Embracing Digitalization in Utilities for Enhanced Efficiency and Sustainability
Digital transformation is the integrating of digital technologies into all the aspects of a business, with the aim of improving efficiency and performance. Adoption of such advanced technologies in the utilities sector such as grid analytics, smart meters, and distributed energy resources. It helps with improved interactions with customers, greater efficiencies, more streamlined operations, and triggering new business models. It utilizes AI to analyse large data sets and gain business insights
The digital power utility market size is expected to be around 239.38 billion USD by 2028 from USD 239.38 billion USD at a CAGR value of 23.4%
Use Cases
Pipeline Condition Monitoring– Leakster, a start-up company, has developed a way to monitor the condition of pipelines without needing to shut off the water supply. An ACTIVE sensor is fitted onto a pipe and data is sent to the cloud. AI-based algorithms identify leaks, pressure variations, blockages, and velocity. It allows utilities to make informed asset management and maintenance decisions, saving extensive and expensive repairs
Wind360– Weather company, an IBM business, provides accurate weather data. It is a tool that provides real-time data on wind speed and direction for any location in the world, allowing utility companies to make sense of the weather and streamline their operations and more
Driving factors of digitization in utilities
Increased capital investments in renewable energy projects along with the rising demand for energy due to increased industrialization have accelerated the growth in digitisation of utility companies as it requires better systems to predict weather, efficient systems to monitor, and analyse data to reduce energy consumption and provide solutions to depleting necessary fossil fuels
The total Impact of Digitization resulted in 23.2% of increased utility earnings and the below shown graph represents the impact of digitization on its improvement areas
Benefits of Digitization in Utilities
Enhanced Customer Experience– Digital transformation has helped to digitize processes by using data to personalize interactions. Utilities can now provide a better overall experience for their customers. Digital channels allow customers to access information and transact, resulting in customer satisfaction and loyalty customers
Improved Data Management– It allows us to adopt new technologies that can streamline operations and make it possible to analyse data, resulting in an overall improvement in data management
Increased Operational Efficiency– Digital transformation can help to increase efficiency, drive down costs and increase overall customer service. For example, automating meter reading and billing processes has helped utilities to reduce accounting and administrative expenses
Improved Decision making– Adoption of digital technology has brought better clarity in the ability to see data and act upon data in ways that were not possible before. It helps to improve the accuracy of decisions and improve overall efficiency
Enhanced Security– Digital transformation has enhanced security in utilities by providing abilities such as real-time data monitoring, allowing utilities to identify suspicious activity and resolve issues. Its ability to enhance security in utilities is wide ranging
Increased Sustainability– Automating energy-intensive processes, improving asset management and digitizing customer interactions can help with reducing energy consumption. Data and analytics can optimize asset management and improve operational efficiency
Top Digital Transformation trends in Utilities
Edge computing– A type of computing where data can be processed locally. It is important in providing real-time data and analytics
Digital twins– It is a digital replica of a physical system. It captures data from the physical object and that uses the data to create realistic models of how an object behaves. It can be used to test new designs and optimize performance, providing assistance with reduced down time, improved efficiency, and better management of asset risk
Conclusion
The rise of digitization has resulted in increased expectations of consumers; utility companies have to adapt to this change. Digitization is key to improving consumer experiences, efficient operations, reduced cost and to meet the demand of sustainability drives required by companies and nations to meet. Certain challenges in the adoption of these technologies are the high operating cost associated with replacing the existing infrastructure. Nevertheless, the benefits outweigh the challenges and digitization of utilities is inevitable in transforming every aspect of the industry.
Author: Abhishek Saini