Utility Week

20 | 9TH - 15TH MARCH 2018 | UTILITY WEEK Operations & Assets Market view D igitalisation is transforming the energy sector. The integration of smart technology into energy net- works fundamentally changes how energy is generated, distributed, managed and stored. Utility companies need to adapt and recon- sider what they o er their customers in order to keep up. To stay ahead in an increasingly competi- tive and evolving business environment, util- ity providers also need to be able to leverage and monetise the extensive data from new technologies such as smart meters, electric vehicles and energy management systems to add value and create new revenue streams. Ultimately, those who embrace the new future will thrive, but those who underesti- mate the pace of change will struggle. There are three key areas that companies must pri- oritise to take advantage of the opportuni- ties o ered by an internet of energy: putting customers • rst; making smart energy secure; and collaborating with stakeholders. Putting customers rst Digital technology o ers huge opportunities to give customers more • exibility and to cus- tomise their energy usage, and utility compa- nies need to act fast to provide this. We are already beginning to see the potential from arti• cial intelligence so• ware that learns from customer behaviour and o ers the best con• guration for connected devices and systems. This digitisation has the potential to improve customer satis- faction while reducing costs and increas- ing e ciency – the customer bene• ts from cost savings, while the grid operator gains the ability to react to consumption • uctua- tions and consequently encourages users to develop usage patterns to optimise their energy consumption. Data analytics then allows the predic- tion of demand peaks to be combined with personalised usage pro• ling to support tari optimisation. We believe that by 2020, cus- tomised tari s based on individual usage and needs, demand response services and time of day usage billing will have become the norm. Ensuring cyber resilience In an increasingly connected world, utilities must safeguard smart energy infrastructure Thriving in a digital world Ram Ramachander looks at the three key fi elds utilities must master if they are to turn disruptive technologies into real opportunities in the digital world of the future. from potential cyber attacks. As energy net- works become increasingly digitised, utility companies need to build cyber resilience into all systems, processes and platforms from the very start. It must also be possible for customers to share or sell their energy securely. The next level of decentralisation is seeing the emergence of peer-to-peer trading models, for example, which are expected to take hold beyond 2020. Blockchain technology is already being used in pilot projects to pro- vide the trust layers for peer-to-peer energy transactions for those with connected energy systems. Embracing collaboration Digital transformation will be felt across the whole value chain and holistic programmes are needed, from the point of generation to the point of consumption. Collaboration will become the new norm as stakeholders from across the industry realise they need to combine skills and embrace co-creation to navigate the challenges and embrace the opportunities of digitalisation. Smart energy networks will be made up of technology from a range of companies as they work together. As technology from di erent companies is increasingly used, energy providers must ensure that a diverse range of so• ware is compatible across smart energy networks. The momentum behind the digital trans- formation is huge. Making a success out of the digital energy future will depend on stakeholders taking a long-term view of the future, putting customers • rst and opening up to real collaboration. Players from across the energy ecosys- tem will witness increasing and accelerating disruption, whether they are utilities, manu- facturers, system providers or energy con- sumers. They will all face the same choice: sit back and watch the consequences unfold, or turn this technological disruption into opportunities. Ram Ramachander, chief digital o cer and chief commercial o cer, Social Innovation Business, Hitachi Europe DISTRIBUTED GENERATION MARKET FORECAST Centralised vs distributed generating capacity additions (global), 2015-2025 "Global distributed generation annual capacity additions will surpass centralised capacity additions after 2022" 1. Prosumers become pro-users 2. Advanced microgrids 3. Price point trade and maximising RE 4. Virtual power plants (VPPs) Annual added capacity (GWh) 100 90 80 70 60 50 40 30 20 10 0 DG annual capacity addition Centralised annual capacity addition Distributed power additions to surpass centralised power Source: Frost & Sullivan IoT Distributed energy 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 DG annual capacity addition Centralised annual capacity addition

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