Management expects increased restructuring activity through 2026.
Utility executives expect continued portfolio restructuring through 2026, with 56% expecting higher levels of sales, closures and consolidation, according to Bain & Company.
In Asia Pacific, the proportion of executives allocating “significant” capital to transition-focused businesses will fall from 42% in 2025 to 32% in 2026. The proportion of executives allocating “moderate” and “not very large” capital each rises to 34%.
Executives also reported a change in their funding approach, with 56% of companies planning to co-invest with technology companies, up from 35%. The proportion planning to increase prices for existing customers fell from 24% to 0%.
Bain noted that utility executives have the most optimism toward artificial intelligence (AI), energy storage, and advanced and current generation nuclear technologies, while reporting negative sentiment toward low-carbon hydrogen, synthetic fuels, and direct air capture.
AI adoption is most mature in customer service, operations and maintenance, and marketing and sales.
Risk, legal and research functions are also in a rapid implementation stage, while capital projects and exploration are still in early testing stages.
Across the region, executives report an increasing preference for India and China as investment destinations, while sentiment toward North America and Europe has declined.
