Software Critical for TSOs to Enhance Grid Resilience, ABI Research Finds

Transmission System Operators (TSOs) are increasingly turning to software applications to alleviate grid constraints, strengthen cybersecurity, and expand capacity as electricity demand and network complexity grow. According to a new survey from global technology intelligence firm ABI Research, operators are prioritizing investments in Energy Management Systems (EMS), grid planning software, and other applications that can help them modernize aging infrastructure and manage increasingly dynamic grid conditions.

Cybersecurity remains the most critical issue facing TSOs today and is expected to remain their top concern over the next 2 years. At the same time, the need to keep aging infrastructure operational and expand grid capacity to accommodate growing customer demand is shaping where operators plan to invest.

“TSOs are no longer evaluating software purely as an efficiency tool; they increasingly see it as essential to grid security, resilience, and expansion,” said Michael Larner, Senior Research Director at ABI Research. “As network conditions become more dynamic and the consequences of outages grow more severe, software investment is becoming central to how operators manage risk and prepare for future demand.” ‌

ABI Research’s 2Q 2026 online survey included 455 respondents overall, with 151 working at TSOs across North America, Europe, and Asia-Pacific. Energy Management Systems emerged as the core operational software category, with a median budget of US$1 million over the next 12 months and expected budget growth of 0% to 5% over the next 24 months ‌

The research also found that TSOs are balancing day-to-day operations with long-term grid transformation. Grid planning software is expected to see a median budget of US$200,000 to US$500,000 with spending rising by up to 10%, while Grid Enhancing Technologies are projected to grow from a lower base of US$100,000 to US$200,000. One hundred and two respondents said software is commonly procured embedded within hardware, signaling that software vendors must align closely with hardware partners to win utility business ‌

“Vendors targeting TSOs need to lead with security credibility, interoperability, and ease of doing business, rather than assuming AI alone will differentiate their offer,” Larner said. “Operators are open to innovation, including cloud deployment, but they want technologies that strengthen existing processes, support grid expansion, and deliver measurable operational value in increasingly volatile operating environments.” ‌

These findings are from ABI Research’s What's On The Mind of TSOs? report, part of the company’s Smart Energy research service, which includes research, data, and ABI Insights.