Smart Grid Software and Microgrids for Utilities
As the energy utility industry faces increased regulation aimed primarily at reducing energy usage and/or improving sustainability by turning to renewable power sources, utilities need to adapt if they want their businesses to succeed.
Currently, 86% of power and utility company CEOs think that over-regulation could threaten growth, according to PwC’s 2016 global CEO survey.
Plus, 84% said that government and regulators have a high or very high impact on their organization’s strategy. In comparison, only 69% of CEOs overall in the survey felt the same, indicating that this industry faces unique challenges.
Get Involved with Microgrids
Whether regulations require a designated portion of energy sold to come from renewables or pave the way for microgrids, which rely on local power sources instead of ones coming from the traditional power grid, a common denominator for utilities’ success will be their ability to track and measure customer’s energy usage better. Doing so will help all parties more easily meet regulatory requirements, such as reporting greenhouse gas emissions, and will create a closer relationship between utilities and their customers so that the utility company can be involved in the changing energy landscape rather than shut out.
With utility microgrids and smart grid software in particular, what may seem like a huge threat to utility companies is actually viewed as a viable business opportunity by 97% of utilities, according to a 2014 Utility Dive survey. Many utilities own or operate a microgrid, and 84% want regulation to change to better incentivize them to develop, own, or operate these grids.
So, by knowing specifically how and when customers can benefit from a utility microgrid, utilities can be a part of the transition to these power distribution sources, rather than trying to hold onto an aging business model.
Coupling Domain Expertise with Data-Driven Services
Further, while energy analytics software (EAS) can be vital in improving incentive program marketing efforts and ultimately help satisfy demand reduction mandates, utilities can also leverage EAS to increase their revenue. By leveraging EAS, utilities can gain insight into how and when their customers consume energy. With this data, utilities can leverage their domain expertise to offer additional services and solutions focused around boosting the sustainability and energy efficiency of their customers. Rather than letting energy consulting and technology firms engage their customers, utilities have the opportunity to provide value-added services to their extensive, long-standing customer base.
For companies that want to reduce their energy costs or boost their sustainability, but don’t know exactly what should be done, utilities can deploy an EAS solution, analyze the data and usage behavior and work with the customer to formulate an energy efficiency strategy that fits their needs. See the Artis Energy 8 Step Process to Develop and Implement an Energy Management Strategy for Your Business on our recommended approach.
Even if regulation is a net negative for utilities’ bottom lines at this point, it is critical for utilities to adapt and reinvent wherever necessary. Rather than swimming upstream against the current of increasing regulatory pressure, by taking their best-in-class energy industry expertise and bundling it with EAS data and insights, utilities can increase customer engagement and offer new and innovative, mutually beneficial services to their customer base.
Request a complimentary energy efficiency assessment to find out how Artis Energy’s RTIS® energy analytics platform can provide you with the visibility and insight to transform energy from a fixed cost into a distinct competitive advantage.