How the IoT Sends Shockwaves Through the Utility Industry
The utility industry is on the verge of significant change. A global push toward sustainability and the growing spotlight on frequent outages and aging infrastructure highlight the need to adapt. The increasing use of the Internet of Things (IoT) in utilities paves the way for that change.
Interconnected smart devices are everywhere, especially in consumer electronics. These gadgets make homes more convenient, but applying the same connectivity to utility infrastructure is even more beneficial. As more grids embrace the IoT, it’s redefining the industry for the better.
Energy Efficiency
Higher efficiency is the most straightforward impact of IoT applications in smart energy. If a single smart thermostat can reduce HVAC power consumption by 8%, imagine what a smart transformer can do for an entire energy grid.
The key to IoT-enabled energy savings lies in real-time adjustments. IoT sensors monitor usage data in real time to understand where the most power is necessary at what times. They then divert resources accordingly to give high-consumption areas more electricity and low-consumption areas less. As a result, grids meet changing needs while using as little electricity as possible.
Over time, data from these IoT endpoints can inform larger changes. Utility companies can see which processes consume the most power or identify where the most waste happens. They can then implement new services or fix systems accordingly to enable further savings.
Fewer and Less Severe Outages
The IoT in utilities can also prevent outages. These events have become increasingly common as the nation’s power infrastructure ages. They’ve also grown more severe. There are now 1.42 outages per customer per year, each lasting over seven hours on average.
IoT devices prevent these incidents through predictive analytics. By continuously measuring equipment conditions, the sensors can detect when infrastructure will need repair soon. They then alert maintenance technicians to attend to it before it leads to an outage.
Similarly, IoT connectivity can alert utility companies of unforeseen issues like trees falling on power lines or sudden surges leading to overloads. Smart devices can contact repair professionals once the problem arises, telling them where it is and what’s wrong. Energy organizations can then fix the issue in less time so the outages that do happen are less severe.
Renewable Power
Enabling renewable power is another important IoT application in smart energy. At this point, most people understand the need for renewables, but implementing them can be challenging. IoT-powered smart grids make the transition easier.
The big issue with grid-scale renewables is their intermittency. Wind and solar produce more energy at certain times than others, depending on uncontrollable conditions. As a result, peak generation hours rarely line up with peak consumption. The IoT can help through more innovative distribution.
As mentioned earlier, smart transformers allocate varying amounts of power to different areas according to real-time needs. That lets them account for waxing and waning renewable power generation, diverting more to high-consumption areas at peak generation hours. By distributing electricity more evenly, grids can use renewables without waste, enabling large-scale sustainability initiatives.
Long-Term Resilience
As the IoT in utilities grows, these devices will provide more and more data on energy operations. Utility companies can use this information to inform bigger, long-term changes to boost grid resilience.
Smart transformer data over time will reveal which areas use the most energy at which times. They may also show which zones are most prone to blackouts or other disruptions. The businesses serving these areas can then focus their modernization efforts on these areas to achieve the biggest possible improvements.
Similarly, IoT data from renewable energy systems will show where it’s most useful or where these projects didn’t meet their original goals. Power enterprises can learn from both scenarios to roll out renewables more effectively in the future. The green power transition can happen faster as a result.
Considerations for Implementing the IoT in Utilities
Businesses wanting to capitalize on the potential of the IoT in utilities should keep a few things in mind. As beneficial as this technology is, it requires careful planning and implementation to use effectively.
Ensure Thorough Cybersecurity
As with any other digital innovation, cybersecurity is a leading concern with the IoT. IoT systems are often more susceptible to cyber attacks than other networks. That’s because they have wider attack surfaces, many devices lack strong built-in controls, and it’s easier for human error to increase vulnerabilities.
That said, the IoT isn’t inherently risky. Security is still possible, but organizations must follow the right steps. That starts with using devices that meet rigid cybersecurity standards. Utility companies must also change passwords to stronger, unique alternatives and enable data encryption. Automated network monitoring and anti-phishing training for all employees will also help.
Choose IoT Technologies Carefully
It’s important to choose the right IoT systems for the job. Look for security features like multi-factor authentication and high encryption standards. Utilities should also use devices that are compatible with the other IT systems they already use to make them more practical.
There are 21 IoT communication standards to choose from, and not every device supports every protocol. Utilities should determine the best protocol for their needs based on cost, data throughput, range, needed infrastructure, and compatibility with current endpoints. They should then look for IoT devices that use their standard of choice.
Manage Costs and Complexity
Like other kinds of digital transformation, IoT adoption can get expensive. If enterprises aren’t careful, it may also introduce needless complexity, making it hard for employees to work efficiently. The answer to these problems is to adopt it slowly and carefully.
Utility companies should start by applying the IoT to a single use case — ideally, wherever it’ll have the biggest impact. They can then see what worked and what didn’t to inform more effective IoT expansions down the line. As they undergo this slow, steady expansion, they should take the time to train employees in how to use these new technologies.
Don’t Overlook These IoT Applications in Smart Energy
The potential of IoT applications in smart energy is vast. Utility companies must act on these benefits soon to get ready for a more interconnected future.
It’s not a question of if the IoT will revolutionize the utility industry, but when. The transformation is inevitable, so the sooner organizations learn to make the most of this technology, the better.
Emily Newton is the Editor-in-Chief of Revolutionized Magazine, an online publication that explores innovations in science and technology.
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