In this exclusive piece for IoT Insider, Phil Beecher, President and CEO of Wi-SUN Alliance discusses what will drive faster smart utility development
The demand for cleaner, greener energy and customers’ changing expectations will necessitate a change in the way many utilities operate. The industry has sometimes been criticised for being slow to change, but more recently, we’ve seen an important transformation as electric utilities tackle the upgrading of an ageing power infrastructure to secure our energy future and become more efficient, affordable and sustainable.
According to our own research published last year, and interviews with senior utilities professionals, more investment by government and initiatives is what’s needed to drive smarter utility development.
The UK’s smart metering rollout has been – and continues to be – a much-debated topic. It’s no secret that it has been challenging, with issues around the technology and customer perceptions of smart meters. The original 2019 deadline for the completed roll out is long gone, with just over half deployed to date. But then late last year, the Energy Act 2023 came into law, described by the Government as “laying the foundations for an energy system fit for the future”, supporting the delivery of net zero and importantly, strengthening our energy security.
How this will play out may well depend on the results of next month’s general election, but the fact that smart meters are seen as integral to the UK’s energy transition, getting the rollout completed, as well as futureproofing the technology, must remain a focus despite the challenges.
Can funding help?
With respondents to our survey calling for more government investment, it suggests that not enough is being done. In the case of the UK smart meter rollout, the Government estimated it would cost £13.5bn from 2013 to 2034 and provide £19.5bn of benefits over that same period, but this is mostly funded by suppliers.
More recently, it committed £1.7m towards the UK’s clean energy transition focusing on AI innovation. Funded as part of a £1bn Net Zero Innovation portfolio, it will cover various initiatives to decarbonise our energy system and accelerate the growth of renewables.
But if we compare this to investment in other parts of the world, are we falling short? Take the Biden Administration’s historic Infrastructure Investment and Jobs Act (IIJA) passed in August 2021, a $1.2 trillion investment in US infrastructure, with $65 billion allocated for upgrading the country’s grid infrastructure to facilitate the expansion of renewables and clean energy solutions.
Improving grid reliability and resiliency is more important than ever as the country where extreme weather conditions have doubled power outages over the past 20 years, according to the U.S. Department of Energy, with many states experiencing significant weather-related disruption. The Department of Energy estimates power outages cost the economy up to $70bn annually.
The UK has been hit by extreme weather of its own. In recent years, heatwaves have seen customers putting pressure to the grid as demand for AC increases, while severe flooding and storms has impacted critical infrastructure to the costs of millions.
Extreme weathers driving investment
Our follow-up survey among utilities professionals earlier this year shows there are clear signs that utility companies are starting to invest in smart technologies like advanced weather prediction tools in response to power outages caused by extreme weather and disasters.
While advanced weather prediction tools top the list of initiatives to bolster network resilience, there’s also a greater focus on renewable energy integration and grid modernisation. Utilities are also looking to predictive maintenance analytics and enhanced communications to help improve outage recovery times, together with the use of drones and robotics.
For a traditionally risk-averse sector, balancing this need for change with the cost of upgrading an ageing infrastructure that’s fit for purpose, will be important.
As a global industry alliance with many utilities as members, we see first-hand the exciting and sometimes challenging opportunities for smart technologies, like advanced metering infrastructure (AMI) and connected streetlighting. We are also seeing more deployments that started some years ago now fully maturing, including one streetlighting pilot started in 2007 with Florida Power & Light that’s been able to scale and evolve as requirements have changed.
Without these and without more government and industry initiatives and funding getting behind them, could opportunities and targets for smart utilities be missed?
Author: Phil Beecher, President and CEO, Wi-SUN Alliance
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