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    Home»Utilities»The Perfect Storm – How Utilities Leverage AI Ahead in a Changing Market
    Utilities

    The Perfect Storm – How Utilities Leverage AI Ahead in a Changing Market

    October 21, 20246 Mins Read


    • Utilities face some of the most rapid changes in energy demands worldwide and using IoT and artificial intelligence (AI) offers key benefits related to safety, maintenance, labor augmentation and consumer engagement, according to Itron report
    • AI offers challenges as well as solutions for utility companies by putting more demand on electricity generation, along with EV cars

    Storm damage from a series of hurricanes in the Southeast U.S. is a stark demonstration of the challenges before utilities companies, that could, in part, be aided with artificial intelligence (AI) and IoT technology.

    Energy utilities face historically daunting challenges ahead, including meeting the changing demands to grid resilience and safety, in the face of the rising number of extreme weather events across the globe. Additionally, they must increase their capacity rapidly, based on population growth and the need to serve more energy-hungry technologies.

    Itron recently conducted its annual report on the state of utilities, focusing this year on AI and machine learning (ML)—which is a potential challenge and solution to grid safety and resilience. The company provides solutions for utilities and cities to better manage energy and water, including IoT based technology. The findings of the “Exploring AI for Utilities report” highlight both opportunities with AI and issues to overcome, said Marina Donovan, Itron’s VP of corporate marketing, ESG and public affairs.

    The Role of AI

    The use of AI and ML software demands greater energy to serve the data centers where processing takes place. The growth of electric vehicles (EV) and their charging stations further increases that demand.


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    However, AI offers some solutions—bringing insights to utilities using data from their infrastructure to help harden their infrastructure, prevent fires, respond to incidents immediately, and better forecast problems ahead even in a world now vulnerable to climate-disruption based disasters.

    Utility executives are indicating that there are multiple forces at play that will require a rapid increase in capacity. About 40 percent of those who responded to the report survey said that cloud-computing and AI were the key drivers for capacity growth needs in their area. That impacts energy utilities as well as water resources.

    Greatest Challenges

    Additionally, new construction is impacting the need for greater energy production. Sustainability initiatives are front and center as well. Collectively, EVs are major consumers of electricity which utility executives say they must accommodate in the coming years, said Donovan. In fact, EV’s will require 28 million charging points in the U.S. by 2030.

    Alternative energies like solar and wind will aid with electrification pressures, but networks will be more complex. That’s something utilities are now striving to accommodate as those integrations take place.

    One of the greatest concerns for utilities executives’ centers around safety. That topic was listed as the number two challenge by report responders, and the number one concern in Canada and the UK. Donovan pointed out the good news is that AI and IoT technology offer utilities a potential solution related to detecting, reporting and managing potentially dangerous situations.

    Safety, and Incident Prevention

    IoT technology delivers a non-wired alternative for communications networks that help utilities gain visibility of their assets —the poles, lines and transformers that deliver electricity. IoT sensors help provide access to data about energy loads, impedance and potential damage.

    AI can bring load forecasting and other intelligence based on the data being collected from IoT sensors, meters and cameras. That AI-based intelligence will make it easier for utilities to manage their many miles of equipment. Take heat events—by tracking energy consumption and enabling forecast of pressure on the electric grid, utilities are already beginning to identify periods in which voluntary reduction in energy use would benefit.

    Wildfire prevention efforts are underway in places such as California with AI support to help identify potential fire risks. Such systems can leverage IoT sensors that detect heat or gasses, or a network of cameras viewing the conditions around the power lines. In both cases, AI makes sense of the conditions being detected and provides relevant data and alerting.

    Itron works with a majority of the key investor-owned utilities in the U.S., providing distributed intelligence, with or without AI, along with smaller municipalities and cooperatives too.

    Sustainability with Alternative Sources of Energy

    As renewable energy sources are added to companies’ grids, AI provides intelligence related to their integration, as well, including how the load is being allocated and how it can be adjusted as needed, depending on demand.

    AI can also support shortages in manpower. If an AI-driven drone or robot can navigate rough terrain around long transmission lines, utilities can safely access condition monitoring at a time when skilled labor can be hard to come by.

    Itron works with a majority of the key investor-owned utilities in the U.S., providing distributed intelligence with or without AI, along with smaller municipalities and cooperatives too.

    Future Forecasting

    As the energy consumption and weather becomes more complex, utilities indicate that AI will help them keep the infrastructure in operation even as the world produces more extreme weather events such as wildfires, floods, and wind.

    Going forward, AI can couple utility network data with weather forecasts to help identify where the system is starting to shut down or where resources will be needed to bring a damaged system back up quickly.

    The Perfect Storm – How Utilities Leverage AI Ahead in a Changing Market is the sixth story in an ongoing series exploring how AI is impacting the RFID and IoT industries.

     

    AI is only as good as the information fed into it, and ML and AI systems are hungry for data. To feed and train them, organizations need data that must be cleansed, standardized, governed and scaled, Donovan explained. For this, utilities will need to rely on high-resolution data from devices such as IoT sensors and meters that are being deployed increasing at customers sites and along power lines.

    The progress is still gradual. Of those responding to the Itron survey, 40 percent said data infrastructure and scalability are still challenges ahead, and 39 percent expressed concerns about risks related to unproven technology operating (or operating around) critical infrastructure. Not surprisingly, 62 percent of the executives indicated a focus on deploying only proven technology as well as 53 percent emphasizing technology consulting and support.

    Forward Thinking by Utilities

    Forecasting the deployment of EV charging will be a key benefit AI may provide utilities, by offering an understanding of where the charging units can be installed, where the energy is sufficient for that, and where upgrades will be needed.

    “That’s another area I think where AI will play a big role is helping manage and orchestrate the onboarding of EV’s,” Donovan said.

    In general, human populations have taken energy for granted when it comes to assuming the lights will come on, offices and homes will be heated or cooled, and the Internet will be available. Utility operators are now striving to be more forward thinking.

    “The more intelligence that utility operators have, and the more control they have, and the more planning they can do—to support the increased energy demand and integration of renewables while addressing safety concerns,” said Donovan.

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