Emerging Trends in Energy and Utility Industry: How It Revolutionizes the Sectors in the Near Future
The energy and utility industry has undergone a severe upheaval in the past few years. The pandemic has accelerated further disruptions, driving the energy and utility industry to invest in sophisticated technologies. This prompted the countries to hasten the decarbonization process and policies. This disruption is anticipated to exacerbate as the energy transition progresses.
The COVID-19 pandemic has a profound effect on the energy and utility industry. Both the sectors have continuously tried to adapt to the disruptions of 2021 as we step towards the year 2022. The regulatory requisites are also becoming more stringent, and the energy and utilities industries strive to adapt to the shifting operating conditions.
“According to a report by Deloitte, electricity sales increased 3.8 percent through August 2021 over the prior year, as the U.S. economy started to evolve from its pandemic-induced recession.”
Customers are demanding user-centric experiences to combat the most powerful online players. The new data sources that are constantly evolving must be incorporated into current ecosystems to offer exceptional services. As asset costs continue to consume a significant proportion of the annual budget of the utility industry, which necessitates a strategic and targeted approach to operations and maintenance.
Future of Electric Utilities
As the COVID-19 crisis evolves, the future of the electric utility industry must require advanced strategies and optimized processes to remain competitive. The power and utility providers must ensure that they have contingency plans to assess the various scenarios in different years to facilitate the organizations in making effective and rapid decisions.
To ensure that operations and infrastructure are appropriately supported, business continuity and readiness plans will need to be evaluated and revised on a regular basis. More than this, it is highly critical to collaborate with the government and regulators to comprehend the implications for energy affordability, sustainability, and supply reliability.
Despite confronting a revenue bottleneck imposed by the pandemic, the utility industries are in a powerful position to reap the benefits and growth opportunities this year. The electric utilities industry has made substantial progress in lowering carbon emissions to date. Carbon emissions are anticipated to remain diminishing, thanks to continuous improvements in energy efficiency and demand management.
To remain competitive in the market, accomplishing these objectives is critical. Innovative and emerging digital technologies must be adopted to address the evolving market demands that support utility operations.
Trends in Energy and Utility Industry
The following are the significant trends that will transform the Energy and utility industry.
- Digitization Will Drive Sharing Economies.
Due to the pandemic, digital adoption has intensified in every sector, including the power and utility industry. Digital technology will revolutionize energy and utility operations across the value chain. The adoption of smart decentralized networks, self-serve units to ramp up, balance, and assess demand will transform energy generation.
The below-listed digitization trends will drive the efficiencies for demand responsiveness and save costs.
- Intelligent automation using IoT
- Artificial Intelligence
- Robotic Process Automation
How Can Digitization Play a Significant Role in E&U Sector
- Use of Mobile Apps
Customer self-service will expand with the utilization of mobile applications.
- Leveraging Analytical Insights
This is an excellent scope for achieving significant progress for the energy and utility providers. Analytical data would be used to satisfy the customers with exceptional customer service and relationships.
Machine-learning will empower automation and intelligent analytics across massive volumes of data obtained from digitized assets to offer deeper insights on asset management.
- Combating Physical and Cybersecurity Risks
The rapid surge in decentralized and interconnected smart energy assets skyrockets vulnerabilities, security flaws, and malicious security breaches.
How to Prevent Cyber and Physical Attacks on Grids
- Conducting proactive risk assessments and cybersecurity programs on a regular basis.
- Predicting and mitigating cyberattacks by hiring skilled hackers.
- Implementing detection and response systems throughout the enterprise.
- Data prioritization and effective data creation.
- Adopting and successfully implementing the use of blockchain technology.
“With a budget of USD 96 million, the U.S. Department of Energy has already established an office to safeguard the power grid of the nation and other infrastructure against cyberattacks and natural catastrophe.”
Businesses in the energy and utility sector will quickly adapt to new business models and innovative digital technologies in the next years. They will come up with innovative operational models and customer experiences, as well as establish effective and proactive cyber threat security solutions. In the near future, the energy and utility industries will devise and execute the necessary strategy and roadmaps for progressive growth in order to achieve greater flexibility, cost control, and unique service models.