In the energy sector, margins are slim, and efficiency is everything. Yet behind much of today's grid lies legacy software – systems that once provided stability but now quietly drain budgets, increase risks, and hold back innovation.
The problem is not abstract. At National Grid in the UK, outdated control systems routinely sidelined battery storage, even when it was the most cost-effective and sustainable source available. As a result, gas plants were used more often than necessary, driving up costs and emissions. Only after a modernisation push in 2023 were those inefficiencies addressed.
In the United States, the Department of Energy estimates that blackouts linked to ageing infrastructure could cost businesses $150 billion annually. Some utilities are already layering predictive maintenance and climate-risk modelling on top of their legacy platforms. A Texas utility, for example, reduced storm-related disruptions by 72% using AI-driven insights. These cases highlight just how expensive "doing nothing" can be.
And yet, the cost of legacy isn't only about outages. A mid-sized U.S. utility that swapped its 15-year-old platform for a modern low-code solution doubled its throughput in under a year. Error rates dropped by 40%, and pilot deployments shrank from six months to just three weeks. On a global scale, companies spend up to $30 million per year maintaining outdated platforms. Money that could otherwise fund innovation.
Why Software Modernisation Matters
Raúl Gil García, CEO of Unatec, has seen these challenges firsthand.
"Over time, the technical and business risks associated with legacy systems grow exponentially," he explains. "A good starting point is simply to define, and put in writing, that the IT budget has two parts: money for maintaining the current platform and for making changes."
Unatec has spent over a decade helping major players, such as Iberdrola and Naturgy, modernise their software foundations. From predictive maintenance to permitting workflows, the company develops tailor-made solutions that replace slow, manual processes with reliable, intelligent systems.
"AI is definitely not a magic bullet which can be used everywhere," Gil García adds, "But we already see a lot of use cases in the energy sector. The real value comes when intelligent systems are embedded in practical, reliable software that people trust and use."
From Legacy to Leadership
Legacy software doesn't just create inefficiencies. it locks companies out of future opportunities. While competitors adopt IoT solutions, AI-driven control, and cloud-native platforms, those tied to outdated systems fall behind. Regulatory standards, particularly those related to cybersecurity and reporting, exacerbate this gap, making it even more perilous.
"Our role as a software partner is to bridge the gap between what AI can do and what energy professionals actually need – like we've done for Repsol, for example," says Gil García. "AI has immense potential to help energy companies become more efficient, sustainable, and competitive. But to move from ideas to impact, it must be embedded in well-crafted software."
Time to Act
The hidden cost of legacy software is a slow but steady erosion of margins, resilience, and competitiveness. Modernisation does not need to mean tearing everything out at once. A phased approach, starting with the highest-impact areas, can deliver measurable results quickly.
At Unatec, we've helped utilities and energy companies across Europe take those steps with confidence. If your organisation is struggling with the cost and complexity of legacy systems, it's time to act.
Contact us today to explore how Unatec can help you modernise your energy software, reduce hidden costs, and unlock new opportunities.
