Leveraging the data explosion

There is now a wealth of data available about energy usage, and firms can leverage this to enhance sustainability and forecasting – as long as they have the right analytic tools. By Sara Hoefkens.

Today the energy supply market is more predictable than ever. The recent data explosion in the industry provides a critical resource for forecasting and managing commodity costs.

The wider energy ecosystem, however, is becoming more complex as it tackles new challenges in productivity and usage, especially with the rapid increase in renewable and distributed generation. Those firms that can use data to understand how they can better integrate with the market will be best placed to extract the value from emerging opportunities and reap the benefits in the long run.

 More data is available today than ever before. Advances in technology and the increase in connectivity has led to an overwhelming amount of raw data being readily available.

Technologies such as smart metering have dramatically increased the volume of data available. A 15-minute interval smart meter can conduct 525,600 readings a day, and with the world expected to house 602.7 million of these meters by 2016, that calculates to more than 316 trillion data readings every year.

This exponential growth of data in the energy market means those that are able to use this data in the correct way will have the edge in forecasting energy outcomes.

There is a real opportunity for firms to make better business decisions around energy. They are now able to create revenue by generating and selling energy or by participating in demand response schemes.

For example, this summer National Grid is to pay firms to use power. Under the scheme, companies will conduct some operations at times when there is a lot of electricity generated from windfarms and solar power. This is made possible by the ability to forecast market drivers and build different scenarios using data, detailed analytics and raw economics.

Those firms that elect to observe the market passively are failing to take advantage of new opportunities. Like anything else, the competitive edge will lie with those firms that can adapt the quickest, and benefit from new opportunities.

 Organisations should aim to harness industry knowledge before it is widespread. The ability to use this knowledge to mitigate risks and be more adaptable to new requirements will put them ahead of the competition and allow them to observe sustainability benefits of a higher degree.

Finding a way to use energy data to project costings, identify future market forces and keep an eye on political developments will allow organisations to harness the knowledge of what factors are driving their particular industry and market.

Harnessing this data will also provide enterprises with additional market opportunities and give them the knowledge to differentiate between viable and costly options. It will also help business owners to determine a roadmap to sustainability through forecasting.

Collaborate

Joining existing business units together so they are able to work more closely helps to identify mutual benefits – often those that were not visible previously. The connection of these units means businesses can implement one data management strategy, which in turn helps to reduce overall costs. When collaboration is combined with the greater savings and opportunities, this allows organisations to shorten their payback even more and increase overall return on investment.

Collaborating with outside consultants and suppliers also has its benefits. The acquisition of these bodies means enterprises can seek advice on strategy, implementation and organisational change. Consultants can also advise or supply technology that can benefit and support overall data management requirements in an organisation.

For example, sports company Asics was operating without a centralised and connected tracking system, and was grappling with timely collection and consolidation of its global sustainability data as it managed significant business growth in its retail operations. Schneider Electric helped it overcome its data challenge – reporting processes and data access improved dramatically, saving resources and allowing analysis and continuous enhancement of open and transparent reporting down into the supply chain.

Put data into action

Having vast amounts of data does not necessarily mean organisations are reaping sustainability benefits. One of the main challenges of this data explosion is putting data into action. Firms must act on the analysis if they are to see any benefits. Some key areas organisations seek to benefit from include energy procurement, market forecasting, efficiency monitoring and benchmarking.

Once data is collected, it is important it is centralised and available to a number of business units to allow for overall collaboration.

Contextualisation is also very important; when data is held in isolation it offers little value. However, when data is supported by information that contextualises it internally and also within the industry, it is much more manageable for enterprises to understand its credibility and potentials. Organisations should add context to all datasets so that accurate comparisons, patterns and predictions can be established.

Verification is important once organisations have acted on the data. Decisions on efficiency and sustainability must be verified to correlate with an organisation’s overall strategic plan. Organisations want to be able to support future business cases with data, and obtain the credibility that is deserved. Verification therefore helps to build longevity into an organisation’s future plan.

Enterprises should embrace datasets and adopt a proactive and forward-thinking framework to reap the benefits of sustainability and efficiency. It is also key to engage in collaborative efforts to ensure data is managed closely and that correct actions are taken. Only when organisations consider these key points can they truly embrace the value of energy data.

Sara Hoefkens, international solutions director, Schneider Electric