Energy providers are racing to modernize grids, integrate renewables and meet surging demand, yet the state of software enabling that transformation might be putting billions at stake. A new report from Software Improvement Group (SIG) pinpoints the seven key factors that can either accelerate or derail a utility’s digital strategy and shows executives where to act first.
The Top 7 Software Risks and Strategic Levers
The report outlines key insights on:
- Cybersecurity gaps: 67% of energy systems fall short of security benchmarks, increasing risk of disruption and regulatory exposure.
- Build quality issues: 42% of systems lag in maintainability, raising annual costs and slowing feature delivery.
- AI adoption risks: While nearly 40% of large energy firms are adopting AI, 73% of implementations suffer from structural weaknesses.
- Green IT opportunity: Code optimization can reduce energy use by up to 90%, a powerful but underused lever in emissions targets.
- Legacy drag and cloud readiness: Systems with poor architecture evolve 40% slower, while cloud-ready design boosts scalability and flexibility.
- Knowledge monopolies: Despite outperforming other sectors in distributed knowledge, energy companies still risk hidden productivity loss without continuous documentation.
Why It Matters for Energy leaders
In a sector where margins are tight and infrastructure investment is capital-intensive, the hidden costs of software inefficiency compound fast. This report helps executives answer three strategic questions:
- Are we in control of our software portfolio?
- Are we investing in what matters?
- How do we compare to peers and innovators?
Actionable Insights for 2025 and Beyond
From reducing technical debt to building scalable AI infrastructure, the report offers concrete recommendations and industry benchmarks to help leaders turn software into a strategic asset fueling operational resilience, innovation, and competitive advantage.
“If you’re striving to compete, lower costs, and build the systems that will power a cleaner future, this report will help you make software a source of strength, not risk,” says Luc Brands, CEO of Software Improvement Group.
About the Research
The study draws on SIG’s proprietary benchmark of 20 000 systems and 300 billion lines of code—the world’s largest repository of measured software quality. Comparative industry cuts show how power and utilities stack up against peers and cross‑industry leaders.
Download the full report now to discover where you can cut risk, reduce cost, and unlock innovation.