Making intelligent connections

By Bastian Fischer

Utilities are turning towards smart grids to help them respond to a variety of emerging customer and community needs. However, many utilities are missing out on the many benefits delivered by the smart grid, viewing it simply as a step towards measuring energy consumption and grid monitoring.

In fact, the smart grid is an information revolution that is able to deliver a multitude of benefits for every utility department and function, as well as every customer. Utilities that allow just one or two departments to control smart grid design often find that their projects fail to deliver optimal return on investment. To make the most of the smart grid and ensure projects are rolled out successfully, utilities need to have strategic executive leadership in place and involve all of their departments in the implementation process. Otherwise, they face the risk of revenue loss, less-than-optimal service delivery and long-term excessive IT costs that can be detrimental to both their business and customer relationships.

Smart grids use computer hardware and software, sensors, controls, and telecommunications equipment and services to link customers to information that helps them manage consumption and use energy wisely. Companies are beginning to consider smart grids as a way to reduce costs and increase efficiencies within their organisations and with customers. Also, due to the widespread interest in reducing the negative impact energy use has on the environment and the European Union's carbon reduction commitments that require companies to reduce CO_² emissions by 20 percent by 2020, the importance of smart grids has risen. 

The technology can be used to drive efficiencies in transmission, distribution and consumption, which means utilities are able to serve customers' power needs with fewer generating plants, fewer transmission and distribution assets.

Smart grids help utilities enhance their customer service offerings in a number of ways. One of the most significant is enabling customers to identify outages more quickly - smart grid software uses sensors to detect outages and pinpoints this to the exact location, allowing utilities to ensure problems are resolved at every meter location. Additionally, the technology ensures utilities are made aware of the size of the actual outage; they can dispatch the correct team with the required skills to the site to fix the problem. Furthermore, utilities are able to detect potential failures before they've even taken place, which means they can resolve issues before customer complaints start rolling in.

Smart grid benefits go a step further by enabling utilities to identify illegal attempts to reconnect meters or to use electricity in vacant premises. Thefts can also be detected by being able to compare flows through delivery assets with billed consumption. In addition, customers with unusually high energy usage can be identified and contacted before they receive a bill. This means utility providers can suggest techniques that might help their customers limit their energy consumption and can even help customers identify alternative methods of paying bills.

The mission of utility companies is changing. Previously, they focused on delivering reasonably priced energy and water. Today, they must also ensure sustainable energy use and environmental improvement. Smart grids are key to helping utilities achieve this expanded mission. They also help customers reap the full benefits of technology easing costs and delivering a more flexible, reliable and responsive electricity grid. Justifying its implementation however, requires an understanding of the full benefits - benefits that can help not only the customer and utility, but also society address some of the world's most pressing energy and environmental issues.

Bastian Fischer is Vice President and General Manager for Oracle Utilities' Global Business Unit EMEA. With extensive experience in the utilities industry, Bastian is a recognised industry executive, regularly speaking on industry innovation and contributing to a variety of thought leadership initiatives. Promoting IT as an enabler of innovation, he leads the Oracle Utilities Unit, setting the focus on strategic projects and providing direction to utility customers.