5 Technologies to Extend Utility Energy Services

Utilities in deregulated markets are under more pressure than ever to attract and retain customers and are therefore more motivated to consider new technologies to extend their energy services offering. 

In our previous articles regarding the Future-Proof Utility, we discussed digitalisation and client loyalty as a push for innovation, and the importance of a customer-centric approach. While both of these concepts are of crucial strategic importance, technology is the vehicle that will ultimately bring the future-proof utility into being.

In this article, we will discuss 5 technologies utilities are exploring and investing in, and what kind of capabilities are needed to meaningfully expand their energy services.

Technology that helps increase the utility services offering from selling pure kWh to providing digital energy services is essential in meeting the demands of today’s highly sophisticated, digital-first customer.

An increasing number of utility customers ask for products that can give them more visibility, flexibility and control over their energy consumption. They want to know how and when energy is used, which requires the implementation of smart technology. In addition, a survey conducted by the UK Department for Business Energy & Industrial Strategy (BEIS) found that utilities are trusted by 55% of UK respondents, which represents an amazing opportunity for utilities to create extra value based on insight, data and services.

Unavoidably, utilities that will not adapt to this paradigm shift will find themselves far behind the competition. Indeed, even the world’s biggest companies such as Sasol, Engie and Sinopec have committed to emission reduction targets and are willing to adapt themselves to new requirements and expectations.

Yet, a significant demand gap exists between what utility customers want and what their energy providers are able to offer them from a technological point of view. Here are 5 technologies, from well-established to newly emerging, that will be best placed to fill that gap:

5 Technologies for Data-Driven Utilities

Real-Time Energy Analytics

Utility business customers are increasingly determined to manage their energy consumption patterns in real time.

That is the reason why commercial building owners and facility managers install energy monitors. Indeed, they can close their building energy performance gap by detecting peaks in consumption or forecasting future fuel requirements.

Industrial facilities and manufacturers are especially keen to use predictive analytics to monitor heat and cooling equipment performance: they can automatically alert malfunctions, prevent errors or notify when it is time for maintenance. Even residential customers want on-demand, real-time access to manage and control their personal energy consumption. Utilities are therefore well placed to provide mobile applications and real-time solutions.

Data centres are taking crucial measures to reduce their environmental impact and therefore have excellent Power Usage Effectiveness (PUE) metrics. For instance, Google AI company DeepMind has already achieved a savings rate of 40% on power consumed for cooling purposes alone by using artificial intelligence to optimise energy efficiency.

Similar Big Data and machine learning methods could be applied to utility buildings, evaluate new plant configurations, assess energy efficiency performance, and identify optimisation opportunities. Energy analytics can also help utilities improve grid management by enabling network balancing with production and consumption forecasting, predictive maintenance of grid infrastructure, and the creation and management of demand response programs.

Virtual Audits
Utilities continue to explore innovations based on load disaggregation and behavioural change programmes that use gamification techniques.

Virtual audits are a good example: they use Big Data algorithms to disaggregate utility usage into end uses, such as lighting, pumping, and HVAC. Virtual audits can also identify energy-saving measures by detecting wastage points, peak loads and building automation problems.  

Virtual audits can help boost engagement by helping utility customers clearly visualise two important cost-reduction factors: energy use patterns and behaviour, and energy savings potential from retrofits or upgrades to more energy-efficient equipment. They also do it quickly enough to meet the expectations of today’s digital native, always-connected customer – and at a fraction of the cost.

Utilities are especially well-placed to “nudge” their business customers toward data-driven energy efficiency. Many of these commercial and industrial (C&I) customers are responsible for a large portfolio of buildings, which requires a great deal of time to track and review for energy efficiency projects. When hundreds of virtual audit reports can be combined into a single, powerful interface hosted by the utility, business customers will spend more time engaging with their providers to prioritise sites, track projects and evaluate the results.

Demand-Side Management and Demand Response

Data-driven energy analytics can be applied to demand management to benefit utilities in several use cases, including demand response enablement. 

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