Why is Data Important for the Future of the Energy Industry?

Why is Data Important for the Future of the Energy Industry?

By Energy CIO Insights | Monday, October 12, 2020

To create a better future, the energy industry has to think beyond the conventional ways to providing energy and adopt a data-driven approach.

FREMONT, CA: An appropriate mix of fossil fuels and the renewable energy source is essential for economic growth. A sustainable future is often talked about in terms of increasing the adoption of renewable energy and reducing emissions. In the same vein, the energy sector is going through quite a revolution led by the increasing use of data and the need to decarbonize the economy. To do so, smart meters are one of the best options.

Typically, smart meters are viewed as devices that save both energy and money. However, smart meters provide much bigger opportunities. Smart meters can enable a data-driven energy system, and when combined with electric vehicles and battery storage, they can change the relationship between the customers and their energy usage. The data-driven energy system can help consumers identify where they can save money by the data produced by everyday appliances. This can result in more engaged customers and a data-driven and responsive industry.

Smart appliances are on the rise, providing customers greater control of their energy use. Additionally, a time-of-use tariff offers consumers the flexibility to use the appliance when power is cheaper. Today, energy providers use less coal, which amounts to 10 percent of the power needs. In the year 2019, the majority of the power was generated from low-carbon sources such as wind, solar, and nuclear. In the future, the need for decarbonization will pose more challenges as the power providers look to balance a system with increasing levels of renewables.  Additionally, a forecast says that at least ten million EV’s will be on the road by 2030. Strong leadership is required from the government when it comes to tackling the challenges. 

Energy providers must make energy efficiency a national infrastructure program, and they must also harness innovation and smart technology to help consumers reduce their energy bills and usage while providing warmth and comfort in their homes. The energy sector has an opportunity to deliver remarkable services to their customers. However, to ensure future data-driven energy system, a sustainable energy sector that can invest and innovate is required.  Data can help energy providers to create an efficient infrastructure and pave the way for future energy needs.

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