Energy Industry Trends:

Smart Grid, Big Data Management,

and Analytics

By Jonathan L. Tan

August 15, 2016

U.S. Energy Industry • The energy industry is the totality of all of

the industries involved in the production and sale of energy, including fuel extraction, manufacturing, refining and distribution.

• The energy industry is the third largest industry in the United States.

• U.S. energy companies produce oil, natural gas, coal, nuclear power, renewable energy and fuels, as well as electricity, smart grid, and demand response technologies.

• Growing consumer demand and world class innovation – combined with a competitive workforce and supply chain capable of building, installing, and servicing all energy technologies – make the United States the world’s most attractive market in the $6 trillion global energy market.

U.S. Energy Industry Energy Industry Subsectors (Source: Select USA)

• Renewable Energy - Bloomberg New Energy Finance (BNEF) expects that by 2030 the share of renewables in U.S. power generation mix to reach 27 percent. BNEF projects that just under $700 billion will be invested in the U.S. renewable energy sector during the next two decades.

• Renewable Fuels - US’s Ethanol market is largest in world

• Oil & Gas -The United States is undergoing a revolution in oil and natural gas production from shale.

• Coal The United States holds the world’s largest estimated recoverable reserves of coal and is a net exporter of coal. Approximately 72 percent of coal production originated in five states: Wyoming, West Virginia, Kentucky, Pennsylvania, and Texas.

• Nuclear Energy - The United States operates the most nuclear reactors, has the largest installed nuclear power capacity, and generates the most nuclear power in the world. Nearly 20 percent of U.S. electricity is produced at 100 nuclear reactors in 31 states.

• Energy Efficiency - The market for achieving greater energy efficiency in the United States is large and growing. Combined financing and investment in building, industrial, and supply side energy efficiency doubled in 2012, exceeding $15 billion in funds due to an Executive Order from the Obama Administration in 2012

• Smart Grid -The United States is an international leader in the development and deployment of smart grid technologies and services. The smart grid subsector is defined by the electric grid equipment and services required for the modernization of distribution and transmission systems, as well as the Information and Communication Technologies (ICT) that support a fully networked grid and enable two-way communications and electric flows. Overall grid modernization investments are projected to achieve $130 billion in annual benefits for the U.S. economy by 2019, and the smart grid deployment by utilities in the United States is expected to create $15 billion to $31 billion annually by 2014 in potential sales for the ICT industry.

Energy Trends

1. The transition towards more renewable energy and diversified

supplies is creating opportunities and challenges for the security of

the global energy infrastructure.

• As renewables are now part of the energy portfolio and are rapidly

gaining market share, they bring along benefits such as energy

mix diversification, with distributed generation growing at a fast

pace worldwide and its installed capacity expected to more than

double in the next decade.

• At the same time, as the energy generation portfolio transitions

and diversifies further, new challenges are emerging, which

require changes to the electric utility business model and

regulatory policies to ensure secure and reliable supply.

2. Digital disruption is creating new opportunities – but also threats.

• On the one hand, technology is instrumental for realizing

intelligent grids and interconnected assets;

• On the other hand, it introduces new threats such as the possibility

of cyber attacks.

• The increasing interconnectivity and proximity of energy systems

means that conflicts can have ripple effects on energy markets

and prices.

• New technologies, such as batteries and grid-embedded

generation, are making the cybersecurity of grid systems more

vulnerable.

• Global inexperience in handling large-scale cyberattacks,

combined with the greater capabilities of state and non-state

actors, has increased the likelihood that future wars and attacks

will have a larger cyber component.

Energy Trends

3. The rebalancing of energy supply and demand is leading to a new

global energy security order.

• Recent drops in oil prices have led to a significant shift in wealth

from net oil exporters to oil importers.

• At the same time, the development of unconventional sources of oil

and gas, as well as the recent economic slowdown in emerging

markets such as China and India, have contributed to price

readjustments against the backdrop of a general shift in energy

supply patterns.

• Geopolitical shifts, the new distribution of powers and energy trade

flows will create challenges and opportunities for energy security in

the new energy architecture.

Energy Trends

WHAT IS U.S. ELECTRICITY GENERATION BY

ENERGY SOURCE?

• In 2015, the United States generated about 4 trillion kilowatt hours of

electricity. About 67% of the electricity generated was from fossil fuels

(coal, natural gas, and petroleum).

• Major energy sources and percent share of total U.S. electricity

generation in 2015: – Coal = 33%

– Natural Gas = 33%

– Nuclear = 20%

– Hydropower = 6%

– Other renewables = 7%

– Biomass = 1.6%

– Geothermal = 0.4%

– Solar = 0.6%

– Wind = 4.7%

– Petroleum = 1%

– Other gases = <1%

2016 will be the

first year that Coal

will overtaken by

Natural Gas

SHALE ENERGY IMPACT ON OIL PRODUCTION

Total US energy production

increases for the sixth year in a row

Source: U.S. Energy Information Administration

• Smart City Market - will grow to $3.3 Trillion by 2025 –with $100 billion

investment projected for Infrastructure technologies in the next ten years

with annual spend projected to $16 billion per year by 2020

• Internet of Things – 7 billion mobile devices in 2014, 25 billion connected

devices by 2015 and 50 Billion by 2020.

• IoT solutions will grow from $1.9 trillion in 2013 to $7.1 trillion in 2020

• Investment by in Analytics is accelerating:

For instance, IBM has spent $6 billion in analytics R&D and $14

billion in analytics acquisitions and now has 8000 consultants

dedicated to analytics and 200 mathematicians developing

algorithms

RELATED MARKET TRENDS

• The global Energy Analytics and Utility Analytics

market is estimated to grow from $1.42 billion in 2013

to $4.74 billion in 2018. This represents a Compound

Annual Growth Rate (CAGR) of 27.3% from 2013 to

2018.

• In terms of regions, North America is expected to be

the biggest market.

Utility Companies that use analytics get $10.66

for every $1 they spend on Analytics. Source: Oracle

RELATED MARKET TRENDS

• At nearly $1.3 trillion in estimated global revenue for 2014, the market for

advanced energy products and services is as large as apparel and fashion

and almost four times the size of the semiconductor industry worldwide,

according to a report commissioned by Advanced Energy Economy (AEE).

• In the United States, advanced energy market revenue grew 14% last year –

five times the rate of the U.S. economy overall – to just under $200 billion,

making it bigger than the airline industry, equal to pharmaceuticals, and

nearly equal to consumer electronics in this country.

• The study, conducted by Navigant Research, found that advanced energy in

the United States was an estimated $199.5 billion market in 2014, up 14%

from 2013 ($169 billion), and five times the rate of growth of the U.S.

economy overall.

• Areas of growth included:

• Solar energy (up 39%) and

• Natural gas generating equipment (48%), in long-anticipated response

to lower-priced natural gas supplies.

• Wind power, which suffered a severe setback in 2013 due to the on-

again, off-again federal production tax credit (PTC), rebounded in 2014

with four-fold growth, to $8.2 billion, and a pipeline of projects that could

result in revenue rivaling the $25 billion realized in 2012, its biggest year

to date.

ADVANCED ENERGY MARKET FACTS (Navigant)

• With global revenue up 12% over 2013, 2014 was the biggest growth

year for advanced energy worldwide since AEE began tracking these

markets in 2011.

• U.S. advanced energy revenue has grown 38% over the four years

from 2011 to 2014. U.S. advanced energy represents 15% of the

world market.

• With the addition of new revenue data on residential energy efficient

lighting, Building Efficiency is now the largest segment of the U.S.

advanced energy market, with revenue of $60.1 billion in 2014.

• Counting only those products for which AEE has four years of data,

revenue growth in Building Efficiency is 43% over four years.

• In 2013, the severe downturn in wind energy due to uncertainty over

the federal production tax credit (PTC), with revenue dropping to $2.1

billion from $25.5 billion in 2012, was enough to offset growth in other

segments of U.S. advanced energy to show an overall decline of 4%

year over year. But wind bounced back in 2014, to $8.2 billion, nearly

four times 2013 revenue.

ADVANCED ENERGY MARKET FACTS (Navigant)

• Including wind, the Electricity Generation segment of advanced

energy grew 47% overall in the U.S., to $45.8 billion in 2014.

• Solar photovoltaic (PV) revenue was up 39%, to $22.5 billion,

capping four-year growth of 173%.

• Natural gas generating equipment (combined cycle and simple cycle

gas turbines) saw an increase for the first time in four years, with

U.S. revenue up 48% to $6.4 billion – a sign that the natural gas

revolution is now translating into new orders, not just higher

utilization of existing natural gas power plants.

• The U.S. Fuel Production segment reached $49 billion in 2014, up

from a revised 2013 total of $48.4 billion, with $39.1 billion of that

total from sales of ethanol.

• In Transportation, U.S. revenue for hybrid vehicles was down 19%

but up 34% for plug-in electric vehicles, while natural gas-powered

vehicles jumped 26% in revenue.

• Revenue from electric vehicle charging stations was up 31% in

the U.S., to $201.5 million, up seven-fold from 2011.

ADVANCED ENERGY MARKET FACTS (Navigant)

UTILITY 2.0

Utility 2.0 Problems

Greatest earnings pressure in recent memory

Recession has led to unprecedented decline in load and

revenues (sales volume)

Margins down in deregulated markets due to supply/demand

imbalance

Operational challenges

Antiquated systems and tools

Aging infrastructure

Rising costs

Aging work force

Data Deluge from AMI – 2.0

Lack of clarity in regulatory and legislative direction

Increasingly hostile rate environment—necessary upward

adjustments on hold

Large variance in state regulatory direction

Regulatory developments that reward energy efficiency and

GHG reduction yet to materialize

Federal energy policy mired in politics

Viability of status quo approach to business in question

“Load destruction” threatens 100 yr old cents/kwh revenue

model

Returns to current and future investments in low carbon

generation unclear

Pressure to move forward with Smart Grid and energy efficiency

remains high, but incentives/returns are contingent on new rate

model (decoupling)

Utility 2.0 Roadmap

Grow the traditional business

Stay on message: reliable and affordable

Continue to invest in renewables, clean coal, nuclear as an “act

of faith”

Reduce costs

Process design

Sourcing models

Capital and O&M prioritization and “re-casing”

Data Analytics & Technology enablement

Redefine boundaries

Legislative solutions—e.g., decoupling, save-a-watt, etc.

Smart Grid-enabled products and services—energy

management, distributed gen, PHEV, AMI 2.0

Pursue acquisitions

In core business—regulated and unregulated

generation, T&D

Along value chain—upstream, downstream

In crucial IP—low-carbon, renewables, energy technology

Evolve customer relationships

Increased control of usage, load and spend

Redefined view of role relative to utility

Better understanding of segment-specific needs

Better Power Control, Load Management, Reliability, Cost,

Clean

ELECTRIC UTILITY 2.0 or UTILITY OF THE FUTURE

• Manage Carbon across the enterprise

• Pursue all cost-effective energy efficiency

• Integrate Cost Effective Renewable Energy Resources into the Power

Generation Mix

• Incorporate Smart Grid Technologies for Consumer and Environmental benefit

• Conduct Robust and Transparent Resource Planning

Performance parameters are:

• Cost

• Reliability

• Customer service

• Adoption of smart grid technologies and services and support for alternate

energy

The utility of the future leverages core competencies and builds adjacent core

competencies, and develops these new models to scale, as the organization learns

to become customer focused, providing efficient, reliable and resilient clean

energy. This is achieved by data systems that allow for optimal life-cycle asset

management and operating intelligence. Distributed generation resources

integrated in the generation mix, allow for automated load management through

connected data with customers (demand) and power generation (supply) to be fully

aligned in real-time.

U.S. IOU CAPEX 2000 – 2010: T $69B D $160B

THE CLASSIC ELECTRIC GRID

18

1. Generation Sources

2. Transmission Lines

3. Substations (Ex: PG&E has 900)

4. Distribution Feeders (1,500+)

5. Power Poles (millions)

6. Fuses (50,000)

7. Tap Lines

8. Transformers (1,000,000)

9. Service Lines (4,500,000)

DISTRIBUTION SYSTEMS NEED TO GET SMART

19

• Large – 50% to 100% of a utility’s assets

• Old – Typically 40 to 60 years

• Invisible – Little monitoring below the substation

• Unreliable – Costs $3M per outage; regulators

penalizing − System Average Interruption Duration Index (SAIDI) 2 hrs/year

− Worst U.S. utilities have SAIDI of 6 to 7 hours

− Best are 1 hour or less

− Japan averages 3 minutes . . . Tokyo was 29 seconds!!! . . .

• Stressed – the “Edge” − Demand Response

− Solar PV & other variable and distributed generation

− Storage

− Plug-in Vehicles

Smart Grid Essentials 1. All power generation, distributed energy assets (smart grid), including

DER assets, data systems, are integrated and connected ( via ICT)

2. System of system (SoS) interoperability model -nexus of energy with

water/waste, transportation, industry, education, health, government,

and the public (citizens, visitors, vendors, etc.) Fully integrated data

systems (meter, IoT, weather, OEM, remote sensing, legacy, billing,

CIM, GIS, SCADA, etc.)

3. Leveraging IoT –sensors, oem, meters, smart phones/mobile devices,

etc.

4. Leveraging analytics – fully deployed (descriptive, predictive &

prescriptive) through IoT, legacy systems, real-time data, etc.

5. Big data management standards met

6. Sustainability and removal of carbon fuels from power generation

7. Intelligent real-time applications leveraging customer usage and DR

8. Distributed grid optimization (DGO) integration of renewables, micro-

grids, smart buildings, water/waste water systems, etc.

9. Adaptive planning applications and adaptive management systems

10. Distributed grid optimization (DGO) including renewables (carbon

zero)

SMART GRID

SMART ENERGY SYSTEM

SMART GRID CAPEX INVESTMENT TRENDS

World Energy Investment Outlook 2014 Factsheet Overview

Https://Www.Iea.Org/Media/140603_weoinvestment_factsheets.Pdf

Smart Grid Technology Investment: Forecasts for

2012-2030

• Smart meters

• Communications systems

• Distribution automation

• Substation automation

• IT systems

– Infrastructure management systems (including distribution

management, outage management, MDMS, demand response)

– Billing and customer care (and web sites)

– Storage, servers, hardware, etc.

– Other IT (including workforce management, SOA)

• Home area networking (HAN)

• Consulting and systems integration

• Other (including project management and customer communications)

SMART GRID INVESTMENT MIX

SA = Substation Automation

DA = Distribution Automation

HANs = Home area networks

SI = Systems Integration

.

Through 2030, the top spending countries will be: China (US$99 billion by 2030),

United States (US$60 billion by 2030), India, France, Germany, Brazil, Spain,

United Kingdom, Japan and Korea.

UTILITY DATA MANAGEMENT:

MARKET OVERVIEW

Why are utilities turning to Big Data solutions?

• Before smart grids, the data that a utility would collect from its customers

frequently amounted to little more than a monthly meter reading: one data

point a month per customer.

• The advent of AMI has increased the level of data collection dramatically.

The Columbia Water and Light Department, for example, has a pilot

where meters provide data on around half a dozen household circuits

every minute. That is more than 43,000 data points per customer per

month.

• Even if, as is often the case, readings are taken at more infrequent

intervals, say every five, 10 or 15 minutes, the increase is very significant.

And this is just one element of what is currently termed ‘Big Data’, data

sets that are terabytes to exabytes in size and come from a range of

sources, which puts their management and analysis beyond the scope of

traditional IT tools

MARKET DRIVERS (BIG DATA AND ANALYTICS)

• The key driver for the adoption of data management strategies is clearly

the need to handle and analyze the large amounts of information

utilities are now faced with.

• Utilities are entering a new era of customer expectation and

technological innovation, and analytics is a core requirement for the

truly modern digital utility. Those with pervasive analytic adoption will be

able to internally comprehend and act upon inefficiencies and

operational pain points to not only maximize existing assets but provide

the best service possible to their customers.

• For retailers in unregulated markets, analytics can be the differentiating

factor for top-line growth through enhanced service and higher margins.

And for both regulated and unregulated markets, analytics also enables

a level of transparency that will enable each utility to respond to

changes and issues faster and delivery services with fewer incidents

OTHER PROCESSES THAT UTILITIES HOPE TO

ENHANCE THROUGH BETTER ANALYSIS OF DATA

INCLUDE:

-Business operation efficiency. Data analytics will allow utilities to see where

consumers may be stealing electricity and will allow for better asset management

as well as better system planning.

-Implementing efficiency measures. Data allows for time-of-use rates which in turn

allow customers to monitor their consumption and save money by shifting use away

from times when rates are higher, while also reducing the need for more expensive

forms of peak generation to be built.

-Developing new business models. By adding intelligence to the grid operators can

offer new services, such as energy management, engineering, high-speed Internet

services, cable TV and private network links.

-Improving grid resilience and load management. Distribution companies must

reduce power demand to prevent outages, for example installing energy load

management systems to help retailers and customers manage their energy use.

Better data will also allow utilities to identify and rectify problems with the grid more

quickly, in some cases even before the customer has a chance to report the issue

or outage.

-Engaging customers. Having more information about customers and their usage

patterns is generally considered important in helping deliver a better, more

tailored service.

Big Data Infrastructure Essentials

Typical Big Data Management Infrastructure

Architecture

BIG DATA INFRASTRUCTURE ESSENTIALS

DATA SYSTEM INTEGRATION

Point to Point systems architecture System of Systems via Hub and

Spoke architecture

BIG DATA INFRASTRUCTURE ESSENTIALS

CLOUD COMPUTING

Data Management in the cloud is essential for scalability, security,

technology investment CAPEX mitigation, economic adaptability, and ease of use

UTILITY DATA MANAGEMENT

APPLICATION AREAS: SYSTEMS

33

UTILITY DATA MANAGEMENT

Data type Technology involved Notes

AMI Smart meters Increased sampling frequency leads to

1,000 to 10,000- fold increase in data

levels

Distribution Grid equipment Real-time monitoring and control requires

Automation many more granular readings than those

taken by smart meters. The GridSim

simulation package described by

Anderson et al (2011), for example, uses

a default sample rate of 30 samples per

second, per sensor.

Third-party Off-grid data sets Utilities are increasingly also having to

integrate and handle highly granular data

from other sources, such as pricing

details for demand response or

forecasting information for renewable

energy

Asset Mgmt Firmware for all Maintaining smart grid technology once it

smart devices and has been rolled out requires frequent

associated operating firmware upgrades and the like, which

systems equates to a considerable amount of

asset management data

Sources of Big Data in Utilities

BROADLY SPEAKING THERE ARE FIVE OPTIONS

FOR DEALING WITH UTILITY DATA ANALYTICS:

1. Develop the systems in house.

2. Buy systems from an established operational technology (OT) vendor.

3. Buy systems from an established Information Technology (IT) vendor.

4. Buy and integrate point products from specialist vendors.

5. Outsource data analytics to a third party.

Data analytics option Benefits Disadvantages

Develop systems in house Highly tailored to the Lack of development skills

utility’s requirements and resources

Rely on OT vendor system Close alignment with Analytics and IT integration

operational processes capabilities might not be

and requirements; good as good as for IT vendors

integration with OT

Rely on IT vendor system Good integration with IT May include unnecessary

systems; robust design and support features that

support increase cost: lack of

alignment with operational

processes

Rely on point product or

pure-play vendor system Close alignment with Potential lack of

operational processes cross-product and IT system

and good integration integration; lifetime support

with OT concerns

Rely on third-party

service provider system Reduced cost, improved Evolving concept with

analytics limited track record; data

sharing may

require culture

shift

PROS AND CONS OF DIFFERENT DATA ANALYTICS

OPTIONS FOR UTILITIES

IDEAL UTILITY ANALYTICS VENDOR

• Data Analytics expertise

• OT/IT experience

• Deep subject matter expertise (SME)

LEADING UTILITY ANALYTICS VENDORS ARE

FOUND IN THESE CATEGORIES

1. Analytics and Applications (Real-Time Intelligence)

2. Data Management + Movement – Platforms

3. Data Infrastructure + Storage – Private/Public Clouds

• As in most nascent technology sectors, the smart grid data analytics

market can be characterized as a rather fragmented marketplace

with a mix of large, established players and smaller, specialized

firms that come from many different industries. While the majority of

the vendors, both large and small, come from the information

technology (IT) sector, others may come from the telecom or even

the automobile sector.

• Among the large group of IT players, there are the big, established

companies like Accenture, Capgemini, HP, IBM, Microsoft, Oracle,

SAIC, SAP, Siemens, and Teradata. Another large technology

group is represented by the Indian service companies such as

Infosys and the “pure plays” – mostly with meter data management

(MDM) expertise – like Aclara Software, Ecologic Analytics, eMeter,

Itron, Olameter, and NorthStar Utilities. Telvent is a relatively large

IT provider that offers a portfolio of MDM software, as well as

distribution management system (DMS) and outage management

system (OMS) solutions with data analytics capability.

Competitive Landscape (from Navigant Research)

• Interestingly, there is no pure niche smart grid data analytics vendor in

the marketplace. However, there is a small group of software

companies that have developed a special niche area that they have

found can be leveraged in the smart grid data analytics market.

OPOWER and OSIsoft represent this market segment.

• Although telecom companies play a fairly large role in the smart grid

market, they do not appear to be prominent players with respect to

smart grid data analytics – at least at this time. However, it would not

surprise Pike Research if they soon make inroads into this particular

sub-segment of the smart grid market since they can leverage a long

history of managing and analyzing reams of data. AT&T is a good

example of such a vendor.

Competitive Landscape (from Navigant Research)

• The auto companies, offering plug-in hybrid and electric vehicles,

could also become serious competitors in the smart grid data

analytics marketplace. For example, Toyota launched a home

energy system in 2012 to help individuals monitor and manage

(even remotely) their energy use.

• Pike Research believes that when the vendors begin to face the

issue of scale, this competitive landscape will shift. The increasing

need for scalability to handle ever-increasing amounts and

complexity of data will provide a major advantage to those vendors

that have the current software and other resource capabilities to

handle the explosion of data.

• Once scale and scalability become the key issue for utilities, many

smaller vendors could lose their competitive advantage. To compete

effectively in this marketplace, vendors must demonstrate that they

possess deep utility industry know-how and understanding of the

different technological and data analytics challenges that utilities

face when transitioning to a smart grid operation.

Competitive Landscape (from Navigant Research)

• A solid background in managing and interpreting data for other industry

clients, especially in the telecom, banking, or retail sectors – be it in the

area of business intelligence, information management, data

correlation and modeling techniques, data mining, database/data

warehousing, or predictive analytics and forecasting – will be

considered an advantage by potential utility clients as they try to

address their smart grid data analytics issues.

• Moreover, in this early adoption phase, vendors need to be sensitive to

the fact that many utilities are not ready and willing to handle too much

change at once, preferring instead a more cautious, incremental

approach. The ability to integrate data and the results of analytics into

business processes is another key competitive factor.

Competitive Landscape (from Navigant

Research)

• Similarly, it is important that vendors can offer visualization along

with location and geospatial enablement of data sets.

• Since data security and privacy is of such a significant concern

among utility companies when deploying smart grid technology,

vendors with a strong background in dealing with these issues tend

to enjoy a competitive edge.

• As the volume of data escalates, scalability and speed of analysis

through in-memory analytics will also matter a great deal to utility

clients.

• When the quantity of data becomes overwhelming for utilities to

handle, outsourcing will become an attractive option. Utilities will be

inclined to contract out the management of their data, including

data analytics, on an ongoing basis to a vendor.

• In such a case, the outsourcers, especially those with cloud

computing capabilities, will have a competitive advantage.

Smart Grid Data Analytics © 2013 Pike Research LLC. All Rights Reserved. This publication may be used only as expressly

permitted by license from Pike Research LLC and may not otherwise be accessed or used, without the express written

permission of Pike Research LLC. 4

Competitive Landscape (from Navigant Research)

By 2020, the deployment of smart

technologies in the electric grid, transport,

buildings, logistics, and industrial motors

will save 15% of global emissions and

almost a $1 trillion in savings per year in

energy savings to global industry.

Source: The Climate Group (Accenture)

Conclusions

• The energy industry is diverse, complex and growing

rapidly.

• Shale energy is driving oil and gas production and

providing energy independence from foreign sources.

• The digital revolution is also impacting the energy

industry with IoT, and data management and analytics.

• The Clean Revolution is providing new regulatory

mandates for clean energy and innovation in Renewables

energy resources (Solar, Wind, Energy Storage, etc.)

which are further driving states, utilities and industry from

fossil fuels.

• Global urbanization and smarter cities are also driving

demand in the future for more efficient, resilient and

reliable clean energy.

• Successful Investor Owned Utilities (IOU’s) and

some Muni’s (like SMUD) will transform into hybrid

companies providing more than just energy.

• They first need to decide whether they will build

centralized power plants or distributed generation

resources through solar, wind, energy storage,

microgrids, etc.

• IOU’s will also provide network and data content

through their connected network in the form of energy

conservation services, allowing consumers control

over their own energy usage through demand

response, and services derived by distributed

generation optimization (DGO).

Conclusions

• Utilities that rightly leverage and integrate their big data,

technology, and analytics will be most likely to manage

the complexities of the future state where energy

markets and the regulatory environment continue to be

unpredictable, and consumers become more

sophisticated about their energy options and demand

more cost /energy efficient, reliable, and resilient grid.

• Fully interoperable Data Management Systems will

enable the optimization of the lifecycle management of

both data and physical infrastructure assets that will

enable adaptability in planning, management and real-

time business mobile operating intelligence.

• Optimized management of integrated enterprise data

will ultimately improve growth and profits and provide

enterprise value for investors.

Conclusions

• Tomorrow’s winners will be those who successfully

manage two key transitions:

– from a technology standpoint, their operators must be

able to benefit from digital innovation while at the

same time building up a solid defense to cyber

attacks.

– From a legal framework standpoint, their structures

will have the necessary flexibility to adapt to an ever-

changing environment.

• Tomorrow’s challenge for the energy sector will be to

achieve effective collaboration between all stakeholders

involved, for the world to meet its future energy needs in

a sustainable way.

Conclusions

Thank you for your time

Jonathan L. Tan CEO

gzz cleantech consulting www.gzzcleantech.com

LinkedIn

www.linkedin.com/in/jonathanltanceo

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jonathan@gzzcleantech.com