Powering innovation: Insights from the AVEVA Utility Executive Summit

Posted: August 26, 2024

We stand at the crossroads of technological advancement and environmental responsibility, and the utility sector finds itself in the eye of a momentous transformational event. Experts are still coming to terms with the economic and social impact of the recent “record-shattering” category 5 hurricane, Hurricane Beryl, which resulted in tragic loss of life, significant damage to homes, businesses, infrastructure, facilities, roadways, and vehicles, as well as power outages. Catastrophic extreme weather incidents like this—coupled with challenges like aging infrastructure —demonstrate the urgent need for the power and utility industry to accelerate innovation and drive us toward a sustainable, reliable, and efficient energy future.

The recent AVEVA Utility Executive Summit brought together industry leaders to explore how we can collectively harness technology in solving some of the industry's most pressing challenges. Joe Paladino, Senior Advisor at the Department of Energy’s Office of Electricity, captured the essence of the challenge: “We really need to figure out how to develop a more effective collaboration situation where the policymaker domain, the regulator domain, the utility domains can reach a common understanding of what the grid investment strategy needs to be.” His comment underscores the complex, multi-stakeholder nature required to fuel innovation in the industry.

Redefining innovation in the power industry

At the summit, it became clear that we’re seeing a multi-faceted approach to innovation that’s reshaping the foundations of how power generators, distributors, and transmission facilitators are thinking about and delivering power. Here are four ways in which the industry is approaching innovation:

1.     Technological innovation: The utility sector is leveraging the latest technologies to address unprecedented challenges. For instance, as highlighted at the summit, AI-infused technology is revolutionizing how utilities operate. Advanced predictive analytics help utilities anticipate peak demand with extraordinary accuracy, which will be crucial for integrating the growing number of renewables sources and maintaining grid stability. In 2023 alone, for example, North America integrated a staggering 73 gigawatts of renewable energy—56GW solar and 17GW wind. This technological progress is enabling utilities to optimize capacity, improve load forecasting, and make real-time, multi-dimensional operational decisions.

Four key tech-driven innovations are shaping the future of utilities:

a.     Data-driven decision making: As Noel Phillips, our SVP of the Americas pointed out, “EVs and data centers are really changing the game in terms of our forecast of demand.” As such, utilities are increasingly turning to data insights for real-time decision-making.

b.     AI and machine learning in grid management: AI-infused tech is set to revolutionize how utilities operate, dramatically enhancing reliability, resilience, and efficiency. Predictive analytics will soon anticipate peak demand with unprecedented accuracy, crucial as part of the industry’s drive to integrate more renewable sources. However, the responsible use of AI is becoming an increasingly important topic, given its significant energy demands. The rapid growth of data center builds, driven largely by next-gen AI requirements, is predicted to place substantial new demand on the grid. Both a challenge and an opportunity for the utility sector to innovate.

c.     Edge computing and hybrid systems: The push for resilient microgrids and smarter residential and commercial metering is driving the adoption of edge solutions. These enable real-time processing and decision-making at the grid’s periphery, enhancing overall responsiveness and efficiency.

d.     Integration of OT and IT: By breaking down silos between operational technology (OT) and information technology (IT), utilities can gain a holistic view of their operations, leading to better asset management, more efficient power distribution, and better forecasting.

2.     Philosophical innovation: We’re witnessing a fundamental shift in the industry’s approach to its mission. Commissioner J. Andrew McAllister emphasized that affordability must not be sacrificed as we transition to a more sustainable grid. This new philosophy recognizes and is actively pursuing a path to net zero that is both environmentally responsible and economically viable for all consumers. It’s a delicate balance of progressing towards clean energy goals while ensuring energy remains accessible and affordable for every community.

3.     Industrial innovation: New operating models are emerging that are challenging traditional utility structures. The summit highlighted how utilities are adopting more flexible, resilient approaches. For example, discussions around Distributed Energy Resources (DERs) — such as rooftop solar panels, small wind turbines, and large battery storage systems — showed how utilities are moving from centralized systems to more distributed, adaptable networks. This shift not only improves grid resilience by reducing dependence on single points of failure, for example, but also opens up new avenues for customer engagement and value creation, fundamentally changing the utility-customer relationship for the better. Think prosumers and personalized energy services.

4.     Cognitive and collaborative innovation: The summit underscored the critical importance of cross-sector collaboration and knowledge sharing. As per Joe Paladino’s point, highlighted at the top of this article, we need diverse perspectives and interdisciplinary solutions to address the complex challenges the industry is facing. It’s about creating ecosystems of innovation that span across utilities, tech providers, regulators and academia. On the academia point, by bridging academia and industry—as evidenced by the Power Practicum program at Washington State University—a new generation of innovators is being nurtured. This hands-on placement approach is breeding specialists who can think holistically and practically about energy challenges.

Overcoming innovation challenges

The summit highlighted several critical hurdles in implementing innovations in the utility sector, emphasizing the need for multi-faceted solutions:

• Regulatory frameworks must evolve to keep pace with technological advancements. Regulatory bodies need to adopt more flexible, forward-looking policies that can accommodate rapid tech advancements. Outdated or narrow frameworks can stifle or slow the adoption of new tech crucial for grid modernization and decarbonization.

Educational frameworks and communications channels need to be established to inform policymakers and regulators, especially given the high turnover in these positions. Multiple speakers at the summit highlighted the importance of continuous engagement with regulatory bodies to ensure they understand the complexities of current and emerging challenges and technologies.

Partnerships—public-private partnerships, community, and academic-industry alliances—need to take priority because complex challenges require diverse perspectives and resources that no single entity alone can provide. Initiatives like the Tulalip Microgrid Project demonstrate how collaboration between utilities and communities can deepen understanding of community needs and values and enable their energy sovereignty and resilience. These diverse partnerships are essential for developing holistic, innovative solutions that balance technological advancements with social responsibility and environmental sustainability.

Crucially, the industry must balance technological advancement with grid capacity. Utilities must innovate to meet the demands for increasing power while maintaining stability and pursuing sustainability goals. This calls for smarter, more efficient energy solutions and could drive innovation in energy-efficient technologies.

Through initiatives such as the AVEVA Utility Executive Summit, we consistently understand the types of innovation—a cornerstone of industry—that are required and emerging to meet the challenges of today. As the industry navigates grid modernization, decarbonization, and increasing demand, collective ingenuity will light the way forward. The devastating impact of Hurricane Beryl serves as a stark reminder of the urgent need for harder, more innovative power solutions that can withstand and quickly recover from increasingly extreme weather events, as well as drive towards our net-zero goals. The time to act to propel us towards a net-zero future is now.

At AVEVA, we’re committed to providing the software solutions that will empower this transformation, ensuring a more reliable, resilient, and equitable energy future for us all. For more insights on how data-driven innovation is shaping the utility sector, explore the Event Summary key learnings and expert takeaways.