Sustainable energy consumption and ‘green’ energy production at home is becoming a new lifestyle. Today’s hyperconnected consumer expects a reduced environmental footprint while still enjoying seamless services and ease of use, improving their quality of life through fully digitised processes that give them complete control over every aspect of their lives.
According to IDC, 30 billion ‘things’ will be connected by 2020. Everything from cars and appliances to lights and temperature control will be connected in an interoperable network that will give consumers unprecedented control and choice over their energy use. Energy itself is also becoming more sustainable: Bloomberg New Energy Finance predicts that by 2040, 72% of total new power generation capacity investment globally will go to renewable energy, with the falling cost of residential renewable energy disrupting the relationship between utility companies and their customers. This decentralisation is changing consumers into prosumers, who are able to generate energy and manage their usage in sustainable and convenient ways.
However, in Africa the picture looks distinctly different: here, the true empowerment of the energy utility lies with the interplay between consumers, utilities, connected devices and the software that links it all together in a cohesive whole.
Empowering the energy utility and its customers
Historically, the meter has been the centrepiece of the energy utility company’s relationship with its consumer. A contract is set up with the consumer to provide energy, and the meter is read to determine how much energy has been used. The utility company then bills the consumer according to their energy usage. Unless something – a billing query or outage, for example – compels the consumer to contact the utility via a call centre, the bill sent to the consumer is the only touchpoint the utility company would have with them.
However, with the advent of smart metering systems and the rise of powerful technology platforms such as SAP S/4HANA and tailored software solutions such as SAP Predictive Maintenance and Service that incorporate advanced analytics, big data, machine learning and AI, this interaction is evolving in exciting ways.
Energy utilities can now continuously collect and analyse data from smart meters, SCADA systems and sensors to determine and monitor the health of infrastructural assets. This is creating new opportunities to reimagine business processes and business models: while in the past each asset provider had its own system producing its own set of analytics, we are now able to collect all of the data from each asset into a single IoT platform in near-real time. Linking this to advanced predictive analytics capabilities enables utilities to proactively manage key assets within its value chain, driving down maintenance costs and optimising customer satisfaction through the uninterrupted supply of power.
Energy consumers are further empowered by gaining real-time visibility of consumption behaviour, enabling better energy management at a business or household level. In a smart city environment, this also enables benchmarking, which can give energy consumers insight into the energy usage of neighbours as well as at a neighbourhood, city, and potentially national level. When energy consumption levels exceed supply, utilities can better communicate with major consumers of energy and incentivise them to reduce consumption.
Disrupting 100 years of business-as-usual
Not much has changed for utility companies’ business models over the past century. However, there are three major disruptors currently challenging utility companies, namely:
- Decentralisation, which is changing where energy is created and how it is consumed. A famous example is Elon Musk’s Solar City, which features renewable solar roofing tiles that generate electricity at the local level.
- Deregulation, which is allowing a new breed of disruptive competitor to enter the market with services and devices aimed at consumers, such as the broad range of home energy monitoring and control devices and applications.
- Decarbonisation, which is driving the adoption of non-fossil fuel energy sources.
These three disruptors are enabling the rise of the off-grid consumer, typified by businesses and individuals who generate their own energy via renewable sources. Aside from the obvious loss of revenue, these consumers pose a further risk through their potential to sell surplus energy to their neighbours, further diverting the energy utilities’ revenue stream. In South Africa, for example, nearly all municipalities restrict consumers from selling their own generated access electricity back to the grid, and the infrastructure needed to enable such prosumers to supply excess power back into the grid is not yet in place.
However, utilities need to prioritise a journey of digital transformation that reimagines their business models and reengineers business processes. By embracing exponential technologies such as blockchain, machine learning, predictive analytics, Big Data, and IoT, and integrating it all into a cloud platform under the SAP Leonardo digital innovation system, energy utilities can fast-track their digital transformation to rapidly adopt new business models and capabilities.
With technology giants increasingly encroaching on the territory traditionally held by utility companies, and rapidly increasing customer expectations, the need to transform business models and processes has become urgent. It is critical that energy utilities prioritise their digital transformation, or they risk being left behind by an increasingly empowered and self-sufficient consumer market.
* Hannes Venter, Industry Advisor: Utilities at SAP Africa
Notre Dame, Scoop Makhathini, GoT, top week in search
From fire disaster to social media disaster, the top Google searches this week covered a wide gamut of themes.
Paris and the whole world looked on in shock as the 856-year-old medieval Catholic cathedral crumbled into ash. The tragic infernal destruction of this tourist attraction of historical and religious significance led South Africans to generate more than 200 000 search queries for “Notre Dame Cathedral” on Monday. Authorities are investigating the cause of the fire that razed the architectural icon.
In other top trending searches on Google this week, radio presenter Siyabonga Ngwekazi, AKA Scoop Makhathini, went viral when it appeared he had taken to Twitter to expose his girlfriend, Akhona Carpede, for cheating on him. Scoop has since come out to say that he was not responsible for the bitter rant and that his account was hacked. “Scoop Makhathini” generated more than 20 000 search queries on Wednesday.
Fans generated more than 20 000 search queries for “Sam Smith” on Tuesday ahead of the the British superstar’s Cape Town performance at the Grand West Casino. Smith ended up cutting his performance short that night due to vocal strain.
Local Game of Thrones superfans were beside themselves on Sunday, searching the internet high and low for the first episode of the American fantasy drama’s eighth season. “Game of Thrones, season 8, episode 1” generated more than 100 000 queries on Google Search on the weekend.
As the festivities kicked off in California with headliners such as Childish Gambino and Ariana Grande, South Africans generated more than 2 000 search queries for “Coachella” on Saturday.
South Africans generated more than 5 000 search queries for “Wendy Williams” on Friday as it emerged that the American talk show host had filed for divorce from her husband Kevin Hunter after 21 years of marriage. Hunter has long been rumored to have been cheating on Williams, which reportedly finally led to the divorce.
Search trends information is gleaned from data collated by Google based on what South Africans have been searching for and asking Google. Google processes more than 40 000 search queries every second. This translates to more than a billion searches per day and 1.2 trillion searches per year worldwide. Live Google search trends data is available at https://www.google.co.za/trends/hottrends#pn=p40
5G smartphones to hit 5M sales in 2019
According to the latest research from Strategy Analytics, global smartphone shipments will reach a modest 5 million units in 2019. Early 5G smartphone models will be expensive and available in limited volumes. Samsung, LG and Huawei will be the early 5G smartphone leaders this year, followed by Apple next year.
Ken Hyers, Director at Strategy Analytics, said, “We forecast global 5G smartphone shipments will reach a modest 5 million units in 2019. Less than 1 percent of all smartphones shipped worldwide will be 5G-enabled this year. Global 5G smartphone shipments are tiny for now, due to expensive device pricing, component bottlenecks, and restricted availability of active 5G networks.”
Ville Petteri-Ukonaho, senior analyst at Strategy Analytics, added, “Samsung will be the early 5G smartphone leader in the first half of 2019, due to initial launches across South Korea and the United States. We predict LG, Huawei, Xiaomi, Motorola and others will follow later in the year, followed by Apple iPhone with its first 5G model during the second half of 2020. The iPhone looks set to be at least a year behind Samsung in the 5G smartphone race and Apple must be careful not to fall too far behind.”
Neil Mawston, executive director at Strategy Analytics, added, “The short-term outlook for 5G smartphones is weak, but the long-term opportunity remains huge. We forecast 1 billion 5G smartphones to ship worldwide per year by 2025. The introduction of 5G networks, by carriers like Verizon or China Mobile, opens up high-speed, ultra-low-latency services such as 8K video, streaming games, and augmented reality for business. The next big question for the mobile industry is how much extra consumers are really willing to pay, if anything, for those emerging 5G smartphones and services.”
Strategy Analytics provides a snapshot analyses for the outlook for 5G smartphone market in this Insight report: 5G Smartphones : From Zero to a Billion
Strategy Analytics provides a deep-dive into the air-interface technologies that will power phones through 2024 across 88 countries here: Global Handset Sales Forecast by 88 Countries and 19 Technologies : 2003 to 2024