With the global utilities sector facing multiple challenges − such as increased energy costs and growing demand for electricity − utility providers are increasingly investing in new technologies to resolve supply challenges and best serve consumers.
This is one of the key findings in the Connected Energy Utilities report released by Ericsson, in partnership with international management consulting firm Arthur D Little.
As energy costs and demand for electricity rises worldwide, the report explores a vision of the near future in which the utility sector harnesses cellular connectivity to mitigate the increasing complexities of meeting the needs of rapidly-evolving electric grids and consumer demand for power.
It further highlights changes in the energy value chain, and how cellular connectivityenables utility providers to expand capacity, optimise utilisation of infrastructure, increase grid reliability and boost operational efficiency through a secure and reliable network.
Digital cellular technology involves the combination of digital signal processing with cellular radio technology, offering six to eight times the capacity of analogue connectivity and allowing more customers to be served by a reduced number of towers.
Demand for electricity is expected to grow at a 2% CAGR for the next two decades, largely driven by industrial motors, space cooling, appliances and electric vehicles, notes the report.
In addition to the growing demand and an ever-evolving mix of energy sources, the utility sector is facing growing challenges in cost control and cyber security.
Also highlighted in the report are changes in the energy value chain. As renewable energy sources become more available and viable, consumers are becoming “prosumers”, feeding energy back into the grid through solutions such as residential rooftop solar PV, while simultaneously consuming it, shifting the value chain from traditional one-way electricity flow to being circular.
According to Koustuv Ghoshal, VP and head of utilities at Ericsson, cellular connectivity can help to accelerate the digital transformation of utilities, and the sector needs to evolve through the continued integration of advanced cellular technology.
According to Ghoshal, 4G LTE technologies, in particular, will prove to be crucial over the next decade and beyond, in handling the bi-directional energy flow from “prosumers” and increased fluctuations in power production stemming from renewable energy sources, with 5G connectivity expected to come into play in the future.
“Cellular connectivity is helping to accelerate the digital transformation of utilities. Electrical infrastructure has an operational lifetime of up to five decades.
“So, for utilities, connectivity technology is a worthwhile investment, as it will continue to provide extensive business value for years to come.
“As power generation methods expand to include renewables and the demands on transmission/distribution grids become more complex, it is vital for the utility sector to evolve along with it through continued integration of advanced cellular technology,” comments Ghoshal.
According to Ericsson, several benefits of this technology have already been demonstrated globally, supporting internal communications, worker safety, automation, user experience and insight-driven innovation, bringing digitalisation to the forefront of efficient business operations.
5G is an enabling technology to using cellular to address these challenges. It can support near-real-time power distribution automation services and reliable sharing of power grid-related information, it says.
Aging energy infrastructure
While still evolving, cellular technology is already present in use cases of real-time data exchange, automatic grid fault detection, distribution automation, connected electric vehicle charging, and building energy management and optimisation, notes Ericsson.
Energy utilities also face challenges with their aging infrastructure, as the installed base is 40 years old, on average, with more than a quarter of the grid at least a half-century old, adds the report.
The advanced age of the infrastructure creates security and reliability risks. Long-distance distribution also increases the temperature of lines, which causes significant energy loss through heat.
“Cellular technology provides exceptional performance, enabling high-speed communications with low latency, especially if the organisation is using 5G. And it’s ideal for connecting low-power sensors, as cellular technology has been optimised for power consumption, with cellular devices requiring very small amounts of energy.
“Cellular is also a highly-reliable and secure communications technology, which is an important consideration for businesses that provide critical infrastructure.
“Built-in encryption and global identity management ensure the most stringent levels of authentication and protection.
“Just as important, cellular also provides a co-ordinated approach to security, including product security, deployment, operations and management, incident handling capabilities through strong security algorithms, traffic encryption, and protection of signalling and interfaces,” states the report.
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