Support for Grid Upgrades Gain Momentum
- Mar 23, 2022 10:53 am GMT
The emerging Internet of Things (IoT) technology is having a positive impact on energy grid investments. The technology helps energy companies gain more visibility into energy usage and demand. Consequently, utilities are investing money in their grid in order to take advantage of new functionality.
In fact, worldwide smart grid revenue is expected to rise from $2 $102.2 billion in 2027, a Compound Annual Growth Rate (CAGR) of 21.9%, according to Reports and Data. A few factors are driving the growth.
IoT Adds Intelligence
IoT is an emerging technology that adds intelligence to traditionally dumb devices. The quantity and quality of IoT connected devices is expanding extensively as the technology matures. The initial focus has been on making meters smarter, but the next wave of applications adds smarts to items, like lighting systems and HVACs. With that data, energy companies better gauge demand and proactively prepare their infrastructure to deliver it.
Electric vehicles are becoming more popular, and utilities need to build out a support infrastructure. IoT enables them to better understand how much energy such devices command and the best ways to provide it to them.
In addition, IoT provides energy companies with more visibility into the grid device performance. They move from a reactive mode where they fix problems after they occur to proactive where they take steps to avoid them.
The US grid has been aging. The emergence of IoT solutions is prodding energy companies to investing in new technology and modernize. With it, they gain the ability to deliver their services and manage the infrastructure more effectively.
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