts of service rather than primary assets. Flexibility, resilience, and the wealth of customer data sit at the core of this shift. Utilities can turn flexibility into better demand response programs, using real time signals to align consumption with variable supply. Resilience translates into premium services during outages, calibrated risk sharing with customers, and partnerships that offset capital costs with ongoing service fees. Customer data, when anonymized and secured, unlocks value through personalized energy plans, smarter pricing, and targeted efficiency programs. The challenge lies in balancing revenue goals with trust, privacy, and regulatory responsibilities while maintaining reliable service.
A practical path begins with governance that defines what assets are monetizable and under what conditions. Utilities should establish data stewardship protocols, ensure transparent consent practices, and implement privacy-by-design into product development. In parallel, commercial models must be crafted to reward efficiency gains without imposing undue costs on customers. This includes pilot programs that test time-of-use pricing, capacity markets for distributed resources, and service-based offerings such as resilience insurance or on-demand grid services. Engaging regulators, customers, and technology vendors early helps align incentives and clarity around who benefits from enhanced reliability, better forecasting, and improved asset utilization across the grid.
Build revenue from data with consumer trust and clarity.
Flexibility is not merely a load-management tool; it is a tradable asset that can be priced, hedged, and financed. By aggregating small resources—home batteries, thermostats, electric vehicle chargers—utilities can participate in ancillary services markets or offer private capacity arrangements to large industrial customers. The key is to create scalable platforms that coordinate distributed energy resources (DERs) while providing transparent metrics for performance and payments. Data plays a supporting yet essential role, turning raw signal streams into actionable dashboards for asset operators and market participants. The most successful programs separate the technology stack from the commercial terms, enabling rapid replication and predictable revenue streams.
Resilience monetization requires a clear value proposition that moves beyond basic reliability. Utilities can bundle resilience into subscription-like offerings, providing customers with guaranteed outage response times, backup power during extreme events, or rapid restoration guarantees. This approach creates recurring revenue and reduces churn by elevating customer trust. Partnerships with insurers, equipment manufacturers, and local authorities can spread risk and create new markets for resilience services. Critical to this model is rigorous risk assessment, clear service-level agreements, and transparent pricing that reflects the probability and impact of outages. Regulators should recognize resilience as a public utility-enhancing capability rather than a mere expense.
Create modular, outcome-based offerings around resilience and data.
Customer data has transformative potential when handled with care and clear consent. Utilities can monetize anonymized usage patterns by offering tailored efficiency programs, dynamic pricing, and proactive outage alerts that reduce customer costs and improve grid performance. Data dashboards can be provided to customers as value-adds, distinguishing the utility from competitors by offering insights into consumption, peak demand, and personalized recommendations. A successful data strategy requires robust cybersecurity, strict access controls, and ongoing communication about how data is used. Partnerships with analytics firms and trusted third parties can accelerate capability building, while maintaining a strong privacy posture that satisfies regulators and customers alike.
To turn insights into recurring revenue, utilities should implement modular data products. These could range from basic energy-use reports to advanced predictive maintenance alerts for commercial customers and optimized EV charging schedules for fleet operators. Revenue is generated not just from selling data, but from embedded services that improve efficiency, resilience, or reliability. Customer consent should accompany transparent value exchange, making it clear how data fuels benefits such as lower bills, faster outage response, or smarter network planning. Equally important is measuring impact—tracking savings, reliability improvements, and customer satisfaction to prove economic value over time.
Align pricing with outcomes and customer value.
Outcome-based offerings shift the focus from upfront costs to demonstrated results. A resilience package might guarantee restoration within a specified window, with a price linked to historical outage probabilities and customer service commitments. For commercial customers, this can translate into negotiated service-level agreements tied to uptime, recovery time, and business continuity. Data-enabled services then complement these packages by providing continuous monitoring and optimization suggestions. The monetization logic becomes about shared risk and shared upside: customers pay a predictable fee for improved certainty, while the utility earns a margin tied to performance and accuracy of forecasts.
Another avenue is co-innovation with customers and technology providers. Utilities can design pilots that co-create resilience-enhancing products and systems, such as microgrids for campuses or hybrid energy storage for manufacturing sites. Such collaborations often unlock access to investment capital, regulatory support, and favorable procurement terms. The critical element is aligning incentives: the utility benefits from enhanced reliability and an ability to monetize new services, while customers gain improved operations, reduced risk, and sometimes preferential pricing. Clear governance, documented outcomes, and scalable deployment plans help these pilots evolve into mature, revenue-generating businesses.
Earn durable value through governance, trust, and scale.
Pricing models tied to outcomes encourage both reliability and efficiency. Time-of-use tariffs, demand charges, and dynamic resilience fees can reflect actual grid stress and the value of flexibility. When customers directly see the benefits—lower bills, greater outages resilience, or preserved continuity—the acceptance of novel charges increases. Utilities must balance regulator expectations with market realities, ensuring transparency and simplicity in tariff design. Communicating the rationale behind pricing, along with the expected impact on bills and service quality, builds trust and reduces resistance. In parallel, pilot programs validate pricing assumptions before broader rollouts.
To sustain momentum, utilities should also invest in capability building. This includes upgrading data platforms, expanding analytics talent, and deploying scalable cybersecurity programs. By centralizing data governance, utilities can accelerate product development while maintaining robust privacy protections. External advisory boards, independent auditors, and consumer advocacy groups can help maintain legitimacy and stakeholder confidence. The longer-term payoff is a diversified revenue base that leverages existing assets—grid assets, customer relationships, and brand trust—into steady, defensible income streams even as traditional energy markets shift.
Long-term monetization requires strong governance that blends regulatory insight with commercial pragmatism. Utilities should codify processes for asset valuation, risk-sharing terms, and price volatility management. A clear framework helps internal teams, customers, and partners understand how non traditional assets contribute to earnings and risk mitigation. Trust is built through consistent privacy protections, transparent communications, and demonstrated reliability. Scale comes from replicable business models that can be deployed across regions and customer segments, aided by modular platforms that plug in new services without overhauling the core system. The outcome is a resilient, diversified revenue engine that supports investment in modern grids while benefiting end users.
In the end, monetizing flexibility, resilience, and customer data is not a single product but a portfolio of capabilities. Utilities that succeed treat these assets as strategic levers to improve service quality, reduce costs, and strengthen customer relationships. The most effective strategies blend technology-enabled efficiency with customer-centric design, regulatory alignment, and transparent governance. By adopting modular, outcome-based offerings and codifying data stewardship, utilities can build durable, scalable revenue streams that align with a smarter, more resilient electric system for decades to come. The journey requires patience, careful experimentation, and unwavering commitment to trust and value.
