Utilities and energy companies are constantly having to evolve to keep up with the trends of consumers. Data analytics can help by providing challenges and trends in consumers. This is information that every utility company should be aware of. Through this data, businesses can better prepare for problems as well as upcoming possibilities.
Any company that is planning for a future must consider both short and long-term options. That is why we wanted to provide an understanding of what energy companies can expect for the upcoming year. There are many key insights to gain but one thing stands out as extremely important.
That is, the ability to be flexible and adapt as a company to changes in the field. Companies that remain rigid are unlikely to benefit from the many amazing changes that the industry is likely to face. The main area this concerns is that of green energy. Thus, companies that are focusing on natural forms of energy. They adapt to the changes in that field are likely to see the most growth.
Challenges for the Utilities Industry
As the utility industry looks to the future, certain challenges begin to emerge. These challenges mostly represent societal shifts that are unlikely to be going away. The ability to answer to these challenges will separate the companies that thrive from the ones that struggle.
Digital adoption
The digital transformation of our world is not exempt from the utility industry. Rapid technical advancements are causing many to rethink the ways of the industry. There are constant streams of innovation and invention within the energy sector. This universal truth has been the case ever since the lightbulb was first invented.
Services and business models are in question as new – potentially better – options arise. It is up to utilities and energy companies to discern the better models. After identification, it is also up to these companies to enact swift change when needed.
Increasing Complexity
Energy markets are shifting rapidly to decentralized energy options over centralized ones. Various new methods of producing energy add to this complication. Each element must attach itself to the electric grid, leading to increasingly complicated systems. With these many different elements, hundreds or thousands of power generations points may be on a single grid.
For some, this complexity results in a decline in revenue combined with an increased cyber security risk. Increased transmission and distribution system investments may also result from this.
National Impact
Shutdowns, severe weather events, and supply chain disruptions are likely to continue. These have a tremendous effect on the products and services needed for utility companies. Companies must be flexible and remain vigilant while focusing on energy-efficient solutions.
It is important to plan for potential shortages and stay vigilant on preventative maintenance measures.
Balancing Supply and Demand
Companies must balance global mandates for reducing emissions with the increasing power demand. As shifts continue from energy sources produced by humans to ones produced by the weather, this balance will only grow more complex. It is important to begin focusing on this now.
In addition to the mandates, there is an increasing amount of interest from the public. Clean energy methods aren't going away any time soon.
Current Trends
Looking towards 2022, some trends stand out for the utility industry. Understanding these trends is a key element of success. Knowing what is picking up in popularity can help guide your company's direction for the future.
Here’s what successful companies will be focusing on this year:
Sustainability
Clean, renewable energy is the ongoing trend of the foreseeable future. Whether it's for keeping the lights on, cooking a turkey, or charging electric vehicles, clean power is important to your consumers. As a result, utility providers that can reduce their carbon footprint will appeal to more consumers.
More people are waking up to their contribution to climate change. They want to support companies that also value this. Humans are responsible for starting 88% of all wildfires.
Furthermore, many of the wildfires originate from issues related to power lines. This is not acceptable and the public is crying out for more resilient solutions that are less harmful.
Consumers as Producers
More and more people are becoming “prosumers.” These are people who are both consumers and producers of energy. Or, consumers that generate their energy and feed it back to the grid. As production and energy storage becomes more accessible, consumers gain more control over their power.
As such, companies will have less of a hold on their consumers. This has the potential to completely change the way that people relate to their energy usage.
Resiliency Demand
Various extreme weather events have made the need for companies to increase resiliency very clear.
Extreme weather has impacted weather for many throughout the country. These natural emergencies worsen exponentially at the loss of electricity and communications. As more have experienced issues with maintaining power in emergencies, the importance of this is rising.
Resiliency planning is key because these events don’t seem to be going away. Wildfires, blizzards, and heavy rains will continue to increase in frequency. Global temperatures and sea levels are continuing to rise. As they do, electric companies must prepare for heatwaves, deep freezes, floods, and more.
This is good for business but it’s also essential for the safety of your consumers to have electricity during these events.
Transformation of the Electric Power Sector
The innovation of digital technologies towards electric power is changing things. As the landscape shifts, it is creating new challenges and opportunities for utility companies. 5G communications and cloud storage systems are replacing smart meters, sensors, and more.
It is important to harness the power of this movement of connected devices and data. These helpful elements expedite many different components of the industry. Not to mention the need for additional towers and connections to the grid.
Flexible Load Programs
More and more companies are utilizing flexible load programs. These offerings have the potential to become a major element of utility resource planning. The purpose of Flexible load programs is to cut the energy consumption of corporations. This is mainly accomplished through financial incentives.
The growth of these programs is not as high as it could be, however. It is often hampered by the need for a few structural improvements. Distribution system control technologies, stakeholder incentives, and communications standards all require an update.
Now What?
Knowing what’s going on is only half the battle. Now it’s time to put it into motion. Through preparation, it is possible to foresee upcoming shifts in the marketplace.
Regardless of what decisions you make, the next step is figuring out the logistics. Luckily, Blackwood Resources is here to help!
Our certified woman-owned specialty trucking company can haul all your new utility poles and transformers. We operate high-end specialty equipment and ensure the qualification of each of our employees by investing in them. Our sole focus is on the safe, expedient hauling of all your utility needs.
That’s what makes us qualified. What sets us apart is the relationships that we form with our customers. Let us show you how our services can meet and exceed your expectations.
Call us today at (812) 676-8770 or send us an email at jamie@blackwoodresources.com.
Regardless of what you have planned for the year to come, it’s important to have a hauling team you can trust.