Industry Deep Dive: ETRM Modernization for Power & Utilities

Applying LNG ETRM Transformation Lessons to Power & Utilities

The energy sector is in the midst of a profound transformation. While the liquefied natural gas (LNG) market has pioneered digital modernization in energy trading and risk management (ETRM), the power and utilities sector is now facing its own set of unique challenges and opportunities. As utilities navigate the imperatives of decarbonization, distributed energy resources, and evolving customer expectations, the modernization of ETRM platforms—leveraging cloud and artificial intelligence (AI)—is emerging as a strategic necessity.

The Evolving Needs of Power & Utilities

Utilities today operate in a landscape defined by rapid change:

Grid Modernization: The integration of renewables, electric vehicles, and distributed energy resources is increasing grid complexity and volatility. Utilities must manage real-time data flows, optimize grid operations, and ensure reliability.
Customer-Centric Digital Journeys: Modern consumers expect transparency, personalized experiences, and digital engagement. Utilities are reimagining customer journeys, using smart data and gamification to drive loyalty and support the transition to a lower-carbon future.
Decarbonization and Regulatory Pressure: Ambitious net-zero targets and evolving regulations require utilities to manage new risks, optimize trading across multiple energy products, and ensure compliance in real time.

Lessons from LNG: The Case for ETRM Modernization

The LNG sector’s digital transformation offers a blueprint for utilities. In LNG, legacy ETRM systems—often siloed and inflexible—were replaced with cloud-native, AI-powered platforms that:

Unified Data Ecosystems: Breaking down silos between trading, risk, operations, and compliance, enabling real-time analytics and automation.
Enabled Agility and Scalability: Cloud-based solutions allowed rapid deployment of new capabilities and seamless adaptation to market changes.
Reduced Total Cost of Ownership: By shifting to pay-as-you-go models, organizations optimized costs and accelerated innovation.
Enhanced Security and Compliance: Enterprise-grade security and automated compliance features ensured regulatory requirements were met across jurisdictions.

A standout example is the transformation of MC Global Gas Corporation and Diamond Gas International, where a cloud-based ETRM platform delivered end-to-end trade lifecycle management, real-time risk visibility, and a scalable foundation for global growth. The result: streamlined workflows, automated approvals, and significant efficiency gains—outcomes directly relevant to the power and utilities sector.

Modern ETRM for Utilities: Cloud and AI at the Core

Cloud-Native Platforms

Modern ETRM solutions built on platforms like Microsoft Azure or AWS provide utilities with:

Unified, Real-Time Data: Integrating trading, risk, and operational data for a single source of truth.
Scalability: Rapidly scale to accommodate new energy products, markets, and regulatory requirements.
Cost Efficiency: Eliminate large upfront investments and pay only for the services needed.
Security and Compliance: Meet stringent regulatory and cybersecurity standards.

AI and Machine Learning

AI is transforming how utilities manage risk and optimize trading:

Market Forecasting: Machine learning models predict price trends, demand fluctuations, and supply chain disruptions, empowering faster, more informed decisions.
Portfolio Optimization: AI-driven tools balance risk and reward across complex, multi-asset portfolios, supporting both short-term and long-term strategies.
Automated Compliance: Natural language processing and intelligent automation streamline regulatory reporting and reduce manual effort.
Operational Efficiency: Robotic process automation (RPA) automates repetitive tasks, freeing teams for higher-value work.

Supporting the Energy Transition

Modern ETRM platforms are critical enablers of the energy transition. Utilities can:

Integrate Renewables: Seamlessly manage intermittent generation, storage, and distributed resources.
Enable New Business Models: Support peer-to-peer trading, demand response, and innovative customer offerings.
Enhance Customer Experience: Use data-driven insights to personalize engagement and drive adoption of clean energy solutions.

Real-World Impact: Digital Innovation in Utilities

Utilities partnering with digital transformation leaders have already realized tangible benefits:

Efficiency Gains: Streamlined workflows and real-time data access reduce manual steps and accelerate decision-making. For example, a global energy company reduced 14 manual steps to just 4 clicks in its trading approval process, achieving 100% adoption within the first week.
Risk Reduction: Automated compliance checks and audit trails minimize regulatory risk and ensure transparency.
Business Agility: Flexible, modular ETRM architectures allow utilities to quickly respond to market shifts and regulatory changes.

The Path Forward: Mindset and Collaboration

True ETRM modernization is more than a technology upgrade—it requires a shift in mindset and ways of working. Utilities must:

Adopt Agile, Product-Centric Approaches: Foster collaboration between business, IT, and risk teams.
Leverage Industry Collaboration: Embrace shared solutions and standardization for non-differentiating functions, accelerating innovation and reducing costs.
Focus on Value Creation: Build on existing capabilities while laying a digital foundation for future growth.

Why Publicis Sapient?

With over 30 years of experience in energy and commodities, Publicis Sapient is uniquely positioned to guide utilities through ETRM transformation. Our SPEED capabilities—Strategy, Product, Experience, Engineering, and Data & AI—ensure every solution is tailored to your needs and delivers measurable business outcomes. Our partnerships with Microsoft and AWS bring together deep industry knowledge and leading cloud and AI technologies.

Start Your ETRM Modernization Journey

As the power and utilities sector faces unprecedented change, the time to modernize is now. Publicis Sapient is ready to help you unlock the full potential of your trading and risk management operations—today and for the future. Connect with our experts to learn how we can help you break down silos, harness the power of cloud and AI, and build a resilient, future-ready ETRM platform for your organization.