I’m thrilled to sit down with Christopher Hailstone, a seasoned expert in energy management, renewable energy, and electricity delivery. With his deep knowledge of the utilities sector, Christopher offers unparalleled insights into grid reliability, security, and the urgent need for digital transformation in the energy industry. Today, we’ll dive into the cultural shifts required for utilities to embrace modern technology, the potential of open source collaboration, and how these changes could reshape the energy transition for the better.
Can you explain why utilities are finding it so tough to modernize their digital systems, particularly with something as fundamental as billing?
Absolutely, Silvia. Many utilities are grappling with systems that are decades old, often built on outdated programming languages like COBOL. These systems were designed for a different era and simply can’t keep up with today’s demands, whether it’s handling complex regulatory requirements or integrating new technologies. The scarcity of engineers familiar with these legacy systems only compounds the problem, leading to costly workarounds and delays. For customers, this often translates into rate hikes to fund massive modernization projects, as we’ve seen with various utilities across California. It’s a frustrating cycle—outdated tech drives up costs, which then get passed on to the consumer.
What does it mean for utilities to transform into technology companies, and why is this shift so critical?
It’s about adopting a mindset of innovation and agility, much like tech companies do. Utilities have traditionally operated with a slow, risk-averse approach, focusing on stability over adaptability. Becoming a tech company means prioritizing digital infrastructure, embracing rapid iteration, and building systems that can evolve with emerging needs like dynamic pricing or electric vehicle integration. It’s a cultural overhaul—moving from siloed, proprietary systems to collaborative, scalable solutions. Without this shift, utilities won’t be able to manage the complexities of the energy transition or meet customer and regulatory expectations.
You’ve highlighted how industries like film, banking, and telecom leverage open source collaboration. Can you walk us through how this approach has worked for them?
Sure, it’s fascinating to see how these sectors have embraced open source to solve shared challenges. Take the film industry, for instance—studios and tech giants collaborate on digital tools that power animation and visual effects, resulting in award-winning movies. In banking, institutions work together on platforms that streamline compliance and data sharing, ensuring security and efficiency. Telecom operators also pool resources to develop infrastructure that supports massive networks. The key is that competitors share foundational technology—think of it as building blocks—while still differentiating on customer-facing services. This mutual effort cuts costs and speeds up innovation, benefiting everyone involved.
How could open source collaboration be applied to the energy sector, especially for utilities in California?
In California, utilities face similar digital challenges, like billing system upgrades. Instead of each utility tackling these independently, they could collaborate on shared tools—say, a common billing framework or grid management software. By developing these as open source, they’d split the costs and ensure transparency for regulators and customers. It would also standardize certain processes, making it easier to integrate new technologies like distributed energy resources. This approach could significantly improve efficiency, reduce redundancy, and ultimately lower the financial burden on both utilities and ratepayers.
You’ve mentioned that open source can bolster cybersecurity. Can you elaborate on how that works in practice?
Definitely. Open source software benefits from having many eyes on the code—developers from various organizations can spot vulnerabilities and fix them quickly, often faster than with proprietary systems where only a limited team has access. For utilities, where cybersecurity is a growing concern due to increasing grid connectivity and cyber threats, this transparency is crucial. Open source allows for rigorous, community-driven audits and fosters a culture of shared responsibility. It’s not a silver bullet, but it creates a more resilient defense against attacks compared to closed, outdated systems that can harbor hidden flaws.
How does open collaboration lead to cost savings for utilities and, in turn, for customers?
When utilities collaborate on open source projects, they share the development and maintenance costs of foundational technologies. Instead of each company spending millions on bespoke solutions, they pool resources for common needs, like billing or grid optimization tools. This reduces the financial load on any single utility and frees up budget for value-added innovations. For customers, this can mean lower bills over time, as utilities optimize operations and avoid passing on the full cost of digital overhauls. It’s a win-win—more efficient systems for the industry and more affordable rates for households.
Why do you think the current approach to digital projects in utilities often results in delays and budget overruns?
A big issue is the siloed nature of how utilities operate. Many still rely on custom, proprietary systems or work in isolation, reinventing the wheel for every project. This leads to inefficiencies, mismatched technologies, and a lack of standardization. Without collaboration or modern software practices like automated testing, problems often go undetected until late in the process, causing delays and spiraling costs. There’s also a cultural resistance to change—utilities aren’t always equipped to adopt agile methodologies or prioritize long-term scalability over short-term fixes. It’s a recipe for frustration and wasted resources.
What’s your forecast for the role of open source collaboration in the energy sector over the next decade?
I’m optimistic that open source will become a cornerstone of the energy sector’s digital transformation. Over the next decade, I expect to see more utilities worldwide adopting collaborative models, especially as the urgency of the energy transition grows. We’ll likely see shared platforms for grid management, renewable integration, and cybersecurity become industry standards, much like in other sectors. This shift will accelerate innovation, drive down costs, and improve grid reliability. But it’ll require bold leadership and a willingness to break from traditional thinking. If utilities can embrace this, I believe we’ll see a more resilient, affordable, and sustainable energy future.
