Taking a stroll down memory lane, many parts of energy service and Utility functions are missing today because Digital Utilities have come of age. Remember the trucks loaded down with cables and other equipment surveilling the neighborhoods once a month or so to test for the continued operability of the power lines. Then, there were hours upon hours if the lights went out when phone calls to the Utility responded with an automated recording reminding the customers to continue to call for updates while the outage problem research continued. Maybe some people remember the smokestacks belching black smoke into the sky while coal and oil resources were processed. Heat and air conditioning settings showed “High,” “Medium,” and “Low” without regulating temperatures and energy draws. Home generators ran on gasoline, or later on kerosene, and they were the only way to provide for “extra” energy requirements (such as 24-hour lighting or Christmas tree displays).
The Digital Utility Age has changed many of these memories. Power monitors and sensors such as uninterruptable power supply (UPS) units and power distribution units (PDUs) connecting to Digital Utility SMART Grid feeds measure power line functionality. Peak load control, circuit islanding, and automated voltage control allow Digital Utilities to respond quickly to electricity demand shifts and reduce outages' duration and severity. In reaction to global climate changes and carbon footprint reduction demands, non-fossil fuels accounted for 21% of all energy use last year (2022). (U.S. Energy Information Administration). Digital thermostats optimize energy network distribution. Additional energy draw needs are solved through solar power addition to an established Digital Utility service or by purchasing and storing excess energy returned or exchanged if unused. Changing from yesteryear, the days of “dirty” energy are falling behind with the advent of clean energy sources, monitored and sensored user-end application devices, and cutting-edge transferrence technology. Digital Utilities modern energy invokes the image of cleanliness as a coming-of-age responsibility.
Embracing the current modern Digital Utility also involves realizing the Digital Utility is at another turning point in energy history. In some experts' opinions, the coming-of-age of the Digital Utility is as decisive to modern history in the 2000s as the coal industrial revolution was in the 1900s. “The study of past ‘energy transitions’ are being reinterpreted as possible guides to a low-carbon future.” ( Turnbull, T., June 23, 2021.) An example is the Electric Vehicle (EV) inclusion in dedicated energy use. EVs began as inventions as far back in history as the 1830s. In present-day usage, Digital Utilities have added to the convenience of charging station accessibility to power. “With an electrified future down the road, utility players are in a unique position to fill the gap between the deployment of EV charging stations and mass EV adoption.” (Le, H., PwC, US, May 05, 2021). The old invention of the electric car has new importance in the economy with new technologies and carbon footprint awareness. Without leaving behind advances in areas such as wind energy (beginning with old windmills and moving to the high-tech wind turbines of today), the Digital Utility hopes to “turn the energy corner” and reach out with present-day technology into a foreseeable future holding fast to the central integration of Digital Utility modernization.
Many factors contribute to the definition of a Digital Utility. Some defining characteristics of Digital Utilities are renewables, SMART grids, distributed generation, digital data collection and exchange, digital twins, machine learning (ML) and artificial intelligence (AI), and the Internet of Things (IoT). To understand the classification question regarding Digital Utility designation, ask if three (3) or more of the above defining characteristics of a Digital Utility are in place within an Energy Utility organization. If the answer is “yes,” then the Energy Utility is a Digital Utility. If the answer is “no,” an Energy Utility might be in transition with one (1) or two (2) viable defining characteristics as listed. Over 3,000 Energy Utilities operate within the United States of America (USA). A level platform does not exist across technologies used, types of renewables, or operable production performance. Energy Utilities are investor-owned, municipal-owned, or cooperatives. While vying for consumerships and performance returns, investments in equipping Digital Utilities contribute to growth in Energy retail. “Conservative estimates supported by analysis of real-life cases suggest that digital optimization can boost profitability by 20 to 30 percent.” (Booth, A., Mohr, N., and Peters, P., May 12, 2016.) Exploring the potential of a fully Digital Utility crosses the bridges in supply and demand, preventive and prescriptive maintenance, networking, customer communications, back-office inclusions, and fieldwork. Platforming supporting resources and marketplaces comes from distributed energy principles and efficiency practices. In short, when considering a Digital Utility, the entire functional spectrum of each point of contact in Energy services and deliverables includes. Reaching the possibilities supplied by current technology requires stepping up equipment and practices to embrace the Digital Utility's whole potential.
(Visual by McKinsey & Company)
With Energy Utilities reaching out to embrace becoming Digital Utilities, barriers exist against full Digital Utility implementation. Three (3) starter issues raised when exploring how Digital Utilities grow slowly and transition carefully are educating customers, pocketbook expenses for upgrades, and retaining the employee workforce. Another block to becoming a Digital Utility is systems integration, a requirement for Energy Utilities in transition. Progress to full Digital Utility status takes time and effort. Digital Utility status does not come overnight. “A report in 2020 found that the average digital transformation project can cost enterprises an average of $27.5 million.” (Olmstead, L., May 1, 2023.) These costs do not give immediate returns and, for the most part, are expected recovery expenses spread over projected years of the Digital Utility’s operation. Costs for a Digital Utility transformation have consideration factors such as the size of the Energy Utility, infrastructure decisions, and skills training requirements. Indications are higher costs than the average cited incur when elements like customer service and maintenance are added.
The Digital Utility revolution is in progress. In this century, the Digital Utility has come of age. As the Digital Utility evolves, a struggle is in progress to keep pace with technology already developed but not applied in the Energy Utility arena. Reaching out to embrace the present and vault to the future, the Digital Utility is inevitable. Over history, the old proverb says, “Necessity has been the mother of invention.” The Digital Utility technological inventions pave the way for energy efficiency increases, consumer costs to decrease, and global citizen contributions of less pollution and more resource conservation. Despite the problems with transitioning from an Energy Utility to a Digital Utility, the Energy Industry inevitably follows the Digital Utilities established and leading the way. Shortly, Digital Utilities will be standard. Finding the best road to that standard is a rocky and varied journey since the combinations of possibilities in each unique Digital Utility system are not all aligned. Notwithstanding the questions posed of best practices and equipment, Digital Utilities are certainly here to remain.
Resources
1. Eia; https://www.eia.gov/todayinenergy/detail.php?id=56980
2. Turnbull, T., “Energy, history, and the humanities: against a new determinism”; History and Technology (an International Journal) Volume 37, 2021- Issue 2 (June 23, 2021.)
3. Le, H., “What role will utilities play in the EV charging infrastructure build-out?”; PwC, US, (May 05, 2021.) https://www.pwc.com/us/en/industries/energy-utilities-resources/library/ev-charging-infrastructure.html
4. Booth, A., Mohr, N., and Peters, P., “The digital utility: New opportunities and challenges”; McKinsey & Company, (May 12, 2016.) https://www.mckinsey.com/industries/electric-power-and-natural-gas/our-insights/the-digital-utility-new-opportunities-and-challenges
5. Olmstead, L., “The Cost of Digital Transformation”; whatfix, (May 1, 2023.) https://whatfix.com/blog/digital-transformation-cost