Supply chain management is evolving. No longer is it seen as a simple support function, but rather a competitive advantage for the companies utilizing the advancements in available technology. This new and innovative supply chain process centralizes procedures, data, and human assets to improve overall functionality. As companies are looking for ways to improve efficiencies, productivity, and profitability throughout their organizations, an integrated supply chain management model might be just what they need. The Integrated Supply Chain Management Model Integrated supply chain management is the idea of centralizing supply chain activities rather than managing them at a division, team, or project basis. Centralizing the supply chain allows for activities and initiatives to flow through a central management process and lessens the manual and repetitive burden on individuals. A decentralized supply chain requires multiple teams and individuals to communicate with the main supplier – this multiples the amount of communication and people involved in just one process. Not only is it time consuming, the number of extra steps in a decentralized supply chain leaves room for errors. Without one centralized location to house important data, there could be missing details or repeat purchasing due to the disconnection. Centralizing the process can help eliminate unnecessary steps and procedures and make sure everyone associated with the project knows what is going on with the project from start to finish. Reduce Organizational Waste Identifying areas of waste within your organization and current processes can help to identify areas of improvement for employee efficiencies and productivity. Integrated supply chain management helps you implement a Lean work environment by improving and eliminating unnecessary and repetitive processes, such as data processing and inventory management. A few common business areas of waste include: Ordering processes Inventory management Payment processing Transportation and logistics Merging activities throughout your organization can help to better improve day-to-day processes and eliminate redundant steps. With technology advances in integrated supply chain management, you can easily consolidate the manual steps employees are spending their time on to allow for a shift in focus to better serve your goals. Reduce Total Cost of Ownership An integrated supply chain management system can help to reduce the total cost of ownership (TCO) associated with a process or asset. TCO is much more than just the cost of making a product. When calculating TCO, you have to consider all costs that are involved – from warehousing and inventory fees to the freight costs. Removing and reducing these costs can help reduce the overall financial burden on an organization. Integrated supply chain management offers a variety of ways to reduce costs associated with TCO. Three of the most common reductions include: overhead activities, physical assets, and distribution abilities. Overhead activities: By consolidating activities such as sourcing and ordering, you can eliminate and reallocate overhead costs. By assigning one person to handle the process and utilize integrated supply chain technology to manage the process, the other employees can shift their focus to a new task. Physical assets: An integrated supply chain system will help to manage inventory and stock levels in one central location. This will reduce excess material ordering and ensure that products are restocked as needed. Distribution abilities: To further enhance the integrated supply chain abilities, you can opt to partner with a distributor. By aiding in managing everything from inventory and material levels to delivery and logistics, partnering with a distributor can improve your supply chain process. Integrated Supply Chain Management: The Future of Cost Savings Reducing waste and costs within your business are just the start of the benefits offered by moving to an integrated supply chain management approach. As we continue to see improvements in technology and with more companies looking for a more centralized process, integrated supply chain management will continue to be a trending topic. To stay ahead of the curve, now’s the time to understand the benefits, applications, and drawbacks to moving toward a more centralized supply chain process.
Read MoreThe utility industry is faced with a digital transformation. As technology continues to advance, there are more and more opportunities becoming available to improve facilities and processes. Advancements in new technology offer safer, smarter and more efficient production and move away from the power plants of the past. As the demand for data continues to grow, there is a need to improve and digitalize power plants. This is where the digital transformation begins. Moving Away From the Power Plants of the Past The distribution of power first began in the late 1800s. Since then, there have been numerous types of power sources brought into the picture, from coal, natural gas and nuclear power, to solar and wind. With each new innovative way of producing power came new machinery, efficiencies, and regulations. Today’s plants are growing more and more resourceful and produce less pollution than those of the past, but there are still some older power plants running. Although the original machinery that was distributed and developed in the late 1800s is most likely not what you’ll find in these older plants, it’s possible to find equipment that’s reaching 50 years old. While only a few locations still exist with equipment this old, many power plants are still lacking the most up-to-date equipment. Even if a plant has machinery that’s approaching 20 years old, think of all the new innovations that have come about in that time frame. As machinery ages, the maintenance costs rise. In an era where energy production and fuel rates are at historic competitiveness, cost of maintenance, or replacement is a constant guessing game. In addition, as these plants continue to age, the efficiency of their energy output continues to decline. Not only are they not as efficient as they once were, they may require additional pollution controls that are included on newer technologies. Another cost factoring into the long term cost of energy production. Many utilities are facing external pressures including, fuel cost competitiveness, rise of renewables, and the cost of maintaining current infrastructure and equipment. Utilities will have to weigh the financial implications of operating and maintaining an aging plant infrastructure or building newer more efficient plants. The Digital Trends in Today’s Power Plants First and foremost, today’s power plants run newer machinery that’s more efficient and equipped to meet the growing energy needs of the digital era. Power plants that are built with this new mindset provide benefits beyond operating and maintenance savings. From safer and smarter daily production to smart plant technologies, we’ll dig into how power plants are embracing digitalization. Safer, Smarter and More Efficient Production If you’ve ever been on the floor of a product plant, you’ll know that safety is a top priority. The safety of employees and the public is always a concern for utility companies, and the current digital transformation offers numerous safety improvements. Plants that have the ability to implement the Internet of Things (IoT) can easily detect when an issue arises. Sensors can identify when there’s an issue and notify workers immediately when a situation arises – this could prevent scenarios such as fires, leaks or explosions. The safety of employees and the public is always a concern for utility companies, and the current digital transformation offers numerous safety improvements. Here’s one scenario of a safety situation that’s very possible and could easily be resolved with newer plant technology: Within a plant, there are pressure sensors throughout the machinery. When the system identifies elevated pressure in the residual heat pump line, the computer immediately takes the preventative measure of shutting down or diverting water away from this area. This all happens while the workers had no idea there was an issue, but it was resolved before it became a serious problem. During the Chernobyl incident, a routine test of the mechanical system was initiated to simulate a total loss of power in the plant. Once the uncontrolled reaction began, operators were unable to recover and stabilize the system resulting in the worst nuclear disaster in the world. Had there been an additional safety layer in place for testing purposes, it’s possible this could have been avoided. Newer plants not only improve worker safety, but also allow production to work smarter. Digitalizing steps throughout the process can help increase performance reliability and meet regulatory standards. It can also identify and reduce waste by automating manual or repetitive steps. It has been said that digitalizing plants can provide a 25 percent reduction in operating costs. As safety precautions increase and operating costs decrease, the result is more effective and efficient operations. Although digital and computer enhancements will continue to reduce system failures, good planning, well trained professionals, and rigid manual shut down processes will always be required. Smart Plant Technologies and the Internet of Things (IoT) So we’ve touched on the idea of IoT, but it really comes into play when talking about the future of power production and smart plant technologies. The use of IoT and big data help to create a more streamlined process that centralizes the plant’s automation. They can allow plants to identify power demands and determine when and where the most energy consumption takes place and how to reduce excess energy production. Think of being able to remotely operate a 500 MW power plant when peak energy needs are required. The idea sounds futuristic, but it might be closer than previously imagined. Another benefit to the digitalization of the plants and the use of IoT is that it’s now possible to predict and monitor machinery for potential maintenance requirements. So, rather than waiting for a machine to fail before performing the required maintenance, it’s possible to know ahead of time and plan. Not only will this prolong the lifetime of the equipment, but it also allows for less unplanned downtime – saving money in the long run. A good example of tracking and monitoring equipment, which could be used in any business setting, is the use of wireless soap dispensers. IoT makes it possible for these wireless soap dispensers to track soap volumes and trigger a reorder when the machine is running low – now just image what could be done in side a power plant with this technology. The low cost of sensors and efficiency of data collection systems allow for plant crews and suppliers to add more sensors in previously inaccessible areas. More live and accurate data can be immediately analyzed, by human or computer, to evaluate the current situation of the plant. Additionally, plant engineers would be able to overlay digital inputs from field sensors into regulatory and safety requirements. For instance, if a turbine engine has a maximum rated temperate of 250 degrees, a sensor inside of the system can be set to trigger alerts at 150 degrees and force a shut down at 200 degrees. Addressing Cybersecurity Concerns As we move into a digital age, there are always concerns around cybersecurity. This is no different for the utility industry. In fact, most power and utility CEOs believe that a cyberattack is unavoidable. But knowing this, companies are working every day to identify and are prepared for any potential threat. Because the impact of a breach would be costly and disruptive, and this has become a main focus for companies – to the point that addressing cybersecurity concerns have become part of daily operations. There are now cybersecurity specialists within power and utility companies dedicated to identifying possible threats and finding new ways to protect the systems. As more wireless networks begin to appear on plant sites, there is a need to tighten security. These threats are one of the things jeopardizing a digitized fleet for many organizations. But new systems and intelligence are being created every day to help prevent cyber breaches. Many utility systems are layered with firewalls and other security protocols. There are areas that don’t have USB ports to avoid people from linking up. As systems become more interconnected, think of the remote access example above, they become more vulnerable to attack and control. In our example above we theorized remotely controlling a plant form a central point. If it is able to be controlled remotely, a hacker could possibly get in. Additionally, if plants are more interconnected through remote and wireless networks, the system could in theory be controlled by a single individual with access to the central location. Luckily, utilities are several steps ahead of hackers employing lines of cyber defense and emergency lock down measures to keep utilities safe. Moving Your Facility Into the Digital Era In this new digital era, supply chain partners are more responsive than ever and can help you excel during this digital transformation. From supporting inventory reduction challenges to providing improved automation and tracking technologies, there are a variety of reasons to work with a partner. A supply chain partner can help manage your data to improve material planning efforts by tracking inventory levels. This lets you know exactly what is in stock and what items need to be ordered when running low. The days of running out of materials and having to wait for a reorder are over. From there, implement automation, tracking, and just-in-time delivery to jump even further into the digital world. Work with your supply chain partner to find the right solution and stay ahead of the competition during this digital transformation.
Read MoreThere is a growing need to improve infrastructure resiliency in the utility industry. As the threat of unknown natural disasters and events continues to increase each year, being prepared and having resilient infrastructure in place is a top priority. There is more and more pressure to get services back up and running as soon as possible when an event occurs. This is fueling the need for utility infrastructure resilience and it’s why we see this topic as a trend in the industry. As utility companies are looking to the future, the need to work toward a more resilient infrastructure system to withstand potential disasters continues to grow. Understanding Resilience and Its Role in Utility Infrastructure Resilience is essentially having the ability to prepare and adapt to changing conditions and recover in a timely manner when disruptions occur due to a significant event. A significant event could be a variety of things from an earthquake, hurricane, snow storm, or any other event that disrupts a large utility footprint. To prepare for these events, a risk-based approach can help identify potential threats, develop preventative steps and minimize damaging effects. The resilience of a system can be attributed to this risk-based approach of the system reliability. It’s important to understand what infrastructure resilience is and what it means for utility companies. Resilience, when talking about utility infrastructure specifically, refers to its ability to mitigate base load power loss and recovery time during a natural disaster or significant event. This incorporates the ability to absorb the effects of the event that took place (earthquake, wind, rain, etc.) and the timing to get service back up and running quickly. Resilience in utility infrastructure is the ability to mitigate base load power loss and recovery time during a natural disaster or significant event. Tips to improve resilience for utility companies: Have an appropriate crew size that is trained for various significant events Have backup supplies in stock and ready to start rebuilding Design rigorous disaster execution plans and have an outlined communication plan Develop and test risk assessment models Upgrade significant weaknesses in the grid Complete disaster scenario training to prepare workers, review and fill in areas that are found to have gaps Current and Future Risk Models Strategic Risk, Compliance Risk, Operational Risk, Financial Risk, Reputational Risk Today’s models quantify the financial risk of unreliable utility infrastructure. Think of it like this. An aging transmission is much more vulnerable to daily failures than a newer system would be, resulting in a high financial risk. As the current utility infrastructure continues to grow older each day, companies are beginning to consider these risks when building the future. Another thing that utility companies have to take into account when replacing the old, outdated infrastructure of the past is how to plan for future storms and unknown events. One way we are seeing this happen is by installing buried electrical wires rather than traditional above-ground wires. This is becoming a trend because when a storm or other event occurs, the wires are protected from the elements, debris, and falls trees – lessening the chances (or risk) of an outage. This model predicts and estimates consequence risk for all fuel types, including natural gas and oil. It quantifies these consequences in dollars of the total risk related to non-resilient systems in an effort to compare the different types of power systems available. Additionally, it quantifies the financial risk of more than just the loss of base load power. Considerations around risk factors such as employees working in hazardous conditions, essential systems failing, and economic impacts are a part of the current model. Although these current models are acceptable and can help decision makers understand the impact of non-resilient systems, there is more research and development needed to define a more accurate model. Building Redundancies in Power Systems There are a number of ways to build redundancies to improve resilience when it comes to power systems. Here are a few options that can help build redundancies in utility infrastructure. 1. Implement Multiple System Lines Implementing multiple system lines helps to build redundancies into power transmission lines and have additional power systems connected to the grid. This hardens the grid in case one system must be taken down or is knocked out of service for a period of time. Think of this process as a tree branch. There is one main branch that holds together multiple smaller branches. If one of those smaller branches cracks or falls, the connected leaves and stems fall as well. But, the main branch itself will not fall just because this smaller branch has. The main branch will still hold many other smaller branches and will not die. Now, think of that same idea, just with power plants. There are many power plants that are connected together so that if one is out of service, or unable to operate, there is a plant to provide backup service. For smaller events, there are loops built into the power grid to mitigate the total number of individuals who lose power. For example, leading up to Hurricane Florence, nuclear stations were forced into a safe shutdown mode due to the unsafe conditions of the storm. To compensate for this shutdown, the power company used their backup plants, called peaker plants, to provide the needed power prior to the arrival of the storm. In some cases, a major weather event may be too catastrophic for this process to work. After Hurricane Florence and Harvey, the damage was too widespread and there was no amount of redundancy that could have kept power online. After a massive hurricane event, the only remedy for power restoration is detailed planning, quick response times, and lock step execution. 2. The Connection Between Multiple Transmission and Power Systems Utilizing multiple transmission and power systems can help build a stronger, more redundant utility system. Each piece and part of the puzzle that makes up a redundant system is an added protection layer for the main source of energy. This way, if something were to go wrong or break with one section of the system, the entire system isn’t taken down with it. Because the energy grid is so large, the potential to transmit energy across the grid to distant locations to meet demands is a very real scenario. The large network also allows companies to anticipate potential energy losses while continuing to meet electricity demand. As an added benefit, lines are interconnected to increase the reliability and redundancy of the electric supply transferred. As you’re probably aware, power can be created in a variety of ways including, coal, nuclear, natural gas, wind, and solar power. Each of these types of power provides different pros and cons. These different types of power are often called into action to work simultaneously to keep the system running as effectively as possible. That is where we jump into the concept of base and peak loads. 3. The Need for Backup Peak Load Plants To understand this next step to building a redundant network, you have to understand the concept of base and peak loads. Base load is the minimum amount of electricity needed over a specific time period. These requirements do not often change and are generally a continuous amount. This is when energy is used at a normal rate, with no unusual or additional energy-requiring steps. Think of it as your home when you are not there. On the other hand, peak loads are when energy use spikes during the day. This is when the most energy is being consumed and demand is higher. So, when you come home from work and turn on the lights in multiple rooms, start cooking, and turn on the TV, you now require much more power. But, you only use this higher amount of energy for a few hours a day and it’s not needed once the lights and TVs go off. This is where the base and peak loads and the type of power used meet. Coal would be an example of a base load energy source. It takes longer to reach its full energy producing levels, but when it does, it stays consistent. Natural gas would act as your peak load – quickly jumping in when extra energy is required. By increasing the number of backup peak load plants, it offers an additional layer of redundancy for electricity demand and helps fill potential service gaps. The more layers available in the system, the less likely there is to be a disruption in the power service. The Importance of Supply Chain Resilience During a Crisis Having a resilient supply chain is beneficial in any scenario, but when a crisis happens, it becomes critical. Focusing on supply chain resiliency will allow for proactive planning and better response times when the crisis occurs. A supply chain can be another level to your redundancy plan to help get service levels back to pre-disaster levels. Although it can’t predict everything, having the proper plan in place can mitigate risk during a significant event such as hurricanes or other natural disasters. Infrastructure should be a big part of the pre-storm planning process to assure that the necessary resources are on standby to respond and quickly bring base load back online. This all begins when selecting a supply chain management partner. Working with a partner who has proven experience and reliability will leave you better protected when disaster strikes. Make sure your supply chain partner can improve system redundancy by providing the resilience you need.
Read MoreIt went from a tropical storm to a category 2 hurricane within hours. Locals who choose to ride it out have done everything they can to prepare – stocked up on all the necessary supplies and boarded up the house. Now all they can do is wait and hope for the best. The big question on everyone’s mind – will I lose power and if so, for how long? Once the storm passes, utility companies have the task of rebuilding and restoring electricity to the hospitals, businesses, and communities affected. Knowing that these natural disasters are very possible, what are companies doing to prepare and reassure the public that they will be ready when the next storm strikes? Understanding the importance to a utility company of creating a pre-disaster implementation plan and the role supply chain management plays in the process can be the key to a successful restoration effort. Anticipating the Worst: Utility Pre-Disaster Planning Planning for a severe storm or natural disaster is vital to ensuring the safety of public and company personnel. If your utility company is not prepared in the event of an emergency, how would hospitals continue to operate and crews know where to start in the restoration process? Frankly, it would be sheer chaos. With a predetermined plan, the highest priority areas would be identified – leaving no question on where to begin focusing efforts. The first priority would be to restore power to lifesaving services, such as hospitals, fire stations and emergency centers. Going without power for an extended timeframe at these locations would have negative consequences on the lives of many. To ensure the quickest recovery time for everyone affected by the storm, the utility industry comes together under a mutual assistance program. This program is an alliance between utility companies across North America to support each other when disaster strikes. Prior to a disaster occurring and even before one becomes a possibility, it is important to know when and how to tap into the network of restoration workers available through the mutual assistance program. When called into action, the crews come out in thousands, sometimes even tens of thousands, from all across North America to help get cities back on their feet. Knowing What to Expect After Severe Storms A severe storm may not seem like it would have a huge impact on utility companies, but with thousands of customers across the area, a plan needs to be in place. Sometimes these storm events pop up with little to no notice – making a predetermined plan a necessity to service the public. If an unexpected microburst happened and knocked out power to customers in part of a service area, there needs to be a plan in place to get everyone back on the grid as soon as possible. Severe storm plans need to consider the hours after the storm has passed, but also what could arise in the days to follow. Utility companies should have a plan in place and be practicing and preparing long before the storm is in the forecast. From customer service to lineman, everyone within the company should know exactly what to do when a storm rolls through. Get Ready for the Big Leagues: Hurricanes Hurricanes are the big leagues when it comes to natural disasters. With heavy rains and winds over 100 mph, these storms are no joke. Weather events of this level can cause mass amounts of damage and effect tens of thousands of people. The planning cycle and plan for hurricanes must be a long term effort and can span weeks to months. If a utility company is not prepared for a storm of this level, the results could leave the community in a dire state. Planning for a hurricane, or other natural disaster must be a priority for utility companies, especially those located in areas prone to natural disasters. Electrical employees need to know exactly what their plan of action is once the storm passes to get restoration efforts started as soon as possible. As soon as the storm is identified, the pre-disaster plan should begin. Implementing the Pre-Disaster Plan As soon as the storm is identified, the pre-disaster plan should begin. It is important for companies to keep a close eye on the storm and stay up-to-date on its timing and movement. Having a better idea of where the storm will hit the hardest and when it is expected to make landfall will keep you one step ahead. With this information, you will know where the best location for a staging area is and can begin shipping additional materials. As the storm continues to grow, knowing the level of severity will also give insight on how many additional personnel your company may need. This is where the mutual assistance program comes into the play. Although every storm is different, having a well thought out and pre-planned disaster response can help improve the speed of restoration. A great example of having a plan in action was during Hurricane Florence. After the hurricane passed, parts of the North Carolina coast line were not accessible due to massive flooding. WESCO had to coordinate with shipping and trucking companies to ferry materials across flooded areas. Without special coordination and planning with local authorities, shipping companies and customers, many customers could have been stranded without water or medical supplies for several weeks. Post-Storm Assessment After many hurricane seasons or storms, it’s important to review and understand the impact of the storms. What trends can we find from storms? How can we use these trends to plan material delivery and staging grounds more effectively? Performing and completing a post-storm assessment allows customers and WESCO to develop processes and create plans that help predict and model storms as they approach the U.S. mainland. Supply Chain Management’s Role in Pre-Disaster Planning Supply chain management should be an essential part of your disaster response and communication between companies should begin as soon as the storm is forecasted. When disaster strikes, staying organized and having open contact with your supply chain distributor is top priority. Even before a storm is a threat, there should be a clear plan in place with your supply chain management partners. This plan should outline exactly what will happen in the event of a severe storm or natural disaster. Plan for the worst to make sure that crews are prepared for any situation that may arise. Once a storm starts to form, it is time to put the plan into action. Work together to determine the best staging location, how much additional product will be needed and how materials will get there. This will prepare utility crews to hit the ground running as soon as the storm passes. If more material is needed than what was previously stocked, the supply chain team can quickly ship and track more material to the site to keep the restoration process moving. How We Prepare In the Face of a Storm When a storm is on the horizon, WESCO’s hurricane response team will be busy working to determine the effects of the storm. By collaborating with utility customers to track and prepare for the approaching storm, it can be determined what steps need to be taken. How far the storm is from shore dictates the how the response proceeds from there. Then the specific strategy is developed depending on the category level of the storm. The plan evolves in the days leading up to the hurricane. Then, once the storm is 48 hours out, response teams are fully engaged in regular communications to determine the level of support needed before, during and after the hurricane hits. WESCO provides customers with a variety of services when it comes to disaster response. Pre-storm resource planning Dedicated stock and prepositioning of storm inventory Customer-specific product kits that are ready to ship on demand Dedicated on-site WESCO resources located at the customer site to provide restoration services Post-storm material handling WESCO’s Hurricane Response Team Is Put to the Test In recent years, the WESCO hurricane response team has been put to the test. With devastating storms such Hurricane Harvey that hit Houston in 2017, Hurricane Maria in Puerto Rico in 2017, and Hurricane Florence in the Carolinas in 2018. During these storms, WESCO’s responses included four basic characteristics: Continuous daily communication and planning meetings Appropriate staging of material and resources to avoid system conditions and be ready for post-storm response Immediate response and deployment once conditions were safe Unrelenting drive to restore power and return to pre-storm conditions By following these four characteristics, the WESCO hurricane response team has a clear plan of action and can react accordingly. During storms such as these, there is no time to waste when getting customer’s back up and running. In each of those hurricane events, power outages ranged from a quarter-million to over a million customers – making the preplanned disaster response essential.
Read MoreWe’ve always known the internet as the web – but how does big data fit into this intricately woven design? Think of big data as every little detail that goes into this web, and then some. It’s the simplest and the most complex sets of data all in one space. Now, multiple that by 2.5 quintillion – that’s how many bytes of data are in our web. So, you have this web full of data. Where do you go now? Let’s talk more about the concept of big data and how it will grow and can proactively impact the daily operations for anyone in the utility industry. Big Data – What’s the Big Deal? Big data is large amounts of complex data that is constantly evolving and goes beyond the capabilities of traditional processing software. In part, these processing limitations are due to the sheer volume of information coming into the system – but that is only one piece of the equation. Today’s data comes from thousands of different sources at an alarming rate, making the processing more and more complex. When thinking about big data, it can be simplified by the three Vs: Volume Variety Velocity The amount of data that is collected. The different types of data that is collected. The rate at which data is received. Data is collected every second of every day and ranges from the items you shop for online to the data planes transmit during flights and everything in between. All of this takes us back to that 2.5 quintillion bytes of data floating around that make up our web. To put that number into perspective – that’s equivalent to 20 million Blu-ray Discs, and that number only continues to grow. This information allows utility companies to gain additional insight into trends happening at facilities and with customer habits. Using this information will allow you to stay ahead and continue to create proactive solutions for customers and processes. What Big Data Means in Utility You may be thinking that this all seems a little technical and can’t see how it applies to the utility and energy industries. So let’s cut to the chase – how does big data affect you? 1. Access to More Information With all of the information being collected on a daily basis, you have your own web of information that can be tapped into to improve a customer’s experience or prevent potential outages. Think of all the possibilities that relate to your business. What if you could let a customer know their electrical system needed maintenance before an issue arose? On the other hand, imagine being able to prevent an outage by analyzing the statistics coming out of your solar farm. By utilizing the big data available to you, these scenarios are possible. As smart buildings continue to gain popularity, the knowledge they provide also grows. Analyzing the statistics from high-performing sites and identifying common trends can help to improve lower performing locations. In addition, you have the opportunity to watch the activity at each site to address potential concerns such as outages or environmental hazards before they happen. 2. Providing Better Service Another benefit to big data is that you can improve customer service and provide new services from the information received through their connected devices, such a smart meters. With this information, you have the ability to know when a customer needs maintenance prior to an issue arising. This could prevent them from losing power in their home, making for a happy customer. If an outage were to occur, having the information readily available could help to reduce the storage restoration time. Additionally, more data can be placed into the customer's hands including usage reports, comparison to similar homes in the area, planned or scheduled maintenance outages, and automatic service dashboards down to the individual resident. With enhancements in data collection techniques and technologies, you can forecast and build maintenance models and predict annual expenses based on thousands of samples. Consider a grid where monitors and sensors could immediately pinpoint not only the location of an outage but the cause and immediately dispatch repair crews with little to no intervention. The Future of Big Data, the Internet of Things (IoT), and Artificial Intelligence (AI) That headline covers quite a few buzz words that are thrown around in our industry today. But how do they all fit together in this big data web? Separately, each of these technologies provide a number of benefits to your daily routine – from connecting devices through the IoT to eliminating the labor of simple tasks with AI. But together, these technologies are changing the future of the utilities industry. Bringing the IoT and AI into the world of big data is one trend you should expect to see grow in the coming years. Machine learning opportunities with the IoT will allow systems to predict the outcome of a situation and adjust accordingly. While AI will help to automate data processing, prevent duplicate efforts and improve communications. Together, these technologies will learn from each other and use the data to continuously improve. Bringing the IoT and AI into the world of big data is one trend you should expect to see grow in the coming years. Improve Solar and Renewable Energy Sources With Big Data Big data is a trend to keep an eye on in the solar and renewable sector of the utility industry. By analyzing the data coming in and syncing with weather systems, it’s possible to predict weather conditions to increase production from solar panels or wind turbines. For example, it is possible to track a weather event and track cloud movement to ensure that solar panels are receiving optimal sunlight. Implementing an operations and management program can also eliminate the need for sensors or unnecessary in-person maintenance checks that may be an added cost. If the information coming into the system were to detect a maintenance problem, an alert would be sent to a maintenance crew. They would then be able to quickly identify and resolve the issue in a timely manner – without having to wait for a customer to report the problem. The Future of Big Data and Utility The amount of data running through our web every day is only expected to grow as more and more devices become connected. To stay ahead of the curve and be proactive in your business, now is the time to tap into all this data. Big data will become a valuable resource for anyone looking to improve customer service and productivity. Those who know how to use this information will be ahead of the game. That leads us to the next big question – how do I manage this? The challenge of how to manage this data will continue to be a concern, but by partnering with a distributor who can help in managing the inflow of data and identify opportunities, you’ll be one step ahead. Everything you need to jump on the big data bandwagon is already in your web – now it’s your move.
Read MoreIn the 1830s when scientist Michael Faraday first generated electricity by spinning a copper disc using the poles of a magnet, the electricity generation was hatched. Since then, humanity has come to rely heavily on coal, wood, gasoline, and other fossil fuel sources to power our lives. This has brought about some environmental challenges. The good news is that clean, renewable energy sources have already been born, and they are putting industry in position to grow the next power generation. Renewables Are Outpacing Other Fuel Sources While the science behind solar panels was discovered in 1839, solar panels were not commercially competitive or viable until 1954 when Bell Labs designed and used the first solar cell. Back then, solar and other renewable energy sources were cost prohibitive to produce and unable to meet global energy demands compared to fossil fuels. In the past 10 years, that script has changed as global opinions have shifted towards conversations around environmental protection, energy dependence, and reducing fossil fuels. A study completed by BP in June of 2018 details the energy landscape by fuel type normalizing by equivalent tonnes (or metric tons) of oil. The results show, from 2007-2016, global energy consumption went from 11.6 trillion tonnes of oil to 13.3 trillion tonnes, an average 1.7 percent increase per year. The study’s additional findings show renewables with astonishing growth, outpacing all other fuel sources. Fuel Type Per Year Growth Rate Nuclear -0.7% Oil 1.1% Coal 1.3% Natural Gas 2.3% Hydroelectric 2.9% Renewables 16.2% Weighing the Environmental Impact Dr. James Hansen, Director of the Program on Climate Science, Awareness and Solutions and professor of Earth and Environmental Sciences at Columbia University said, “What has become clear from the science, is that we cannot burn all of the fossil fuels without creating a very different planet.” This statement, from this renowned climate scientist, underlines the dangers of uncontrolled continuous burning of fossil fuels like coal, gas and oil without consequences. Looking at the numbers, the Environmental Protection Agency (EPA) explains burning one barrel of crude oil (42 gallons) produces 0.43 metric tons of CO2. To put that figure in perspective, if a driver averages 15,000 miles per year at 25 miles per gallon, 6.14 metric tons of CO2 are added in the atmosphere every year. And that’s just from one driver. According to the Federal Highway Administration, in 2016 drivers in the United States accumulated roughly 3.2 trillion miles on public roads. That’s equivalent to 2.9 million metric tons of CO2 of emissions in one year. Simply put, it equals the weight of about 420,000 African elephants. These statistics are alarming considering they include only the United States in just one year. With China and India industrializing rapidly with a growing middle class, these environmental consequences will only broaden. The Future of Energy The International Energy Agency (IEA) estimates that by 2022 we could see a global spike in renewables energy by 43 percent. The IEA states that China, India, and the United States are estimated to make up two-thirds of all global renewable expansion. This rapid growth rate is attributed to leaps in photovoltaic (PV) solar panels technology and manufacturing processes making solar panels and cells more efficient and cost effective. This is attractive to large energy generating companies because the cost of maintenance is much lower than a fossil or nuclear plant, as seen below. Source: Shayanne Gal/ Business Insider So if the current direction of cost per MWh continues to follow historical trends, there will likely be a migration from aging and expensive coal and nuclear plants to newer gas, solar, and wind fuels. Public perception may also increase pressure to make environmentally conscious energy decisions. The choice to continue using fossil fuels will become increasingly difficult as societal pressure coupled with cost effectiveness make renewables overwhelmingly attractive. It’s Time to Renew With the seemingly daily advances in renewable energy technologies, today’s industries seem poised to pivot from the prehistoric fuels that launched the second industrial revolution to the high-efficiency, lower cost renewable energy solutions available to us now. The opinions expressed in this piece are solely the author's. They do not necessarily represent WESCO’s views.
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