Energy, Industry Updates
Article | July 29, 2022
Machine learning and artificial intelligence (AI) are two of the most commonly used commercial phrases these days. As a result, companies across sectors are searching for methods to include them in order to optimize and automate their key operations. The energy sector is no exception!
Indeed, throughout the years, renewable energy industries (wind, solar, hydro, nuclear) have substantially gained from the potential of machine learning. They were able to reduce their expenses, make better projections, and raise the rate of return on their portfolio. And this tendency is just going to gain momentum. If your company is in the energy industry or utilizes a lot of power, machine learning and AI can help you improve your business performance. But how precisely? Let's get started.
Ways in Which AI and Machine Learning are Changing Energy Sector
There are a few methods that machine learning and AI can be applied to positively improve the energy industry. Here are a few popular applications currently under development.
Predictive Maintenance
AI helps match energy output with demand and ensure power grid stability and resilience.In 2003, a low-hanging high-voltage electricity line hit an overgrown tree in Ohio, causing a widespread blackout. There was no power system alarm and no sign of the incident. The electric company didn't notice until three additional power lines failed. This carelessness ultimately brought down the whole grid. The 50 million-person blackout lasted two days. Eleven individuals died, and $6 billion was lost.
Predictive maintenance can be implemented using machine learning and IoT
Sensors gather operational time series data from electricity lines, equipment, and stations (data accompanied by a timestamp).
Machine learning algorithms can then forecast when a component will fail (or n-steps). It can also anticipate machinery's remaining usable life or future breakdown. These algorithms detect machine failure, eliminate blackouts or downtimes, improve maintenance procedures, and reduce maintenance expenses.
Grid Management
Grid management is a promising AI application in energy. Complex networks distribute electricity to users (also known as the power grid). Generation and demand must always match in the electrical system. Other issues, like blackouts and system breakdowns, can occur.
Despite being ancient, pumped hydroelectric storage is the most common way to store energy. It operates by moving water upwards and letting it fall into turbines. Renewable energy makes predicting the grid's power generation challenging. After all, it is affected by a variety of things, like sunlight and wind.
Demand Response
Large demand shifts can be expensive for nations that depend on renewable energy. As nations migrate to green energy, it's harder to adapt to demand fluctuations. Germany plans to use 80% renewable energy by 2050.
Countries such as Germany will encounter two major challenges Demand fluctuations: On some days or times of the year, power consumption soars (on Christmas, for example) Weather volatility: Without wind or clear skies, it might be hard to meet electrical demand. In both circumstances, more stations or fossil fuel-powered facilities must meet demand
Solving demand response issues
Many nations are partnering with businesses to examine weather forecasts, power demand, etc. Germany's EWeLiNE project forecasts wind and solar energy at a specific moment. This enables the government to use non-renewable energy to meet additional power demand.
They utilize enormous historical data sets to train machine learning algorithms, as well as data from wind turbines or solar panels, to properly balance supply and demand.
Closing Lines
AI increases the potential of humans. Several renewable energy producers are investing in artificial intelligence to boost their businesses.There are numerous uses of artificial intelligence in renewable energy. The fundamental purpose of AI integrated systems is to reduce forecasting issues and incorporate renewable energy into the central energy grid as effectively as possible. AI can also assist renewable energy providers in developing successful plans and policies based on present energy consumption and demand.
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Strategy and Best Practices
Article | July 8, 2022
With the popularity of solar increasing across the country, the number of solar installers has been multiplying. Unfortunately, many fly-by-night companies with minimal installation experience or larger national firms with little market history are trying to capitalize on the industry’s growth. In addition, the sheer volume of installation partners that consumers have to choose from can result in a great deal of buyer confusion.
More choices, more issues
As the number of solar installers has gone up, so have complaints and issues related to providers and their service. Recently, the Minnesota Department of Labor and Industry reached terms with Empire Solar Group LLC’s trustees, a national solar installer that went bankrupt earlier this year, leaving 45 homeowners in Minnesota with projects in various levels of incompletion. Unfortunately, they’re not alone, as many other consumers have also fallen into precarious situations after companies using high-pressure sales tactics have been unable to deliver on the work. Michael Allen, CEO of All Energy Solar, says, “He’s angered that companies go out of business and face no fines.” Allen and other established industry leaders have done their best to help out customers caught in the middle of an installer’s bankruptcy issues, but there is only so much they can do.
What protections do consumers have?
In some cases, states have put into place protections for consumers; for example, in Minnesota, consumers stranded with uncompleted projects can get access to the state’s Contractor Recovery Fund, which receives money from licensing fees to help offset these costs. But that is of little comfort for those trying to determine what partner to choose for their project.
The best bet
When picking a solar installation partner, your best bet is to avoid those with high-pressure sales tactics, “too-good-to-be-true” pricing, or ones with little to no installation experience. Don’t simply trust the sales rep, do a little of your own research to see what other customers are saying. Looking for a record of successfully completed projects and businesses with state and national certifications can be another way to confirm credibility.
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Energy
Article | July 15, 2022
Despite rising energy costs and dwindling customer ratings of the ‘Big Six’, over 37% of Brits still believe they are getting a good deal when it comes to gas and electricity.
Here, Keith Bastian, CEO of rising independent Outfox the Market, challenges those age-old perceptions that are damaging consumer bank balances…
I have never quite understood the notion of pay more for the same service. Except that last part, is really where the difference lies.
As I have made my way through the energy market, it seems clear to me that we are facing a common notion.
Age-old dinosaurs, that have relied on name status and brand power to retain customer loyalty, despite not providing anything different or any value-added service, give the impression that customers are somehow safer with them. That is the biggest misconception.
We at Outfox the Market would like to challenge that.
Of course, when I speak in such a way, I am referring to the ‘Big Six’, those long-established brands whose share in the energy market whilst substantial, is increasingly coming at the cost to its customers.
For example, in the latest independent customer rankings from Which, it was determined that the traditional big energy companies had some of the lowest scores for customer service and value for money, yet some customers still feel secure with them.
On the contrary, rising independents, such as ourselves, were scoring highly in these areas and this is where I feel the difference lies.
Regardless of your opinion on fossil fuels and/or renewables, it is more the value of looking after your customers, understanding their concerns and dealing with them efficiently that has become somewhat lost for the ‘Big Six’.
It is true that they have a larger proportion of customers to serve with a larger workforce, but that should not be to the detriment to the service they provide.
What were are seeing now, as evidenced by the recent Ofgem price hikes, is the ‘Big Six’ once again failing consumers in these areas, with most of the top names putting costs up by £96 a year on average as of April.
I am not one to not acknowledge that energy firms are tongue-tied in some respects in passing regulated costs on; there are times when we must. However, customers could also benefit from a little research.
Even with growing numbers of consumers switching, nearly 60% of all households in the UK are still on standard variable rate tariffs, those that are subject to the incoming Ofgem hikes.
So, the real question is why aren’t more customers switching? Heritage, loyalty and brand association. These facets really should not come at cost of paying more for energy.
I really believe it is down to time-sensitivity and a misunderstanding around the barriers to switching, with cost somewhere in the middle.
According to MoneySuperMarket, 75% of us would switch if we could save £149.99. A hefty figure, but why not the £96 highlighted earlier? That is still pretty good, and something that would add up nicely over the years.
I understand we are time-poor as a nation, it’s well publicised, but we’re all well averse in switching phone contracts and insurance deals, so why not where our energy comes from?
Truth be told, I believe it’s an age-old notion that energy is ‘just something that comes with the house, not worth the hours or hassle to change.’
But in all honesty, it takes a matter of seconds to switch. Firms such as ourselves offer this and more via a quick and easy quote online. Best of all, many energy providers will help manage the switching process for you, contacting your current provider and notifying them of your intentions.
I would also like to challenge this notion that once an energy firm ‘gets you’, you are ‘locked in’ for years upon end in ever rising contract costs.
If you are on a standard variable tariff, you can switch to a new provider at any time. What’s more, even if you are in a fixed term energy deal, which can be subject to exit fees, sometimes the cost involved outweighs the savings you can make with your new provider.
Customers must do their best to ask more of energy firms, check the service they are being given and hold it up against national bill averages. Compare what your neighbours, friends and family are paying under similar living circumstances, and weigh up if you are being given a fair deal.
Living costs and regulated price hikes are always going to be an ever present worry, so I call on both customers and energy firms to do their due diligence in these respects.
Age-old energy firms relying on their reputation must take a serious inward look at their lessening market share to understand why they are failing customers.
It’s time to make a change now, both from business attitude and a consumer standpoint; switching is quick, easy and a vital notion to bear in mind, as both retaining custom and saving money becomes an ever-growing sticking point in the energy market.
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Solar+Storage
Article | December 17, 2021
The pandemic emptied out most of America’s offices as workers across the country set up home workstations. Although this looked to be a temporary situation for many, it has become clear that many workers are choosing to continue to work from home, and many businesses are embracing this concept as well. If you’re one of those individuals, you may want to consider adding solar to your home.
A shift in power usage
According to the National Bureau of Economic Research, “Americans spent $6 billion more on at-home power consumption from April to July 2020 than during normal times, nearly offsetting a decline in business and industrial demand.” The increase in residential consumption was fueled by increased home heating and cooling demands, workers participating in virtual meetings, running computers, printers, lamps, and other electronic devices all day long. This has resulted in a shift in energy costs from corporations to employees, with many workers seeing significant increases in their home utility bills.
Capitalizing on higher demand to maximize your system size
Solar can be a great way to offset the costs of your home's energy demands. Because your consumption is currently higher than it would be if you were working at your company's office, you have the ability to install a system that will more than cover your electricity needs if and when you do return to a corporate office setting. Although your increased usage means you'll need to add a more extensive solar photovoltaic system to your home to do this, it also provides you with an opportunity to maximize your system's size to meet your needs.
Incentives and savings
The federal solar tax credit, also known as the investment tax credit (ITC), allows you to deduct 26 percent of the cost of installing a solar energy system from your federal taxes. However, that number falls to 22 percent in 2023 and goes away in 2024 for residential projects, while commercial projects are reduced to 10 percent ongoing. The ITC applies to both residential and commercial systems and there is no cap to the size of the system the ITC can be applied to. Making plans now to invest in a solar PV system for your home can be a great way to continue to reap the rewards of working from home without it having a significant negative impact on your monthly utility bill.
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