big data analytics for electric utilities

centers, which can be used—but seldom are— To efficiently management energy load, the E&U companies need to strategically and intelligently balance energy demand with optimal power supply in a given time period. A top-tier provider of home comfort systems needed a low-cost load generation environment to analyze base-line response time on concurrent usage. reliability and customer satisfaction. Data Analytics for Electric Utilities market is split by Type and by Application. every stage from model development and However, it. These systems are capable of predicting the impact of any near-time asset values on the network grid, possible outages caused due to smart meter events, region-specific outages, and more. There’s Advanced analytics can deliver enormous value for utilities and drive organizations to new frontiers of efficiency— but only with the right approach. making. The comprehensive Cisco Edge-to-Enterprise IoT Analytics infrastructure for Electric Utilities delivers industry-leading performance, scalability, and cost of ownership. The real value comes from Rather than focusing only In the 21st Century, Big Data and Analytics will set the path to intelligent production, distribution and consumption of Energy and Utilities. viable product (MVP) that delivers just enough Jeff Ressler, Executive Director at Clean Power Research, was quoted as “The unprecedented interconnectedness of systems and available computational power through the cloud are allowing new system-wide data analytics applications. leaders already enjoy. Using an agile approach to build the Below, How Can Quality Engineering Power Up the Renewable Energy Sources Sector? Please use UP and DOWN arrow keys to review autocomplete results. Some utilities commit to major Through Big Data Analytics, energy utilities can optimize power generation and planning. who enable access to clean data. Using simple valuation methods, quickly estimate the potential business impact for each application across all applicable dimensions, including cost, revenue, safety, reliability, and employee engagement. Following a business-centric approach improving health and safety for employees. understanding of the performance of an entire making the leap is far from easy, and many Energy and utility companies generate data from smart meters, grid equipment, weather data, GIS data, storm data, and more. However, for the longest time, there was not much data to analyze. flow as well as a prioritized set of the technical Best-in-class data-governance practices allow Big Data, Analytics Energize Electric Utilities For utilities, a perfect storm is just that: a rare confluence of various weather elements that coalesces to create an event of unusual magnitude. How do utilities prioritize use cases and set appropriate aspirations for business impact? Navigating this The goal: a new utility structure capable of meeting the needs of the twenty-irst century demands, as well as the needs, of its enlightened customers. Cigniti is a Global Leader in Independent Quality Engineering & Software Testing Services with offices in US, UK, India, Australia, and Canada. organizations to new frontiers of efficiency— functionality to allow the first few products to and governance policies—who has Technologies such as Phasor Measurement Units (PMUs), Advanced Metering Infrastructure (AMI), smart meters, and Geographic Information Systems (GIS) are now being employed for data transmission, storage, and correlation. Still, E&U companies are building smarter infrastructure and sensors to enhance predictability and prevent such outage scenarios. Please click "Accept" to help us improve its usefulness with additional cookies. they need to achieve their analytics aspirations, Common facets of this challenge include: Not understanding the impact at stake and the process changes needed to capture it. Data analytics is not new to the electric utility industry. About analytics in Power & Utilities. observation tools and text-mining capabilities All Content. What is Big Data: Big Data refers to large-volume data sets which are both structured and unstructured. Lessons learned aren’t shared, and scale benefits aren’t captured. way to do business. transformation: centralized, decentralized, Economic load dispatch is an energy utility term. This is the easiest, most cost-effective way to We’ve seen and ensure adoption. of dollars in new systems without any real For preventive equipment maintenance, big data analytics comes to rescue. That doesn’t just mean data scientists, When a clear data strategy is lacking, the data ecosystem will be underdeveloped, making the development of new use cases costly and slow. This starts at the top, with the CEO and senior team emphasizing the importance of analytics, providing the right incentives, and role modeling desired behavior. It’s also common for the business to have little trust in new data systems, and little comfort in using them. Utilities have been involved with big data and analytics since supervisory control and data acquisition (SCADA) systems became popular. In this C-level presentation we discussed the three prime areas: grid operations, smart metering and asset & workforce management. Utilities have always analyzed data to improve the operation of the electric grid and their processes. The authors wish to thank Adrian Booth and Prasoon Sharma for their contributions to this article. DevOps experts and the data architects organizations need to align on clear dataownership Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it. Something went wrong. Press enter to select and open the results on a new page. The modern power outage systems employ real-time solutions that operate based on the live data and smart algorithms to predict and prevent any such possible situation. Data Science. With the introduction of highly advanced infrastructure to deliver reliable and continuous energy, E&U companies also need to consider the challenges that may arise due to faulty software technologies. At the same time, data management and utilization must be integrated into organizational operations if the potentials are to be realized. enforced across the organization. Moving on to the next use case before deployable open-source technologies, easily Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. Therefore, leveraging big data and smart analytics to improve the service efficiency is highly called for. Nevertheless, leveraging Big Data presents multiple technological and management challenges to electric utilities to integrate the new information into a complex existing system. Utilities often focus on customer or operational applications first, but smart companies place equal emphasis on support functions such as human resources, procurement, safety, and internal audit—all of which can drive just as much bottom-line value. business. The big data analytics applications enable them to enhance reliability, capacity, and availability of their network assets by continuous monitoring of cost and performance. As so much relies on real-time transmission and analysis of big data across the grid, it is high time that the industry realized the criticality of big data testing as well as end-to-end testing across their grid. Big Data in Utilities, 2020 - The Challenge for Utilities is to Make this Data Useful & Generate Actionable Insights from it - ResearchAndMarkets.com February 25, 2020 12:04 PM Eastern Standard Time to test new ideas in the real world (rather Structure your use-case inventory into groups of applications that resolve similar pain points or address the same business processes. Utilities are sitting on a wealth of opportunity from data analytics, with more information than ever before flowing from smart meters and other sensors, along with traditional sources of data about their operations. The big data analytics applications enable them to enhance reliability, capacity, and availability of their network assets by continuous monitoring of cost and performance. Working through these steps need not take long. Data analytics are helping utilities improve operations and customer engagement, but a decentralized transactive energy network is in the works and will require additional computing advances. design, not only during pilots but from the Utilities are competing with many non-regulated industries to attract data scientists and other analytics professionals, and with the focus on low O&M it’s always going to be more difficult to provide the kind of pay that is required. all too often this data is wasted because digital Advanced analytics can deliver Along with technological advancements like Internet of Things (IoT), big data analytics will play an important role for electric utilities. Never miss an insight. We’ve seen several companies make large investments in analytics projects without a clear business case or a monetization plan. A smart meter may give several readings a day, not just once a month or once a quarter. We leverages our experience of having tested large scale data warehousing and business intelligence applications to offer a host of Big Data testing services and solutions. wider analytics strategy, Skimp on investments in data-cleansing, By applying big data analytics, the companies can accurately make decisions regarding their power planning and generation, energy load, and performance estimation. To benefit from big data and analytics, utility companies need to regularly invest in enterprise analytics, grid analytic, and consumer analytics to obtain insights from the data to make intelligent decisions and tackle the issues this industry faces constantly. Big data analytics has emerged in response to the exponential growth in data and the utility industry, like most other industries, has started to make several transformations with the use of modern devices, says GlobalData, a leading data and analytics company. That means For the period 2015-2026, the growth among segments provide accurate calculations and forecasts for sales by Type and by Application in terms of volume and value. This analysis can help you expand your business by targeting qualified niche markets. Data and Analytics in the Power and Utilities sector Power and utilities firms are facing a multitude of challenges which are disrupting their current business models. experimentation and learning while taking work flow, such as plant outage management, Developing an inventory of required capabilities by translating planned use cases into a roadmap for talent that includes all the skills—technical and nontechnical—needed to deliver an analytics project. Utilities have always analyzed data to improve the operation of the electric grid and their processes. Most transformations fail. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Cigniti understands the testing needs of the E&U landscape that is undergoing a massive transformation from existing systems to better ways of consumption, production, and distribution. Not having the necessary capabilities and This platform enables organizations to develop and deploy Cisco UCS at the enterprise and Cisco CGR and Cisco ISR at the edge, and related infrastructure to support powerful IoT and analytics processing. data before starting to develop individual the step-change improvements that industry Unleash their potential. little to be gained from just bolting on a utilities’ vast archives of recorded calls from call As new applications proliferate across the Product managers have full visibility and Working out what kind of structure processing, and visualization capabilities, Invest heavily in collecting and cleaning Other utilities have developed promising predictive models but failed to implement the associated process changes needed to foster adoption. the big data sets in power distribution systems. Terabyte after terabyte of new data streaming E&U is an asset-intensive industry and relies heavily on the optimal performance of their equipment and network infrastructure. The era of siloed utilities is over, and executives are working on creating high fidelity, high quality data structured to be used throughout the company.”. By Alan Anderson, David Semmelroth . members who will use the tool on a day-to-day asset maintenance, or record-to-report in Insufficient tools and capabilities for preparing data for analysis. energy value chain (see sidebar, “Applying advanced analytics at utilities”), advanced analytics poses a strategic challenge. three- to five-year vision for the whole work electric, gas and water utilities. Many of the world-changing solutions in use today were ridiculed at the time of their invention.... read more, © Copyright 2020. with business users during the development Blog | by Sajan Kuttappa Why prescriptive analytics and decision optimization are crucial. This effort should also include defining a framework for assessing “make or buy” decisions based on technology complexity, use-case criticality, the scale and pace of the use-case rollout, and the utility’s long-term analytics strategy. The rapid advancements in the tech world are raising the need for highly-efficient, continuous, and reliable... read more, Listen on the go! long development timelines. The power outage of 2013 that we talked about earlier was caused by a software bug in the deployed modern grid solutions. unfamiliar prospect for utilities accustomed to next project, Define organization-wide processes and There’s little to be gained from just bolting on a software solution. by rigorous use-case analysis suggest that We hope you enjoy the site. People create and sustain change. Applications focused on areas such as asset maintenance, contractor productivity, employee safety, or reporting are likely to span multiple business units and deliver value across the entire enterprise, rather than within a single silo. iteratively in future releases. Many utilities are too decentralized, leaving them unable to reap the benefits of standardization and best-practice sharing. The myriad of devices spread across a vast geographic area provides a huge amount of monitoring data, potentially accumulated over decades. but all the roles involved in capturing business are lacking. For the period 2015-2026, the growth among segments provide accurate calculations and forecasts for sales by Type and by Application in terms of volume and value. “Energy data and its related analytics have so much potential to transform data to deliver insights that benefit utilities and customers that capabilities will continue to evolve,” Gavrilovic says. bedded in. Applying analytics to the vast amounts of useful data utilities collect offers an opportunity to uncover new customer usage patterns, to forecast demand better, to manage energy constraints more effectively, to improve compliance with regulatory requests, to prevent fraud and reduce loss, and to enhance customer service. Select topics and stay current with our latest insights, Fueling utility innovation through analytics. Other roles often overlooked include Utility Analytics Institute supports members in water, electric and gas utilities to realize business goals using data analytics In many cases, organizations have trouble simply establishing whether data exists. of concept. projects in building data platforms or datastorage It’s not unusual for some parts of an organization to limit or block access to data that’s critical for decision making or analytics, often citing data confidentiality or cybersecurity as the reason. By the end of the journey, analytics is so critical that priorities are dictated by overall corporate strategy. Data analytics is not new to the electric utility industry. Active application of failure probability modeling helps to increase performance, predict occasional failures in the functioning and as a result to reduce maintenance costs. Most utility executives see the potential to mine this data for insights, even if they aren’t quite sure how or where to start. software solution. An MVP often relies on quickly manage rollout and the training of end users. Having a smart load management system allows them to cover the end-to-end network management requirements including demand and energy sources with the help of distributed energy sources, advanced control systems, and end-use devices. Alteryx that speed up the production of a proof and funding before the effort has properly This is now changing with the advent of new sources of data: A “build it and they will come” Though expensive, these capabilities can save money Big Data analytics: Turning huge volume of data that the smart meters and sensors captures into information and acting upon it in real-time will deliver the real benefits that smart grid and MDM promises. Further, companies use insights to reduce costs, lower carbon emissions, and manage energy demand for end customers. From customer analytics and energy forecasting to revenue assurance, grid analytics and energy risk management, utility analytics solutions from SAS help organizations in the utilities and energy industries harness the power of big data and capitalize on IoT investments. our use of cookies, and data, Develop a data strategy that supports the How utilities can analyze data to turn it into this useful intelligence. The assets are integrated with smart sensors, trackers, and data solutions that relay real-time information to the center. transition will involve: Creating an environment conducive to About The Author. Another great source of data is Another large utility spent years building in-house analytics capabilities and developing more than a dozen use cases before realizing it had yet to make any headway on the biggest and most valuable opportunities. solutions are needed to achieve the vision, and In mature digital organizations, the list of potential applications can be integrated into product strategies and constantly updated and reprioritized against other ideas. The Data Analytics for Electric Utilities market is expected to grow from USD X.X million in 2020 to USD X.X million by 2026, at a CAGR of X.X% during the forecast period. Securing senior management commitment and appointing the right leader to act as a bridge between the CEO, the analytics team, and other parts of the organization. to create insights using voice-mining analytics. solution that works well. Electric utilities are conservative, heavily-regulated, and concerned with both system reliability and overall profitability. will best support the analytics But they can end up investing tens of millions This requires close collaboration between business owners, analytics specialists, and the financial planning and analysis team to ensure consistency in quantification and overall approach. Applying analytics to the vast amounts of useful data utilities collect offers an opportunity to uncover new customer usage patterns, to forecast demand better, to manage energy constraints more effectively, to improve compliance with regulatory requests, to prevent fraud and reduce loss, and to enhance customer service. Ed Cuoco is the Director of Data Science at The Weather Company, an IBM Business, where he leads an organization focused on creating advanced analytics for industry. We'll email you when new articles are published on this topic. Key aspects of this challenge include: Undocumented data sources and multiple sources of truth. How 4 utilities are using big data AEP, Vattenfall, Austin Energy ... American Electric Power ... Those two applications are one category of data analytics at utilities. the data available. business, Automatic inspection of power lines and vegetation management using drones, image processing, and LIDAR (light detection and ranging—a remote-sensing method using pulsed lasers), Voice analytics applied to call-center recordings to gain deeper insight into customer interactions and behaviors, Machine learning for predictive maintenance (for instance, anticipating the likelihood of breaker failures), HR analytics that raise employee productivity, reduce attrition, optimize training spend, and provide a fact base for succession planning, Health and safety predictive models that identify which assets, teams, or individuals are most vulnerable to incidents and suggest levers to reduce risk, Operational benefits in the form of lower operating expenditures, greater capital efficiency, extended asset lifetimes, and safer operations, Improved customer service with a better understanding of customer needs, a superior customer experience, and increased reliability, Better employee engagement, since less time is wasted in lower-value tasks, and travel and schedules are optimized, The creation of new businesses in areas such as home energy management, smart energy efficiency, advanced demand response, and microgrid optimization, Build a prioritized roadmap of use cases to pursue, based on vetted value estimates and alignment with the organizational strategy, Chase after viral use cases without assessing the value at stake, Leave it entirely to business teams and departments to prioritize use cases, Involve users in solution design from In some utilities, senior executives in charge of analytics are hidden three or four levels down in the organization, leaving them powerless to remove any roadblocks that arise. Tweet. Data Analytics for Electric Utilities market is split by Type and by Application. This analysis can help you expand your business by targeting qualified niche markets. Utilities and Big Data: Using Analytics for Increased Customer Satisfaction According to Accenture research, companies across many different industries “are getting much better at understanding customers by using analytics and, more important, by using data-driven insights to design and improve the customer experience.” Therefore, preventing such incidents is one of the top priorities for the industry. agile practices and launching short sprints What are big data in the contacts of energy & utilities, and how/where can the utilities find value in the data. One CEO asked his top 50 senior managers to come up with at least three ideas each on how machine learning could be used to improve the business. in the Boston office. From this understanding, an Industry leaders are using advanced analytics in increasingly innovative and unconventional ways, including: The value derived from these efforts includes: Develop a comprehensive inventory of use cases spanning the whole value chain, including operations and support processes. worldwide and enabling organizations to or hybrid. From rising capital costs to increased global competition and more stringent regulation and compliance requirements, power and utilities firms are leveraging data and analytics to stay ahead. Big Data provides the opportunity to better monitor, correct, and integrate smart grid technologies and renewable energy. obtained data, and tools such as Tableau and This includes ensuring that the executive driving the analytics transformation has direct lines of communication to the CEO, even if the role doesn’t always report there. The real value comes from embedding data analytics as a core capability in the organization and using it to detect pain points, design solutions, and enable decision making. Data – the Next Big Thing for Utilities . As E&U is responsible for fulfilling the power and energy demands for the other industries, it is the lifeline for every other sector. For example, a utility aspiring to become a leader in renewables may prefer to develop an asset-maintenance solution internally to create a competitive advantage over competitors that use off-the-shelf products from vendors. organization. the planning stage onward, not just ” The concept of “rich data and poor information” is being challenged by big data analytics with advent of machine learning techniques. May 2019 - Tapping deep machine learning, Oracle Utilities Analytics Insights has been able to identify the presence of an EV, show the time and frequency of charging, and disaggregate the energy being consumed by the vehicle with advanced metering infrastructure (AMI) data. planning stage through to implementation. Many utilities launch use cases but struggle to capture tangible value. Data and Analytics in the Power and Utilities sector Power and utilities firms are facing a multitude of challenges which are disrupting their current business models. * Insufficient research on big data analytics system architecture design and advanced mathematics for petascale data It is estimated that the electric utilities around the world will spend $10.1 billion on automated metering infrastructure (AMI) data analytics solutions through 2021. time on data cleaning, preparation, and industry leaders to fast-track value capture by: Defining a target data structure that is If you would like information about this content we will be happy to work with you. then be too quick to redeploy resources More advanced or specialized Currently only a small number of utilities have adopted big data analytics actively. Developing a set of key performance Welcome to UDA. By analyzing the right data and identifying areas of opportunity from reliability to workforce management to cost savings, utilities can identify productivity gains and improve performance across the organization. Adopting Electric Utilities Comprehensive analytics infrastructure platform for the Internet of Things for Electric Utilities with the Cisco Unified Computing System Advances in technology now enable virtually anything to be connected to the Internet. Many energy companies In other companies, their responsibilities are too broad and unfocused. enforces standardization, and serves as phase. Many utilities struggle to ingest and curate data efficiently, which increases the time and difficulty of developing new digital tools. Not surprisingly, big data and predictive analytics provide the transformative cornerstone of the new utility. drive the development of the future vision for to drive a faster, safer, and more productive Prescriptive analytics helps identify the best course of action that can enable businesses to achieve organizational goals. tab. All too often, a utility deploys different solutions from different vendors to build what is essentially the same product in different business units. Being unable to deliver an analytics but only with the right approach. Prior to joining The Weather Company, he spent two decades in data science and consulting, focusing on utilities, energy trading, and risk management in the U.S. and Europe. rules for data curation, documentation, Unclear access rights and privileges. objectives. planning iterations, blown deadlines, persisting For electric utilities, Big Data Analytics can help guide smart grid deployment and calibrate models and tools for grid management and simulation. We strive to provide individuals with disabilities equal access to our website. success of an analytics transformation. ownership of an end-to-end business process, enormous value for utilities and drive Building a strong product-management The power industry of the 21 st Century is experiencing major changes. The exponential pace of technological advancements is not a news. Thank you, the UDA Team. utilities have success with an initial pilot but In our experience, most analytics leaders have a good grasp of the organizational model best suited to their company. How 4 utilities are using big data ... Those two applications are one category of data analytics at utilities. be developed. The Big Data business model maturity index offers a guide, but requires businesses to embrace data build out processes as well as technology that’s driven by business opportunities. capture valuable feedback, build engagement, Having delivered comprehensive testing services to E&U organizations in US, UK, and Europe, we provide complete test coverage, test acceleration, and tool agnostic test frameworks. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. engagement, limited adoption, and forfeited The energy industry has already developed hundreds of uses for advanced analytics, and use cases will continue to proliferate as data availability, computing power, and analytical techniques improve (exhibit). All Content; Blogs; Videos; Podcasts; White Papers & Reports; Infographics & Animations; Read Blog . With capabilities that enrich QA initiatives across change management, compliance programs, and executive monitoring, our services strengthen the global E&U ecosystems with precision and high standards of QA to overcome business concerns across production, transport, distribution, consumption measurement, and billing. business benefits to show for it. capability that is structured around business points, design solutions, and enable decision Along with technological advancements like Internet of Things (IoT), big data analytics will play an important role for electric utilities. Shape a digital and analytics organization that fits the company’s governance model, maturity, and potential for standardization and best-practice sharing. Without clarity on these matters, companies can easily lay themselves open to excessive influence from external vendors or get caught up in chasing the latest viral use case. Advanced Data Analytics for the Modern Power System Emerging Data Analytics in a Changing Power Systems Industry. Big data testing for the Energy & Utilities sector. pain points, and a failure to create value. To manage this data structure, data engineers, data scientists, and the core However, for the longest time, there was not much data to analyze. we look at these challenges and show how One area where big data has made an impact on electric utilities is the development of smart meters. they can be overcome. data engineers, data scientists, and the core managers or subject-matter experts from the percent of the time for laggards. utilities can maximize their odds of capturing Success requires the coordination of a complex series of steps, and the collective impact is only as good as the weakest link. Not implemented Big Data analytics Already implemented Big Data analytics ng i cs Utilities Financial Services Oil & Gas Telco Only 20% of utilities have already implemented Big Data analytics. lenged by big data analytics with advent of machine learning techniques. Failure probability modeling has won its place in the energy industry. Everyone is talking about digital disruption and... read more, Listen on the go! However, with the introduction of new data sources and the subsequent increase in the volume of generated data, big data analytics is assuming priority. while increasing satisfaction for customers and Big data and analytics is helping utility companies overcome the industry challenges through insights-based informed decision-making. A perfect storm can often mean huge costs and losses to the company from damage to its infrastructure. on pain points in the current process, utilities advanced analytics can boost profitability by 5 to 10 percent, processes rather than technical solutions. Struggling to get access to data or use all “Partnerships will be critical to growing these capabilities, but so will customer participation. The   data gathered can then be processed and analyzed to identify any potential issues with the equipment maintenance, allowing a proactive handling of the situation. Several big data analytics products and platforms are already being used in order to harness this data. Nokia has partnered with the State Grid Corporation of China for data transmission to allow SGCC to expand network coverage to more power stations and business offices, while also increasing capacity and flexibility. When building an analytics product, industry leaders spend no more than 20 to 30 percent of the development For utility companies looking to deliver energy efficiently for decades to come, smart meters were just the beginning. Big data analytics plays a leading part here as it empowers dynamic management systems in Smart Grids. Power generation planning, and economic load dispatch are the two most important decision-making processes in power generation. Read the complete story. managers who act as “translators” between Moreover, there are numerous analytics-driven application opportunities to advance utilities along the Big Data Business Model (BDBM) Maturity Index. business, but fail to involve the front-line crew Energy and utility companies generate data from smart meters, grid equipment, weather data, GIS data, storm data, and more. Most analytics teams adopt a hybrid model, with data governance, tools, and standards defined centrally; a close-knit community of data scientists working both centrally and within the business; and clear roles for product owners, who form cross-functional teams to drive the day-to-day execution of use cases and have direct ties to business executives. value, such as the designers and product Energy & Utilities. Big data testing for the Energy & Utilities sector. value has been captured. testing to user adoption and value capture. In doing so, he not only created a vast array of use cases in a short time but also role modeled the intellectual curiosity and bias toward business impact that he expected from his leaders. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. The big data analytics applications enable them to enhance reliability, capacity, and availability of their network assets by continuous monitoring of cost and performance. How much weight to give each factor depends on the stage a utility has reached in its advanced analytics journey. Please use Contact section for comments and questions. Advanced analytics can deliver enormous value for utilities and drive organizations to new frontiers of efficiency— but only with the right approach. uncomfortable at first—but falling back on We just know that they’re big.” History of Data Analysis and Utilities “Here is our poetry, for we have pulled down the stars to … care not to jeopardize strategic pillars such as Relative newcomers often start with a simple yearly process to evaluate, update, and reprioritize the list. A successful advanced analytics transformation depends on One US utility partnered with a technology supplier and invested millions in wind-forecasting software only to discover that the effort wouldn’t yield any returns. solutions required to realize the vision. Digital upends old models. This data swamps businesses daily. Learn about In the 21st Century, Big Data and Analytics will set the path to intelligent production, distribution and consumption of Energy and Utilities. Use minimal essential The power outage of 2013 that we talked about earlier was caused by a software bug in the deployed modern grid solutions. External data sets such as social-media and Accelerating digital transformations: A playbook for utilities. Reinvent your business. This Internet of Things (IoT) represents one of the most profound technology innovations in history. For utilities, which lag other industries in that starts with developing a solid Prioritize the applications using multiple criteria, including value, feasibility, alignment with corporate strategy, and business engagement. The purpose of data analytics is to give utilities better information to support future actions. collaboration with select social media and trusted analytics partners tab, Travel, Logistics & Transport Infrastructure. The real value comes from embedding data analytics as a core capability in the organization and using it to detect pain points, design solutions, and enable decision making. Alarmingly, organizational surveys often report that data users don’t believe their company has a clear data-ownership structure or feel confident that data objects are precisely defined or accurate, particularly when it comes to similar objects from different sources. Leaders in analytics avoid these pitfalls by: Involving actual users in the solution Global Data Analytics for Electric Utilities Market 2020 : Covering both the industrial and the commercial aspects of the Global Data Analytics for Electric Utilities Market, the report encircles several crucial chapters that give the report an extra edge. There’s little to be gained from just bolting on a software solution. have observations and maintenance tickets Failure of these assets may cause serious power distribution challenges and consequently, depleted consumer trust. indicators (KPI) that measure progress at This ensures that lessons are learned from experience and errors are quickly corrected. blending—tasks that may take 60 to 80 use cases, Align your analytics organizatonal structure with your overall business strategy, governance model, and level of maturity, Develop a structure that ensures best practices are shared enterprise-wide yet enables business units to be closely involved in solution development, Embed critical analytics capabilities across the whole organization, not just in an analytics center of excellence, Limit your analytics transformation to new software development and overlook culture and project management, Expect the analytics teams to develop their data platform and defining a minimum The result is lackluster front-line Further, companies use insights to reduce costs, lower carbon emissions, and manage energy demand for end customers. Adoption often For utilities, big data and analytics holds the potential for becoming cutting edge corporations — to go beyond the poles and wires of the traditional utility. Big data analytics has emerged in response to the exponential growth in data and the utility industry, like most other industries, has started to make several transformations with the use of modern devices, says GlobalData, a leading data and analytics company. same few challenges, which undermines the If utilities are to step up strategic investments and initiatives, it will require a clear understanding of where long-term value lies. We use cookies essential for this site to function well. As the industry dives deeper into Big Data, advances in technology will be able to improve predictive capabilities, helping utilities anticipate failures in infrastructure and prioritize operations, maintenance, and capital efforts. We’ve seen utilities where the analytics organization and the business work at arm’s length, at the cost of misaligned priorities and—worse—the development of products that disappoint the end user. use cases. Learn more about cookies, Opens in new basis. Too often, organizations rely on senior aligned with the organization’s needs, cross-functional teams working through office, Alfonso Encinas is an associate partner in the Washington, DC, office, and Tim Kniker is a senior expert When it is starting out, business excitement and engagement are critical to achieving buy-in. All Rights Reserved. The Benefits of Big Data and Analytics in the Energy and Utilities Industry By Utilities Tech Outlook | Wednesday, October 14, 2020 . Start-up Companies C3-IOT, Opower/Oracle, Autogrid Risk of failing to adhere to data privacy and data … What is Big Data: Big Data refers to large-volume data sets which are both structured and unstructured. data is available, the business will want to use Stephen Callahan, VP of Global Strategy and Solutions for the Energy & Utilities Industry, IBM, wrote an article for R&D Magazine that states that big data is changing the future of the utility sector in unprecedented ways. mind-set. infrastructure in the belief that once utilities place big bets only to fall short of their organization can identify all the levers available One utility took just a few weeks to develop a list of nearly 200 use cases, prioritize them based on feasibility and business impact, and select a handful of products to start building immediately. Privacy Policy | Diversity & Inclusion | Modern Slavery Statement 2020, Get the latest news and blogs on the software testing industry, CESA – Cigniti Enterprise Sentiment Analyzer. In our experience, analytics organizations often struggle to develop the data-governance and platform practices they need to deliver value. On the other hand, a fully centralized model is seldom the answer. Based on this data, utility companies run multiple models to achieve power planning. a transformation is substantial. Filter Content. All of the components within the management system generate data. Please try again later. suffers because of a lack of collaboration defining the strategy, culture, and organization achieve unprecedented levels of productivity. it, identify which data sources and technology Here you will find Products to improve your knowledge of Electric Utilities. a catalog providing a sound basis for key Introduction of Big Data and Analytics as an Accelerator of Innovation. weather data are also commonly overlooked. These products include databases, reports, visualizations, forecast, and analysis generated using Data Science Techniques. digital maturity, the value at stake from such Data has always been a critical component of E&U’s operational processes. Subscribed to {PRACTICE_NAME} email alerts. Smart meters provide a more accurate measure of energy usage by giving far more frequent readings than traditional meters. “The reason big data is such a big challenge, is not only do we not know what tools we’re going to use, but the future demand on storage capabilities is pretty unclear at this point. easy feat, and utilities often struggle with the By employing a cloud-based load generation strategy, they optimized response time by 30%, hardware performance by 25%, & server performance and scalability by 20%. Consumer analytics is the second and it … maintenance, safety, and other use cases, yet processing needs in future. This paper reviews the issues and opportunities of the use of Big Data for electric utilities. 1. in the organization and using it to detect pain Flip the odds. Leveraging real-time data from assets related to rate of activity, state of operations, time, supply & demand analysis, and more help E&U companies to optimize energy efficiency as well as asset performance. This enables them to: Establish the right culture, starting with top executives who are curious to explore new analytics solutions, have a bias to action, and strike a good balance between delegation and control. Insufficient research on big data analytics system architecture design and advanced mathematics for petascale data It is estimated that the electric utilities around the world will spend $10.1 billion on automated metering infrastructure (AMI) data analytics solutions through 2021. during pilots, Follow a business-centric approach linking analytics solutions to a clear plan for process optimization and monetization, Create a standard framework to measure, track, and report on impact until full run-rate value has been captured, Allocate time in project schedules for change management and end-user training, Build a strong product-management capability with end-to-end responsibility for work processes, not technologies, Look for talent beyond data scientists and hire translators, DevOps experts, cloud specialists, and data engineers as well, Deliver a solution to end users and then immediately switch all resources to the Data analytics are helping utilities improve operations and customer engagement, but a decentralized transactive energy network is in the works and will require additional computing advances. that could yield valuable data for predictive talent. components and data are often added access to what data—that are respected and Listen on the go! The goal for public utilities now is to be able to better understand their customers with the help of analytics and big data. Let us understand the role of big data analytics in Energy & Utilities in detail: The primary use cases of big data analytics in the Energy & Utilities sector are: A power outage may cause an entire country to come to a halt, like the Northeast blackout of 2013 that affected over 45 million people in the U.S. Unfavorable weather conditions are one of the major causes of such outages. rigid waterfall processes will result in endless short, iterative, test-and-learn cycles—an Based on this data, utility companies run multiple models to achieve power planning. value. But capturing impact on this scale is no cookies, McKinsey_Website_Accessibility@mckinsey.com, Visit our Digital & Advanced Analytics page, “translators” between embedding data analytics as a core capability At later stages, value and feasibility become more important. the back office. in the long run by simplifying data curation and The value of disruption in the Utilities industry, The Revolutionary Impact of Digital Twin in the Energy Sector. the right culture and organization. From rising capital costs to increased global competition and more stringent regulation and compliance requirements, power and utilities firms are leveraging data and analytics to stay ahead. Advanced analytics is transforming industries sharing, and ownership, Develop and maintain a central catalog of Conservative estimates supported The energy companies invest vast amounts of money into maintenance and proper functioning of their machin… Big data and analytics is helping utility companies overcome the industry challenges through insights-based informed decision-making. Marcus Braun is a consultant in McKinsey’s Minneapolis office, Eelco de Jong is a partner in the Charlotte should instead map out a fully reimagined own mandate for driving change across the About analytics in Power & Utilities. hereLearn more about cookies, Opens in new In simple terms it's matching power supply with the demand for energy from the grid over a short-period of time. The efficiency of the machine learning algorithms in the failure prediction is undoubtful. By adopting best practices and Stephen Callahan, VP of Global Strategy and Solutions for the Energy & Utilities Industry, IBM, wrote an article for R&D Magazine that states that big data is changing the future of the utility sector in unprecedented ways. than debating them in theory) can often feel

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