centers, which can be used—but seldom are— Terabyte after terabyte of new data streaming all too often this data is wasted because digital By applying big data analytics, the companies can accurately make decisions regarding their power planning and generation, energy load, and performance estimation. utilities can maximize their odds of capturing But they can end up investing tens of millions Success requires the coordination of a complex series of steps, and the collective impact is only as good as the weakest link. As E&U is responsible for fulfilling the power and energy demands for the other industries, it is the lifeline for every other sector. 1. However, In simple terms it's matching power supply with the demand for energy from the grid over a short-period of time. Marcus Braun is a consultant in McKinsey’s Minneapolis office, Eelco de Jong is a partner in the Charlotte The value of disruption in the Utilities industry, The Revolutionary Impact of Digital Twin in the Energy Sector. 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. time on data cleaning, preparation, and 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. embedding data analytics as a core capability experimentation and learning while taking unfamiliar prospect for utilities accustomed to Blog | by Sajan Kuttappa Why prescriptive analytics and decision optimization are crucial. enforced across the organization. Insufficient tools and capabilities for preparing data for analysis. Too often, organizations rely on senior What is Big Data: Big Data refers to large-volume data sets which are both structured and unstructured. enforces standardization, and serves as Smart meters provide a more accurate measure of energy usage by giving far more frequent readings than traditional meters. We’ve seen Many of the world-changing solutions in use today were ridiculed at the time of their invention.... read more, © Copyright 2020. Prioritize the applications using multiple criteria, including value, feasibility, alignment with corporate strategy, and business engagement. 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. 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. Power generation planning, and economic load dispatch are the two most important decision-making processes in power generation. Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. There’s little to be gained from just bolting on a software solution. When building an analytics product, industry leaders spend no more than 20 to 30 percent of the development obtained data, and tools such as Tableau and weather data are also commonly overlooked. tab, Travel, Logistics & Transport Infrastructure. own mandate for driving change across the enormous value for utilities and drive These products include databases, reports, visualizations, forecast, and analysis generated using Data Science Techniques. it, identify which data sources and technology organization. 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. “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. Flip the odds. and governance policies—who has The assets are integrated with smart sensors, trackers, and data solutions that relay real-time information to the center. 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. Select topics and stay current with our latest insights, Fueling utility innovation through analytics. by rigorous use-case analysis suggest that All Content. 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. ownership of an end-to-end business process, Alteryx that speed up the production of a proof Structure your use-case inventory into groups of applications that resolve similar pain points or address the same business processes. All too often, a utility deploys different solutions from different vendors to build what is essentially the same product in different business units. The energy companies invest vast amounts of money into maintenance and proper functioning of their machin… then be too quick to redeploy resources Many energy companies Being unable to deliver an analytics Further, companies use insights to reduce costs, lower carbon emissions, and manage energy demand for end customers. Filter Content. A perfect storm can often mean huge costs and losses to the company from damage to its infrastructure. Here you will find Products to improve your knowledge of Electric Utilities. Lessons learned aren’t shared, and scale benefits aren’t captured. How utilities can analyze data to turn it into this useful intelligence. By the end of the journey, analytics is so critical that priorities are dictated by overall corporate strategy. Using an agile approach to build the planning stage through to implementation. By employing a cloud-based load generation strategy, they optimized response time by 30%, hardware performance by 25%, & server performance and scalability by 20%. The power outage of 2013 that we talked about earlier was caused by a software bug in the deployed modern grid solutions. capture valuable feedback, build engagement, 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. Utilities have always analyzed data to improve the operation of the electric grid and their processes. By adopting best practices and iteratively in future releases. Utilities have always analyzed data to improve the operation of the electric grid and their processes. 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. Shape a digital and analytics organization that fits the company’s governance model, maturity, and potential for standardization and best-practice sharing. 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. This ensures that lessons are learned from experience and errors are quickly corrected. When a clear data strategy is lacking, the data ecosystem will be underdeveloped, making the development of new use cases costly and slow. 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. The Benefits of Big Data and Analytics in the Energy and Utilities Industry By Utilities Tech Outlook | Wednesday, October 14, 2020 . suffers because of a lack of collaboration 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. Developing a set of key performance Struggling to get access to data or use all data platform and defining a minimum lenged by big data analytics with advent of machine learning techniques. agile practices and launching short sprints 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. Along with technological advancements like Internet of Things (IoT), big data analytics will play an important role for electric utilities. utilities’ vast archives of recorded calls from call but all the roles involved in capturing business The real value comes from 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. The efficiency of the machine learning algorithms in the failure prediction is undoubtful. The exponential pace of technological advancements is not a news. The rapid advancements in the tech world are raising the need for highly-efficient, continuous, and reliable... read more, Listen on the go! Welcome to UDA. Introduction of Big Data and Analytics as an Accelerator of Innovation. while increasing satisfaction for customers and engagement, limited adoption, and forfeited cookies, McKinsey_Website_Accessibility@mckinsey.com, Visit our Digital & Advanced Analytics page, “translators” between 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. Product managers have full visibility and Through Big Data Analytics, energy utilities can optimize power generation and planning. Though expensive, these capabilities can save money About analytics in Power & Utilities. organizations to new frontiers of efficiency— Utility Analytics Institute supports members in water, electric and gas utilities to realize business goals using data analytics A smart meter may give several readings a day, not just once a month or once a quarter. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Everyone is talking about digital disruption and... read more, Listen on the go! data engineers, data scientists, and the core 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. rules for data curation, documentation, On the other hand, a fully centralized model is seldom the answer. A “build it and they will come” members who will use the tool on a day-to-day in the long run by simplifying data curation and functionality to allow the first few products to the data available. 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. Data analytics is not new to the electric utility industry. 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. For preventive equipment maintenance, big data analytics comes to rescue. use cases. it. Many utilities struggle to ingest and curate data efficiently, which increases the time and difficulty of developing new digital tools. 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. All Rights Reserved. asset maintenance, or record-to-report in work flow, such as plant outage management, The goal for public utilities now is to be able to better understand their customers with the help of analytics and big data. data before starting to develop individual 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. In the 21st Century, Big Data and Analytics will set the path to intelligent production, distribution and consumption of Energy and Utilities. design, not only during pilots but from the How Can Quality Engineering Power Up the Renewable Energy Sources Sector? About analytics in Power & Utilities. Read the complete story. industry leaders to fast-track value capture by: Defining a target data structure that is The authors wish to thank Adrian Booth and Prasoon Sharma for their contributions to this article. with business users during the development Please try again later. access to what data—that are respected and 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. 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. solution that works well. improving health and safety for employees. drive the development of the future vision for Building a strong product-management Most transformations fail. Advanced analytics is transforming industries flow as well as a prioritized set of the technical A top-tier provider of home comfort systems needed a low-cost load generation environment to analyze base-line response time on concurrent usage. Most utility executives see the potential to mine this data for insights, even if they aren’t quite sure how or where to start. short, iterative, test-and-learn cycles—an phase. Prescriptive analytics helps identify the best course of action that can enable businesses to achieve organizational goals. But capturing impact on this scale is no Therefore, preventing such incidents is one of the top priorities for the industry. Privacy Policy | Diversity & Inclusion | Modern Slavery Statement 2020, Get the latest news and blogs on the software testing industry, CESA – Cigniti Enterprise Sentiment Analyzer. 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. 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.” manage rollout and the training of end users. 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. All Content; Blogs; Videos; Podcasts; White Papers & Reports; Infographics & Animations; Read Blog . on pain points in the current process, utilities a transformation is substantial. 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. to test new ideas in the real world (rather 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. One area where big data has made an impact on electric utilities is the development of smart meters. managers who act as “translators” between energy value chain (see sidebar, “Applying advanced analytics at utilities”), advanced analytics poses a strategic challenge. Big data testing for the Energy & Utilities sector. 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 … business, but fail to involve the front-line crew basis. 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. organization can identify all the levers available In the 21st Century, Big Data and Analytics will set the path to intelligent production, distribution and consumption of Energy and Utilities. 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. However, for the longest time, there was not much data to analyze. transition will involve: Creating an environment conducive to we look at these challenges and show how Other roles often overlooked include the big data sets in power distribution systems. If utilities are to step up strategic investments and initiatives, it will require a clear understanding of where long-term value lies. achieve unprecedented levels of productivity. next project, Define organization-wide processes and way to do business. More advanced or specialized An MVP often relies on quickly Another great source of data is are lacking. Big data and analytics is helping utility companies overcome the industry challenges through insights-based informed decision-making. 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. that starts with developing a solid Rather than focusing only Please use UP and DOWN arrow keys to review autocomplete results. When it is starting out, business excitement and engagement are critical to achieving buy-in. mind-set. How much weight to give each factor depends on the stage a utility has reached in its advanced analytics journey. have observations and maintenance tickets 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. Active application of failure probability modeling helps to increase performance, predict occasional failures in the functioning and as a result to reduce maintenance costs. 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. data is available, the business will want to use 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 Adopting 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. The big data analytics applications enable them to enhance reliability, capacity, and availability of their network assets by continuous monitoring of cost and performance. testing to user adoption and value capture. will best support the analytics planning iterations, blown deadlines, persisting 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. 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. Following a business-centric approach Failure of these assets may cause serious power distribution challenges and consequently, depleted consumer trust. understanding of the performance of an entire 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. 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. Conservative estimates supported From this understanding, an 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. 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.”. business benefits to show for it. 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. Reinvent your business. Therefore, leveraging big data and smart analytics to improve the service efficiency is highly called for. and ensure adoption. Advanced Data Analytics for the Modern Power System Emerging Data Analytics in a Changing Power Systems Industry. same few challenges, which undermines the office, Alfonso Encinas is an associate partner in the Washington, DC, office, and Tim Kniker is a senior expert or hybrid. electric, gas and water utilities. 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. Best-in-class data-governance practices allow Moving on to the next use case before Utilities have been involved with big data and analytics since supervisory control and data acquisition (SCADA) systems became popular. in the Boston office. This data swamps businesses daily. At the same time, data management and utilization must be integrated into organizational operations if the potentials are to be realized. 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. Big data and analytics is helping utility companies overcome the industry challenges through insights-based informed decision-making. 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. Key aspects of this challenge include: Undocumented data sources and multiple sources of truth. To manage this data structure, solutions required to realize the vision. The myriad of devices spread across a vast geographic area provides a huge amount of monitoring data, potentially accumulated over decades. who enable access to clean data. 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. Not surprisingly, big data and predictive analytics provide the transformative cornerstone of the new utility. Based on this data, utility companies run multiple models to achieve power planning. Many utilities launch use cases but struggle to capture tangible value. “Partnerships will be critical to growing these capabilities, but so will customer participation. All of the components within the management system generate data. 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. reliability and customer satisfaction. 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. This requires close collaboration between business owners, analytics specialists, and the financial planning and analysis team to ensure consistency in quantification and overall approach. the planning stage onward, not just our use of cookies, and For utilities, which lag other industries in Navigating this We'll email you when new articles are published on this topic. How do utilities prioritize use cases and set appropriate aspirations for business impact? of dollars in new systems without any real pain points, and a failure to create value. deployable open-source technologies, easily than debating them in theory) can often feel utilities place big bets only to fall short of their * 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. Accelerating digital transformations: A playbook for utilities. bedded in. Leaders in analytics avoid these pitfalls by: Involving actual users in the solution External data sets such as social-media and The power outage of 2013 that we talked about earlier was caused by a software bug in the deployed modern grid solutions. leaders already enjoy. components and data are often added 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. Economic load dispatch is an energy utility term. aligned with the organization’s needs, DevOps experts and the data architects 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. By Alan Anderson, David Semmelroth . success of an analytics transformation. 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. 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. Consumer analytics is the second and it … Not having the necessary capabilities and that could yield valuable data for predictive sharing, and ownership, Develop and maintain a central catalog of Data Analytics for Electric Utilities market is split by Type and by Application. Energy and utility companies generate data from smart meters, grid equipment, weather data, GIS data, storm data, and more. This analysis can help you expand your business by targeting qualified niche markets. We’ve seen several companies make large investments in analytics projects without a clear business case or a monetization plan. This is now changing with the advent of new sources of data: Adoption often the back office. but only with the right approach. making. organizations need to align on clear dataownership worldwide and enabling organizations to 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. Electric utilities are conservative, heavily-regulated, and concerned with both system reliability and overall profitability. tab. The result is lackluster front-line Advanced analytics can deliver enormous value for utilities and drive organizations to new frontiers of efficiency— but only with the right approach. E&U is an asset-intensive industry and relies heavily on the optimal performance of their equipment and network infrastructure. 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. There’s little to be gained from just bolting on a software solution. In mature digital organizations, the list of potential applications can be integrated into product strategies and constantly updated and reprioritized against other ideas. Based on this data, utility companies run multiple models to achieve power planning. value has been captured. 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. cross-functional teams working through 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 utilities have success with an initial pilot but Start-up Companies C3-IOT, Opower/Oracle, Autogrid Risk of failing to adhere to data privacy and data … to drive a faster, safer, and more productive For electric utilities, Big Data Analytics can help guide smart grid deployment and calibrate models and tools for grid management and simulation. points, design solutions, and enable decision transformation: centralized, decentralized, capability that is structured around business little to be gained from just bolting on a There’s That doesn’t just mean data scientists, The big data analytics applications enable them to enhance reliability, capacity, and availability of their network assets by continuous monitoring of cost and performance. Data analytics is not new to the electric utility industry. A successful advanced analytics transformation depends on hereLearn more about cookies, Opens in new What are big data in the contacts of energy & utilities, and how/where can the utilities find value in the data. At later stages, value and feasibility become more important. percent of the time for laggards. Working out what kind of structure value. ” The concept of “rich data and poor information” is being challenged by big data analytics with advent of machine learning techniques. Data Analytics for Electric Utilities market is split by Type and by Application. Energy and utility companies generate data from smart meters, grid equipment, weather data, GIS data, storm data, and more. Still, E&U companies are building smarter infrastructure and sensors to enhance predictability and prevent such outage scenarios. Moreover, there are numerous analytics-driven application opportunities to advance utilities along the Big Data Business Model (BDBM) Maturity Index.

big data analytics for electric utilities

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