With yearly worldwide renewable power capacity additions in the last couple of years, the demand is increasing for comprehensive management capabilities of dispersed fleets of renewable power plants.
FREMONT, CA: The increase in renewables has been nothing but spectacular for more than a decade. Advances in the underlying technology and a consistent call in favor of decarbonizing the economy starts with the power sector space. It falls in the levelized cost of energy (LCOE), a measure incorporating both initial investment and operating costs, has become phenomenal, and thus, renewables have attracted significant capital, accounting for near about two-thirds of power generation spending in 2017.
Lesser appreciated factor facilitating the energy transition is the IT and its industry-specific applications. Whether it sophisticates the energy forecast software helping to reduce the inherent unpredictability of wind or solar power or a geographic information system (GIS) enabling geospatial analysis around the potential location of future generation assets, and IT has played a significant role in allowing the widespread deployment of renewables.
In this regard, many companies have witnessed an opportunity to develop software that combines functionality that makes asset management of renewable power plants efficient and straightforward. Unlike the management of large and complex centralized assets, renewable generation companies ask for a lightweight solution that unifies most aspects of asset management. This is typically true in the case of small- and mid-sized operators, which have smaller market capitalization and personnel with the deep expertise of utilities’ staff. The decentralized nature of their renewable fleets is often scattered across countries or entire regions. The comparably short time of construction is an additional reason for choosing a solution that scales fast with small, geographically dispersed power plants.
Together with technological change, another fundamental shift has taken place during the past few years. The established utilities have ceased to be the only owners of renewable power plants.
Companies that have a more diverse corporate background have entered in this rapidly growing sector. Companies such as investment funds, engineering, procurement, and construction companies (EPC) and even oil and gas companies, and all these players seek to keep the operational expenses of their new investments low.
To increase energy production and maximize the returns of their renewable portfolio, they are inclined to deploy the latest technology integrating asset supervision and financial and operational management.
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