{"id":14259,"date":"2019-10-31T19:13:11","date_gmt":"2019-10-31T13:43:11","guid":{"rendered":"https:\/\/coforge.site\/cigniti\/blog\/?p=14259"},"modified":"2022-08-01T15:11:18","modified_gmt":"2022-08-01T09:41:18","slug":"utilities-digital-disruption-value","status":"publish","type":"post","link":"https:\/\/coforge.site\/cigniti\/blog\/utilities-digital-disruption-value\/","title":{"rendered":"The value of disruption in the Utilities industry"},"content":{"rendered":"

The\u00a0<\/span>exponential pace of technological advancements is not a news. Everyone is talking about digital disruption and trying to evolve and accommodate as per the latest technology trends. For some organizations, digital is an upgrade, while for others, it is total upheaval and mayhem.\u00a0<\/span>\u00a0<\/span><\/p>\n

We are hearing about contactless payment technology facilitating faster checkouts, AI-driven bots assisting in critical strategic decision making, robotic surgeries becoming a norm for precision procedures,\u00a0<\/span>virtual<\/span>\u00a0reality enabling customers to make smart purchase decisions, and what not. Driverless cars and planes are well ahead in their experimentation phase, smart homes are becoming a reality. 5G is already here, while 6G waits for its transition from theory to practice.<\/span>\u00a0<\/span><\/p>\n

Amidst th<\/span>e<\/span>\u00a0entire fanaticism around innovating, developing, and adapting new technologies, there is a key aspect that we all should consider \u2013 the need for\u00a0<\/span>extraordinary amount of energy to power the latest devices, machines, and processes.\u00a0<\/span>\u00a0<\/span><\/p>\n

The\u00a0<\/span>Energy and Utilities sector<\/span><\/a>\u00a0has been quite slow in its digitalization journey. For being in tandem with the rapidly evolving, digital-first world, the E&U industry will need to catch up with the other sectors in terms of their digital capabilities.<\/span>\u00a0It can leverage digital solutions to address and minimize inefficiencies and wastage in the energy value chain.<\/span>\u00a0<\/span><\/p>\n

The digital utility market is expected to grow up to $244.31 Billion by 2022, as per a recent report.<\/span>\u00a0Utilities is a\u00a0<\/span>capital<\/span>-intensive market, which is one of the reasons for the dominance of incumbents. Digital disruption is posing as a huge threat for the incumbents and providing entry opportunities to new players.\u00a0<\/span>\u00a0<\/span><\/p>\n

The legacy infrastructure and unreliable energy distribution often resulted in poor customer satisfaction. With smart grids, customer retention also has become a pain for the utilities company. By embracing the digital revolution, it becomes possible to deliver a data-driven, personalized, and reliable experience to the customers. Let us understand how digital disruption will impart value to the utilities sector:<\/span>\u00a0<\/span><\/p>\n

The new \u2018normal\u2019<\/span><\/b>\u00a0for customers<\/span><\/b>\u00a0<\/span><\/p>\n

E&U has mostly struggled with challenges of poor customer engagement, limited customer insights, and high churn rate. The connected customers expect everything to be just \u2018a tap away\u2019. Digital is the new normal for them. They assess their service providers based on their digital portfolio.<\/span>\u00a0<\/span>Digital adoption becomes a means for utilities provider to address these issues and offer services in the way their customers want.<\/span>\u00a0<\/span><\/p>\n

Intelligent energy flow management<\/span><\/b>\u00a0<\/span><\/p>\n

After being introduced\u00a0<\/span>in the market in early 2000s, smart meters formed the foundation for data analytics in the utilities sector. By facilitating the flow of volumes and volumes of data, smart meters and smart grids make predictive maintenance, supply planning, and outage prevention feasible.\u00a0<\/span>\u00a0<\/span><\/p>\n

The pool of data collected over the years forms a powerful repository for expanding and leveraging AI-driven data analytic capabilities. Smart grid networks allow the industry to make remote monitoring a reality. This ensures higher reliability and efficiency of the distribution network.<\/span>\u00a0<\/span><\/p>\n

With information comes intelligence. With so much of\u00a0data\u00a0at disposal, utilities provider can practically and accurately assess the demand and manage the supply accordingly.\u00a0<\/span>\u00a0<\/span><\/p>\n

Next-gen energy storage<\/span><\/b>\u00a0<\/span><\/p>\n

Storage has been one of the biggest pain points for the E&U sector. A PwC report says, \u201cIn recent years, the rapid growth in intermittent renewables on the grid has rejuvenated utility demand for energy storage \u2013 both to complement renewables, but also to defer transmission and distribution investment in congested parts of the grid and to improve local frequency regulation<\/span>.\u201d<\/span>\u00a0<\/span><\/p>\n

Having storage systems tied with grid systems bestow direct ownership to utilities providers. To deliver the combined benefit of flexibility and reliability, advanced battery systems are being developed that will be highly efficient and offer a range of applications to give more control to the end users.<\/span>\u00a0<\/span><\/p>\n

Emphasizing innovation<\/span><\/b>\u00a0<\/span><\/p>\n

PwC\u00a0<\/span>predicts<\/span><\/a>\u00a05 possible scenarios that will unfurl in the coming future.<\/span>\u00a0<\/span><\/p>\n