Today’s power providers want to provide customers with reliable energy services and products at fair market costs. To do so, they must leverage the best of IoT across their value chain – from generation to transmission, distribution and retail.
Unfortunately, the electric grid is pretty inefficient today in many areas. Not all of the electricity that is generated is able to be consumed. Some of that is natural line loss, but other losses are related to underperforming assets and outages that could be prevented.
Sensors throughout the system help to predict problems before they occur. In this digitized landscape, data is the new currency.
IoT technology is also helping integrate distributed energy resources, such as solar, wind and batteries. In fact, their contribution is made possible because of IoT devices. IoT is quickly becoming the glue of the modern electric grid.
IoT devices and data are enabling more players to participate in electricity markets. We are already seeing this with 3rd party solar providers and the trend will continue as electric vehicle infrastructure expands. Utilities are no longer the only provider of energy services.
New market entrants may be complimentary or in direct competition with some aspects of the utility portfolio. In the IoT era, knowing your customer is the key to long term engagement and revenue growth.
Bloomberg predicts that 5.8 million people across North America and Europe will have smart home devices by 2019, capturing valuable data about customer behavior. Customers are in the drivers seat.
They will decide who to share data with and how to source power for their devices, including electric vehicles, with tradeoffs for cost and convenience. These IoT trends are opportunities for the utility to update their business model to be ready to support the energy customer of the future.
This article has been republished with permission from SAS.