Utilities Tech Outlook Weekly Brief
Be first to read the latest tech news, Industry Leader's Insights, and CIO interviews of medium and large enterprises exclusively from Utilities Tech Outlook
Much of the infrastructure that comprises the entire electrical grid is aging, with parts of the grid dating back more than a century. Networks are dealing with an asset base that is nearing the end of its useful life. This complicates the decision to replace or maintain on a constant basis.
Fremont, CA: Distribution networks have an important and often difficult role in ensuring that dependable, safe electricity reaches customers. They often have lower budgets and significantly greater service regions than transmission equivalents. This makes network management a significant undertaking. Clearly, each network area and the issues it faces are distinct. However, there are a few common pain areas that afflict the vast majority of operators. In this blog, let us shed some light on the ten significant difficulties that distribution utilities face today.
Old Infrastructure
Much of the infrastructure that comprises the entire electrical grid is aging, with parts of the grid dating back more than a century. Networks are dealing with an asset base that is nearing the end of its useful life. This complicates the decision to replace or maintain on a constant basis.
Increased Demand
During the last decade, electricity demand has increased by 10 percent. The transition to electric vehicles will almost certainly accelerate, but economic factors have also had an impact on dampening demand.
Regulatory Compliance
Utilities are subject to a complicated network of ever-changing rules. Noncompliance leads to enforcement proceedings and fines, not to mention the reputational harm caused by negative press. Methods for predicting asset failure or identifying outage hazards, such as those caused by vegetation, will become increasingly relevant in the future.
Maintaining Cost Base
Customers will pay higher rates as costs rise. Maintaining current assets, building new ones, and maintaining vegetation around the system are all expensive for a network operator, and the costs of doing business, in general, are rising. Ever-increasing regulatory and funding constraints exacerbate these issues to justify management actions and expenditure decisions.
