Itron has released a report highlighting the pivotal role of Artificial Intelligence (AI) and Machine Learning (ML) in managing unprecedented demand and safety challenges faced by utilities.
The 2024 Resourcefulness Insight Report, titled "Exploring AI for Utilities: The Promise and Challenges of Artificial Intelligence," was based on surveys of 600 utility executives from six countries. These executives identified AI and ML as key technologies in addressing operational challenges amidst the ongoing energy transition.
Vice President of Global Marketing, ESG and Public Affairs at Itron, Marina Donovan, stated, "Our research provides an in-depth look at how utilities are grappling with historic growth in electricity demand while keeping safety front and center. As utilities continue their journey toward a more connected and intelligent grid, the integration of AI and ML becomes both a necessity and a strategic advantage to meeting today's challenges."
The report indicates that the increase in electricity demand is largely driven by data centres supporting cloud computing and AI applications, as well as new constructions and sustainability initiatives such as solar energy and electric vehicles. Utilities are facing significant challenges in maintaining reliable operations in this context.
Dr. Michael Webber, Sid Richardson Chair in Public Affairs and the John J. McKetta Centennial Energy Chair in Engineering at the University of Texas at Austin, remarked, "The greatest challenge and opportunity facing the utility sector is figuring out how to double or even triple the size of the grid over the next two decades while maintaining affordability, improving reliability, and decreasing its environmental impact. The findings from Itron's Resourcefulness Insight Report highlight the importance of strategic, forward-thinking investments in technology and infrastructure to ensure an accessible, safe and sustainable energy future for all."
Key findings from the report also outlined utilities' investment priorities. Distributed Energy Resource Management Systems (DERMS), sensors, consumer engagement tools, and low-voltage distribution network management were highlighted as top priorities for technology investment in the next five years. Furthermore, 82% of the utilities surveyed are in the process of adopting AI/ML technologies.
AI and ML are mainly employed to enhance safety, which was identified as the top use case by 49% of respondents, followed by cyberthreat detection and predictive maintenance. However, several barriers remain, including a lack of expertise, high costs associated with investment and integration, and concerns over data infrastructure, governance, standardisation and scalability.
The report emphasises the growing importance of enhancing grid edge intelligence through AI and ML, highlighting its role in improving insight and control across distribution networks. This aligns with utility executives identifying significant benefits from AI, ML and grid edge intelligence, particularly in detecting and managing potentially dangerous situations.
Donovan further noted, "As utilities improve intelligence at the grid edge through the adoption of AI and ML, they are optimizing operations and paving the way for a more sustainable and resilient future. Our findings reveal that the age of AI for utilities is here, and the strategic deployment of these technologies is crucial for enhancing safety, improving consumer engagement and achieving long-term sustainability goals. The commitment of utilities to harness the power of AI and ML will be a driving force in shaping the next generation of smart utility management."
