Renewables, smart homes, AI and IoT will have a massive impact on how energy companies need to address the market in 2018, predicts COLIN BEANEY, IFS’s Global Industry Director for Energy & Utilities.
Every year we’re seeing a virtuous circle speeding up around renewables; 2018 will be no exception. The more renewables are taken up, the smarter and more scalable the technology becomes, with lower construction, operating and maintenance costs. Crucially, the cheaper the energy produced becomes too.
In 2009, it cost just under US$ 300 to generate 1 MW of electricity using solar photovoltaic panels. In 2016, the cost was down to US$ 100. All around the world, renewables companies are now able to offer cheaper energy alternatives. In September 2016 in Nevada, state energy provider NV Energy lost almost 6 percent of its customer base overnight as 15 of the top casinos and hotels in Las Vegas switched over to smaller renewable energy providers. Why? “The sharp decline in the cost of renewable energy” and “being able to control what your supply looks like”, said MGM Resorts, one of the main companies moving account.
BMI’s 2017 Global Renewables Outlook predicts ‘the capacity of renewables will double between 2016 and 2026’. A 2017 Financial Times report, The Big Green Bang, how renewable energy became unstoppable, shows that renewables capacity globally rose by 9 percent in 2016, a 400 percent increase from 2000. Solar power increased by 30 percent worldwide in 2016, and for the second year in a row renewable energy made up more than half the world’s new power generation capacity.
Asian countries are spearheading the development. China accounted for more than 40 percent of capacity growth in global renewable energy in 2016, but other high-power Asian markets, like India, Malaysia, and the Philippines are also expanding in renewables. This boom will in turn affect players in other geographies that will not want to fall behind.
How will this impact energy providers? Most important will be the new opportunities to adapt your business model, join new joint ventures or create new charging models—all these will be essential. Take energy provider Octopus, which delivers renewable pay-as-you-go energy through its easy-to-use online portal to customers in the UK and France. Octopus is now the UK’s largest investor in solar farms, but focuses heavily on customer service, flexible payment models and transparent billing as key customer benefits—as well as renewable energy.
With smart homes, consumers will call the shots
Amazon Alexa, Google Home, the Sony LF-S50G, the Harman Kardon Allure – what has this new generation of smart home assistants got to do with Energy & Utilities? Potentially, a lot. According to analysts like RBC’s Mark Mahaney, Alexa could earn US$10 billion for Amazon by 2020. In addition, MarketsandMarkets predicts that the smart home market will be worth US$ 138 billion by 2023.
Smart meters constitute a big part of this, enabling customers to check and calculate their real-time energy consumption levels in the home to take appropriate steps to cut down energy costs. Thus, smart meters are expected to hold a major share of the smart home market by 2023.
With one single solution for switching between devices in the home, consuming and storing energy and controlling its costs, consumers will have an increasingly powerful role. Following this, they will be in a position to drive even more flexible service and billing systems.
One example of companies leveraging this demand for increased flexibility is HomeServe, a one-stop digital service company providing emergency and energy services to the home. Through its monthly digital subscription model, it supplies services to over 7.8 million homes in the UK and over 3 million homes in the US—including energy services, boilers and meters through third-party suppliers. HomeServe itself owns no energy assets, but with its strong customer service and simple payment models generating powerful loyalty and revenue, service providers like HomeServe could become energy providers—soon, as customer-centric energy provision booms.
The success of agile, customer-centric firms like HomeServe and Octopus is a wake-up call for energy providers. Customers increasingly hold the balance of power in a digital market. For Energy & Utilities companies, it is a reminder of how new vital, flexible, and agile billing and service, as well as operations, can pose either a competitive advantage or a threat— depending on how you are addressing the market.
The industry gets smarter as AI and IoT move ahead
As consumer demand dictates energy supply and billing, IoT, machine learning and AI capabilities will add another dimension to this, not just in the field at the edge of operations, but at the heart of products and in homes, too.
Gartner predicts that “by 2022, more than 80 percent of enterprise IoT projects will have an AI component, up from less than 10 percent today.” But what would a machine-to-machine, cloud-based energy system, discretely sited in consumers’ homes, look like? In 2016 in Hawaii, Microsoft collaborated on a renewable energy initiative using 499 IoT-connected home water heaters, all IoT-enabled and connected to Microsoft Azure Cloud, to create an autonomous discrete energy grid that stores overspill energy for future use. The 499 water heaters are called Grid-Interactive Electric Thermal Storage (GETS) devices. The machines monitor energy consumption and performance, and store hot water when there is a surfeit of renewable solar and wind energy. Each heater is able to store 52 – 120 gallons of piping hot water. Combined, the water heaters can hold 15 to 25 kilowatt-hours energy. Hawaii spends about US$ 6 billion every year importing oil, so being able to store excess renewably generated energy could have a major impact, helping Hawaii reach its goal of its state utilities generating 100 percent of its electricity from renewable resources by 2045. One of the most impressive aspects of the Hawaii story is its precision business case. For an island with a lot of renewable wind and solar energy, storage was a key priority and would deliver obvious customer benefits.
For energy providers, 2018 will be about finding the sweet spot, connecting consumers’ demands for increased flexibility and cost control to new services and charging models based on renewable energy sources and emerging technologies—those who succeed with this will be the winners.
How we use phones to avoid human contact
A recent study by Kaspersky Lab has found that 75% of people pick up their connected device to avoid conversing with another human being.
Connected devices are becoming essential to keeping people in contact with each other, but for many they are also a much-needed comfort blanket in a variety of social situations when they do not want to interact with others. A recent survey from Kaspersky Lab has confirmed this trend in behaviour after three-quarters of people (75%) admitted they use a device to pretend to be busy when they don’t want to talk to someone else, showing the importance of keeping connected devices protected under all circumstances.
Imagine you’ve arrived at a bar and you’re waiting for your date. The bar is busy, and people are chatting all around you. What do you do now? Strike up a conversation with someone you don’t know? Grab your phone from your pocket or handbag until your date arrives to keep yourself busy? Why talk to humans or even make eye-contact with someone else when you can stare at your connected device instead?
The truth is, our use of devices is making it much easier to avoid small talk or even be polite to those around us, and new Kaspersky Lab research has found that 72% of people use one when they do not know what to do in a social situation. They are also the ‘go-to’ distraction for people even when they aren’t trying to look busy or avoid someone’s eye. 46% of people admit to using a device just to kill time every day and 44% use it as a daily distraction.
In addition to just being a distraction, devices are also a lifeline to those who would rather not talk directly to another person in day-to-day situations, to complete essential tasks. In fact, nearly a third (31%) of people would prefer to carry out tasks such as ordering a taxi or finding directions to where they need to go via a website and an app, because they find it an easier experience than speaking with another person.
Whether they are helping us avoid direct contact or filling a void in our daily lives, our constant reliance on devices has become a cause for panic when they become unusable. A third (34%) of people worry that they will not be able to entertain themselves if they cannot access a connected device. 12% are even concerned that they won’t be able to pretend to be busy if their device is out of action.
Dmitry Aleshin, VP for Product Marketing, Kaspersky Lab said, “The reliance on connected devices is impacting us in more ways than we could have ever expected. There is no doubt that being connected gives us the freedom to make modern life easier, but devices are also vital to help people get through different and difficult social situations. No matter what your ‘connection crutch’ is, it is essential to make sure your device is online and available when you need it most.”
To ensure your device lifeline is always there and in top health – no matter what the reason or situation – Kaspersky Security Cloud keeps your connection safe and secure:
· I want to use my device while waiting for a friend – is it secure to access the bar’s Wi-Fi?
With Kaspersky Security Cloud, devices are protected against network threats, even if the user needs to use insecure public Wi-Fi hotspots. This is done through transferring data via an encrypted channel to ensure personal data safety, so users’ devices are protected on any connection.
· Oh no! I’m bored but my phone’s battery is getting low – what am I going to do?
Users can track their battery level thanks to a countdown of how many minutes are left until their device shuts down in the Kaspersky Security Cloud interface. There is also a wide-range of portable power supplies available to keep device batteries charged while on-the-go.
· I’ve lost my phone! How will I keep myself entertained now?
Should the unthinkable happen and you lose or have your phone stolen, Kaspersky Security Cloud can track and protect your device from data breaches, for complete peace of mind. Remote lock and locate features ensure your device remains secure until you are reunited.
Five key biometric facts
Due to their uniqueness, fingerprints are being used more and more to quickly identify and ensure the security of customers. CLAUDE LANGLEY, Regional Sales Manager, for Africa at HID Global Biometrics, outlines five facts about the technology.
How many times in a day are you expected to identify yourself? From when you arrive at work you are required to sign in, visiting your bank, receiving healthcare services… The list is endless. When a system knows who you are, you are able to do any number common, everyday activities. Your identity is unique and precious. It is also easily stolen and the target of many hackers across the globe. Technology is constantly evolving alongside the criminal element, always looking for ways to protect data and identity. One such solution happens to be biometrics and it is rapidly gaining traction in our increasingly complex modern world.
Reliable, secure and fundamentally YOU, unique biometric traits such as fingerprints are being used by banks, enterprises and consumers to verify identity. Biometric solutions offer significant identity protection because they use unique biological details to ensure an account is only accessed by the account holder, a door only opened by the owner. Here are five things that are little known about this technology…
- The uncut identity. Your fingerprint is unique to you. Nobody can use a copy of it to impersonate you. Good technology is capable of scanning down into the layers of the fingertip to differentiate unique elements of a person’s fingerprint, this data is then encrypted and used as a key to unlocking whichever physical or virtual door that the biometric system protects.
- The living proof. No, there is nothing to the stories of fingerprints being used without their owner’s knowledge or permission. Biometric solutions can use specific variables to determine if the finger used to access the system is that of a present, living person. A copy or a fake cannot be used to access a cutting-edge biometric solution.
- Easy and convenient. Queues and documents and paperwork may well be a thing of the past should biometrics take a firmer grip of government and banking systems. The process of registering is easy, and access to identity documents and records is yours alone.
- Security blanket. A thousand passwords and a hundred post-it notes stuck on walls and drawers. An excel file with a list of sites and applications and their corresponding passwords, all a thing of the past. Nobody needs to remember their password with biometrics, they only need to show up.
- Anywhere is cool. Schools, airports, networks, offices, homes, toilets, banks, libraries, governments, border controls, immigration services, call centres, hospitals and even clubs and pubs – knowing “who” matters and biometrics can quickly and conveniently confirm your identity where needed.