Demand Side Insights Are Key to Load Management

Supply and demand, utilities companies have been trying balance the two since the first lights were turned on more than a century ago. Recent advances have made it more challenging for energy companies to control energy supply, so advances in determining demand management can provide the key to achieving balance.

Renewables are becoming a large part of the energy supply. While delivering environmental benefits, their ability to supply needed energy is constrained by Mother Nature, who controls when the sun shines and the wind blows.

The Importance of Monitoring Demand

However, energy companies are gaining more insight into and control over energy demand.  The development of intelligent Internet of Things sensors and the emergence of Big Data, artificial intelligence and machine learning provide these organizations with the ability to collect information, so they can forecast demand more accurately.

Since that is becoming the case, they can also entice consumers to perform tasks when demand is low. For instance, an electric vehicle can be charged at noon or 11:00 am. Water can be heated at 6:00 am, so everyone has warm water when usage picks up in the morning. 

While the technology is capable of such granular events, a few building blocks need to be into place for it to become widespread. Energy companies must  collect more usage information to fine tune the data models that tell when the best times to turn on the devices in need of electricity. They also need to put programs in place to incent customers to shift demand from peak to non-peak times.

Load management has been an ongoing challenge for utilities. While the supply side of that equation is becoming more complex, advances in demand may prove to enable them to improve the process.