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Historically, utilities have been a bit slow to digital transformation. But with so many other sectors — and other government-led organizations — adopting data management best practices and weaving AI into their operations, water, electricity, and natural gas companies are following suit.
By riding this wave of innovation, leading energy companies can usher in a new age of efficiency and sustainability — and some already have. With smart grids, IoT devices, and advanced analytics, early adopters are predicting equipment failures, optimizing energy use, and enhancing customer experiences, overcoming some of the major challenges facing the industry today.
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Most people think of the utility sector as the cornerstone of modern infrastructure, powering homes, businesses, and industries. Yet over the last decade, the industry has been plagued with aging infrastructure and lagging technology, issues that have escalated to operational inefficiencies, decreased customer satisfaction, and increased environmental concerns.
Day-to-day, utility company leaders are:
Battling Infrastructure Decay
Many power plants, transmission lines, and distribution networks were constructed decades ago and are now struggling to keep up with modern demands. This old infrastructure is prone to failures, leading to costly repairs and disruptions in service. Moreover, upgrading these systems is expensive and time-consuming, requiring significant investment and planning.
Navigating Demand Fluctuations
Seasonal changes, economic activity, and the growing adoption of renewable energy sources all contribute to drastic fluctuations in demand. For example, energy demand peaks during summer and winter due to heating and cooling needs. Additionally, economic downturns can reduce industrial energy consumption, while integrating renewable energy sources introduces variability due to their intermittent nature.
Balancing Regulations and Operations
Regulatory pressures add another layer of complexity. Regulations are continually evolving, reflecting the latest policies on emissions reductions, renewable energy adoption, and consumer protection. Utilities must navigate this complex landscape while maintaining compliance, which can be challenging and costly. Staying ahead of regulatory changes requires constant monitoring and adaptation, diverting resources from other critical areas.
Addressing Environmental Concerns
Consumers are pushing utilities to reduce their carbon footprint and transition to cleaner energy sources. This shift demands significant investment in renewable energy technologies and infrastructure and the development of new business models that can accommodate decentralized energy production. For instance, the proliferation of rooftop solar panels requires utilities to manage a more complex grid with distributed generation points, impacting traditional power distribution methods.
Managing Data Overload
The advent of smart technology has led to a deluge of data for utilities. Smart meters, sensors on equipment, weather monitoring systems, and customer usage patterns generate vast amounts of data. Each smart meter alone can produce thousands of data points per day, leading to an exponential increase in the volume of data collected. Managing and making sense of this data is a significant challenge, requiring robust data analytics capabilities and infrastructure.
Dealing With Legacy Systems
Many utilities still rely on legacy systems that are incompatible with modern technologies. These outdated systems necessitate costly and complex upgrades. Furthermore, the rapid pace of technological advancement means utilities must continually invest in new solutions to stay competitive. Transitioning from legacy systems to more modern, integrated platforms can be a daunting and resource-intensive process.
While the sector faces some significant hurdles, many of them can be dramatically reduced or even eliminated by adopting a modern data strategy and embracing automation. New technology can mitigate power outages, enhance energy efficiency, and elevate customer service to new levels.
Here are four ways thoughtful data management and well-constructed AI models are transforming energy providers’ workflows:
1. Predictive Maintenance
Modern sensors and equipment give utility companies a wealth of data to sift through and analyze. Predictive models can continuously detect signs of wear and tear and schedule repairs before something breaks. They can even take it one step further, scheduling repairs during planned outages to minimize downtime and disruption.
2. Real-Time Efficiency Alerts
AI algorithms can analyze historical usage data and external factors like weather conditions to accurately forecast energy demand and suggest adjustments to heating, cooling, and lighting systems in real-time, leading to significant energy savings. These suggestions can be passed on to the customer as well, proposing changes to their thermostat settings or recommending energy-efficient appliances, helping customers reduce their energy bills and environmental impact.
Models can also promote real-time load balancing, shifting loads to off-peak times, preventing grid overloads, and reducing the risk of blackouts. In this way, AI can improve the overall reliability of the energy grid, keeping supply stable and continuous, even during periods of high demand or unexpected disruptions.
3. Enhanced Customer Service
AI-powered chatbots can help utility companies provide instant and highly personalized customer support, handling routine inquiries, troubleshooting common issues, and using customer profile data to answer the more complex questions.
These chatbots can operate 24/7, offering customers immediate assistance and freeing up human agents to address more complex concerns. And by understanding customer preferences and behavior, utilities can tailor their communication and services, providing a more personalized and satisfying experience.
AI systems can also enhance billing accuracy by analyzing usage patterns and identifying anomalies. This ensures that customers are billed correctly and can access detailed reports on their energy consumption, leading to greater transparency and trust.
4. Proactive Cybercrime Prevention
The integration of smart grids, IoT devices, and other digital technologies opens the sector to potential cyberattacks. These threats can disrupt service, compromise sensitive data, and damage critical infrastructure.
But a solid data and AI strategy can:
Perhaps most importantly, modern technology can help utility companies centralize incident data to forecast and mitigate future risks — to themselves and the public.
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1. Mitigating the Risk of Fallen Power Lines
Fallen power lines pose a huge risk to the public, causing outages, disrupting essential services, and even causing wildfires. A billion-dollar gas and electric utility company was suffering from poor data management, which prevented it from identifying and replacing downed power lines. So they turned to Launch for help.
Our engineers partnered with Palantir Technologies to implement the Foundry platform, software that specializes in advanced AI and data analytics. With Foundry in place, the utility:
Overall, this strategic collaboration enabled the client to address their immediate concerns and adhere to its promise of undergrounding 10,000 miles of power lines by 2030 — a prophylactic measure to improve consumer safety.
2. Ensuring Industrial Worker Safety
McDermott, a global provider of engineering and construction solutions, was interested in using Smart Space technology to gain an edge over its competitors. The first step in leveraging that technology was building an early warning intervention system for industrial workers.
Partnering with Launch Consulting, McDermott developed a heat stress monitoring app for their industrial workers. Using ergonomic biometric equipment and LTE connectivity, they remotely tracked workers' heart rates in real time for signs of heat stress.
Not only did this system provide unprecedented insights into worker health and safety, it also set the company up to design and deploy next-step Digital Yard projects with:
With this cutting-edge technology, McDermott is prepared to tackle new projects to further their sustainability goals, knowing their workers are safe.
3. Streamlining Energy Efficiency Rebate Programs
Hoosier Energy, a generation and transmission cooperative, serves hundreds of thousands of people in Indiana and Illinois. As part of its sustainability initiative, the company has an online marketplace offering discounted water conservation, weatherization, and energy efficiency products, such as smart thermostats and efficient shower heads.
But Hoosier Energy’s data team couldn’t verify that customers purchasing energy-efficiency products from their marketplace were living within one of their coopertives, and, therefore, couldn’t claim appropriate savings.
Launch’s data experts got to work, designing a solution for Hoosier Energy that would:
Ultimately, this project resulted in greener homes and compensated Hoosier Energy for its sustainability efforts.
Looking ahead, the integration of advanced technologies such as blockchain, decentralized energy systems, and sophisticated grid technologies will further revolutionize the industry.
Decentralized energy systems, including microgrids and distributed generation, can reduce reliance on centralized power plants and increase the adoption of renewable energy sources. Advanced grid technologies, equipped with AI and machine learning, can offer real-time monitoring and predictive capabilities, ensuring a stable and efficient energy supply.
These advancements are also supported by potential changes in policies that encourage the adoption of AI and data-driven solutions. Governments and regulatory bodies are increasingly recognizing the value of these technologies in achieving sustainability goals and improving operational efficiencies. Supportive policies can provide the necessary framework and incentives for utilities to invest in AI and data integration, driving innovation and growth in the sector.
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Historically, utilities have been a bit slow to digital transformation. But with so many other sectors — and other government-led organizations — adopting data management best practices and weaving AI into their operations, water, electricity, and natural gas companies are following suit.
By riding this wave of innovation, leading energy companies can usher in a new age of efficiency and sustainability — and some already have. With smart grids, IoT devices, and advanced analytics, early adopters are predicting equipment failures, optimizing energy use, and enhancing customer experiences, overcoming some of the major challenges facing the industry today.
Most people think of the utility sector as the cornerstone of modern infrastructure, powering homes, businesses, and industries. Yet over the last decade, the industry has been plagued with aging infrastructure and lagging technology, issues that have escalated to operational inefficiencies, decreased customer satisfaction, and increased environmental concerns.
Day-to-day, utility company leaders are:
Battling Infrastructure Decay
Many power plants, transmission lines, and distribution networks were constructed decades ago and are now struggling to keep up with modern demands. This old infrastructure is prone to failures, leading to costly repairs and disruptions in service. Moreover, upgrading these systems is expensive and time-consuming, requiring significant investment and planning.
Navigating Demand Fluctuations
Seasonal changes, economic activity, and the growing adoption of renewable energy sources all contribute to drastic fluctuations in demand. For example, energy demand peaks during summer and winter due to heating and cooling needs. Additionally, economic downturns can reduce industrial energy consumption, while integrating renewable energy sources introduces variability due to their intermittent nature.
Balancing Regulations and Operations
Regulatory pressures add another layer of complexity. Regulations are continually evolving, reflecting the latest policies on emissions reductions, renewable energy adoption, and consumer protection. Utilities must navigate this complex landscape while maintaining compliance, which can be challenging and costly. Staying ahead of regulatory changes requires constant monitoring and adaptation, diverting resources from other critical areas.
Addressing Environmental Concerns
Consumers are pushing utilities to reduce their carbon footprint and transition to cleaner energy sources. This shift demands significant investment in renewable energy technologies and infrastructure and the development of new business models that can accommodate decentralized energy production. For instance, the proliferation of rooftop solar panels requires utilities to manage a more complex grid with distributed generation points, impacting traditional power distribution methods.
Managing Data Overload
The advent of smart technology has led to a deluge of data for utilities. Smart meters, sensors on equipment, weather monitoring systems, and customer usage patterns generate vast amounts of data. Each smart meter alone can produce thousands of data points per day, leading to an exponential increase in the volume of data collected. Managing and making sense of this data is a significant challenge, requiring robust data analytics capabilities and infrastructure.
Dealing With Legacy Systems
Many utilities still rely on legacy systems that are incompatible with modern technologies. These outdated systems necessitate costly and complex upgrades. Furthermore, the rapid pace of technological advancement means utilities must continually invest in new solutions to stay competitive. Transitioning from legacy systems to more modern, integrated platforms can be a daunting and resource-intensive process.
While the sector faces some significant hurdles, many of them can be dramatically reduced or even eliminated by adopting a modern data strategy and embracing automation. New technology can mitigate power outages, enhance energy efficiency, and elevate customer service to new levels.
Here are four ways thoughtful data management and well-constructed AI models are transforming energy providers’ workflows:
1. Predictive Maintenance
Modern sensors and equipment give utility companies a wealth of data to sift through and analyze. Predictive models can continuously detect signs of wear and tear and schedule repairs before something breaks. They can even take it one step further, scheduling repairs during planned outages to minimize downtime and disruption.
2. Real-Time Efficiency Alerts
AI algorithms can analyze historical usage data and external factors like weather conditions to accurately forecast energy demand and suggest adjustments to heating, cooling, and lighting systems in real-time, leading to significant energy savings. These suggestions can be passed on to the customer as well, proposing changes to their thermostat settings or recommending energy-efficient appliances, helping customers reduce their energy bills and environmental impact.
Models can also promote real-time load balancing, shifting loads to off-peak times, preventing grid overloads, and reducing the risk of blackouts. In this way, AI can improve the overall reliability of the energy grid, keeping supply stable and continuous, even during periods of high demand or unexpected disruptions.
3. Enhanced Customer Service
AI-powered chatbots can help utility companies provide instant and highly personalized customer support, handling routine inquiries, troubleshooting common issues, and using customer profile data to answer the more complex questions.
These chatbots can operate 24/7, offering customers immediate assistance and freeing up human agents to address more complex concerns. And by understanding customer preferences and behavior, utilities can tailor their communication and services, providing a more personalized and satisfying experience.
AI systems can also enhance billing accuracy by analyzing usage patterns and identifying anomalies. This ensures that customers are billed correctly and can access detailed reports on their energy consumption, leading to greater transparency and trust.
4. Proactive Cybercrime Prevention
The integration of smart grids, IoT devices, and other digital technologies opens the sector to potential cyberattacks. These threats can disrupt service, compromise sensitive data, and damage critical infrastructure.
But a solid data and AI strategy can:
Perhaps most importantly, modern technology can help utility companies centralize incident data to forecast and mitigate future risks — to themselves and the public.
1. Mitigating the Risk of Fallen Power Lines
Fallen power lines pose a huge risk to the public, causing outages, disrupting essential services, and even causing wildfires. A billion-dollar gas and electric utility company was suffering from poor data management, which prevented it from identifying and replacing downed power lines. So they turned to Launch for help.
Our engineers partnered with Palantir Technologies to implement the Foundry platform, software that specializes in advanced AI and data analytics. With Foundry in place, the utility:
Overall, this strategic collaboration enabled the client to address their immediate concerns and adhere to its promise of undergrounding 10,000 miles of power lines by 2030 — a prophylactic measure to improve consumer safety.
2. Ensuring Industrial Worker Safety
McDermott, a global provider of engineering and construction solutions, was interested in using Smart Space technology to gain an edge over its competitors. The first step in leveraging that technology was building an early warning intervention system for industrial workers.
Partnering with Launch Consulting, McDermott developed a heat stress monitoring app for their industrial workers. Using ergonomic biometric equipment and LTE connectivity, they remotely tracked workers' heart rates in real time for signs of heat stress.
Not only did this system provide unprecedented insights into worker health and safety, it also set the company up to design and deploy next-step Digital Yard projects with:
With this cutting-edge technology, McDermott is prepared to tackle new projects to further their sustainability goals, knowing their workers are safe.
3. Streamlining Energy Efficiency Rebate Programs
Hoosier Energy, a generation and transmission cooperative, serves hundreds of thousands of people in Indiana and Illinois. As part of its sustainability initiative, the company has an online marketplace offering discounted water conservation, weatherization, and energy efficiency products, such as smart thermostats and efficient shower heads.
But Hoosier Energy’s data team couldn’t verify that customers purchasing energy-efficiency products from their marketplace were living within one of their coopertives, and, therefore, couldn’t claim appropriate savings.
Launch’s data experts got to work, designing a solution for Hoosier Energy that would:
Ultimately, this project resulted in greener homes and compensated Hoosier Energy for its sustainability efforts.
Looking ahead, the integration of advanced technologies such as blockchain, decentralized energy systems, and sophisticated grid technologies will further revolutionize the industry.
Decentralized energy systems, including microgrids and distributed generation, can reduce reliance on centralized power plants and increase the adoption of renewable energy sources. Advanced grid technologies, equipped with AI and machine learning, can offer real-time monitoring and predictive capabilities, ensuring a stable and efficient energy supply.
These advancements are also supported by potential changes in policies that encourage the adoption of AI and data-driven solutions. Governments and regulatory bodies are increasingly recognizing the value of these technologies in achieving sustainability goals and improving operational efficiencies. Supportive policies can provide the necessary framework and incentives for utilities to invest in AI and data integration, driving innovation and growth in the sector.
