Talking analytics, machine learning and creating actionable insights
Kathleen Wolf Davis
Editor-in-Chief, Intelligent Utility, Energy Central
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Talking analytics, machine learning and creating actionable insights
Jun 6, 2016 • 422 views • start a discussion •
We sat down for a quick chat with Safi Oranski, Head of Business Development at Panoramic Power, for some thoughts about analytics, machine learning and creating those "actionable insights" we all hear so much about.
1.) What are utilities doing right when it comes to analytics these days? The digital and analytics revolution has finally come to the utilities industry. The old energy world where utilities simply provided electricity and gas to customers as a one way transaction are over. We are now at the forefront of a new energy world with intelligent appliances, connected devices and smarter grids, which means that customers now have much greater ability to control how much energy they use and when they use it. New new business models have resulted from today’s environment of distributed generation, and smart grids. Best in class utility companies are using data collection and analytics to create business opportunities as well as provide better service offerings to customers. The Internet of Things has brought about the ability gain unprecedented visibility into their operations by collecting real time energy data. 2.) What are they not preparing for that they should be? Utilities should be preparing more for these key trends that are shaping the industry: Aging grid and human capital, DER growth, renewables standards, more regulatory oversight and falling capacity prices. Utilities should be considering all of the above while at the same time looking for new sources of growth. Utilities are also not prepared for threats coming from digital pioneers like Amazon, Google and Tesla when it comes to customer interface and new business models. There are multiple business examples today where information and data is more important than physical assets (e.g. Uber vs. Taxis). Given all of the above its quite clear utilities should put more emphasis on transforming their operations and enhancing their digital capabilities to meet these operational and business challenges. 3.) We hear a lot about analytics bringing "actionable insights," but what does that phrase really mean? The energy landscape has become defined by the values and demands of the consumer and by leveraging the vast amount of energy data at their fingertips, businesses can now can customize their services and products. More than ever, consumers are seeking added value and products and services that align with their business requirements. Actionable insights refer to recommendations that result from data analytics; information that can be acted upon in order to improve processes and set Key Performance Indiscators. Actionable insights also provide information based on historical data in order to improve future actions that should be taken become clear for decision makers. 4.) How important will machine learning algorithms be with the future of utility-based analytics? Machine learning (algorithms that iteratively learn from data) will play a vital roll in the future of utilities, as they try to address major issues like customer retention, grid reliability, and DER growth. Utilities naturally get and keep huge amounts of datasets. This puts them in a great position to benefit from Machine Learning in various ways. Starting from analyzing thousands and millions of smart meters that will help manage loads on the grid more efficiently, but also build more accurate user profiles that in turn will allow utilities to tailor individual programs. This will increase retention rates (in unregulated markets) and increase utility program’s participation. Machine Learning will also allow utilities to identify energy efficiency opportunities, leaks and fraud, and match demand against supply 5.) What advice would you give utilities when planning for analytics programs? The explosion in data and new computing capabilities, along with advances in other areas such as artificial intelligence, automation and robotics, predictive technology, and human-machine interaction, are unleashing innovations that will change the nature of business – across all industries. Digital technology brings opportunities for businesses to harness the flexibility of their assets, to unlock the hidden value of their assets through new revenue streams. Utilities must carefully choose technology solutions that provide clear value to customers and help improve their bottom line. 6.) What advice would you give fellow analytics vendors when approaching utilities? Utilities have traditionally been slow adopters of technology. Mapping out an analytics plan is not easy; you have to set a strategy; define a roadmap for investing in people, technology and processes.
Kathleen Wolf Davis
Kathleen's a writer with three too many college degrees and twenty years writing about the power biz. She's now completely focused on how one good social media account can pave the way for utility 2.0.
