As connected grids collect vast volumes of data from energy utility sector for analysis, insights from this data will become an essential factor in decision-making
As data increasingly becomes a valuable asset, it finds place at the center of business models, especially in the energy utility sector. Energy utilities are generating huge volumes of data from smart meters, Multi Sensing Units (MSUs), and IEDs on which companies have invested millions of dollars. However, unfortunately, only 2% to 4% of data from these systems is actually being leveraged for analytics purposes. Sophisticated analytics platform can use this data and deliver valuable insights and outcomes that can lead to improved operational metrics and customer service.
Experts believe that the market will gradually switch to prescriptive and predictive analytics. A significant reason for this is networks with low latency capabilities, like 5G, are being employed to minimize reaction times. Predictive and prescriptive analytics incorporate statistical models that not just flag areas of inefficiency, but also evaluate and predict events, and eventually include AI and deliver holistic decisions.
According to Frost & Sullivan’s Global Smart Grid Analytics Market report, the global grid analytics market will accelerate to $2.31 billion in 2025 from $1.15 billion in 2018, at a CAGR of 10.4%. Currently, the largest market for grid analysis is in North America, but Asia can register the fastest CAGR between 2018 and 2025, which is expected to be 13.3%. For minimizing financial losses, including non-technical losses, and improving energy access, India and China have been leading the way. These countries are also leading by example in using grid analysis effectively, for utility-scale renewable energy (RE) sources.
As far as the grid markets are concerned, Australia and Singapore are currently looking to minimize the power interruption as they integrate geographic information system data analytics and forecast events. By 2024, Japan plans to achieve 100% smart meter penetration making the country an ideal market for customer analytics.
In the energy utilities sector, experts are looking at a future where there will be service outcome-based business models, rather than just power generation and transmission. In the future, IoT will also play a significant role and will be an area with the most significant growth opportunity. Since, IoT devices and sensors track and transmit data to and from the grid, IoT infrastructure spending by this sector is expected to reach over $2 billion by 2024. It is not very far when utilities in North America and Europe leverage RE and electric vehicles as base load and back-up capacity.
Grid Data Analysis in the future would be used to minimize outage times, provide real-time energy information, streamline billing operations, as well as deliver new and relevant services.