The rapid uptake of new-age technologies by the government and utilities proves that digital transformation is not limited to the private sector. Gov­ernment organisations and utilities have acknowledged the importance of automation in enhancing work efficiency and re­ducing unnecessary costs, enabling greater investment in improving citizen experience. The industry is on the cusp of transformation driven by technological advan­ces, decreasing energy intensity, greater en­vironmental awareness and evolving customer expectations. Although the busi­ne­ss models in the utility sector have re­main­ed relatively unchanged, traditional electricity, natural gas and water utility pro­viders are not exempt from the growing influence of digitalisation.

A look at the key technology trends dominating the government and utility sector, and the way forward…

AI/M

Artificial intelligence (AI) has now become mainstream in the utility sector, as organisations are leveraging the technology to help transform their operations, customer relationships and business models. Me­anwhile, machine learning (ML) is be­ing used to enhance distribution network performance, safety and reliability, customer engagement, revenue management, dema­nd/supply management, and operational efficiency.

Transmission and distribution infrastructure inspections are the most well-known applications of AI in the industry. In the energy space, one of the interesting use cases involves the use of AI to capture more wind energy. Global wind turbine pro­vider Vestas Wind Systems has dep­lo­yed Microsoft Azure computing and Azure Machine Learning to generate more energy from wind turbines through wake-ste­e­ring systems controlled by AI. Another application of AI addresses one of the key challenges associated with a grid reliant on variable renewable energy sources. AI, al­ong with sensor technology and real-time data from solar and wind generation, can be used to predict capacity levels, which me­a­ns greater grid stability. In addition, wastewater operations are using AI to re­duce their carbon footprint. As per industry forecasts, the market for AI in the energy and utility sectors should reach $4.5 billion globally by 2026, growing at a compound annual growth rate of 32.75 per cent from 2021 to 2026.

IoT

Internet of things (IoT) is one of the most popular next-generation technologies to make inroads into the utilities sector. IoT is being implemented at various le­vels ac­ross the value chain, such as transmission, distribution, asset management, wo­rkforce management, security, energy management, demand analysis, infrastructure management, and remote surveillance and monitoring. A notable application of the technology in the government and utility sector is in the smart city category, involving the broad deployment of IoT sensors across the city to gather real-time data re­garding city events. A centralised system analyses the data and improves de­cision-making with respect to city govern­a­nce. Some of the critical smart city elements that can be assisted or enabled by IoT are smart parking, intelligent transportation systems, smart grids, water and waste ma­nagement, smart urban lighting, smart city maintenance, and digital signage. Further, smart meters have become the top IoT device among utility companies in the past few years. These devices can be attached to buildings and connected to smart energy grids, allowing companies to manage energy flow into buildings more effectively. Smart cities can leverage smart meters to gather data on infrastructure, population and public services.

There has also been a rapid rise in the adoption of IoT in India’s power and energy sectors for applications such as planning and forecasting, utility asset monitoring, pro­active maintenance, workforce ma­na­gement, and mobile computing. The water sector, too, is leveraging the techno­logy. For instance, the Bihar government has installed IoT devices for motorised pu­mps on water towers in 30 districts. These de­vi­ces help in the remote monitoring of pu­mps for systematic water supply to remote regions of Bihar. They allow officials to receive precise and real-time information on various factors, such as loss of water. This helps in the optimised management of water supply by reducing manual intervention. IoT interfaces are also being enabled for the automation of sewer pumping stations (SPSs), making water monitoring more effective. The Delhi Jal Board (DJB) plans to automate 116 SPSs for the prevention of water overflow. This will help in the timely discharge of water to se­wage treatment plants. Relevant information can be assessed by DJB through a monitoring device.

Data analytics

Applying analytics to the vast amount of data collected by utilities can help enterprises gain an insight into key metrics for assessing operational and financial performance, as well as customer demand. An important application of the technology is predictive maintenance. By analysing data from IoT sensors, software solutions can predict when assets are likely to fail, and recommend maintenance schedules to optimise asset performance and improve the overall reliability of critical assets.

The adoption of smart meters, prioritisation of power generation planning and need for accurate forecasts are be­lieved to be the key factors driving the gr­owth of data analytics in the utility market. The renewable energy market, in particular, is an area that can highly benefit fr­om big data analytics. According to Mor­dor In­telligence, solar energy is expected to co­ntinue to dominate the renewable en­ergy market, generating more electricity than wind and hydro in the coming years. With analytical solutions, utilities can optimise energy generation and planning using ac­curate energy production forecasts.

Cloud computing

Cloud-based systems are becoming essential to manage the vast amounts of data co­ntinuously generated by smart meters, IoT sensors, customer home energy de­v­i­c­es, etc. They help simplify energy effici­ency programmes and allows utilities to provide flexible power and scalability, ease equipment maintenance and improve their customer service. Leading organisations in the utilities sector are moving their data analytics systems to the cloud.

The Government of India has laun­c­hed an initiative named GI Cloud (Megh­Raj) to harness the benefits of cloud computing. The focus of this initiative is on ac­celerating the delivery of e-services in the country while optimising the information and communications technology (ICT) spending of the government. This will en­sure optimum utilisation of ICT infrastructure, while speeding up the development and deployment of e-governance applications. In India, cloud computing has ensured the success of national initiati­ves and schemes such as the Swachh Bha­rat Abhiyan, e-Hospital, the National Scholarship, MyGov and e-Transport.

By eliminating legacy systems and taking a data-driven, cloud-based approach, the government and utilities can reduce operating costs and increase efficiency.

5G

5G has introduced a plethora of use cases for most industries, including utilities. 5G provides faster and more reliable wireless connectivity, which is essential to support data exchange and control bet­we­en sensors and digital meters. With 5G, utilities can identify and re­solve problems on the network more quickly, and optimise its operations in real time.

The Department of Telecommuni­ca­tions has set up an inter-ministerial committee and test labs, in collaboration with 14 government ministries and departme­nts, to explore 5G use cases for the respective departments. These include the Mini­stry of Housing and Urban Affairs, where the use of 5G will be explored in the Smart Cities Mission; the Ministry of Power, where smart grids and smart metering will be explored for the National Smart Grid Mission; and for the Ministry of Jal Shakti, where use cases for water conservation, au­gmentation and preservation, and smart wa­ter and sewage management will be looked at, among others.

Enterprises in the sector are also considering the deployment of private 5G net­­works. These networks offer 24×7 continuity of business-critical operations and communications, the highest security and privacy through local data storage, high performance, and full network control.

The way forward

Governments, utilities and other asset-intensive organisations are facing unique pressures. These include the management of ageing infrastructure; environmental co­n­cerns; tightening regulations; and a well-connected, information-rich consumer base, along with ever-evolving te­ch­nological advancements. However, the very technologies that are disrupting the government and utilities are also offering new business models and revenue streams for organisations. By eliminating legacy sy­stems and taking a data-driven, cloud-based approach, the government and utilities can reduce operating costs and increase efficiency. Digital solutions such as ML and data analytics also allow them to provide customers with better services, and design programmes to automate customer support.

Going forward, the deployment of progressive technologies such as AI, IoT, 5G and cloud will drive sustained growth within the public sector. The automation and digitalisation of services will, in turn, lead to significant social, economic, technological and environmental benefits. In sum, the government and utilities sectors are  preparing for a technologically adva­n­c­ed, citizen-centric era.