What role does IoT play in the evolution of the energy industry?
Discover how the energy industry is changing with new technologies.
The energy industry has evolved in terms of generation and distribution, but what role does Internet of Things (IoT) play in the evolution of the energy industry?
The Internet of Things (IoT) is playing an increasingly important role in the energy industry. Many businesses are using IoT to access real-time data that gives them visibility of their energy usage, as well as their wasted energy. This visibility helps them make data-driven energy management decisions that drive the business forward.
Access valuable insights
When a business has full visibility of how they consume and waste energy, they can then make data-driven decisions that help them to drive efficiencies, optimize their energy strategy and meet regulatory requirements.
Harnessing IoT for an energy strategy can provide businesses with data information in a single platform. This centralized platform gives an overview of the entire footprint, from the consumption and production of on-site assets to storage and optimization. The data gathered as part of IoT enables real-time insight that helps businesses identify and react to energy waste quickly and optimize energy to avoid costs or even generate revenue.
Real-time energy management can help businesses take actions that lead to reduced costs and improvements in operational performance. Without these valuable insights, potential savings and opportunities to optimize energy efficiency could go unnoticed.
Unlock new revenue streams
Real-time energy management can also help businesses leverage their energy use, flexibility and their existing assets. Data provided by IoT helps businesses to unlock new revenue streams by notifying them when to decrease energy use or sell surplus energy back to the grid to help balance it.
Often referred to as virtual power plants — distributed power generating and storage resources connected by cloud-based platforms that collect data on Distributed Energy Resources (DERs) — to enhance power generation and the trading and selling of energy on the open market, they can help to facilitate further revenue streams.
Reduce costs and improve efficiency
IoT can help businesses identify where energy is being wasted. Reducing the amount of energy wasted not only reduces the associated costs, but it also helps to improve efficiency. With greater efficiency, businesses can invest cost savings into other areas of the business and focus more fully on their bottom line.
Effective energy management through IoT provides a clearer understanding of productivity, with granular visibility of operations and processes. Predictive analytics helps businesses avoid costly downtime through early detection of equipment failure, optimizing preventative maintenance and allowing for better scheduling of maintenance.
Reduce business risk and unlock value
The insights gathered by IoT can help to improve business resilience by delivering energy intelligence. This ensures continuity of operations and helps businesses better manage commercial, regulatory and technology risks through effective energy management.
Better energy management not only helps businesses free up resources to support growth initiatives, it can also reduce energy consumption and lower carbon emissions to help businesses build a sustainable, competitive advantage.
How can businesses better leverage IoT?
Businesses that want to introduce or better leverage IoT should work with an experienced provider who can help them make better use of their data and model different scenarios to ensure they are in the position to take the right action when needed.
Working with an experienced provider, such as Centrica Business Solutions, can help businesses ensure they maximize the opportunities IoT can provide. Our Energy Insight solution provides visibility into exactly how your business uses energy, right down to device level. Delivered by our integrated solution platform, PowerRadar®, businesses can access the intelligence they need to reduce energy waste, improve operational efficiency and create a comprehensive energy strategy based on energy data.
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Our Energy Insight solution is generating new opportunities across all types of industry. Contact our experts to find out how we can help you power new levels of performance today.