AI for Utilities

AI for
Utilities
Reimagining the
Future Energy System
―
Dr. Debashish Roy
AI for Utilities
Reimagining the Future
Energy System
Dr. Debashish Roy

AI for Utilities: Reimagining the Future Energy System
Dr. Debashish Roy
San Diego, CA, USA
ISBN-13 (pbk): 979-8-8688-0201-0 ISBN-13 (electronic): 979-8-8688-0202-7

https://doi.org/10.1007/979-8-8688-0202-7
Copyright © 2024 by Debashish Roy

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Table of Contents
About the Author .................................................................................xi
Acknowledgments .............................................................................xiii
Preface: Author’s Note ........................................................................xv
Chapter 1: AI for Utilities ......................................................................1

History of Electricity ..............................................................................................2
Utility Industry .......................................................................................................3
Environmental Threats Posed by Energy Expansion .............................................4
New Market Entrants Are Upending the Utility Business Model ...........................6
Global Warming and Greenhouse Gas Emissions ..................................................7
Energy Poverty ......................................................................................................8
Clean Energy Revolution .......................................................................................9
AI in the Utility Industry .......................................................................................10
Outline of the Chapters .......................................................................................11
Chapter 2: Utilities of the Future ........................................................15

Introduction .........................................................................................................15
Sustainable Planet ..............................................................................................16
Energy Transition ...........................................................................................19
The Electric Decade .......................................................................................20
Energy Efficiency ...........................................................................................22
iii
TABLE OF CONTENTS
Intelligent Energy Ecosystem ..............................................................................23

Distributed Energy Resources .......................................................................23
What Is an Intelligent Grid? ...........................................................................25
What Is the Goal Behind Creating an Intelligent Grid? ...................................26
What Are the Components of an Intelligent Grid?..........................................26
What Are the Benefits of an Intelligent Grid?.................................................26
What Is the Difference Between a Smart Grid and an Intelligent Grid? .........27
Connected Microgrid .....................................................................................28
Community and Consumer ..................................................................................29
What Is a CCA? ..............................................................................................29
How Does CCA Operate? ...............................................................................29
What Are the Benefits of CCA? ......................................................................29
Evolving Regulation.............................................................................................30
From Consumer to Prosumers ............................................................................31
Eliminating Energy Poverty............................................................................32
Inventing New Business Models .........................................................................32
Energy As a Service .......................................................................................33
Energy Marketplace.......................................................................................34
Microgrid As a Service ..................................................................................34
Connected Energy Services ...........................................................................36
Key Takeaways....................................................................................................37
Chapter 3: Utilities Building Digital DNA.............................................39

Digital DNA ..........................................................................................................39
Cloud Continuum for Utilities ..............................................................................40
Cloud Strategy ...............................................................................................41
Modernizing Decade-Old Infrastructure ........................................................42
Develop Cloud Talent .....................................................................................42
Re-invent Your Legacy Applications ..............................................................43
iv
TABLE OF CONTENTS
Data As Electricity ...............................................................................................44

Building a New Data Foundation ...................................................................45
Data As a Service ..........................................................................................46
Monetizing Data.............................................................................................47
Intelligent Enterprise ...........................................................................................48
Transform the Core ........................................................................................48
Secure Your Footprint ....................................................................................49
Embrace Applied Intelligence ........................................................................49
Intelligent Operation............................................................................................50
Automate at Scale .........................................................................................50
Site Reliability Engineering............................................................................51
Operational Analytics .....................................................................................52
The New IT Operating Model ...............................................................................52
Embrace Agility..............................................................................................54
Talent Transformation ....................................................................................55
Human+Machine – Augment Human Talent ..................................................56
Platform Capability..............................................................................................59
New Energy Platform.....................................................................................59
Innovation Platform .......................................................................................60
Platform Economy .........................................................................................61
Key Takeaways....................................................................................................62
Chapter 4: AI Adoption in Utilities ......................................................63

Factors Influencing the Adoption ........................................................................65
Organizational Factors ........................................................................................68
Environmental Factor ..........................................................................................70
Technological Factors .........................................................................................70
v
TABLE OF CONTENTS
AI Adoption Maturity Model for Utilities ..............................................................71

Exploring........................................................................................................72
Experimenting ...............................................................................................72
Formalizing ....................................................................................................72
Optimizing .....................................................................................................72
Transforming .................................................................................................73
Key Takeaways....................................................................................................73
Chapter 5: Sustainability Imperative for Utilities ...............................75

Introduction .........................................................................................................75
Governmental Regulation....................................................................................76
Carbon Pollution-Free Electricity Policy ........................................................77
Zero-Emission Vehicle Policy .........................................................................79
Net-Zero Building Emissions Policy ...............................................................81
Climate-Resilient Infrastructure and Operations ...........................................83
Consumer and Shareholder Demands ................................................................85
Sustainability-Themed Investment ................................................................85
ESG Activism by Investors .............................................................................87
ESG Measurement and Reporting..................................................................88
Decreasing Cost of Renewable Energy ...............................................................89
Decrease in the Cost of Geothermal Energy ..................................................90
Decrease in the Cost of Hydropower .............................................................90
Fall in the Cost of Ocean Energy....................................................................91
Dip in the Cost of Bioenergy ..........................................................................91
Fallen Solar Power Price ...............................................................................93
Improving Battery Technologies ....................................................................94
Societal Obligations ............................................................................................95
Social Inequity ...............................................................................................96
vi
TABLE OF CONTENTS
Tech for Good Initiatives ................................................................................98

Rising to the Call ...........................................................................................99
Key Takeaways....................................................................................................99
Chapter 6: Generating Power in the New Low Carbon Economy ......101

Introduction .......................................................................................................101
Generation Infrastructure Planning ...................................................................103
Maximizing Value of Power Generating Assets .................................................104
Carbon Optimization..........................................................................................106
Key Takeaways..................................................................................................107
Chapter 7: Microgrid – Macro Impact ..............................................109

Introduction .......................................................................................................109
Eliminating Energy Poverty and Bringing Equality ............................................111
Advancing Economic, Racial, and Environmental Equity...................................112
Electrifying Remote Places ...............................................................................113
Improving Power Quality Index .........................................................................114
Improving Equitable Grid Reliability ............................................................114
Investing for a Greener Future ..........................................................................115
Integrating Microgrid with Energy Ecosystem ..................................................117
Key Takeaways..................................................................................................118
Chapter 8: Intelligent Transmission and Distribution .......................119

Introduction .......................................................................................................119
Asset Management ...........................................................................................121
Intelligent Asset Analytics .................................................................................122
Predicting the RUL (Remaining Useful Life) for an Asset .............................122
Producing Recommendations About Service or Maintenance.....................123
Utility Pole Deterioration Modeling ..............................................................124
Long-Term Health Index Prediction for Power Asset ...................................125
vii
TABLE OF CONTENTS
Health Monitoring of Timber Utility Poles ....................................................125

Assets Inspection Using Drone ....................................................................126
Benefits of Assets Inspection Using Drone ..................................................127
Consumer Behavior ...........................................................................................127
Smart Grid Consumer Behavioral Model .....................................................127
Anomaly Detection Techniques in Advanced Metering Infrastructure .........128
Household Characteristics from Electricity Meter Data ...............................129
Building Load Prediction..............................................................................130
Grid Security .....................................................................................................131
Energy Theft Detection ................................................................................131
Cyberattack Detection .................................................................................133
Intrusion Detection System for Advanced Metering Infrastructure .............133
False Data Injection Attacks in Power Systems...........................................134
Communications and Security Management...............................................135
Grid Resiliency ..................................................................................................136
Harmonic Analysis in Power Distribution Networks ....................................136
Fault Diagnosis of Smart Meters .................................................................137
Severity Analysis of Tree and Utility Pole Crashes (TUOP) ...........................138
Emergency Response and Coordination ......................................................138
Geographic Situational Awareness ..............................................................139
Key Takeaways..................................................................................................140
Chapter 9: Utilities Retail Reimagined ..............................................143

Introduction .......................................................................................................143
Empowering Customers ....................................................................................144
Optimizing Customer–Agent Interactions with Natural Language
Processing and Machine Learning ..............................................................144
Conversational AI Chatbot in Energy Informatics ........................................145
Distributed Machine Learning for Energy Trading .......................................146
viii
TABLE OF CONTENTS
Digital Field Workforce ......................................................................................149

Integrated Customer Analytics ..........................................................................150
Future of Compliance ........................................................................................151
Connected Energy Service Provider ..................................................................153
Key Takeaways..................................................................................................154
Chapter 10: Transforming Mobility Through EV ................................155

Introduction .......................................................................................................156
Charging Infrastructure Development ...............................................................158
Interoperability of Charging Stations ...........................................................160
Predictive Maintenance That Uses AI to Identify Potential Issues and
Schedule Repairs.........................................................................................161
Intelligent Charging Planning ............................................................................162
State of Charge Prediction of EV Batteries ..................................................162
Electric Vehicle Routing Management .........................................................163
Data-Driven Smart Charging .......................................................................164
EV Analytics and Security ............................................................................166
Facial Recognition for Driver Authentication and Security ..........................168
EV Charging Behavior ..................................................................................169
Monetizing EV Operational Data ..................................................................170
Advanced Analytics on Electric Vehicle Charging Station Usage .................173
Key Takeaways..................................................................................................174
Chapter 11: Age of DERs ...................................................................177

Introduction .......................................................................................................177
AI in DER ...........................................................................................................179
DER Planning.....................................................................................................180
Uncertainty Modeling of Distributed Energy Resources ..............................180
Quantifying Rooftop Photovoltaic Solar Energy Potential:
A Machine Learning Approach.....................................................................181
ix
TABLE OF CONTENTS
Machine Learning for Solar Irradiance Forecasting of Photovoltaic

System.........................................................................................................182
DER Generation .................................................................................................183
Autonomous Energy Grids: Controlling the Future Grid with Large
Amounts of Distributed Energy Resources ..................................................183
Data-Driven Secondary Control of Distributed Energy Resources ....................184
Load Modeling and Non-intrusive Load Monitoring to Integrate
Distributed Energy Resources in Low- and Medium-Voltage Networks ......185
DER Operation and Security ..............................................................................186
A Battery-Based Authentication Scheme for Distributed Energy
Resources ....................................................................................................186
Interconnection Protection of Distributed Energy Resources
Using Intelligent Schemes ...........................................................................188
Key Takeaways..................................................................................................189
Chapter 12: Utilities in the Metaverse ..............................................191

Introduction .......................................................................................................191
Training in the Metaverse .................................................................................193
San Diego Gas and Electric Virtual Reality for Immersive Learning ............195
Augmenting Field Workforce .............................................................................196
Marketing of Utility Services .............................................................................197
Key Takeaways..................................................................................................198
Index .................................................................................................199
x
About the Author
Dr. Debashish Roy has emerged as a
luminary in the realm of Technology
Innovation Leadership, particularly within
the utility industry, boasting nearly 16 years
of distinguished service. His tenure is marked
by a profound commitment to harnessing the
potential of digital, cloud, AI/ML, and analytics
to catalyze significant business transformations
for Fortune 500 organizations. As a Technology
Leader within the Technology Advisory and
Client Delivery sector of a premier Fortune
500 company since 2010, Dr. Roy has made indelible strides in the utility
sector, demonstrating an unmatched prowess in addressing complex
industry challenges and championing innovation.
His tenure includes the development and implementation of
pioneering solutions in AI, machine learning, and cloud technologies,
which have been instrumental in propelling business visions and
enhancing operational efficiencies. Dr. Roy's dedication to AI for
sustainable development is particularly noteworthy, emphasized by his
doctoral research and the development of over ten AI-powered patents.
This commitment positions him as a respected thought leader in the field.
This book encapsulates Dr. Roy's journey of transformative leadership
and his unwavering commitment to advancing sustainable, AI-driven
solutions within the utility sector, setting a benchmark for innovation and
excellence.
xi
Acknowledgments
I am deeply grateful to all those who have supported me on the journey
of writing this book. First, I would like to express my heartfelt thanks to
my family, whose unwavering support and encouragement have been my
anchor and inspiration throughout this process.
A special word of appreciation goes to my colleagues and mentors
in the industry, whose insights and expertise have greatly enriched the
content of this book. Their willingness to share their knowledge and
experience has been invaluable.
I also extend my gratitude to my friends, for their patience,
understanding, and for the countless ways they have offered their support
during the writing of this book.
Lastly, but importantly, I thank you, the reader, for your interest in this
work. It is my sincere hope that it will inspire, inform, and engage you in
equal measure. Thank you all for being part of this journey.
xiii
Preface: Author’s Note
When considering the industries that have significantly advanced human
development and shaped modern society, the utility industry stands
out as a cornerstone. This sector, encompassing electricity, water, gas,
and waste management, forms the bedrock upon which countless other
industries and daily activities rely. From powering homes and businesses
to ensuring clean drinking water and effective waste disposal, utilities are
integral to our quality of life and economic progress. Without the reliable
infrastructure provided by this industry, many of the advancements and
conveniences we take for granted today would be impossible. This is one
of the oldest industries still rapidly growing in the contemporary world.
While the benefits we reap from this industry are abundant, it also
poses arduous challenges. While the benefits of the utility industry
are immense and far-reaching, including reliable access to electricity,
water, and gas, it also faces significant challenges that impact both
its effectiveness and sustainability. For instance, the industry must
navigate the complexities of maintaining aging infrastructure, managing
environmental impacts, and meeting the growing demand for resources in
an increasingly urbanized world. Additionally, ensuring equitable access
and affordability while investing in innovative technologies presents
ongoing hurdles. Addressing these challenges is crucial to maintaining the
industry’s vital role in supporting modern life and driving future progress.
Our planet is unique, and so are the challenges we face. We are currently at
a critical juncture where we must decide how to create a sustainable planet
for the future. The biggest challenges the utility industry faces is embracing
clean energy, building energy-efficient devices, eliminating energy
xv
PREFACE: AUTHOR’S NOTE
poverty, and paving the way for the next era. Through my 18+ years of
deep research and experience working with this industry, I have witnessed
the challenges, opportunities, and leverage this industry has. As we move
toward an electric decade – a period characterized by the significant shift
toward electrification across various sectors, including the widespread
adoption of electric vehicles and renewable energy sources – the role
of utilities will become much more critical in supporting global climate
goals. This period is also marked by the energy transition, which refers
to the global shift from fossil-based energy systems to renewable energy
sources like wind, solar, and hydro, aimed at reducing carbon emissions
and mitigating climate change. Utilities will need to support this transition
while managing increased demand, surges in the adoption of smart
appliances, and the expansion of decentralized operating systems. Utilities
are exploring how to embrace AI to transform their traditional business,
create future opportunities and innovate new business models. But the big
question for utility executives is to know how they can align utility business
transformation and AI in this journey.
The new book, AI for Utilities, demystifies how business
transformation and AI will join forces in plain-spoken language, revealing
a clear roadmap for any utility leader looking to leverage the power of AI to
transition their organization into Utility 4.0.
Utilities have undergone significant transformations over the
decades, evolving from Utility 1.0, which focused on basic electrification
and infrastructure development, to Utility 2.0, characterized by the
introduction of automation and early digital technologies to improve
operational efficiency. Utility 3.0 brought about more sophisticated
digitalization, integrating smart grids, renewable energy sources, and
enhanced customer engagement tools.
Now, as we face the unique challenges of the modern era – such as
climate change, increased demand for energy, and the decentralization of
energy systems – there is a need for a new way of thinking about utilities.
Utility 4.0 represents this next phase, where advanced data analytics, AI,
xvi
and machine learning enable utilities to optimize operations, predict and

manage energy demands more effectively, and create more resilient and
sustainable energy systems. The integration of AI in this context is opening
new opportunities for business transformation, making it a pivotal force in
guiding utilities through the complexities of the 21st century.
Forces Shaping the Future

of the Utility Industry
The utility industry is uniquely positioned in the fourth industrial
revolution era. This industry is well-positioned to transform itself in a way
that will enable it to survive and prosper in this era. It has its fair share of
challenges, but the opportunities are immense. As new technology and
business models emerge, the sector must embrace and leverage them to
build a more resilient, efficient, and customer-focused industry.
xvii
5 Advantages Utilities Should Leverage
5 Opportunities Ahead of Utilities
xviii
CHAPTER 1
AI for Utilities
Electricity has become an indispensable necessity for modern life.
Cutting off access to reliable power, our lives would revert to grueling
days, like before the industrial revolution. Perhaps, Hobbes described the
state accurately when he said it would be “solitary, poor, nasty, brutish,
and short.”
Today, almost every feature of modern civilization depends on
affordable, reliable electricity and the things it powers, like lamps and
heaters. From keeping our homes well-lit and comfortable, powering
smartphones to stay in touch with loved ones and sourcing those 24/7
data centers to give us reliable Internet speed, among countless others, the
utilities of electrical power run large.
It isn’t a false notion to claim that the history of electricity is the history
of the modern world.
The utility sector refers to the businesses and industries that provide
essential services to the public, such as electricity, gas, water, and
telecommunications. These companies typically operate as regulated
monopolies, with prices and services set by government agencies. The
utility sector aims to provide customers safe, reliable, and affordable
services. It is considered a critical infrastructure sector, as its services are
essential for daily life and economic activity. The utility sector plays a
critical role in our daily lives by providing essential services that support
© Debashish Roy 2024 1

D. Roy, AI for Utilities, https://doi.org/10.1007/979-8-8688-0202-7_1
Chapter 1 aI for UtIlItIes
our basic needs and activities. Some critical ways the utility sector impacts
our lives are
1. Energy: The utility sector provides electricity that
powers our homes, businesses, and public spaces,
enabling us to live, work, and play comfortably and
conveniently.
2. Water: The utility sector manages the treatment and
distribution of water, which is essential for drinking,
cooking, cleaning, and other daily activities.
3. Telecommunications: The utility sector provides
the infrastructure for telecommunications services,
including telephone, Internet, and television, which
are critical for communication, entertainment, and
commerce.
4. Waste management: The utility sector is

responsible for collecting and disposing waste and
preserving public health and the environment.
In summary, the utility sector plays a vital role in supporting our daily
lives, maintaining public health and safety, and enabling economic growth
and prosperity.
History of Electricity
The modern electric utility industry in the United States can be traced to
the invention of the practical light bulb in 1879 by Thomas Alva Edison.
So, while Edison developed Direct Current (DC), which runs continually
in a single direction, like in a battery or a fuel cell, Nikola Tesla introduced
the world to Alternative Current (AC). While DC is not easily converted
to higher or lower voltages, AC can be converted to different voltages
2
relatively easily using a transformer. Nikola Tesla and Thomas Edison were
electrical engineering titans whose inventions changed history. But the
world is aware of the electricity that is fueled between the two.
The “war” was marked by a series of events, including Edison’s public
demonstrations of the dangers of AC and the successful electrification of
the 1893 World Columbian Exposition in Chicago using Westinghouse’s
AC system. Ultimately, AC emerged as the dominant power transmission
system and is still used worldwide. Tesla’s concept meant that electricity
generated in power plants could be converted to high voltage and
transmitted over long distances with minimal energy loss. Once it
arrives at its destination, distributing it at medium and low voltage using
transformers would be simple and inexpensive. This system is currently
used to deliver energy from a power station to our home.
Almost every aspect of modern society depends on affordable and
dependable electricity, the things it powers, from lamps and heaters to
safely keep our homes well-lit and comfortable to smartphones that keep
us connected with loved ones and always-on data centers give us reliable
Internet – among countless others. It is so crucial to modern life that
electricity is the history of the modern world.
Utility Industry
The utility sector is a broad industry that encompasses producing,
distributing, and delivering energy and water resources to residential,
commercial, and industrial customers. This sector includes a wide range
of activities, such as the generation of electricity from fossil fuels, nuclear
energy, and renewable sources; the transmission and distribution of
electricity through power grids; and the provision of water, gas, and
sewage services. The utility sector is essential for the functioning of
modern society and plays a critical role in driving economic growth and
development.
3
Business transformation plans that leverage the power of artificial

intelligence (AI) can help utility leaders drive operational efficiency,
improve customer service, and reduce costs. AI can be applied in various
areas within the utility sector, including demand-side management,
asset management, grid optimization, and predictive maintenance. As a
result, utility organizations may better satisfy the evolving needs of their
customers and maintain their competitiveness in an increasingly digital
world by implementing AI-driven technologies and procedures.
Environmental Threats Posed by

Energy Expansion
Over the past century, global population growth and urbanization have
increased energy demand, rapid electrification, and energy consumption.
This has negatively impacted our planet and placed us in a dire situation
regarding climate change and greenhouse gas emissions. The warming
world is getting closer to passing a temperature limit set by global leaders
five years ago. According to a new United Nations report, it may exceed
it in the next decade (United in Science, 2020). According to the research
published by the UN and World Meteorological Organization, greenhouse
gas concentrations have continued to grow. They have reached new record
highs this year despite already being at their highest levels in three million
years. Energy contributes to climate change, accounting for around 60%
of global greenhouse gas emissions (Tracking SDG 7 | Progress Towards
Sustainable Energy, 2019).
California, which aims to have a carbon-free power grid within 25
years, saw that possibility. The state’s primary grid ran on more than
97% renewable energy at 3:39 p.m. on Sunday, April 3, 2022, breaking a
previous record of 96.4% set just a week earlier.
4
Figure 1-1. Key messages from United in Science report (2020)

(United in Science 2020)
On the other hand, the Energy Progress Report (2019) published

by the International energy agency highlighted that a little more than 3
billion people still use wood, coal, charcoal, or animal dung for cooking
and heating, making up 13% of the world’s population. Global leaders
and international agencies are simultaneously addressing global warming
and energy poverty issues. They acknowledge that strategies to eradicate
energy poverty must engage with climate risks and opportunities to
achieve sustainable development outcomes. The International Energy
Agency advocates decentralized, medium- and small-scale renewable
energy solutions as the most flexible and cost-effective mechanism for
meeting the energy needs of up to three-quarters of unserved households.
The COP 21 meeting in 2015 resulted in a global agreement to tackle
climate change, known as the Paris Agreement. Two overall development
5
actions were defined: mitigating greenhouse gas emissions into the

atmosphere and adapting to climate change-related disturbances.
Adaptation actions include creating resilient infrastructures that will
withstand extreme weather and disasters.
Focusing on clean energy research, developing, and promoting
renewable energy, energy efficiency, advanced and cleaner fossil fuel
technologies, and investment in energy infrastructure, microgrids, and
clean energy technology can help tackle problems related to climate
change and energy poverty. Furthermore, to optimize energy generation,
distribution, and consumption, the utility industry can be transformed
by using sophisticated software solutions created with AI and machine
learning.
The benefits of achieving the overall energy transformation
are countless. Energy and climate goals are closely interlinked and
complementary pursuits (Energy Progress Report (2019).
New Market Entrants Are Upending

the Utility Business Model
New market entrants are upending the utility business model based
on electricity sales and creating new ways for customers to manage
their electricity use and costs. In a report titled Utilities Under Pressure:
Disruptive Forces Reshaping the Electric Power Industry, the analysts
identify five forces that are reshaping the utility industry:
• New competitors are challenging the monopoly
business model.
• Consumers are taking more control over their
electricity.
• Distributed energy resources are growing in scale
and scope.
6
• The electric power sector is undergoing a digital

transformation.
• Electric vehicles are poised to transform the auto
industry.
The research observes that utilities are investing in new business
models and technology in response to these dynamics. Still, it warns that
they must do more to adapt to the evolving landscape.
Global Warming and Greenhouse

Gas Emissions
Gases that trap heat in the atmosphere are called greenhouse gases. (US
EPA, 2017). Greenhouse gases have far-ranging environmental and health
effects. They cause climate change by trapping heat and contribute to
respiratory disease from smog and air pollution. Extreme weather, food
supply disruptions, and increased wildfires are other effects of climate
change caused by greenhouse gases. In 2018, US greenhouse gas emissions
totaled 6677 million metric tons of carbon dioxide equivalents, or 5903
million metric tons of carbon dioxide equivalents after accounting for
sequestration from the land sector. (US EPA, 2017)
7
Figure 1-2. Greenhouse Gas emissions and sources (US EPA, 2017)
In the United States, 27% of greenhouse gas comes from the electricity
sector (US EPA, 2017). The electric grid comprises three major sectors:
generation, transmission and distribution, and consumption. Smart
generation includes the use of renewable energy sources (wind, solar,
or hydropower), which has the potential to decrease overall greenhouse
gas emissions by reducing coal and fossil fuel usage for power generation
(Abdallah & El-Shennawy, 2013).
Energy Poverty
Rural areas are home to over two-thirds of the world’s impoverished
population. The eradication of rural poverty depends on increased access
to goods, services, and information, as detailed in the United Nations
Millennium Development Goals. However, alleviating poverty is hindered
by two interlinked phenomena: lack of access to improved energy services
and worsening environmental shocks due to climate change. “Energy
poverty” also frequently indicates household energy deprivation issues.
This concept has traditionally been used to capture the problems of
8
inadequate access to energy in developing countries, involving economic,

infrastructural, social equity, education, and health concerns. However,
community microgrid initiatives are gaining traction to solve the issues
of energy poverty and offer dependable, affordable grid connectivity to
regions that are still disconnected due to technical or financial difficulties.
Clean Energy Revolution

As civilization progressed, more and more advanced energy sources
were utilized. Coal became the primary energy source in the 19th and
20th centuries, followed by oil and natural gas. These fossil fuels have
gradually replaced firewood as the primary source of energy. Since they
have a higher energy density, they are also more efficient. However, they
also have several disadvantages. Firstly, they are non-renewable resources
and will eventually run out. Secondly, they release harmful pollutants into
the atmosphere when burned, leading to air pollution. Renewable energy
sources, including solar, wind, and hydropower, are gaining importance
as the world works to lessen its reliance on fossil fuels. These renewable
energy sources do not release harmful pollutants into the atmosphere.
There has been a growing interest in using nuclear power as an energy
source in recent years. However, nuclear power plants require a significant
investment in upfront capital costs for building and construction, which
can take several years to complete. The high capital costs are due to the
complex nature of nuclear power generation, which requires specialized
equipment and materials and strict safety regulations.
However, once a nuclear power plant is operational, the costs of
running and maintaining it are relatively low and stable. Nuclear fuel
is relatively inexpensive compared to other energy sources, and the
operational costs are relatively consistent over time.
Despite these advantages, the payback period for a nuclear power
plant investment is typically lengthy due to the high upfront capital costs
9
and the long construction period. As a result, the payback period can be
several decades, making nuclear power a long-term investment.
The upside is that nuclear power plants do not release greenhouse
gases into the atmosphere, making them a desirable option for those
concerned about climate change. However, nuclear power plants also
have some disadvantages. Firstly, they require a large amount of initial
investment. Secondly, they produce radioactive waste that must be stored
safely for thousands of years. And finally, the type of energy source that
is used will have a significant impact on air pollution levels. The most
significant effect on the environment stems from the destructive process
of uranium mining. Not to forget, nuclear power plants heavily depend on
thorium and uranium to generate electricity, and their scarcity is one of
the biggest challenges faced by the industry.
On the one hand, fossil fuels, such as coal and oil, release harmful
pollutants into the atmosphere when burned. On the other hand, nuclear
power plants do not release harmful pollutants into the atmosphere but
produce radioactive waste. However, renewable energy sources like solar
and wind power, do not release pollutants into the atmosphere.
Over a decade, the capitalized cost of generating solar energy has
dropped to one-sixth of what it was in 2005. However, I believe it will
not be long until solar energy generation is economically cheaper than
thermal power generation worldwide.
AI in the Utility Industry

As the world progresses, many businesses start incorporating artificial
intelligence (AI) into their operating strategies to stay competitive. The
utility industry is no different. AI is becoming increasingly important for
utilities as they look for ways to improve efficiency and better serve their
customers. There are several ways that utilities can use AI. For example, AI
can help predict maintenance needs and outages. To accomplish this, data
10
gathered by sensors and other devices is analyzed to find trends that might
point to a problem. AI can also be used to help manage customer data.
This includes things like analyzing customer usage patterns and helping
identify potential savings areas. As a result, AI will become even more
critical for utilities as they look to improve efficiency and better serve their
customers.
As businesses strive to increase efficiency and better serve their
consumers, we anticipate that AI will play a more significant role in the
utility sector over the coming years. As utilities adopt AI technology, we
expect to see improvements in the accuracy of predictions for things
like power outages and demand, as well as more personalized customer
service and automated processes.
The utility industry is highly regulated, and AI technology is still
evolving. Utilities should be cognizant of potential risks, such as
cybersecurity threats and issues with regulatory compliance, as they
consider implementing AI. Additionally, utilities must consider how AI
will affect their workforce. AI has the potential to automate many of the
tasks currently performed by humans, which could result in job losses.
Therefore, utilities need to be prepared to retrain their workforce for the
jobs of the future.
The opportunities for utilities to leverage AI are endless. Utilities can
use AI to enhance customer service, streamline grid operations, cut costs,
and do much more. In addition, embracing AI will put utilities in a good
position to handle future difficulties.
Outline of the Chapters

To be clear, this is not a strategy or AI technical book. In this book, the
utility sector is discussed in terms of how it is rapidly changing, what is
influencing its future, and how technology, notably AI, is influencing it. If
11
you’re in the utility industry, this book is for you. It will provide insights
into how the industry is evolving and how AI can improve operations and
create new opportunities.
• We talk about the utility industry’s future in Chapter 2
to set up the context.
• In Chapter 3, we delve into the multi-dimensional
massive transformation in the utility industry, which is
building digital DNA.
• This strategic digital DNA segues directly into Chapter 4,
where we discuss the AI adoption in the industry, which
is at the heart of this transformation.
• In Chapter 5, we explain the Sustainability imperative
for the utility industry and how government regulation,
consumer and shareholder demand, decreasing the
cost of renewables, and social obligations drive this.
• Chapter 6 discusses power generation in the new low-
carbon economy.
• Chapter 7 talks about the Microgrid, one of the
essential elements of the new low-carbon economy,
and its impact.
• In Chapter 8, we will discuss the intelligent
transmission and distribution of the future and how AI
will shape this journey.
• Evolving utilities retail market, customer demands, and
various AI use cases are discussed in Chapter 9.
• Chapter 10 emphasizes the transformational power of
electric vehicles and how AI will help with this.
12
• Chapter 11 focuses on the increasing penetration

of distributed energy resources in the grid system,
and powerful AI use cases transforming the DER
integration.
• Finally, Chapter 12 gives a glimpse of the metaverse

technology and its potential impacts on the utility
industry.
I hope that with this book, I am putting useful guidance and a future
map in your hands on how one of the oldest industries in the world is
getting transformed with the power of AI.
13
CHAPTER 2
Utilities of the Future

This chapter introduces the utility of the future, the Intelligent energy
ecosystem, trends expediting the energy transition and moving toward the
electric decade, and the role AI will play in this.
Introduction
As the world becomes increasingly interconnected, the demand for
controlling and monitoring energy consumption is rising. This growing
demand underscores the importance of expanding storage capabilities
and enhancing the electric grid infrastructure in the United States.
Expanded storage is essential to manage the variability of renewable
energy sources, ensuring a stable supply even when demand fluctuates.
However, infrastructure improvements alone are not sufficient. Increasing
the adoption of smart meters and other digital technologies would
provide utilities with real-time data on energy usage, allowing them to
better understand and respond to customer demands, optimize energy
distribution, and implement more effective demand response strategies.
There are further strategies to lower our energy consumption. For
instance, we could alter the layout of our house to promote the usage of
energy-efficient heating and cooling equipment. Or consider investing in a
programmable thermostat that allows us to adjust our heating and cooling
settings remotely. Additionally, if it’s too hot or cold indoors, one may
lower the heat or air conditioning or go for a walk outside. By taking these
simple steps, we can help ensure that the future of utilities is bright!

Chapter 2 Utilities of the fUtUre
This chapter will discuss four key themes shaping the future of
utility companies. The first theme is about the sustainable planet, the
second is an intelligent energy ecosystem, the third is about demand
from the community and consumer, and the fourth is inventing a new
business model.
Sustainable Planet
Sustainability is meeting the present generation’s needs without
compromising future generations’ ability to meet their own needs. It
is a holistic approach to development that considers human activities’
economic, social, and environmental impacts. In practical terms,
sustainability involves making choices and taking actions that promote
economic prosperity, social well-being, and environmental protection.
This can involve using resources more efficiently and responsibly,
developing alternative energy sources, reducing waste, and conserving
ecosystems and biodiversity.
Sustainability is important because the world faces various
environmental, social, and economic challenges, including climate
change, resource depletion, poverty, and inequality. We can create a
more sustainable future for the planet and its inhabitants by embracing
sustainability.
The need to embrace sustainability arises from various environmental,
social, and economic challenges facing today’s world. Some of the key
reasons include
1. Environmental degradation: The increasing levels
of greenhouse gas emissions, depletion of natural
resources, and degradation of ecosystems have led
to a growing concern for the planet’s health.
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2. Climate change: Climate change is one of the

biggest threats facing the world today, with rising
temperatures and the increasing frequency of
extreme weather events.
3. Resource depletion: The unsustainable use of finite
resources such as oil, natural gas, and minerals
are leading to their depletion and the need for
alternative sources of energy and materials.
4. Economic development: Sustainability is becoming

increasingly important for economic development,
as it helps to promote long-term economic growth
and stability by reducing the costs associated with
environmental degradation and resource depletion.
5. Social responsibility: Companies and organizations
have a growing sense of social responsibility to
minimize their environmental impact and promote
sustainable development.
In summary, the need to embrace sustainability stems from the desire
to address these challenges and promote a more sustainable future for
both the environment and human society.
The world’s population is expected to grow to 9.7 billion by
2050, which will inevitably strain the planet’s resources. Sustainable
technologies and practices can help preserve the planet and its resources
for future generations. Sustainable products, services, and technologies
are non-polluting and meet the needs of both people and the planet. Also,
they can be consumed at a rate that does not exceed the Earth’s capacity
to regenerate. Sustainable technologies can be incorporated into new and
existing products, services, and systems.
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Fossil fuels such as coal, crude oil, and natural gas formed millions
of years ago. Unfortunately, these fuels are non-renewable, which means
they cannot be replaced once they are used.
The utility industry includes businesses that supply customers with
electricity, gas, and water – essential services that are deeply intertwined
with the economy. This sector is susceptible to economic changes; for
instance, during economic downturns, demand for utilities may decrease
as businesses scale back operations, while in times of economic growth,
demand typically increases as businesses expand.
When it comes to investing in this industry, there are several avenues
to consider. Investors might purchase stocks or bonds from utility
companies, which are often seen as stable investments due to the essential
nature of their services. Additionally, investment in infrastructure, such as
upgrading the electric grid or expanding renewable energy sources, can be
undertaken by private companies, public utilities, or government entities.
Municipal water companies, while providing essential services, often
operate as public entities rather than traditional businesses, which can
affect how investments in them are structured.
As for sustainable energy, investing in renewable technologies such
as solar, wind, and energy storage can help protect against the volatility of
fossil fuel prices and the regulatory risks associated with carbon emissions.
These investments are typically made by utility companies, private
investors, or through public–private partnerships aimed at transitioning to
a more sustainable energy future.
To clarify the economic changes referenced, fluctuations in energy
demand, regulatory shifts, technological advancements, and the
availability of resources all play roles. For example, an economic recession
might lead to reduced energy consumption, affecting utility revenues,
while a booming economy could increase energy demand and drive up
prices. These factors underscore the importance of carefully considering
the broader economic context when investing in the utility sector.
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Energy Transition
The 21st century is shaping up to be very different from what we’re
accustomed to. The energy sector is only one of the numerous issues the
globe will be dealing with that may change the path of history as we know
it. The energy business is facing a future that will be substantially different
from the past due to climate change and enormous growth in demand for
electricity in emerging nations. In this article, we explore some of the top
trends that will define the future of energy.
The world is transitioning from conventional energy sources to
renewable sources. Sustainability, cost-effectiveness, and the battle against
climate change are the key drivers of this transformation. Solar and wind
power have been experiencing rapid growth in recent years, a trend that is
expected to continue and accelerate in the upcoming years. This ongoing
expansion is driven by decreasing costs, technological advancements,
and increasing support from governments and private investors. As
these renewable energy sources become more integrated into the global
energy mix, their share of total energy production is anticipated to rise
significantly. A shift toward the East is also occurring in the world’s energy
mix. China is emerging as a major player in the global energy market. In
the upcoming years, solar and wind power are anticipated to experience
substantial growth.
The unprecedented growth of renewable energy sources and the
shifting energy mix will soon have a considerable impact on the demand
for and supply of power. The transformation of the energy sector is
expected to continue to be driven by declining costs of renewable energy,
improving efficiency in the energy system, and increasing awareness of the
benefits of the transformation.
Increasing awareness of climate change and the need for cleaner
energy is expected to transform the energy sector.
In addition, the benefits of the transition are expected to increase
awareness of the need for the transition. Increased awareness is expected
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to lead to increased demand for cleaner energy and, thus, an increase in

the markets for cleaner energy. Further developments in energy efficiency
are anticipated to result from the rising demand for cleaner energy.
The Electric Decade

From the late 19th century until the mid-20th century, electricity was
produced almost exclusively by burning fossil fuels. The invention
of the photovoltaic cell in 1954 marked a significant milestone in
harnessing solar power. During the 1960s and 1970s, scientists and
engineers focused on improving the efficiency and cost-effectiveness of
these cells, aiming to develop consumer-grade and production-
scale systems. By the 1980s, small-scale photovoltaic systems were
beginning to be used, and by the mid-1990s, solar energy had become
a more viable source of electricity, paving the way for the growth
we see today. Due to technological improvements and lowering costs,
solar energy is now a viable source of electricity for many of the global
population. Electricity transformed the United States from an agrarian
civilization to an urban and industrial one from the late 19th to the early
20th centuries. Electricity powered new manufacturing, communications,
and entertainment forms and helped reduce domestic labor’s burden.
Electricity also transformed how people thought about and experienced
the world around them.
By the 1920s, electric companies had standardized the voltage and
plugs for appliances. This meant people no longer had to choose which
voltage they preferred – 110 or 220.
As electricity became more standardized, it unified the country,
transforming what was once a luxury into a necessity available to
nearly everyone. The development of the electric grid made affordable,
dependable electricity widely accessible, leading to the proliferation of
home electrical appliances such as electric lighting, fans, stoves, and
vacuum cleaners.
20
Today, the drivers of rapidly shifting demand patterns are changing

again, driven by the electrification of various sectors. The push for more
sustainable energy solutions is leading to the increased adoption of
electric vehicles (EVs), electric stoves, heat pumps, and other electrified
home systems. As consumers and industries move away from fossil fuels,
the demand for electricity is expected to rise significantly. This shift is also
prompting utilities to rethink grid management and capacity to ensure
reliable service as demand patterns evolve.
The electrification of transportation, for instance, is poised to be
one of the most significant contributors to rising electricity demand.
Similarly, the adoption of electric heating and cooling systems, as well
as the integration of smart technologies and energy storage solutions,
are reshaping how electricity is consumed and managed in homes and
businesses across the country.
Window screens, which were simpler to open and close and effectively
kept out insects, increasingly replaced wooden shutters in homes. Finally,
electric razors were introduced at the end of the decade, heralding the
end of the daily ritual of shaving with a blade. Initially, electric razors were
expensive, difficult to get, and only suitable for specific kinds of facial hair.
The first electric shaver was introduced by Jacob Schick in 1931, marking
a significant innovation in personal grooming technology. Schick’s design
was a plug-in device that revolutionized shaving by eliminating the need
for traditional razors and shaving cream. It wasn’t until the 1960s that
Norelco (a brand of Philips) introduced the first cordless, battery-powered
shaver, offering users the convenience of shaving without being tethered
to an electrical outlet. This development further advanced the accessibility
and ease of electric shavers, making them a staple in personal grooming.
Now that electricity technology has advanced, traditional items in our
culture are becoming more electric. We are considering buying electric
cars and powering many of those appliances with renewable energy.
Our community and its plans will thrive in the coming decade as we switch
to renewable energy sources and move away from passing to wells.
21
Energy Efficiency
According to the International Energy Agency, energy efficiency will
significantly grow over the next ten years, substantially impacting the
environment. In addition, the Paris climate agreement aims to limit global
warming to 2 degrees Celsius, and research shows that the next decade will
be crucial in achieving this goal.
By the end of the 2020s, energy efficiency is projected to contribute
significantly to global emissions reductions, potentially accounting for
one-third of the reductions needed to meet the Paris Agreement’s targets.
This is based on analyses from the International Energy Agency (IEA)
and other research institutions, which emphasize that energy efficiency
improvements across sectors such as transportation, industry, and
buildings will be crucial for achieving these climate goals.
Since the early 1980s, the average efficiency of electricity usage
has increased by approximately 30%, largely due to technological
advancements and government regulations. Looking ahead, the average
efficiency of power use is projected to increase by another 30% over the
next decade, driven by continued innovation and regulatory measures.
These improvements not only enhance efficiency but also have the added
benefit of reducing electricity costs for consumers.
Another potential solution to climate change is the development of
green artificial intelligence. AI has the potential to significantly lower
manufacturing’s contribution to greenhouse gas emissions. While the
utilization of AI today demands significant computing resources, which in
turn requires a substantial amount of electricity, the future of AI could be
designed with greater efficiency in mind. As AI continues to advance, it is
likely to play a crucial role in optimizing the efficiency of power grids and
other energy infrastructure. The expectation is that, although AI’s current
electricity demands are high, the efficiency gains enabled by AI could far
outweigh these costs, leading to net positive outcomes in terms of overall
energy savings and improved infrastructure performance.
22
Intelligent Energy Ecosystem

As the world progresses, the demand for energy increases. Along with this
demand comes the need for more efficient and sustainable energy sources.
A network of interconnected energy sources that collaborate to meet the
world’s expanding energy demand will make up the intelligent energy
ecosystem of the future. Various energy sources, including conventional
and renewable energy sources like coal and natural gas and wind and
solar, will power this ecosystem. The key to making this ecosystem work is
to have a way to store and distribute the energy so that it is available when
and where it is needed.
The intelligent energy ecosystem of the future will need to adapt
to the world’s changing needs. The ecosystem must adapt when new
technologies are created and new energy demands materialize. The
intelligent energy ecosystem of the future will be a critical part of the
world’s infrastructure. It will provide the energy to power homes,
businesses, and factories. It will also help reduce the impact of climate
change by providing a cleaner and more sustainable energy source.
Distributed Energy Resources

Distributed energy resources are technologies that generate power where
it’s needed. They can be on the grid or off. These can be solar panels,
wind turbines, fuel cells, or other power-generating equipment. Grid
overburden occurs when the demand on the electrical grid exceeds its
capacity to deliver power reliably. This issue has become increasingly
critical with the growing electrification of transportation, heating, and
other sectors. As more devices and systems rely on electricity, the grid is
under more pressure, leading to potential outages, inefficiencies, and the
need for costly upgrades.
23
Power autonomy refers to the ability of individuals, communities,

or businesses to generate and manage their own energy supply
independently of the central grid. This can be achieved through
distributed energy resources (DERs) like solar panels, wind turbines, and
battery storage systems, which are located close to the point of use rather
than centralized in large power plants.
Given these challenges, many experts predict that distributed energy
will become a more prominent power source in the future. Distributed
energy systems reduce the strain on the central grid by generating power
locally and can enhance energy security, resilience, and efficiency. They
also provide greater flexibility in meeting energy demand and can be
crucial in managing grid overburden, particularly as the transition to
renewable energy accelerates.
Any energy-producing technology not connected to the primary
power grid falls under this category. They can be anything from solar
panels to energy storage systems and even electric vehicle charging
stations. Installing distributed energy resources frequently aims to lessen
reliance on the grid and lower overall energy expenditures. While the
ability to generate your power and maintain autonomy during a power
outage is a significant advantage of distributed energy technologies
like home solar panels and battery storage, the benefits extend far
beyond that.
For consumers, distributed energy resources (DERs) such as solar
panels combined with battery storage offer both supply- and demand-side
benefits. On the supply side, these systems can reduce dependency on
utility providers, allowing homeowners to produce their own electricity,
potentially achieving a positive return on investment (ROI) over time.
This is particularly true in regions where electricity rates are tiered, as
consumers can optimize their energy consumption patterns to minimize
costs by using stored energy during peak pricing periods.
24
From the utility’s perspective, distributed storage systems can help

smooth demand on the grid, especially during times of high energy use,
such as at night when people charge electric vehicles (EVs). These systems
can be crucial in managing demand when renewable energy sources like
solar power are not available, thus helping to stabilize the grid. Moreover,
DERs can provide utilities with greater flexibility in managing supply and
demand, contributing to overall grid reliability and efficiency.
However, there are also trade-offs to consider. For instance,
the widespread adoption of DERs could lead to challenges in grid
management, such as ensuring balanced load distribution and
maintaining the stability of voltage and frequency across the network.
Additionally, while DERs can reduce costs for consumers, they might also
necessitate investments in infrastructure upgrades and new technologies
by utilities, which could be passed on to customers.
What Is an Intelligent Grid?

The term “intelligent grid” refers to the advanced technologies that
enable the development of a smart grid. While the smart grid itself is
a modernized electrical grid that uses digital technology to improve
reliability, efficiency, and sustainability, the intelligent grid takes this a step
further by incorporating highly automated, self-regulating systems that
gather data and use it to make real-time decisions.
The primary distinction between a smart grid and an intelligent grid
lies in the latter’s autonomous, adaptable, and self-learning capabilities.
While both grids use advanced technology to monitor and manage energy
distribution, the intelligent grid can autonomously adjust to changes in
supply and demand, optimize performance, and even learn from past data
to improve future operations. In essence, the intelligent grid represents
the next evolution of the smart grid, with enhanced capabilities for
automation, adaptability, and decision-making.
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The Intelligent grid is the future of electric power distribution. It is a

system that uses information and communication technologies to gather
and analyze data about the electricity system and then make decisions
about how to operate it to improve its performance.
What Is the Goal Behind Creating

an Intelligent Grid?
An intelligent grid aims to make the electricity system more reliable,
efficient, and sustainable. For example, an intelligent grid can help
utilities avoid blackouts, restore power faster after outages, and integrate
renewable energy sources into the grid.
What Are the Components of an Intelligent Grid?

An intelligent grid comprises many components, including smart meters,
sensors, and advanced software. Smart meters measure the electricity a
customer uses and then send that information back to the utility.
Additionally, sensors measure various aspects of the electric grid, such
as voltage, current, and temperature. Advanced software is used to analyze
the smart meters and sensors data to make decisions about how to operate
the grid.
What Are the Benefits of an Intelligent Grid?

The benefits of an intelligent grid include improved reliability, efficiency,
and sustainability. An intelligent grid can help utilities avoid blackouts,
restore power faster after outages, and integrate renewable energy sources
into the grid. In simple terms, the future grid will be like a networked
computer system that uses software, sensors, and artificial intelligence to
regulate the flow of electricity.
26
What Is the Difference Between a Smart Grid

and an Intelligent Grid?
The smart grid is a system that collects data and works to balance the
electricity supply and demand. On the other hand, the intelligent grid is
a system that actively responds to changes in the electricity grid to avoid
or reduce the need for grid balancing. The ability of the intelligent grid to
self-heal and actively react to changes in the electrical grid is the primary
distinction between the intelligent and the smart grid. In other words, the
intelligent grid is designed to avoid the need for grid balancing.
This difference may seem subtle, but it’s a crucial distinction. With
the smart grid, grid operators must step in when the system needs
balancing. This necessitates more time and money. Additionally, it makes
blackouts more likely. Grid operators no longer need to intervene, thanks
to the intelligent grid. A two-way communication technology called the
intelligent grid gives users more control over how and when power is
delivered. The system enables utilities to monitor and remotely control
electricity demand, gather consumer usage information, and evaluate the
likelihood of energy shortages at various times of the day. It also enables
customers to manage their energy use and receive real-time feedback
about their power usage during different times of the day, allowing them to
cut back on unnecessary usage during peak times.
The grid is evolving into what’s known as “the intelligent grid.” This
transformation occurs as the grid connects with an increasing number of
intelligent devices that can exchange data and communicate with one another.
The grid is becoming more dynamic and adaptive due to the increased
connection, and it can now be managed by software. Grid edge devices – such
as solar panels, electric vehicles, and battery storage systems – are increasingly
capable of responding to changing conditions. The grid becomes a network
when more and more devices can communicate with one another, creating
new opportunities. AI will power the future intelligent grid. Moving away from
the smart grid and building the new intelligent grid is the way to go.
27
Connected Microgrid
The world has seen a spike in the number of natural disasters and power
outages in the recent past. Storms, floods, and droughts are becoming
worse and more frequent because of climate change. This puts millions of
lives at risk and causes billions in damage. Interconnected microgrids can
help in reducing these vulnerabilities. During power outages, they enable
communities to keep their lights on. When there are blackouts, they offer a
backup power source. They allow communities to rely less on centralized
power networks and change over to distributed energy systems.
Microgrids are grids comprising several small energy sources, such
as solar panels, battery packs, and small-scale wind turbines. They can
be connected to the traditional grid or operate independently of it. As the
world switches to cleaner energy sources, their importance is growing. In
a microgrid, electricity can be generated in real-time to fulfill the demands
of the system’s users from a variety of small units, such as rooftop solar
panels. Some microgrids are designed to function as self-sufficient energy
systems that can keep critical loads operating in the event of an outage on
the main grid.
We may anticipate increased microgrid development soon as cities
and countries look to lessen their reliance on centralized power plants.
Additionally, we can anticipate the development of “virtual power plants,”
which are microgrids built to work in tandem to ensure that the system has
adequate generating capacity to satisfy consumers’ demands.
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Community and Consumer

What Is a CCA?
A Community Choice Aggregator (CCA) is a local government entity
that aggregates the electric energy requirements of its residential and
commercial customers to secure lower-cost, cleaner energy supplies from
energy service providers (ESPs).
How Does CCA Operate?

CCAs are created through legislation at the state level and are thus far
only operational in California. To become a CCA, a city or county must
first express interest to their state’s energy commission. Once the state
commission approves the formation of the CCA, the local government
needs to develop an implementation plan.
The first step of this plan is to develop the CCA’s governing board,
which is typically made up of representatives from the local community.
Once the board is in place, the CCA can develop its energy generation
plans or procure energy from ESPs.
What Are the Benefits of CCA?

CCAs provide their communities with several advantages. Because CCAs
can aggregate their customers’ energy needs, they can negotiate for lower
energy rates. Additionally, CCAs can obtain their energy from more
sustainable, renewable sources. This can help to reduce the community’s
carbon footprint and improve local air quality.
CCAs also offer customers more choices and control over their energy
service. Customers can opt out of the CCA service, but they will still benefit
from the company’s reduced energy prices. In addition, customers can
participate in the CCA’s demand response programs, which can further
29
lower their energy costs. Since the creation of CCAs is a recent development
in the energy sector, several issues must be resolved. One of the biggest
challenges is ensuring the CCA has enough customers to negotiate
competitive energy rates. Another challenge is ensuring that the CCA has
the financial and technical resources necessary to implement its plans.
Despite these challenges, CCAs offer a unique opportunity for
communities to take control of their energy future. By cooperating,
communities may achieve more affordable, environmentally friendly
energy sources to benefit all locals.
Evolving Regulation
The electricity industry is constantly evolving, and so is the regulation
surrounding it. This transition is fueled by several variables, including
technological advancements, modifications to how power is produced and
used, and the emergence of new market competitors.
The laws that control the industry must change as the industry
itself does. Many players, from government organizations to business
entities, are competing for a role in how the energy sector is governed
in this complex and dynamic environment. There are considerable key
issues currently being debated when it comes to regulating the electricity
industry. These include the role of renewable energy, the future of coal-
fired power plants, and the role of new technologies like battery storage.
As more nations seek to lessen their dependency on fossil fuels,
renewable energy is becoming more and more significant in the electricity
sector. This has led to a debate about the role of renewable energy in the
electricity sector and how it should be regulated.
Coal-fired power plants are a significant source of greenhouse gas
emissions, and there is an ongoing debate about whether they should be
phased out. This is a complicated problem; many entities are involved,
from government organizations to business leaders.
30
The rise of new technologies, like battery storage, is also changing

the landscape of the electricity sector. As a result, there is a discussion
regarding how these technologies should be regulated because they are
frequently not fully understood.
From Consumer to Prosumers

A prosumer is someone who both consumes and produces a good or
service. Most individuals used to be consumers who exclusively used
their utility providers to buy power. However, as solar energy and other
renewable energy sources gain popularity, more people are becoming
prosumers who produce their electricity and sell it back to the grid. There
are many benefits to becoming a prosumer. First, it can save you money
on your electricity bill. You can make money by selling the extra electricity
you produce back to the grid if you produce more than you need. Second,
it can help to increase the stability of the grid. Large, centralized electricity
plants are not as necessary when there are more prosumers. This can lead
to a more robust and reliable electricity grid.
Finally, it can help to reduce your carbon footprint. Because solar
energy and other renewable energy sources emit relatively little carbon
dioxide into the atmosphere, producing electricity can help you reduce
environmental impact. If you are interested in becoming a prosumer,
there are a few things you need to do. First, you need to install solar panels
or another form of renewable energy generation. Second, you need to
purchase a net meter from your utility provider. This will allow you to
sell any excess electricity you generate back to the grid. To reduce your
electricity use, you must be sure that you are employing energy-efficient
activities and appliances in your home. The transition from electricity
consumer to prosumer is a great way to save money, help the environment,
and increase the grid’s stability. If you want to become a prosumer, start by
installing solar panels and purchasing a net meter.
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Eliminating Energy Poverty

Energy poverty is a pressing global issue that needs to be addressed. It is
defined as the lack of access to clean, affordable energy. This means that
many people do not have access to the electricity they need to power their
homes and their lives.
Energy poverty is a significant problem because it is one factor keeping
people trapped in a cycle of poverty. It is hard to escape poverty if you
cannot even afford to pay for basic needs like electricity. Energy poverty
also has a huge impact on health. People who do not have access to clean
energy are more likely to get sick and die from preventable diseases.
There are many ways to eliminate energy poverty. One way is to
provide access to clean, affordable energy. This can be done through
initiatives like solar power or wind power. Helping people reduce their
energy costs is another strategy to end energy poverty. This can be
accomplished by offering incentives for energy-saving appliances or by
implementing energy efficiency initiatives. It is important to note that
energy poverty is a worldwide problem, not just for developing countries.
It is also a problem in developed countries like the United States. Many
people in the United States cannot afford to pay their energy bills. This is
why it is important for developed countries to also take action to eliminate
energy poverty.
There are many ways to eliminate energy poverty. However, it is an
important issue that needs to be addressed.
Inventing New Business Models

The recent rise in population, industrialization, and other factors have
contributed to increased energy demand, which, when coupled with rapid
expansion in distributed energy sources and renewable energy, means the
utility industry has to evolve and adapt. Creating new business models that
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are more effective and efficient than existing ones is one method to do this.
This can be done by studying the current models and looking for ways to
improve them.
Some of the most successful business models in the utility industry
are the ones that focus on customer service and satisfaction. Others have
been able to reduce costs by implementing new technologies. At the
same time, some others have succeeded in raising profits by developing
fresh strategies for advertising their products. Whatever the situation, it
is obvious that the utility sector has a lot of room for innovation. Utilities
must continuously search for fresh approaches to enhance their business
models if they are to succeed. They must also be willing to take risks and
experiment with new ideas. Only by doing this will they be able to stay
ahead of the curve and remain successful in an ever-changing industry.
Energy As a Service
Energy-as-a-service (EaaS) refers to a new business model in which energy
is provided as a service rather than a product. In this model, customers pay
for energy use rather than for the purchase of energy products. Energy-
as-a-service (EaaS) is a business concept in which clients pay for an
energy service without making any initial capital investment. EaaS models
typically take the form of a subscription for a service company’s electrical
devices or control of energy usage to supply the desired energy service.
The EaaS model has emerged in response to the growing need for
cleaner, more sustainable energy sources. The conventional energy
business model is no longer viable as the globe switches from fossil fuels
to renewable energy. With the EaaS paradigm, energy suppliers may
give their clients affordable access to clean, sustainable energy. Many
companies, including Google and Microsoft, have already adopted the
EaaS model. These companies have invested in clean energy projects, such
as wind and solar farms, and then sell the energy they produce to their
customers.
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The EaaS model has various benefits for both energy providers and
consumers. It enables energy providers to access a new source of income.
It makes clean, sustainable energy more affordable for customers. The
EaaS model is still in its early stages, and it remains to be seen how it will
evolve. However, it can fundamentally alter the energy sector and give
everyone access to a more sustainable and reasonable future.
Energy Marketplace
In the future, the energy marketplace will be very different from today’s.
Many new energy sources will be available, and buying and selling energy
will be done more flexibly. One of the big changes will be the emergence
of new energy sources, such as solar, wind, and geothermal. These
renewable sources will make up a much larger share of the energy mix as
they become more cost-competitive with traditional sources like coal and
natural gas.
Another change will be the way that energy is bought and sold. Most
energy is currently sold through long-term contracts, but the energy
market will be much more flexible. Consumers will be able to choose from
a variety of energy providers and purchase energy in real time based on
their needs.
The future energy marketplace will be more dynamic and flexible,
giving consumers more choice and control over their energy use.
Microgrid As a Service
Microgrid-as-a-Service (MaaS) is a new business model for deploying
microgrids. In this model, a microgrid operator or developer offers a
customer a microgrid solution as a service rather than a tangible good.
The customer pays for the service, typically monthly, and the microgrid
developer or operator is responsible for the microgrid’s performance.
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Customers can benefit from the microgrid-as-a-service concept in

several ways. First, it reduces the up-front cost of deploying a microgrid by
eliminating the need to purchase equipment. Second, it provides a lower
overall cost of ownership since the microgrid developer or operator is
responsible for the maintenance and operation of the microgrid. Third, it
offers customers flexibility regarding how much they use the microgrid –
they can pay for only the electricity they use rather than purchasing a fixed
amount of capacity.
Since it offers a new revenue source and a method to distinguish
their microgrid solutions, the microgrid-as-a-service model also appeals
to developers and operators. In addition, under this model, developers
and operators can better manage the risk associated with deploying a
microgrid since they are not responsible for the entire project.
The microgrid-as-a-service model is still in its early stages, and
several challenges need to be addressed before it can be widely adopted.
First, the business model needs to be proven – many pilot projects are
underway, but it will take time to see whether they are successful. Second,
the regulatory environment needs to be clarified – currently, there is
no clear regulatory framework for microgrids in many jurisdictions.
Third, financing needs to be put in place to support the development of
microgrids-as-a-service.
Despite these challenges, the microgrid-as-a-service model has the
potential to revolutionize the way microgrids are deployed. Furthermore,
by making microgrids more accessible and affordable, this model could
help to accelerate the transition to a clean energy future.
Due to the rising need for convenient and sustainable transportation
options, the MaaS concept, which combines numerous forms of
transportation into a single, helpful service, has recently gained a lot
of attention. According to a report by MarketsandMarkets, the global
MaaS market is expected to reach $1005.8 billion by 2030, growing at a
compound annual growth rate of 23.5% from 2021 to 2030.
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Several factors, including the increasing adoption of electric and

autonomous vehicles, the rise of shared mobility services, and the growing
demand for sustainable transportation options, are driving the growth
of the MaaS market. In addition, because of their rapidly urbanizing
populations, nations like China and India, undergoing significant
industrial expansion, are anticipated to fuel the need for MaaS. According
to the EIA (Energy Information Administration), India and China will
account for half of the world’s total increase in energy consumption by
2040. This industrial development is propelling the global energy industry
and boosting the microgrid demand.
Connected Energy Services

In the future, energy services will be more connected than ever before.
This will allow for more efficient use of resources and improved
coordination between energy service providers.
One example of a connected energy service is a smart grid. A
smart grid is an electricity network that uses digital technology to
deliver electricity more efficiently and reliably. It also enables two-way
communication between the electricity provider and the customer. As
a result, customers can receive advice on saving energy and real-time
information about how much energy they use. Another example of a
connected energy service is a demand response system. Using financial
incentives to encourage consumers to use less energy during peak
demand periods, this approach aids in managing the electricity demand.
This can help to avoid blackouts and reduce the need for expensive new
power plants.
The future of energy services will likely be more connected, efficient,
and responsive to customer needs. This will help to create a more
sustainable and affordable energy system.
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Key Takeaways
• Utilities will play a critical role in making our planet
sustainable by providing clean energy, water, and waste
management solutions.
• The Intelligent Energy Ecosystem would be powered by
various energy sources, including renewable sources
such as solar and wind power. Additionally, it would
leverage already-built energy infrastructure, including
the electrical grid. The ecosystem would be designed
to be flexible and adaptable so that it could respond to
changes in energy demand and supply.
• Several community and consumer groups actively
promote renewable energy and energy efficiency, and
some are working to develop new business models for
community-owned renewable energy. These groups
can be important partners for utilities in developing
and implementing new business models.
• As consumers become less loyal to the traditional
utility model and establish more direct connections
with power producers in the form of solar, wind, and
other distributed generation, utilities will have to adapt
to keep up with the times.
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CHAPTER 3
Utilities Building
Digital DNA
As technology advances and the digital landscape continues to evolve;
utilities must adapt to remain competitive and secure. To succeed in this
rapidly changing environment, many utilities are turning to the concept
of building Digital DNA – a set of strategic objectives that can be used to
improve their operations and increase customer satisfaction. This chapter
will provide a comprehensive overview of Digital DNA, exploring its core
elements and the benefits it can bring to utilities. It will also introduce the
key strategies and tools utilities can use to implement Digital DNA and the
challenges they may face along the way. Finally, it will discuss how Digital
DNA can be used to create a more secure and reliable utility for customers.
By the end of this chapter, readers will have a better understanding of what
Digital DNA is and how it can help utilities to better serve their customers.
Digital DNA
Our DNA contains the information that characterizes our life and tells the
tale of it. This is an important element of any progress. Utility companies
are undergoing a significant transformation, and to succeed on this path,
their DNA must be changed to resemble oil. To change one’s DNA, one
must abandon one’s old ways of thinking and adopt new ones. Hence,
rebuilding the legacy infrastructure, upskilling its people, migrating to the

CHAPTER 3 UTILITIES BUILDING DIGITAL DNA
cloud, and many more. This is not a destination; it’s a journey that needs
to be started as soon as possible if the utility company wants to be relevant
in the future. Building utilities of the future requires rebuilding its DNA
with digital technologies. I’ll talk about some of the critical elements of this
digital DNA in this chapter.
Cloud Continuum for Utilities

Adoption for utility companies brings many benefits, such as improved
operational efficiency, increased data security, real-time monitoring, and
reduced costs.
With the steady acceptance of infrastructure and software solutions,
many utilities have already started their cloud journey. However, creating
a corporate cloud strategy has proven challenging. Those obstacles,
however, are surmountable. Concerns about security, data, and control
are largely figments of the past. A comprehensive strategy that integrates
new technology with the new working practices that cloud computing
offers to the company is necessary to attain value. Moreover, the cloud
may be at the heart of raising utilities to a bigger role, speeding energy
transformation, and meeting corporate sustainability goals.
IT operational paradigms in utilities are under pressure to undergo a
drastic transformation.
COVID-19 has heightened the importance of the utility cloud
imperative. As utilities attempted to manage uncertainty and migrate
to a different operating model, the scalability, resilience, flexibility, and
accessibility of the public cloud became far more appealing in weeks.
The utility executives evaluate the prospective new landscape and
monitor the public cloud’s outstanding performance in recent months to
determine when to scale up their utility enterprise cloud plan. One of the
main drivers of AI adoption in the utility sector will be the cloud.
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Cloud Strategy
Cloud investments deliver results. However, realizing the full advantage
of cloud computing might be tricky. Utilities must have a clearly defined
strategy if they want to fully grasp the value of the cloud. Cloud strategy can
be seen as a process or a series of necessary steps to achieve your desired
results. It can be a simple process or a detailed plan of action to get to your
desired destination. A cloud strategy is a practical guide that can be used
by businesses and individuals to make the most of cloud technologies.
The following are the primary steps in creating a cloud strategy. First,
assess your current situation – what are your business or organization’s
current problems and issues? What are the main goals that you want to
achieve? Next, define your target – what is the desired outcome or result
you want? Next, decide on a cloud approach – what approach should you
take to achieve your goals? What technologies should be used? Finally,
implement the strategy – what steps should be taken to implement
the plan?
To ensure your company thrives in a cloud-based world, you must
develop a strategic approach to cloud adoption. By adhering to these five
essential components, you can develop an enterprise-grade cloud strategy
that offers genuine value to your company:
1. Assess your organization’s readiness for cloud
computing. There is no defined “right” time to
make the switch, but a few things to consider before
you leap.
2. Define your goals for the cloud. Because each

cloud implementation is unique, you should choose
what you want to achieve before you begin.
3. Research vendors and select a partner. You’ll need
something to jump-start your migration, so you
can’t just dive in headfirst.
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4. Create a detailed plan. You can’t just make this

switch without a plan in place. You will want a
detailed plan to ensure everything is covered.
5. Communicate your plan, goals, and vendor
selection to your team. You don’t want people
caught off guard when the switch happens.
Modernizing Decade-Old Infrastructure

A few advantages of cloud computing for utility organizations include
agility, scalability, and cost savings. However, most of the software
used by utilities companies is over ten years old. It’s usually written in a
programming language that the vendor no longer supports.
Upscaling your data centers with cloud technologies like server
virtualization, containers, open source software, and artificial intelligence
(AI) can help companies improve their operational efficiency, cut costs,
and reduce the risk of outages. These technologies allow companies to
transfer their data from on-site data centers to the cloud. Companies that
use the cloud can scale their resources up or down as needed. They also
receive regular updates and patches to protect their data and applications
from cyber threats.
Develop Cloud Talent

Any company’s growth and development depend on hiring new talent, but
in cloud computing, it is more crucial because success depends on a team
with specialized knowledge and expertise. A company can implement
various practices to grow its talent and improve its hiring processes to
acquire the best staff possible. The cloud offers utility companies many
advantages but also presents some challenges. Finding and nurturing the
talent the sector needs to compete in the digital age is one of the significant
problems.
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The utility industry has traditionally been a laggard in adopting new

technologies. This has led to a lack of technical expertise within the
industry. However, as the industry looks to the cloud to support its digital
transformation, it enables new business or operating models, helps new
entrants disrupt the sector, and empowers incumbents to reach new
performance levels.
There are several ways in which utility companies can develop cloud
talent. One of the most effective methods is to partner with educational
institutions that offer cloud-related courses and programs. By partnering
with these institutions, utility companies can ensure their employees have
the necessary skills and knowledge to support digital transformation of the
industry.
Investing in internal training and development initiatives is another
option for utility businesses to cultivate cloud expertise. These programs
can help employees to gain the skills and knowledge they need to support
the industry’s digital transformation.
Finally, utility companies can also look to external sources to help
them develop cloud talent. The sector’s digital transformation can be
supported by several businesses that provide cloud-related services.
Utility firms can collaborate with these businesses to obtain access to the
expertise and assets necessary to compete in the digital era.
Re-invent Your Legacy Applications

Businesses that are prepared to invest more time and money in their cloud
migration may see it as a chance to update and enhance the architecture
of their applications. These companies can use one of two broad strategies.
The first technique is a sort of medium ground. Businesses must identify
key aspects of their software incompatible with the cloud hosting provider
and provide enough resources to optimize those areas to fully profit from
cloud computing. There are no fundamental changes, only optimizations.
The freshly improved program is then moved to the cloud hosting service.
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This strategy is more expensive than the traditional lift-and-shift method,

but it removes the more significant inefficiencies that might occur from
just rehosting your application.
The second strategy is opposed to the lift-and-shift method. Instead,
businesses must rethink, rebuild, and rearchitect their applications to
effectively use cloud-native capabilities. Similarly to the previous way, the
organization initially identifies areas where their application might benefit
from cloud hosting services. Still, unlike the prior method, these areas can
be more extensive in scope and encompass fundamental functionality.
During this stage, they may discover that just one-third of their
architecture needs restructuring. They may also understand that almost
all of it does. They then assign sufficient resources to carry out the refactor.
This method necessitates the greatest up-front time and money due to the
possibly vast scale of the project. However, for some businesses, it might
result in lower ongoing costs, resulting in long-term financial savings.
For example, if an application utilizes logic that takes a significant
number of resources to process and stores its data, transferring the program
to the cloud with that logic intact might cost the company a lot of money.
The cloud hosting service frequently provides a more efficient solution
for an application to achieve the same goal. A company loses a substantial
sum of money each month if it does not redesign its program to adopt
that more effective method. Most cloud hosting systems have to scale
functionalities; thus, if an application is already completely compatible
with the cloud hosting platform, growing swiftly while retaining
application quality should be straightforward.
Data As Electricity
Data is the new electricity and is being generated in more significant
quantities than ever before. Due to technological advancements,
businesses and consumers are collecting and storing data at
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unprecedented levels, and the growth rate shows no signs of slowing.

Unfortunately, data is not a utility we can turn on when needed. There is
no data switch to be flipped. As a result, just like managing their physical
assets, businesses and government organizations must think carefully
about managing their data assets. Data is the fuel that powers AI, and
utilities are no exception. In the utility sector, artificial intelligence (AI) and
machine learning evaluate data from meters to maximize energy efficiency
and save customer costs. In addition, AI can predict equipment failure and
maintenance needs. It can also be applied to data from weather forecasting
models to determine the best operating settings for the utility company’s
power plants.
Many industries use it to increase operational effectiveness, cut costs,
and open new business models. For example, data is used in the energy
industry for various purposes, including smart grids, energy storage,
smart appliances, and energy management systems. Data is increasingly
becoming a critical input to energy systems and processes, playing a
pivotal role in shaping the future of energy. Utilities are trying to develop
their data strategy, which will be essential to their digital DNA.
Building a New Data Foundation

As the world becomes increasingly connected, the volume and variety
of data generated by sensors and devices only grow. From smart grids
to connected homes, data is being generated, collected, and stored in
significantly greater quantities and at increasing velocity, creating a data
deluge. In the age of big data, organizations, governments, and people
must be able to interpret data sets and transform them into useful
information. There is a wide range of potential applications for data
analytics in the utility industry, from managing demand to improving
reliability and creating new customer offerings. However, to make the most
of data, utilities must be able to trust their data.
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A new generation of products and services that improve people’s

decision-making around their energy consumption is built on data. For
example, utilities can use data to help customers save money on their
bills and keep their homes warm during the chilly winter. And by tracking
performance and identifying issues before they result in outages, data
may also assist utilities in keeping their systems operating as efficiently as
possible.
Smart meters generate huge amounts of data, but just having data is
not enough. You need the right data at the right time to drive your business
forward. So, you need a data foundation that can collect, store, process,
and make sense of data from any device, format, or scale.
Data As a Service
Given the increasing global adoption of distributed and decentralized
energy resources like solar and wind, a new level of communication and
data management across all energy stakeholders will be necessary. We
are witnessing the quick development of data-driven energy technology,
which will necessitate greater data literacy and transparency from utilities,
regulators, consumers, and other stakeholders in the energy ecosystem.
Providing a common framework for data exchange, data integrity, and
interoperability will be essential to the energy ecosystem.
Data can be the basis for new services that improve the efficiency of
utility companies and their customers. For example, data from sensors on
smart meters can be analyzed to predict power outages, track equipment
maintenance needs, or remotely monitor the health of utility employees.
Customers can benefit from data-driven services such as usage-based rate
plans or products that offer incentives for energy conservation. Data-driven
services require trust, which is greatly enhanced by adopting data standards.
Data is the new oilO, and utilities are the perfect example. Smart grids,
the Internet of Things (IoT), and other technologies that collect data can
be immensely valuable and only increase in value. Data is what powers the
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machine-to-machine communication that enables smart grids, and data

is vital to the analysis that determines the ideal settings of each machine.
Therefore, utilities have an excellent reason to collect data and can
monetize it by hosting it in the cloud.
Monetizing Data
Data has a monetary value, especially in the utility industry. It can be
used to improve operational efficiency and save money. Additionally, it
can be utilized for data-driven marketing initiatives like focused energy
efficiency campaigns. Utilities have an intimate understanding of their
customers’ energy usage patterns, which can be used to tailor marketing
campaigns. For example, an electric utility company may sell a program
for customers to install energy-efficient LED lighting in their homes. Since
the utility company has access to information about the power usage of
each home, it can create a marketing campaign to reach out to customers
who generally use more power during certain hours.
Data can be the basis for new services that improve the efficiency of
utility companies and their customers. For example, data from sensors on
smart meters can be analyzed to predict power outages, track equipment
maintenance needs, or remotely monitor the health of utility employees.
Data-driven services like usage-based pricing plans or goods that provide
energy-saving incentives might benefit customers. Data-driven services
require trust, which is greatly enhanced by adopting data standards.
Data-driven utilities collect data at every stage of the electricity
consumption: generation, transmission, distribution, consumption, and
even at consumption endpoint. This data can be monetized by offering it
to a third-party service provider, who can analyze it and provide value-
added services. For example, an energy management system collects all
data about the consumption and usage of electricity, which are then sold
to third-party clients.
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Intelligent Enterprise
Utilities’ Strategic Priorities Focus on Operating as Intelligent, Sustainable
Enterprises to Drive Innovation and Resilience in the Energy Sector.
Innovative utility companies successfully operate within their traditional
business model of producing, delivering, and selling energy while looking
for new income sources and business outcomes. The following success
methods demonstrate various techniques based on the evolution of
existing goods and processes and the exploration of disruptive new
business models. Transforming the ERP code is essential for evolving as
an intelligent enterprise. Transformation involves three main elements
discussed below:
Transform the Core

The transformation of the core business systems like ERP (enterprise
resource planning refers to software organizations’ use to manage day-
to-day business activities such as accounting, procurement, project
management, risk management and compliance, and supply chain
operations) can help utilities to become more efficient and customer-
focused. Some of the main benefits of transforming the core business
systems can be improved operational efficiency: operational efficiency is
the main goal of ERP implementation. By automating daily tasks, lowering
human labor and mistake rates, increasing information visibility, etc., ERP
deployment will enhance operational efficiency. Visibility of information:
ERP will help increase information visibility to various stakeholders. Ease
of doing business: ERP implementation will make it easy to do business
with the utility company. Investment protection: ERP implementation
will also help increase investment protection by reducing the risk of
obsolescence.
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Secure Your Footprint

To safeguard your brand and company from online dangers, securing your
ERP footprint is crucial. In addition, ERP is an essential component of
your company’s infrastructure; keeping it safe should be one of your top
priorities. ERP software manages the flow of data that keeps your business
running, such as purchasing, inventory, and shipping.
Utility companies carefully monitor usage and load patterns, and they
can detect a sudden increase in load on a network that indicates a possible
data breach. They can shut down the network to protect their customers
if they detect an unauthorized load. That’s bad news for your company
if it cannot access important data during that time. This is where an ERP
solution comes into play. If your company uses an ERP system to track
and manage its data, it can set up rules that will cause the system to shut
down the network if it detects a sudden spike in load. When you consider
the possible consequences of a data breach, it may be worth a few hours of
employee downtime.
Embrace Applied Intelligence

Enterprises are driven to innovate and expand using social, mobile,
analytics, cloud, and artificial intelligence (AI) technologies. More and
more enterprises are using these technologies. When starting with the
customer interface, such as a mobile app or web self-service portal, it
is also important to redesign core processes. Companies increasingly
recognize that overhauling their core processes is as (if not more)
important than overhauling their core, which is often made up of
enterprise resource planning (ERP) applications deployed in the 1980s
or 1990s. Every user interface and business process requires data from
this core source. Embracing applied intelligence in the enterprise code is
essential for evolving as an innovative utility company.
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Intelligent Operation
Intelligent operation of the grid has the potential to create significant value
for the electricity system, helping to support the stability of the grid and the
delivery of reliable power to customers. In addition, it enables utilities to
reduce operating costs by optimizing their use of assets, such as generating
units, power plants, and transmission lines. The intelligent operation can
be achieved by adopting various technologies, such as smart meters, data
analytics, and distributed generation and automation technologies.
Automate at Scale
Enterprise-wide automation cannot be accomplished by a haphazard
assembly of citizen coders or several departmental teams experimenting
with a range of automation techniques. Instead, to achieve top-line growth
or bottom-line performance through scale automation, companies must
invest in skills, organizational structure, and technology.
Automation at scale refers to a company’s ability to obtain tangible
business benefits from applying automation technology to the smallest
task in a single department and the largest processes across the firm.
Unfortunately, the promises of automation vendors frequently hypnotize
IT and business leaders, leading them to concentrate on choosing
specific tools at the start of their automation initiatives while ignoring or
postponing investments in the crucial organizational structures and skills
needed to realize strategic business benefits.
A haphazard mixture of citizen developers or a piecemeal
accumulation of departments experimenting with various automation
tools cannot achieve enterprise-wide automation. To drive top-line growth
or bottom-line performance via automation at scale, companies must
invest in the following skills, organizational structure and technology.
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Site Reliability Engineering

Site reliability engineering (SRE) is a software engineering branch that
focuses on maintaining high reliability in hosted software systems.
Standardization and automation are two important components of the SRE
model because they help ensure reliability and scalability of systems and
services. SRE combines engineering best practices, processes, and people
focused on reliability. To satisfy customer expectations and maintain high
dependability despite any unforeseen load or other stressors, software
systems must be designed and operated with this goal in mind. The site
reliability engineering practice will be very important for utility companies
to evolve as modern power supplier. Site reliability engineering is vital
for managing the current applications that utilities will build using cloud,
data and AI.
SRE helps teams balance releasing new features and ensuring
reliability by using a data-driven, reliability-focused approach to software
development and operations and continuously monitoring and improving
the reliability of systems and services.
1. Reliability-focused: SRE teams prioritize reliability

and stability over the release of new features,
ensuring that systems and services are designed,
built, and operated with a focus on minimizing
downtime and ensuring high availability.
2. Data-driven: SRE teams use data and metrics to

inform their decisions and continuously improve
the reliability of systems and services. This helps to
identify and resolve issues more quickly and make
informed decisions about balancing the release of
new features with the need for reliability.
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3. Collaboration: SRE teams work closely with

development teams to ensure that new features are
designed and implemented in a way that does not
compromise reliability. This helps to ensure that the
release of new features is aligned with the overall
goals of the organization.
4. Continuous improvement: SRE teams continuously
monitor and improve the reliability of systems and
services, using data and metrics to inform their
decisions and make improvements over time. This
helps to maintain the balance between releasing
new features and ensuring reliability over time.
Operational Analytics
Operational analytics is collecting and using data from your systems to
make better business decisions. It applies to almost all business sectors
and job functions, from supply chain management to public safety. The
data that’s being collected can be anything from system performance
metrics to event logs. Operational analytics is commonly used for process
optimization, compliance, anomaly detection, and real-time analysis.
The New IT Operating Model

The modern utility industry is under pressure like never before. New
technologies are changing how energy is produced, distributed, and
consumed while raising consumer expectations. This results in a perfect
storm of change for utilities, and they must adapt or risk being left behind.
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Fortunately, a new operating model is gaining traction in the industry,

and it holds the promise of helping utilities survive and thrive in this new
era. This model is known as the New IT Operating Model, and it is based
on four key pillars:
1. Cloud-First: The New IT Operating Model is built
on a cloud-first philosophy. All new applications
and services will be designed for the cloud from the
ground up. This will allow utilities to take advantage
of the many benefits that the cloud offers, such as
scalability, flexibility, and cost savings.
2. Agile and DevOps: The New IT Operating Model

is also built on an agile and DevOps approach. This
means new applications and services will be developed
iteratively and incrementally, focusing on speed and
agility. This will allow utilities to respond rapidly to
changing customer needs and market conditions.
3. Data-Driven: The New IT Operating Model is also
data-driven. This means that all decisions will be
based on data and analytics. This will allow utilities
to make better decisions about where to invest their
resources and how to optimize their operations.
4. Customer-centric: The New IT Operating Model is
also customer-centric. This means that all decisions
and actions will be taken with the customer in
mind. This will allow utilities to improve customer
satisfaction and loyalty.
The New IT Operating Model is not a silver bullet but offers a path
forward for utilities looking to survive and thrive in the new era. The New
IT Operating Model is worth considering if your utility is looking to adapt
to the changing landscape.
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Embrace Agility
Utility companies have historically been more safety-focused and resistant
to change. Many utilities have a fortress mindset that prevents fresh ideas
from being implemented. Companies still rely on conventional (and
usually one-dimensional) methods of getting market intelligence since
their infrastructure is frequently undeveloped in the age of information
networks and crowdsourcing. It may be easier for a company to implement
agile software development if it is accustomed to traditional development.
It may appear chaotic or out of control, yet this is not the case. It’s a
different style of thinking that enables a team to respond to rapidly
changing needs while still delivering functional software throughout the
process.
Early client involvement, quick feedback loops, and iteration
contribute to agile development’s ability to produce more reliable and
superior products. In addition, it enables the product to adapt swiftly and
efficiently to changing requirements to stay ahead of the industry’s needs.
Consequently, utilities gain from having instant access to new features and
increased functionality.
While agile software development is not a panacea, it can better
position utilities to capitalize on future software developments like
machine learning, artificial intelligence, and even virtual reality. In the
world of software and technology, the only constant is change. In addition
to providing what utilities currently require, Clean Power Research also
gives them the flexibility to satisfy rising energy-related demand in the
future. Utilities may benefit from AI by automating repetitive, high-volume
processes, allowing project analytics for estimation and risk prediction,
generating actionable suggestions, and even making judgments.
AI has the potential to revolutionize agile development by accelerating
productivity and increasing project success rates. AI technology can be
used to assist in the management of agile projects. Embracing agility can
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assist utilities in shifting because their company changes quickly, and stop
ports adapt swiftly to changing customer demands. Artificial intelligence
will play an important role in this journey.
Talent Transformation
A utility can only go far with its technology, infrastructure, and service
investments. True and lasting transformation is only possible with
organizational agility, employee expertise, innovation, and creativity.
As the power and utilities (P&U) industry transitions to a decarbonized,
digital, and decentralized future, organizations compete for the talent
required to drive business change and foster collaborative cultures capable
of thriving in a more complex, competitive market. This talent war is a
huge challenge.
Various factors shape the future of utilities, and there is no one formula
for success. Additional hurdles are created by societal developments
connected to the future of work, such as a generational shift in the
workforce and the influence of digitalization and automation on jobs.
In addition, the emergence of environmental, social, and governance
(ESG) investment and new Securities and Exchange Commission rules
for human capital disclosure bring new obligations and a greater need for
openness.
Human capital management and culture are at the forefront of
corporate governance concerns and the keys to generating long-term
value for all stakeholders as the industry seeks to address the difficulties of
today’s changing economy.
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Intelligence will be embedded in everything utilities will do in the

future. The utility industry’s entire value chain would require engineers’
expertise in AI, machine learning, and data analytics. Tech skills also
need to democratize business roles as well. Intelligence will automate
and augment many traditional human-focused roles in the utility
industry. Human+Machine working together would be the foundation of
future talent.
Human+Machine – Augment Human Talent

There is a phenomenon in robotics and artificial intelligence called the
“uncanny valley.” This phenomenon describes the discomfort or revulsion
some people experience when encountering a machine that is almost, but
not quite, like a human.
The theory behind the uncanny valley effect is that as machines
become more human-like, our expectations and evaluations of them
change. For example, when they are very different from humans, they are
seen as cute or charming, but as they become more human-like, they can
cross a threshold into the “uncanny valley,” where they are seen as creepy
or unsettling.
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The uncanny valley effect has important implications for developing

robots and artificial intelligence. It suggests that there may be limits to
how human-like machines can become before they become off-putting to
people. To avoid the uncanny valley, designers and engineers may need to
adopt alternative approaches that do not rely on creating highly human-
like machines.
Augmenting human talent would be necessary to meet the future’s
skill demand. Traditional workforces need to be reskilled, upskilled, and
powered by AI. Augmenting human talent with AI is highly necessary for
the utility industry to support not only the increasing workload but also to
gain business efficiency safety and the climate resiliency in the future.
AI replacing humans in the workplace is a complex and highly debated
topic that raises important social, economic, and ethical questions. As
AI advances, it will be important for policymakers, business leaders, and
the public to engage in an informed and nuanced discussion about the
potential benefits and risks of AI and how it can be used to create a more
equitable and sustainable future.
It’s worth noting that the CEO of Facebook, Mark Zuckerberg, has
publicly spoken about the role of artificial intelligence (AI) in the future
of work and has acknowledged that AI will likely play an increasingly
important role in many industries. He has also stated that AI will bring
about many benefits, such as increased productivity, improved safety, and
new forms of communication. However, he has also acknowledged the
potential downsides of AI, such as job displacement and the need for new
skills and education to adapt to the changing workforce.
In general, Mark Zuckerberg has a positive view of the role of AI in
the future. Still he also recognizes the need for careful consideration of
the implications of AI and the need to address the potential downsides
responsibly and thoughtfully.
Like those chess-beating computers designed to be smart, they didn’t
just learn it. Instead, chess-beating computers rely on artificial intelligence
techniques, like machine learning, to make these decisions. However,
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learning is not based on experience or observation in the same way as

human learning. Instead, the algorithms are trained on large data sets, and
the computer’s performance is optimized through trial and error.
So, while chess-beating computers can play chess at a very high level,
they have different types of learning and understanding than humans.
They are simply following a set of rules and instructions rather than
developing an intuition or understanding of the game in the same way a
human player might.
The mission will enable the staff members and continue to provide
them with more complex tasks, enabling them to produce the most
intelligent tools and software. The production would increase tenfold as
a result. This will enable businesses to obtain a significant competitive
advantage over their rivals. Because they know they won’t have to
complete any tedious duties today, employees will be much more
motivated to show up at work. On the other hand, a word machine can
perform a lot of their tedious daily tasks. Future employees will be tested
and motivated by their workplace environments, which will help them
develop their skill sets and creative ideas. There will be a flourishing of
invention, which will be regularly given. Continuous innovation will
aid the organization in moving toward the industrial age of new food
generation.
Utilities should be able to give the fourth industrial revolution a safe,
solid base. Their personnel are the heart and soul of this endeavor and
unquestionably the brains behind the organization. AI and machine
learning would be potent tools for utility porting.
The ability to alter a business is something that utility companies can
offer to their employees. For utilities, having a large talent pool and the
ability to maintain that talent pool is crucial. Otherwise, you won’t be able
to keep your business running. The missing middle would play a role when
we combine it all, make a gap between them, and bring them together.
A new set of employment will be produced due to the coexistence of
machines and people. For instance, future greet system operators will
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be equipped with smart tools and resources. They will be better able to
anticipate changes and navigate to the actual scenario with its assistance.
It will aid in their comprehension of the difficulties facing the Greeks, and
based on those recommendations, they will be better prepared to respond.
Future field service personnel could remotely inspect while navigating
directly to their location. Workers in the utility industry would make up the
full front of this intelligently propelled industrial regulation.
Platform Capability
The platform is the foundation of any business. Utilities started their
platform journey in the 1990s when they built their mainframe systems to
centrally manage their billing metering and customer service functions.
The underlying framework for utilities has changed throughout time. They
are considering expanding their platform’s potential to serve the upcoming
energy transition era while converting existing capabilities into cutting-
edge cloud-powered applications. One of the main forces behind future
success is the transformation of the platforms. Utilities are attempting to
accelerate digital transformation projects to create future-proof platform
capabilities. These platforms should be intelligently driven by analytics
and the Power BI cloud.
New Energy Platform

Our planet is going through a tremendous climate challenge. Energy is
one of the biggest contributors to greenhouse gas emissions. Leaders
around the world are considering changing the entire energy ecosystem.
Significant platform capability investment is needed to transition away
from traditional fossil fuels. New resources will be used to fuel new energy.
Battery storage would be a significant part of the new energy economy.
Integrating traditional conventional and new energy sources and achieving
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our sustainability goal will require deeper planning and understanding

of the overall energy ecosystem. Historical energy platforms would not
be sufficient to support this transition or future energy demands. Utility
companies must create a platform that can integrate various energy sources,
manage customer expectations, and help the world become greener.
Consumers and business people alike are becoming more energizing
than ever. Everybody wants to play their part in this sustainability
journey. By adding microgrids or other energy storage technologies at
the end of the energy pollution, traditional consumers are transitioning
to prosumers. This requires a new way of managing energy distribution
and transmission. Understanding the overall impact of planning for the
future and serving the current needs is the most important thing the new
energy platform needs to focus on. Transitioning from a smart guide to a
truly digital grid will be done with the help of this new energy platform.
Flexibility, transparency, and resiliency would be the key focus ideas for
the new energy platform. In addition to assisting corporations on their
path, a scalable platform would also assist in making our world greener,
satisfying consumer wants, and building viable businesses for the future.
Innovation Platform
A rising number of successful energy innovation platforms and utility
firms have discovered new methods for identifying opportunities to deliver
economic and societal value. Igniting innovation is an important step in
gathering and exposing ideas and concepts from the workforce. Utilities
are looking to transition from traditional systems of record to platforms
for innovation. Innovation needs to be inclusive, forward-looking, and
value-driven. Often, the speed of business change is higher than the
system can handle. Innovation platforms must bring the necessary speed
to help utilities compete in the new era. The platform should also support
optimizing workloads, automating mundane tasks, and providing insights
we have never seen before. Testing new ideas, processes, and solutions
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is the need of the hour. Opening new business opportunities, leveraging

new models, and embracing agility are the main outcomes of a universal
platform. These innovations conceived by utilities can create new
platforms and business models. The new platform will open new revenue
streams, which the innovation platform will enable.
Platform Economy
The platform economy is a term that describes the economic and social
activities that are enabled by online platforms, which often serve as
frameworks for technology or e-commerce. The most common platform
type is the “transaction platform,” also known as “digital matchmakers,”
which connects buyers and sellers. Examples of transaction platforms
include Amazon, Airbnb, Uber, and Baidu.
To become a platform player, utilities must invest in four critical
technological dimensions: cloud, data, AI, and APIs. By leveraging
the power of these technologies, utilities can create a service platform
that connects partners and customers with the help of cloud-based
solutions. Access to a rich data set can be monetized through the platform
economy API, empowering utilities to connect with the larger ecosystem.
Additionally, the Yayan intelligence award decision-making system can
be used by utilities to identify new revenue streams and make better
decisions. Utilities can use their large data sets to support other businesses
in understanding the needs and preferences of their clients by providing
building services for future homes and satellite services.
Additionally, utilities can generate new revenue streams by
developing and offering new YAI capabilities as services. One example
of such a service is image analytics which uses machine learning in grid
infrastructure which many utilities invest in for fault detection and asset
health analytics. San Diego Gas and Electric have already developed such a
use case. The EPI (platform economy API) will help utilities monetize their
platform capabilities by exposing them to other businesses.
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Key Takeaways
• Key takeaways for utilities to benefit from the potential
offered by the digital age, they must concentrate on
becoming digital energy companies. As a result, they must
concentrate on offering their clients digital energy services
like demand response and energy efficiency initiatives.
• In addition, utilities must focus on developing new
digital technologies to help them better manage the
electric grid and provide more reliable and affordable
electricity to their customers.
• A total transformation of utilities focused on
technology, people, and business model is needed to
address many of the challenges faced by utilities, our
environment, and society.
• Utilizing cloud, data, AI, and API is transforming the
energy sector and helping utilities to better serve their
customers.
• Utilities can improve operations, provide better
services, and create new business opportunities by
leveraging these technologies.
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CHAPTER 4
AI Adoption in Utilities
AI is rapidly changing the overall technology and business world by
introducing essential automation tools to game-changing solutions like
driverless cars, Amazon Go, etc. Tech companies are pioneers in adopting
AI. However, non-tech companies are also racing for AI adoption. Due
to a lack of knowledge on the adoption status of AI and where their
competitors are going, companies can experience the wait-or-adopt
syndrome. Also, companies planning or recently starting their AI journey
without an effective AI adoption strategy face significant roadblocks.
Artificial intelligence (AI) is one of our most important emerging
technologies, with the potential to transform nearly every industry. AI is
already being leveraged in the utility sector to control the electrical grid,
optimize energy use, and foresee equipment faults. Utilities are anticipated
to utilize it increasingly as technology develops to stay competitive and
provide consumers with the best service possible.
The global AI market in the utility sector was valued at $1.4 billion
in 2018 and is projected to reach $10.8 billion by 2025, growing at a
compound annual growth rate (CAGR) of 38.1%, according to a report by
MarketsandMarkets. Several factors, including the increasing need for
energy efficiency, the rapid growth of renewable energy sources, and the
aging of the existing electricity grid, drive this growth. Nevertheless, there
are still a lot of obstacles to be solved before AI can truly take off in the
utility sector. One of the biggest challenges is data. Utilities generate much

CHAPTER 4 AI ADOPTION IN UTILITIES
data, but it is often siloed and not easily accessible. Another challenge is
the lack of standardization. There are many different types of utilities,
each with unique challenges and requirements.
In the past, utilities largely relied on traditional methods of managing
the grid, such as manually controlling switches and breakers. However,
given the complexity of the infrastructure, increased demand for
electricity, and supply variability, this is no longer practical. Instead,
AI provides a way for utilities to automatically control the grid, using
algorithms to make real-time decisions about how to best meet demand.
AI’s capacity to assist in managing the growing amount of renewable
energy on the grid is one of the most important advantages it offers to
utilities. The power system must adapt as renewable energy sources like
wind and solar grow more prevalent to handle supply fluctuation. AI can
be used to predict when renewable energy sources will be available and
dispatch them to meet demand.
In addition, AI can be used to optimize energy usage by predicting
when demand will be high and implementing measures to reduce
consumption. For example, AI can control air conditioning and lighting
in office buildings during periods of low occupancy, thereby reducing
overall energy consumption and lowering costs for end users. While this
may not directly lower the price of energy, it does reduce demand during
peak times, which can help prevent price spikes and enhance the overall
efficiency of the grid.
AI is also being used to predict equipment failures by analyzing sensor
data to identify patterns that indicate an impending failure. This allows
utilities to take preventive action to avoid outages and improve the grid’s
reliability.
The utility sector is just beginning to scratch the surface of what AI can
do. To stay competitive and provide their customers with the best service
possible, utilities will likely employ AI in greater numbers as technology
advances.
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Factors Influencing the Adoption

In the past few years, there has been a lot of hype around artificial
intelligence (AI) and its potential to revolutionize various industries. The
utility industry is no exception. In fact, AI is already starting to have a
significant impact on the utility sector, with several companies investing in
this technology.
The adoption of AI in the utility industry is influenced by a variety of
factors, including
1. Cost: Implementing and maintaining AI systems
hinder adoption for some utilities, especially smaller
companies with limited resources.
2. Regulation: The regulatory environment plays a
significant role in the adoption of AI in the utility
industry. Regulations that support innovation
and the use of new technologies can facilitate the
adoption of AI. However, the regulatory framework
also impacts how investments in AI are classified
and paid for, particularly in terms of capital versus
operating expenses. For instance, utility companies
may face challenges in justifying AI investments if
they are treated as operating expenses, which are
subject to tighter budget constraints compared to
capital expenditures. Clear regulatory guidance
on how AI-related costs can be recovered through
rate structures is crucial for encouraging sustained
investment and integration of AI technologies into
utility operations.
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3. Technical expertise: The availability of technical

expertise and skilled personnel is crucial in
adopting AI. Utilities need access to individuals
with expertise in data analysis, machine learning,
and AI development to effectively implement these
technologies.
4. Data quality and availability: Data quality and
availability are key factors in the success of AI
initiatives. High-quality data is needed to train AI
models and make accurate predictions, and utilities
must have systems to collect and manage this data.
5. Organizational culture: The willingness of a
utility to embrace new technologies and innovative
approaches can play a role in the adoption of
AI. Utilities open to new ideas and willing to take
risks are more likely to adopt AI and other new
technologies.
6. Economic benefits: The potential economic
benefits of AI, such as improved efficiency, reduced
costs, and increased revenue, can be a significant
driver of adoption in the utility industry.
7. Competition: Competition from other utilities and
new entrants to the market can also influence the
adoption of AI. Utilities that want to stay ahead may
adopt AI to gain a competitive advantage.
Overall, the adoption of AI in the utility industry is influenced by

a combination of technical, economic, regulatory, and organizational
factors. By understanding these factors, utilities can make informed
decisions about adopting AI and realize its full potential.
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AI can help utilities to become more efficient and to reduce operating

costs. AI can also help utilities to improve customer service and to better
manage assets.
Utility providers can use AI to estimate water/heating/energy
consumption and thus come up with dynamic pricing to give super
inexpensive options when there is excess capacity, for example.
Through advanced disaggregation and consumer segmentation, AI
delivers a highly individualized perspective of household interactions
with various products. Advanced disaggregation refers to the process of
breaking down overall energy usage into specific components, such as
identifying the energy consumption of individual appliances within a
household. This allows customers to see a detailed view of their energy
use, helping them to understand which devices or habits contribute most
to their bills. As a result, customers concerned about bill size can make
informed decisions to alter and limit their utility consumption in the most
effective way.
The lack of knowledge about AI in the utility sector is one of the
significant obstacles to its adoption. Many utilities still need to be made
aware of the potential of AI and how it can be used to improve their
operations. In addition, there needs to be more skilled AI personnel in the
utility sector. This is a major challenge since utilities need access to skilled
AI personnel to develop and implement AI-based solutions.
Another challenge that utilities face is the lack of data. Many utilities
need access to the necessary data to train AI algorithms. This is a major
barrier since data is essential for AI applications.
Despite the challenges, there are several reasons why utilities should
consider investing in AI. AI can assist utilities in increasing efficiency,
enhancing customer service, and better managing their assets. In addition,
AI can help utilities to better cope with the challenges posed by the
increasing penetration of renewable energy sources.
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Organizational Factors
Organizational factors significantly influence the adoption of artificial
intelligence (AI) in the utility industry. Some of the key organizational
factors are mentioned below.
1. Organizational culture: A company that is open to
new ideas and technologies is more likely to adopt
AI than a company that is resistant to change.
2. Organizational structure: A company’s structure

can influence its approach to adopting AI, though
the impact can vary depending on other factors like
leadership and organizational culture. A centralized,
hierarchical company might have the advantage of
implementing AI at scale more quickly if leadership
is strongly committed to the initiative. In contrast,
a decentralized, flat organization might foster
innovation and experimentation with AI, allowing
different departments to explore and adopt AI tools
that best meet their specific needs. However, this
decentralized approach could also lead to fragmented
efforts with less cohesive impact. Ultimately, the
success of AI adoption depends on how well the
company aligns its structure with strategic goals and
supports AI integration across the organization.
3. Organizational size: The size of a company can

influence its approach to adopting AI, though
the relationship is not straightforward. Larger
companies often have more resources, including
capital, talent, and infrastructure, which can make
it easier for them to invest in AI technologies and
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scale their implementation. They may also have

more complex operations that can benefit from
AI-driven efficiencies. However, small companies
might be more agile, allowing them to experiment
with and adopt AI quickly without the bureaucratic
hurdles that can slow down larger organizations.
The decision to adopt AI is often influenced more
by a company’s strategic priorities, leadership
commitment, and market pressures than by
size alone.
4. Organizational resources: The resources of

a company also play a role in influencing its
willingness to adopt AI. A company having the
financial resources and the human resources
required to implement AI is more likely to adopt AI
than a company that does not have these resources.
5. Organizational goals: The goals of a company

significantly influence its decision to adopt
AI. While most companies aim for some form of
competitive advantage, the specific context matters.
For instance, in the utility sector, where companies
often operate as quasi-monopolists, the focus may
be less on outpacing competitors and more on
providing high-quality, low-cost service. In such
cases, AI adoption is driven by goals like reducing
operational costs, improving service reliability,
and enhancing customer satisfaction, rather than
simply gaining a competitive edge. A company with
a strong commitment to efficiency, cost reduction,
and service improvement is more likely to invest in
AI as a strategic tool to achieve these objectives.
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Environmental Factor
The 21st century has seen a dramatic increase in technological advances,
with one of the most significant being the rise of artificial intelligence
(AI). AI has the potential to revolutionize the utility industry, providing
significant improvements in efficiency and productivity. However,
adopting AI in the utility industry could be faster due partly to the
sector’s complex and regulated nature. Many environmental factors have
influenced the adoption of AI in the utility industry. One of the most
significant is the cost of AI technology. AI technology is still in its infancy
and is expensive to develop and deploy. Adoption has been severely
hampered by this, especially for smaller utility companies.
The regulatory environment is also a significant factor influencing
the adoption of AI in the utility sector. The sector is highly regulated, and
utility companies are required to comply with a range of regulations,
including those relating to safety, security, and privacy. This compliance
burden can be a major deterrent to adopting new technologies, such as AI.
Despite the challenges, there are various reasons why the utility sector is
well suited to adopting AI. Utility firms are already gathering a lot of data on
their consumers and operations in this data-rich industry. This data can be
used to train AI applications and to improve their accuracy and performance.
Technological Factors
The low cost and high availability of computing power is the primary factor
driving the adoption of AI. In addition, the development of new and more
powerful AI algorithms, and the increasing availability of data sets that can
be used to train AI models, are also playing a role in adopting AI technology.
The difficulty of collecting data and management is one of the main
technological factors influencing the adoption of AI in the utility industry.
AI technology is only as good as the data it is based on, and utility
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companies often have large and complex data sets that can be difficult
to collect and manage. Another challenge is integrating AI technology
into existing systems and processes. Utility companies often have legacy
systems designed to work with new technologies, making adopting AI-
based solutions difficult.
AI Adoption Maturity Model for Utilities

Utility companies are looking at AI and ML to improve efficiency and
optimize operations. But these technologies can be complex and
challenging to implement. So, where should you start, and how do you
move forward?
Using the AI Adoption Maturity Model, which I have developed
specifically for utilities, organizations can progress through a series of
growth phases and effectively manage crisis points. This model provides
a structured framework for utilities to assess their current level of AI
integration, identify areas for improvement, and strategically plan for
future advancements, ensuring a robust and adaptive approach to AI
adoption.
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Exploring
During the exploring phase, utilities learn about various AI solutions
available in the market and their feasibility in solving their problems. If
the AI solution is feasible, they will go for the pilot phase to test it on their
data. But unfortunately, the exploration phase can often go in a different
direction and end up with a roadmap crisis.
Experimenting
To evolve from the crisis of roadmap, organizations try to narrow down the
focus area for experimenting with AI solutions at a smaller scale. Different
solutions are conceptualized and utilized in the business context through
these experiments. End of this phase, organizations try to understand the
business value they can get from the AI investment.
Formalizing
Organizations start formalizing AI adoption in the enterprise context to
establish the business value framework in the next stage. It starts getting
embedded into the values of product lines and business functions.
Problems are solved using AI solutions, various use cases emerge, and
businesses start seeing value. Often it focuses on standard AI use cases,
model development, and automation. This phase ends with the crisis of
broader adoption, where the organization starts thinking about the art of
possibilities, newer ideas, and scaling the AI.
Optimizing
Once AI solutions start scaling, the need for optimized use of resources
comes into play. So, how do we cut down noises, eliminate unproductive
use cases, and start focusing on fundamental business transformation?
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This phase ends with the crisis of innovation, where the organization starts
thinking about reinventing its business models and doing true innovation
using AI and opening new revenue streams.
Transforming
Transforming is the final phase where total Enterprise reinvention
happens. AI gets considered as a value driver, not only an automation tool.
It becomes a creative part of the business strategy. Strategic discussions
happen around an AI-based roadmap. This phase starts the responsible
operation crisis and AI solutions’ continuous evolution.
Key Takeaways
• Utilities are laggards in AI adoption, and many utilities
don’t even know how to start. But the ones that have
are seeing a lot of benefits.
• The increasing need for improved customer service,
the desire to be more proactive, and the expectation of
more personalized service are all drivers for the utility
industry to adopt AI.
• However, several challenges need to be considered
when adopting AI, including data privacy and security
concerns, the need for skilled workers, and the
potential for disruptions to the power grid.
• As AI and Machine Learning technologies continue
to evolve, utilities are expected to increasingly
turn to these technologies to help them improve
their operations and better meet the needs of their
customers.
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CHAPTER 5
Sustainability
Imperative for Utilities
In this chapter, we will explore the sustainability imperative for utilities
and its implications for the industry’s future. We will examine the
challenges utilities face in meeting customers’ sustainability needs and
how these challenges can be addressed. We will also discuss technology’s
role in helping utilities meet sustainability goals and the increasing
importance of sustainability-focused investments in the utility sector.
Finally, we will look at the implications of the sustainability imperative for
utilities and the opportunities it presents for the industry.
Introduction
As the world moves toward a cleaner energy future, the importance of
sustainability in the utility sector will only grow. In the United States,
coal-fired power plants account for 42% of carbon emissions, according to
data from the US Environmental Protection Agency (EPA).
Additionally, utilities will be compelled to use imported coal or natural
gas as their primary fuel sources as the United States’ supply of low-sulfur
coal runs out. This transition will come with high environmental costs as
these energy sources produce significantly more carbon emissions.
Climate change is predicted to worsen the situation by increasing
storm frequency and intensity. These storms can wreak havoc on power

CHAPTER 5 SUSTAINABILITY IMPERATIVE FOR UTILITIES
grids, causing blackouts and extensive damage to power plants. As the

United States moves away from coal and increasingly relies on natural gas
and solar power, there is a risk of energy dependence if the transition leads
to over-reliance on a single alternative fuel source. Diversifying energy
sources is crucial to reduce the risk associated with dependence on any
one source, whether it be coal, natural gas, or solar power. The goal is to
create a balanced energy portfolio that can ensure stability and resilience
in the energy supply. Sustainable operations are essential for all businesses
today, but are particularly critical for utilities as they serve imperative
social functions. Utilities must operate their power plants and delivery
systems reliably and efficiently, providing affordable and reliable power to
their customers. They must also be mindful of their environmental impact,
comply with regulations, and invest in technologies to minimize the
adverse effects of their activities.
Additionally, they must be aware of the social consequences of their
actions and work with their stakeholders to meet the needs and worries of
their clients, staff members, and the communities in which they operate.
In this chapter, I’ll discuss key utility drivers, such as an ability journey.
I will also share some of the case studies related to AI and sustainability,
which are highly relevant to the utility industry.
Governmental Regulation
In recent years, there has been an increased focus on sustainability from
governments around the world. This has led to several regulations being
put in place to drive sustainability initiatives.
One of the most notable examples is the Paris Agreement, ratified by
over 190 countries in 2016. The agreement sets many goals for reducing
greenhouse gas emissions to combat climate change.
In the United States, the Clean Power Plan was introduced by the
Obama administration in 2015. The plan aims to reduce carbon dioxide
emissions from power plants by 32% by 2030.
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Many other countries have also introduced similar regulations. For

example, in the European Union, the Renewable Energy Directive requires
that 20% of all energy come from renewable sources by 2020. China has
also set a target of 20% renewable energy by 2030.
These regulations have a positive impact on the development of
sustainable technologies. For example, the solar industry’s growth has
been driven partly by government incentives. The increase in sustainability
regulations is a positive step toward combating climate change and
protecting the environment. However, these regulations must be properly
enforced to ensure they are effective.
Carbon Pollution-Free Electricity Policy

The emission of carbon dioxide from power stations would be prohibited
under a carbon pollution-free electricity policy. The policy would also aim
to increase the use of renewable energy sources, such as solar and wind
power, and to reduce the use of fossil fuels, such as coal and natural gas.
There are numerous advantages to an electrical policy devoid of
carbon pollution. It would reduce the amount of carbon dioxide in
the atmosphere, a greenhouse gas contributing to climate change.
The initiative would also lessen dependency on fossil fuels, a limited
resource, and generate jobs in the renewable energy industry. However,
the implementation of a carbon pollution-free electricity policy has its
challenges. The expense of switching to renewable energy sources is the
major obstacle. While solar and wind power have historically been more
expensive than fossil fuels, their costs have been decreasing and are
nearing comparability in certain circumstances. However, the issue isn’t
just about price – it’s also about the variability of solar and wind power,
which can lead to instability in the electricity grid without appropriate
energy storage solutions. Additionally, the effectiveness and cost-efficiency
of solar and wind power can be influenced by geographic factors, such as
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proximity to ideal locations for these energy sources. As a result, policies

promoting renewable energy may still lead to higher electricity prices in
some regions, depending on these factors.
Several variables, such as the project’s size and location, the
technology employed, and complexity, can considerably impact the cost of
establishing wind- and solar-generating facilities.
According to the US Department of Energy, the average cost of installing
a utility-scale solar power plant in the United States was $1.75 per watt in
2020, ranging from $1.50 per watt for large projects to $2.00 per watt for
smaller projects. These costs can vary depending on the project’s location,
with costs generally being lower in sunny states like California and Arizona.
The cost of installing a wind power plant can vary depending on
the size and location of the project. According to the US Department of
Energy, the average cost of installing a utility-scale wind power plant in the
United States was $1.80 per watt in 2020, ranging from $1.60 per watt for
large projects to $2.20 per watt for smaller projects. These costs may also
differ based on the project’s location, with costs often lower in regions with
abundant wind resources.
For comparison, the cost of installing a natural gas power plant
generally ranges from $0.90 to $1.20 per watt, making it less expensive than
wind in terms of upfront installation costs. Coal power plants, although
less commonly built today due to environmental concerns, typically have
installation costs ranging from $2.00 to $3.00 per watt. However, these
costs do not account for the long-term operational and environmental
costs associated with fossil fuels, which can make renewables like wind
more competitive over time.
It’s important to note that these costs are only estimates and can vary
significantly depending on the project. The entire cost of establishing
a wind or solar power plant might vary depending on the project’s
complexity, the type of technology employed, and the location of the
facility.
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There is also the challenge of storage for renewable energy. Solar and
wind power are intermittent, so they must be stored to provide power
when the sun is not shining, or the wind is not blowing.
A carbon pollution-free power strategy is essential to halting
climate change and safeguarding the environment, notwithstanding
the difficulties. The benefits of the policy far outweigh the costs, and the
transition to renewable energy is an investment in the future.
CarbonSim: EDF’s carbon market simulation tool
The European Union (EU) has established a carbon mar-
ket to meet its ambitious climate goals. This market allows
companies to trade carbon emissions permits, incentiviz-
ing the reduction of greenhouse gas emissions. The
Environmental Defense Fund (EDF) has created
CarbonSim, a tool that simulates the EU carbon market.
CarbonSim allows users to create a virtual power plant
and trade carbon permits on a simulated market. The
product is designed to help businesses understand how the
carbon market functions and how they can effectively uti-
lize it to reduce their emissions. CarbonSim is a valuable
tool for companies looking to reduce their emissions in
alignment with the EU’s climate goals, enabling them to
make informed decisions about trading carbon permits.
The tool can help companies to understand the carbon market and to
make informed decisions about how to trade carbon permits. CarbonSim
is a valuable tool for companies looking to reduce their emissions to meet
the EU’s climate goals.
Zero-Emission Vehicle Policy

An electric vehicle (EV) or a plug-in hybrid is not necessarily a zero-emission
vehicle based on what type of energy source is used to generate the
electricity used to charge it. Combining fossil fuels and renewable
energy sources must generate the electricity that powers EVs. Therefore,
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consideration must be given to the environmental impact of electricity

production in choosing the most appropriate vehicle for an individual’s
daily driving needs.
To promote the adoption of electric vehicles, many governments offer
tax breaks or other incentives to consumers who purchase EVs, impose
stricter emissions standards for new cars, or create a public charging
infrastructure. Some government entities also provide rebates or other
incentives to businesses that purchase EVs or install charging stations.
These regulations emphasize promoting natural gas, electric, and
other low-emission automobiles. Governments can implement these
policies by providing rebates and other financial incentives to encourage
people to buy greener cars, enhancing public transportation, or tightening
emissions regulations for currently registered vehicles.
Enel X and global AI software platform OptiBus: A part-
nership that’s committed to zero-emission fleets
Enel X, a global leader in advanced energy services, and Optibus, an
AI software platform for intelligent transportation, announced a strategic
partnership to help public and private fleet operators around the world
transition to zero-emission vehicles.
The partnership will see Enel X provide its expertise in electric vehicle
(EV) charging infrastructure and energy management to Optibus, which
will use its AI technology to optimize fleet operations and maximize the
benefits of electrification.
The partnership aims to accelerate the global transition to zero-
emission fleets, essential for tackling climate change and air pollution.
Although electric vehicles are already more cost-effective and
environmentally friendly than petrol or diesel, their adoption has been
hindered by a dearth of charging stations and worries over range anxiety.
Range anxiety is what an electric vehicle (EV) driver feels when the
battery charge is low, and the usual sources of electricity are unavailable.
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It sparks a fear of getting stranded somewhere, which adds time,

inconvenience, and stress to a journey. Studies show that driving range,
cost, and a lack of charging infrastructure are why people do not consider
EVs when buying a new vehicle.
Enel X and Optibus will work together to address these challenges
and make electric fleets the norm rather than the exception. Enel X will
provide extensive experience in designing and operating EV charging
infrastructure. At the same time, Optibus will use its AI platform to
optimize fleet operations and ensure that electric vehicles are used as
efficiently as possible.
The partnership will also see Enel X and Optibus collaborate on
research and development projects to accelerate the transition to electric
fleets. This will include working on new technologies and applications that
can further improve the efficiency of electric fleets.
The partnership between Enel X and Optibus is an example of the
types of collaborations that are crucial in transitioning to a low-carbon
future and creating a cleaner, healthier planet. While this specific
partnership is important, it highlights the need for many more similar
initiatives across various sectors to effectively combat climate change and
promote sustainability
Net-Zero Building Emissions Policy

Net-Zero Buildings are designed to produce more energy than they
consume. Net-Zero Energy Buildings produce as much energy as they
consume, but they do not necessarily produce more. Net-Zero Emissions
Buildings focus on reducing greenhouse gas emissions to as close to zero
as possible. The most sustainable and ideal scenario would be Net-Zero
Emissions and Energy Buildings, which aim to achieve both minimal
emissions and balanced energy consumption. However, achieving this
level of sustainability may not be feasible in every situation. For example,
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a net-zero emissions building might be in a city with an unreliable power

grid and rely on rooftop solar panels and a battery storage system to power
the building during outages.
The United States has a long way to go to meet its climate goals,
and buildings account for nearly 40% of all energy consumption. EPA
regulations on emissions from power plants have made it easier to
generate electricity from natural gas, but it is challenging and costs more
to upgrade buildings. While building new, carbon-neutral buildings is an
important part of addressing the climate challenge, it is equally crucial to
focus on retrofitting existing buildings to reduce their carbon emissions.
Rather than implying the need to replace all current buildings, the goal
should be a combination of constructing new, sustainable buildings
and upgrading the energy efficiency and carbon footprint of the existing
building stock. This comprehensive approach is more practical and
effective in tackling the climate challenge.
To reduce carbon emissions, many countries have adopted policies
to promote the use of renewable energy. These policies may be enacted
at the national or local level and may apply to all or specific types of
buildings. However, owners and managers may find it difficult to comply
with laws governing energy efficiency and lowering carbon emissions
from buildings, mainly when those structures already exist. A building
emissions policy can help in these situations by offering monetary
incentives.
With AI, ENGIE is revolutionizing the management of
next-gen buildings
ENGIE is using AI to transform the way that next-generation buildings
are managed. Using AI to analyze data from smart meters and other
sensors, ENGIE can predict energy usage and maintenance requirements
more accurately than ever. Engineers can be more proactive about
maintenance, reducing the risk of unexpected outages.
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The company’s AI-powered software can be integrated into any

building’s control system and used to optimize energy consumption. The
AI system of a building can gather data on consumption patterns, climate,
and other factors to decide when to turn on the heating or cooling systems.
It can also be used to control lighting, ventilation, and other building
systems to optimize energy consumption. An AI system can also be used
to collect information about the health of the building’s equipment to
determine when to schedule maintenance.
Real-time data is gathered and analyzed to provide clients a more
individualized experience (e.g., adjusting lighting and climate settings
based on your schedule or preferences). In addition, these technologies
reduce operational costs by optimizing maintenance schedules,
identifying problems before they occur, and collecting data from
equipment to improve the design of new buildings.
Climate-Resilient Infrastructure and Operations

Infrastructure is critical to the smooth functioning of businesses and
societies. Sadly, the infrastructure that keeps our societies running, such
as power grids, highways, and water systems, is frequently constructed
with little regard for the effects of climate change. As a result, these systems
are more likely to break down due to climate-related events, which can
have a ripple effect on other critical systems. Investing in climate-resilient
infrastructure and operations can help prevent these breakdowns, and
maintain critical systems when needed, and reduce the risk of climate-
related disruptions to businesses and societies.
The shift to a low-carbon economy will require significant investment
in infrastructure, with some estimates as high as $75 trillion by 2050.
New infrastructure must be climate resilient to make the most of this
investment and continue to be robust to climate change. Climate-resilient
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infrastructure is designed to withstand extreme weather, maintain

functionality during and after extreme weather events, and be upgradeable
to accommodate future climate changes.
In the context of climate change, resilient infrastructure and operations
can withstand the impacts of climate change and continue to meet their
intended purpose. An infrastructure or operation is considered climate-
resilient in the context of resilience when it can endure climatic change
and still serve its original purpose. Climate-resilient infrastructure and
operations are particularly critical for communities dependent on a single
industry or natural resource for their economic well-being.
National Grid Reduces Damages by 22% in 1 Year
National Grid lowered its damage rate (the number of dam-
ages per 1000 811 tickets) in the jurisdiction of downstate
New York by applying universal subsurface damage avoid-
ance best practices. For context, “811 tickets” refer to requests
made by contractors or homeowners before digging to ensure
underground utilities are marked and avoided. As a result of
these best practices, the utility's damage rate decreased by 65
percent, from 5.36 damages per thousand in 2006 to 1.89
damages per thousand in 2014. However, after several years of
improvement, the utility's damage rate reached a plateau.
National Grid collaborated with Urbint to build Lens for Damage
Prevention, an artificial intelligence-powered program that detects high-
risk excavations. To assign risk scores to 811 tickets, Urbint Lens examines
a utility’s historical incident data and internal data such as asset age,
type, and location, and combines it with Urbint’s Model of the World – a
representation of external forces surrounding and impacting underground
assets such as soil conditions, elevation, weather, population density, and
construction.
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Consumer and Shareholder Demands

A decrease in coal-fired power plants and an increase in investment in
renewable energy sources like solar and wind are projected to follow
the transition to cleaner energy sources and a more sustainable energy
mix. The transition to clean energy requires increasing investments
in energy efficiency technologies. In addition, traditional consumers
and shareholders are becoming more aware of sustainable business
practices. They are demanding to invest in more businesses that practice
sustainability.
Sustainability-Themed Investment
The environment may be protected while you make money by investing in
environmentally friendly businesses. Sustainable investment can be done
in a variety of ways. Some investments are in for-profit companies actively
trying to make the world a better place. Other investments in sustainability
are in non-profit organizations working to solve social and environmental
problems.
There are many ways to invest in sustainability.
Investments in sustainability can come with significant risks, both
financial and non-financial. Beyond the potential financial risks, such
as uncertain returns or high up-front costs, there are also regulatory,
technological, and reputational risks. Regulatory risks arise from
changing environmental laws and policies that could impact the viability
of certain investments. Technological risks involve the uncertainty
of adopting new or unproven technologies that may not perform as
expected. Reputational risks occur if sustainability efforts fail or are
perceived as “greenwashing,” potentially damaging a company’s public
image. Despite these risks, sustainability investments also have the
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potential for very high returns, particularly as markets increasingly

prioritize environmental responsibility. Researching the companies or
organizations you want to invest in can help avoid risk. So, how to invest
in sustainability? You can choose a broker or other financial advisor, or
you can choose to buy stocks or mutual funds.
It is important that the money you save is used to create a financial
future. So, why not use the savings to create a more sustainable future?
Putting money into green, clean, and other sustainability-related
industries can increase your portfolio while simultaneously helping
the environment. Over the past few years, many companies with a
sustainability focus have increased stock value, creating a fantastic
investment opportunity. Investors looking to put their money into a
company promoting green initiatives can look for stocks involved in clean
energy generation, research, and development of sustainable products,
recycling or waste management, or eco-friendly manufacturing. These
stocks may have a higher risk than traditional investments but can offer
higher returns.
Clarity AI provides ESG-related asset allocation custom-
ization capabilities
In recent years, many institutional investors have shown an increased
interest in environmental, social, and governance (ESG) factors when
making investment decisions. However, a lack of data and transparency
around ESG issues has made it difficult for investors to integrate these
factors into their investment processes.
Clarity AI is a financial technology company that provides ESG-related
asset allocation customization capabilities for institutional investors. The
company’s platform uses artificial intelligence (AI) to analyze a range of
data sources, including company filings, news articles, and social media
posts, to generate customized ESG portfolios for investors.
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Clarity AI’s platform offers various advantages for investors interested

in integrating ESG factors into asset allocation decisions. First, the
platform offers great flexibility, enabling investors to adjust their portfolios
by their unique preferences regarding ESG. Second, the platform is
constantly updated with the latest data and information, giving investors
a real-time view of companies’ performance on ESG issues. Third, the
platform’s AI-based methodology also enables it to recognize and analyze
a variety of data sources, giving investors a thorough understanding of a
company’s ESG performance. As a result, the Clarity AI platform provides
a valuable tool for investors interested in incorporating ESG factors into
their asset allocation decisions. Finally, the platform’s ability to customize
portfolios and its real-time data and information allows investors to make
well-informed investment decisions that align with their ESG preferences.
ESG Activism by Investors

ESG investing is driven by the desire to make money while doing good.
In researching stocks or other investments, investors can discover that
some companies they are considering investing in have objectionable
or unsustainable practices. To voice their concerns, these investors can
then get in touch with the business and the organization offering the
investment. The firm can then respond by dropping the investment from
its offerings or engaging with the company to discuss its policies and how
they might be changed to eliminate the investors’ concerns. ESG investing
is a growing trend among investors, and many fund providers cater to the
demand. However, most mutual funds are still non-ESG compliant.
Investors who want to invest in socially conscious funds have a few
options. You can invest in a diversified fund that meets some ESG criteria
or pick a fund dedicated to a particular cause. The latter choice might be
wiser for your financial objectives, but you’ll probably have to take on
greater risk. The good news is that most large fund providers offer at least
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one ESG-friendly fund. Vanguard, BlackRock, and State Street all offer
ESG-friendly funds. These companies have ESG criteria when considering
which companies to invest in.
ESG (Environmental, Social, and Governance) investing has gained
recognition as a profitable long-term strategy, with numerous studies and
reports supporting its financial benefits. For example, several analyses
have shown that companies with strong ESG practices often demonstrate
better risk management and resilience, leading to more stable and
sustainable returns over time. However, beyond financial performance,
investors are increasingly considering the social and environmental
impacts of the companies they invest in, aligning their investments with
their values and broader societal goals. This awareness has led to the rise
of socially responsible investing or SRI.
SRI is choosing stocks based on a company’s social and environmental
policies, impact, and financial performance. Many investors are also
interested in sustainability, which is the ability of a company’s business
model to meet the needs of current and future generations without
compromising the ability of future generations to meet their own needs.
Investing in socially responsible or sustainable companies can
potentially lead to greater profits and a risk reduction. However, it’s no
secret that today’s business climate is volatile. Numerous factors, ranging
from the fluctuating price of oil to the unpredictability of emerging
markets, might have a detrimental impact on the financial health of your
retirement account.
ESG Measurement and Reporting

An ESG report is a financial statement that includes non-financial data
that investors may consider an additional risk factor. This can be a
standardized ESG report or a non-standardized report that includes a
company’s unique ESG considerations. The standardized report includes
company-specific information, such as its industry, location, and size. A
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standardized ESG report is like an SRI report, but an SRI report does not
include non-financial information. An ESG report is similar to a non-IFRS
financial report, but it focuses on non-financial information. For context,
IFRS stands for International Financial Reporting Standards, which are a
set of accounting standards developed by the International Accounting
Standards Board (IASB) to provide a global framework for how public
companies prepare and disclose their financial statements. While IFRS
reports cover financial performance, ESG reports provide insights into a
company’s environmental, social, and governance practices, offering a
broader perspective on its overall impact and sustainability.
Decreasing Cost of Renewable Energy

Renewable energy costs have been decreasing rapidly and, in many
cases, are now becoming cost-competitive with fossil fuels. However, the
cost comparison can vary depending on specific circumstances, such as
location, scale, and the availability of storage solutions. While renewables
are increasingly affordable, certain factors, such as variability and
geographic considerations, can still influence overall costs compared to
fossil fuels. Solar panels and wind turbines have dropped in cost by more
than 70% since the mid-2000s, making them an increasingly cost-effective
way to generate electricity. Governments are also attempting to level the
playing field by boosting subsidies for renewable energy development
while decreasing contributions to produce fossil fuels. Renewable energy
costs have decreased significantly in recent years due to technological
advances, increased investment, and economies of scale. In many cases,
renewable energy costs are comparable to or even cheaper than traditional
energy sources. This has made renewable energy a more attractive option
for utilities, businesses, and individuals looking to reduce their carbon
footprint and move toward a more sustainable energy future.
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Decrease in the Cost of Geothermal Energy

Geothermal energy is energy generated from the heat of the Earth’s core.
It can be harnessed to produce electricity or for heating and cooling
applications. Geothermal energy is considered renewable because it is
replenished by the Earth’s internal heat source. The decreasing cost of
geothermal energy can be attributed to several factors, including:
1. Improved technology and drilling methods
2. Increased investment and funding

3. Expansion of geothermal plants and increased efficiency
4. Government incentives and tax credits
5. More competition in the market

6. Increased public awareness and demand
Decrease in the Cost of Hydropower

Hydropower is energy generated from water movement, typically from a
dam or water turbine. Hydropower is considered renewable because water
is replenished through precipitation and runoff. The decreasing cost of
hydropower can be attributed to several factors, including:
1. Improved technology and automation

3. Expansion of hydropower plants and increased
efficiency
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6. Improved project planning and execution

7. Reduced financing costs
Fall in the Cost of Ocean Energy

Ocean energy refers to energy derived from the ocean, including tidal,
wave, and thermal energy. Ocean energy is considered renewable because
the ocean is replenished by the sun and wind. The decreasing cost of
ocean energy can be attributed to several factors, including:
1. Improved technology and innovation
3. Expansion of ocean energy projects

6. Improved engineering and design

7. Advancements in materials science
Dip in the Cost of Bioenergy

Bioenergy is energy generated from organic matter, such as crops, wood,
and waste. It is considered renewable because organic matter can be
replenished through sustainable agriculture and forestry practices. The
decreasing cost of bioenergy can be attributed to several key factors:
1. Increased Investment and Funding: Growing
interest from both public and private sectors
has led to more capital being funneled into
bioenergy research and development, accelerating
advancements and scaling production.
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2. Expansion of Bioenergy Projects: As more

bioenergy projects come online, economies of scale
are being realized, reducing overall production
costs and making bioenergy more competitive with
traditional energy sources.
3. Improved Technology and Automation: Advances
in technology, including more efficient conversion
processes and automation in bioenergy production,
have significantly lowered operational costs and
increased output.
4. Government Incentives and Tax Credits: Policies

such as subsidies, tax credits, and grants have played
a crucial role in lowering the financial barriers to
bioenergy adoption, making it more accessible and
affordable.
5. More Competition in the Market: As more
companies enter the bioenergy market, competition
drives innovation and cost reduction, leading to
more efficient and cost-effective solutions.
6. Increased Availability of Feedstocks: Improved

agricultural practices and better waste management
have led to a more reliable and abundant supply
of organic feedstocks, reducing the cost of raw
materials needed for bioenergy production.
7. Improved Conversion Processes: Research into
new methods of converting organic matter into
energy, such as advanced bio-refining techniques,
has led to more efficient processes that maximize
energy output while minimizing waste and costs.
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These developments reflect the broader trends in the bioenergy

sector, where ongoing research and technological innovation are driving
significant improvements, making bioenergy an increasingly viable and
cost-effective renewable energy source.
Fallen Solar Power Price

While solar and wind energy costs have historically been higher than
those of fossil fuels, they are rapidly decreasing due to technological
improvements. In many cases, solar and wind energy are becoming
cost-competitive with fossil fuels, especially when considering long-term
operational and environmental benefits. However, the cost can still vary
depending on specific factors like location, scale, and storage solutions.
Solar panel costs have fallen by 50% since 2011, and solar energy is
becoming more competitive as an alternative to fossil fuels. Wind energy
costs have also fallen, and the US Department of Energy expects them to
decline by another 20–30% by 2030. As these costs continue to decrease,
we expect to see increased adoption of renewable energy sources.
Scientists harness machine learning to lower solar
energy cost
Solar energy is one of the most promising renewable energy sources,
but its high cost has been a major barrier to its widespread adoption.
A 2021 study by Cornell University shows that machine learning can
reduce the cost of solar energy by up to 20%, primarily by optimizing the
development of low-cost materials like perovskites for photovoltaic cells.
The study, published in Nature Energy, was led by Akshay Rao, a
postdoctoral associate at Cornell’s Sibley School of Mechanical and
Aerospace Engineering. Rao and his team used machine learning to
develop a new algorithm to optimize the layout of solar panels on a given
piece of land.
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The algorithm considers several factors, such as the amount of sunlight a

particular location receives, the type of terrain, and the presence of obstacles
like trees or buildings. As a result, the algorithm can produce a layout that
maximizes the amount of power that can be produced from a particular
piece of land by considering all of these considerations. The algorithm was
tested on various real-world scenarios, and the results showed that it could
lower the cost of solar energy by up to 20%. This is a significant improvement
and could help make solar energy more affordable for everyone.
The research, which is the first to demonstrate how machine learning
can be used to reduce solar energy costs, might significantly affect the
renewable energy sector. The science of machine learning is expanding
quickly, and it has the potential to completely change how we produce and
utilize energy.
Improving Battery Technologies

Next-Generation Batteries Will Be Brought to You by AI
Addionics, a company that specializes in developing advanced battery
technology, has announced that it will be using artificial intelligence (AI)
to develop its next generation of batteries. The company believes that
AI will allow it to produce more efficient, longer-lasting, and cheaper
batteries. Addionics has been working with AI for several years. Addionics
is certain that the technology will enable it to produce batteries uniquely
suited to each client’s requirements. For example, a customer who needs a
battery for a car that will be used in a cold climate would be able to specify
that they need a battery that can withstand cold temperatures.
Addionics believes AI will also allow it to create more efficient batteries
than those currently on the market. The company is currently working on
a new type of lithium-ion battery that it believes will be able to store more
energy than current lithium-ion batteries. Addionics is also working on a
new type of solid-state battery that it believes to store even more energy
than its lithium-ion battery.
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Addionics is not the only company that is using AI to develop batteries.

Tesla, Panasonic, and LG are all using AI to develop batteries for their
electric vehicles. AI is also being used to develop batteries for other
applications, such as storing energy from solar panels and wind turbines.
A significant change in how batteries are made is the application of AI
in their development. In the past, batteries were developed through trial
and error. This was a time-consuming and expensive process. With AI,
batteries can be developed much faster and cheaper.
The use of AI to develop batteries will likely lead to a major increase in
the number of battery-powered devices on the market. This will increase
the demand for battery materials, such as lithium and cobalt.
Societal Obligations
Utilities are critical infrastructures in any society and are expected to
adhere to certain standards of conduct. As public service providers,
these companies must meet their consumers’ needs while maintaining
transparency. Customers must be assured that their data is protected and
that the utility company is working to reduce their carbon footprint.
The world is growing closer together. The interconnectedness of
the population has created new challenges for society. Growing societal
awareness of the importance of sustainability has also highlighted the
necessity for ethical enterprises to participate actively in the sustainability
movement. Businesses must now more than ever assume social
responsibility as participants in their communities and have a constructive
influence. To do so, they must understand the needs of their stakeholders
and how they fit into the bigger picture of society.
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The rapid adoption of distributed energy resources is forcing utilities to

evolve from centralized energy providers to enablers of a more diversified,
distributed energy system. As the utility industry goes through this
transformation, the sector must be socially responsible. This is particularly
important for investor-owned utilities, which exist for the benefit of their
shareholders.
Social Inequity
Clean energy is a broad term that refers to any non-polluting, sustainable,
or environmentally friendly energy source. This includes solar, wind,
hydro, geothermal, or tidal energy. Investing in clean energy has several
advantages, and the sooner we can all switch to this kind of energy, the
better off we will all be. Sadly, investing in sustainable energy often costs
more than using conventional fossil fuels. The good news is that the cost
of clean energy will most likely decrease as we continue to research and
develop new technologies. However, the transition toward clean energy also
has the potential to create social inequity. Wealthier households will likely
have easier access to clean energy sources than lower-income households.
What can be done to ensure everyone has access to clean energy?
Adopting clean energy is frequently seen as a positive social development
since it lowers carbon emissions, diversifies energy sources, and enhances
public health by reducing air pollution. However, clean energy can exacerbate
social inequities if not designed to empower all consumers. Policymakers
and program designers can prevent this by involving various stakeholders
in decision-making. Additionally, they can ensure that low-income and
disadvantaged consumers have access to the benefits of clean energy.
Governments everywhere need to do more to reduce the wealth
disparity and offer everyone a chance to profit from the clean energy
economy. To do this, we must work to ensure that the benefits and
opportunities of the clean energy economy are available to all and do not
disproportionately benefit a few.
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SDG&E’s Community Impact Platform

The San Diego Gas & Electric Company’s (SDG&E)
Community Impact Platform was awarded the CIO 100
award in 2022 by IDG’s CIO magazine. This award recog-
nized SDG&E's innovative use of technology, specifically
in deploying artificial intelligence to enhance their service
and support a more sustainable and equitable
energy future.
“The CIO 100 award recognizes the top 100 organizations using
information technology in innovative ways to create business value,” said
Sarah Fister Gale, Executive Editor of CIO magazine and Conference Chair
of the CIO 100 Symposium. “This year’s winners are using technology
to improve customer experiences, drive revenue growth and increase
operational efficiency.”
The Community Impact Platform is a digital platform that allows
customers to see their energy choices’ social, environmental, and
economic benefits. In addition, the platform offers clients a simple method
to learn about and engage in initiatives like solar, electric vehicle charging,
and energy efficiency that has positively impacted the neighborhood.
“We are honored to be recognized by CIO magazine as a leader in using
technology to create social and economic value,” said Scott Drury,
SDG&E’s Senior Vice President of Innovation and Technology. “The
Community Impact Platform is a great example of how we use technology
to empower our customers to make a difference in the community.”
The Community Impact Platform was launched in 2018 and has
earned several awards, including a CIO 100 award, a Green IT Award from
the US Green Chamber of Commerce, and a Climate Change Business
Journal Award.
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Tech for Good Initiatives

Many of the world’s largest power producers invest in technology and
research to help the planet and their bottom lines. For example, a power
plant in the US Midwest teamed up with an agricultural co-op to test a
wind turbine that would produce power only when winds were at a certain
speed. The turbines would shut off when winds were too strong to prevent
damage to nearby crops.
As climate change becomes more pressing, so does the need for more
sustainable energy sources. While solar, wind, and other technologies
can help reduce emissions and meet increasing demand, they also
require extensive hardware and maintenance. These high up-front
costs are often a barrier to entry for many communities. What if there
was a way to significantly reduce the cost of entry to these green energy
sources? Blockchain technology has the potential to do just that. With a
decentralized network that records data, transfers value, and maintains
integrity, there is potential to reduce costs for energy suppliers and
consumers. This reduction could stem from increased efficiency, reduced
need for intermediaries, and enhanced transparency. However, the extent
of cost savings will depend on the specific implementation and operational
factors. Further research and case studies are necessary to substantiate
these potential benefits.
It is estimated that data-driven load management could save the US
electricity sector up to $20 billion annually. For example, customers’
thermostats can be remotely adjusted to accommodate peak electricity
consumption, or incentives can be provided to encourage the installation
of energy-efficient LED lighting. Utility companies may also collaborate
with independent technology vendors to offer a range of data-driven
home energy enhancements, including smart water heaters, smart plugs,
and smart outlets. These innovations allow utilities to remotely manage
customer electricity demand, which can be beneficial during high-usage
periods.
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Rising to the Call

Smart grids, electric vehicles, and home solar panels are just a few ways
the utility industry is changing to meet customer needs. Customers are
demanding cleaner, more reliable, and more efficient energy sources.
Utility providers who can adapt to these client needs will be able to
compete in the ever-evolving market. For example, we are currently
witnessing an increase in the number of utilities supplying solar panels to
their consumers, thanks to growing knowledge of the advantages of solar
energy. In addition, these products are now profitable for utilities as they
can sell solar panels at a price lower than their cost of generating electricity
from conventional sources thanks to the falling costs of solar panels.
With the rise in utility offerings, we can expect a greater influx of solar
power soon.
Key Takeaways
• Utilities are going toward NetZero and are at the center
of the energy transition. They also have a greater social
responsibility.
• Clean energy regulations will get considerably stricter;
businesses and individuals must prepare in advance.
• Decreasing the cost of renewable energy will

increase the prosumers, and organizations
will be keen to embrace clean energy. Citizen
consciousness will evaluate organizations based
on their commitment to sustainability.
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CHAPTER 6
Generating Power in
the New Low Carbon
Economy
The world is rapidly changing regarding how it generates and uses energy.
A new low-carbon economy is emerging with growing concerns about
climate change and the need for sustainable energy sources. This new
economy is focused on reducing carbon emissions and increasing the
use of clean energy sources. Generating power in the new low-carbon
economy is becoming increasingly important as the world transitions away
from fossil fuels. This chapter will provide an overview of the challenges
and opportunities associated with generating power in the new
low-carbon economy and how technology can help with this journey.
Introduction
The development of solar cells brought about a shift in how energy is
produced. This change would iterate in the hands of various physicists
and engineers over hundreds of years. The history of solar energy is a
fascinating story of innovation and progress.

CHAPTER 6 GENERATING POWER IN THE NEW LOW CARBON ECONOMY
Solar energy is nothing new. People have used solar power as far back
as the 7th century B.C. Energy from the sun has been treasured and used
in its most basic forms for almost as long as there have been people on the
planet. The sun’s energy was first harnessed by using a magnifying glass to
concentrate it so that fires could be started for cooking. By the 3rd century
B.C., Greeks and Romans bounced sunlight off “burning mirrors” to light
sacred torches for religious ceremonies.
Ancient civilizations used sunrooms to harness the sun’s natural
warmth. These usually south-facing rooms have captured and
concentrated sunlight from the famous Roman bathhouses to Native
American abodes and are still popular in many modern homes.
One legend in Greek solar history is of the scientist Archimedes setting
fire to besieging wooden ships from the Roman Empire. According to
legend, he used bronze shields to reflect sunlight, concentrating its rays to
attack the enemy before they reached land.
Think of it as an ancient solar laser beam. Whether this happened in
Archimedes’ time or not is unverified. But this experiment in solar power
was tested by the Greek navy in the 1970s. They set fire to a wooden test
ship 50 meters away using nothing but the legendary bronze shield and
solar light energy.
Albert Einstein had a role to play in bringing the world’s attention to
solar energy and its potential. In 1905, Einstein published a paper on the
photoelectric effect and how light carries energy. Einstein’s paper on the
photoelectric effect in 1905 is titled “On a Heuristic Viewpoint Concerning the
Production and Transformation of Light.” In this paper, Einstein proposed a
photoelectric effect theory explaining light carries energy and how it can be
used to eject electrons from a metal surface. This theory was based on the idea
that the energy of light is carried by individual particles called photons, which
transfer their energy to the electrons when they collide. Einstein’s theory could
explain various observed phenomena not accounted for by previous theories
and laid the foundation for the development of quantum mechanics. This
generated more attention and acceptance for solar power on a broader scale.
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The big leap toward solar cells like the ones used in panels today came
from the work of Bell Labs in 1954. Three scientists there, Daryl Chapin,
Calvin Fuller, and Gerald Pearson, created a more practical solar cell using
silicon.
Scientists and engineers are committed to solar as a leading source of
clean, affordable electricity for everyone. And they have made significant
advancements in solar technology over the years. This has helped the
world move away from conventional energy generation based on fossil
fuels like coal, oil, and natural gas, which currently account for 80% of the
world’s energy generation. Unfortunately, they are also the primary human
source of greenhouse gas emissions.
Utilities are on a countdown to reinvention. Self-generation will
become a viable alternative for everyone when residential solar and battery
storage systems become widely available and affordable, bringing the cost
of off-grid energy on par with that of centralized electricity. Unlocking
the value through optimizing connected distributed energy resources
and avoiding some of the additional generation and infrastructure costs
required can deliver significant financial, network, and societal benefits.
Generation Infrastructure Planning

Recently there has been an increased focus on using AI for power
generation infrastructure planning. This is due to the several advantages
that AI may offer, including increased effectiveness, precision, and
scalability. One of the main benefits of using AI for power generation
infrastructure planning is the improved accuracy that it can provide. This
is because AI can consider many different variables and data points that
human planners might not be able to. In addition, AI can constantly learn
and update its models as new data becomes available, providing more
accurate planning over time.
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Scalability is another advantage of utilizing AI for planning power

generation infrastructure. This is because AI can handle many data points
and factors, which allows it to be used for planning on a large scale. AI
may also be utilized to automate numerous planning-related processes,
increasing productivity even more. Overall, AI has many benefits for power
generation infrastructure planning. AI can provide improved accuracy,
efficiency, and the ability to scale. These benefits can help improve
the planning of power generation infrastructure, ultimately leading to
improved outcomes.
Artificial intelligence is currently used in the energy sector to improve
the reliability of power grids, monitor the performance of power plants,
address the challenge of fluctuating demand, reduce energy costs through
smart meters, and enable more efficient energy usage through thermostats
that adapt to household schedules. Smart meters, with their advanced
data collection, storage, and analysis capabilities, allow utilities to offer
consumers a broader range of energy management products and services.
In addition, robots and drones are employed for power plant
inspections using artificial intelligence. While this may not directly lead
to more efficient energy production, it does contribute to more efficient
plant operations by reducing unplanned downtimes and ensuring timely
maintenance. This, in turn, helps maintain consistent energy output and
prolongs the life of power plant equipment.
Maximizing Value of Power

Generating Assets
The objective of a power plant is to generate electricity while maximizing
asset value. Numerous elements, such as the cost of operation, the
equipment’s dependability, efficiency, and environmental impact, affect
the value of the assets. In the past, power plants were operated using
manual controls. The operator would modify the equipment based on
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their experience and the readings from the various sensors in the plant.
This approach was often reactive, meaning the operator would make
changes after the asset was not performing optimally. It also was labor-
intensive and required significant skill and expertise from operators to
ensure the safe and efficient operation of the power plant.
Over time, technological advancements led to the development of
computer-based control systems that automate many tasks previously
performed manually. These control systems allow for greater precision
and consistency in the operation of power plants and reduce the need for
manual intervention, leading to improved efficiency and safety.
Today, many power plants, mostly those in Asia, use a combination
of manual and computer-based control systems, with the latter providing
advanced monitoring and control capabilities. With the development of
increasingly sophisticated technologies, the trend toward automation
in the power generation industry will likely continue, using artificial
intelligence in all systems.
Boiler Turbine Generators (BTG) are one of the crucial systems of a
power plant operation. BTG can be either manual or automatic systems.
In the past, many BTG systems were operated manually, where operators
would physically adjust various systems and equipment to regulate power
generation. This method of operation was labor-intensive and required
significant skill and expertise from operators to ensure the safe and
efficient operation of the power plant.
Today, however, many BTG systems are automated using computer-
based control systems. These control systems allow for greater precision
and consistency in the operation of power plants and reduce the need
for manual intervention, leading to improved efficiency and safety. For
example, in an automated BTG system, the control system monitors
various parameters, such as steam pressure and temperature, and adjusts
the operation of the boilers, turbines, and generators accordingly.
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Predictive analytics may now be used to control power plants because

of the advancements in artificial intelligence (AI). AI can take in data from
various sensors in the plant and use that data to predict how the asset
will perform in the future. Based on this prediction, the AI can adjust the
equipment to maximize the asset’s value.
For instance, if the AI anticipates that an asset will become less
dependable, the AI can modify the machinery to lessen the effects of the
asset’s downtime. Or, if the AI predicts that an asset will be more efficient
in the future, the AI can make changes to maximize the output of the asset.
The benefits of using AI to operate power plants are numerous. AI
can assist power plants to prevent production loss, reduce downtime,
and increase efficiency by adjusting the equipment based on forecasts. In
addition, AI can help power plants reduce their environmental impact by
modifying the equipment that minimizes the release of emissions.
Overall, AI is a powerful tool that can be used to maximize the
value of power-generating assets. AI can assist power plants in avoiding
expensive issues and increasing overall efficiency by forecasting the future
performance of the assets.
Carbon Optimization
Carbon optimization during power generation using AI is a process
whereby the carbon output of a power plant is monitored and controlled
to minimize emissions. This is accomplished by tracking and real-time
adjusting carbon dioxide output levels using sensors and algorithms.
Reduced greenhouse gas emissions, improved air quality, and climate
change mitigation are all advantages of this process. In the past, carbon
optimization during power generation was a manual process that was
often error-prone and time-consuming. However, with the advent of AI,
this process can now be automated and carried out with much greater
accuracy and efficiency.
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One of the key benefits of employing AI for carbon optimization is

recognizing and addressing issues in real time. For example, if a power
plant emits too much carbon dioxide, the AI system can immediately
adjust the output levels to bring them back to the desired level.
Compared to the previous manual approach, which frequently caused
delays of several hours or even days before the issue was fixed, this is a
considerable improvement. Another advantage of using AI for carbon
optimization is that it can help to predict future trends. As a result, the
power plant’s output can be adjusted using this knowledge in advance,
reducing emissions before they even happen. Overall, using AI for carbon
optimization during power generation using AI is a highly effective way to
reduce emissions and help mitigate climate change. It is also much more
efficient and accurate than the old manual system, making it an essential
tool for the future of sustainable energy.
Key Takeaways
• Traditional power generation ideas are evolving, and
finding new ways to generate cleaner energy is now
more critical than ever. Digitalization of power plants is
inevitable, and AI will play a significant role in it.
• Power generation assets are getting challenged by the
increased load and age. AI is bringing in new ways.
• Carbon balancing is a fine art, and AI will help with that
significantly.
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CHAPTER 7
Microgrid – Macro
Impact
The development and deployment of microgrids have had a profound
effect on the global energy landscape. The emergence of distributed
energy resources (DERs) has enabled distributed electricity generation
and consumption, creating new opportunities for energy production
and consumption efficiency, providing grid-level services to support
grid reliability, and offering the possibility of a low-carbon, resilient, and
secure energy system. This chapter will explore the macro-level impacts of
microgrids, including economic, environmental, and social considerations
and AI and advanced technology applications in this space.
Introduction
A strong winter storm that hit Texas on February 11, 2021, started the
state-wide power outage. The storm severely damaged the state’s electric
grid and caused extensive power outages. More than 4 million customers
lost power, and nearly 200,000 were still without power as of February 16.
The outages left many Texans without heat or running water and caused
at least 26 deaths. Hospitals, nursing homes, and other critical facilities
were forced to rely on backup generators, and some ran out of fuel. The
storm also disrupted the state’s natural gas and water systems, causing
widespread shortages. Many Texans were forced to boil their water to make

Chapter 7 MiCrogrid – MaCro iMpaCt
it safe to drink. The storm caused an estimated $195 million in damage to

the state’s electric grid. In addition, there were significant repercussions
from the state’s infrastructural failures and power outages. The storm
compelled the closure of government buildings, businesses, and schools.
The outages also left many Texans without heat or running water and
caused widespread disruptions to the state’s water and natural gas systems.
In many parts of the world, power outages are a regular occurrence.
They can be caused by severe weather, problems with the electrical grid,
or other factors. A microgrid is a compact, localized energy system that
can power a restricted region during a power outage. Microgrids are
gaining popularity as reliable sources of power during outages. They are
environmentally friendly since they are frequently powered by renewable
energy sources like solar and wind.
In addition, microgrids can be used to power critical infrastructure
during an outage, such as hospitals and emergency services. There are
many benefits to using microgrids during power outages. They can provide
power to a small area without relying on a large, centralized power plant,
offering greater flexibility and resilience. While microgrids can be more
efficient in certain contexts – such as reducing transmission losses by
generating power closer to where it’s used – their efficiency compared to
traditional power plants can vary depending on factors like technology
and scale. Additionally, microgrids produce no emissions when utilizing
renewable energy sources, and building them is generally less expensive
than constructing traditional power plants.
Microgrids are a potentially effective way to deal with the issue of
power disruptions. Compared to conventional power plants, they are more
cost-effective to develop, efficient, and ecologically friendly. Compared to
conventional grid-tied systems, microgrids offer a variety of advantages,
such as higher energy security, improved dependability, and increased
power generation and distribution flexibility. Microgrids can also help
reduce greenhouse gas emissions by enabling renewable energy sources
and providing more efficient power generation and distribution.
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Eliminating Energy Poverty

and Bringing Equality
Microgrids can help to eliminate energy poverty and bring equality to
communities that the traditional grid has long underserved. Microgrids
can help dramatically cut families’ and businesses’ energy costs when
used with energy-saving techniques. In the face of power outages
and severe weather, microgrids can help communities become more
resilient. Microgrids can also contribute to developing more regional and
sustainable energy systems because they can be tailored to a community’s
unique demands.
Tackling Energy Poverty in Nigeria Through Artificial
Intelligence
When it comes to energy poverty, Nigeria is one of the most affected
countries in the world. With a population of over 200 million people,
the majority of whom live in rural areas, Nigeria has one of the lowest
electrification rates in the world. In fact, only about 40% of the population
has access to electricity. This lack of access to electricity has a huge impact
on the lives of Nigerians. It limits economic opportunities, as businesses
cannot operate without power, and it reduces the quality of life, as people
cannot cook or study at night. In addition, energy poverty greatly impacts
health, as people cannot keep vaccines cold or use life-saving medical
equipment. However, there is hope that Nigeria can overcome energy
poverty with the help of artificial intelligence (AI). AI is helping to identify
and target areas of the country most in need of electrification. AI can also
help optimize energy production and distribution, so everyone can access
electricity. Nigeria has the potential to overcome energy poverty and
improve the lives of its people with the power of AI.
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The rapid population growth in Nigeria has increased the overreliance

on fossil fuels that contributed to socioeconomic drawbacks. The massive
demand and the lack of an established energy supply chain in Nigeria
resulted in acute energy poverty. In 2020, the Rural Electrification Agency
(REA) estimated that almost 90 million people in Nigeria do not have
access to grid electricity. The millions of those connected to the grid have
less than 12 hours of electricity every day.
Advancing Economic, Racial,

and Environmental Equity
The Sustainable Development Goals (SDGs) of the UN offer a
comprehensive and widely accepted framework for considering the most
critical issues the world is facing today and how to address them. Goal
number 11, “Make cities and human settlements inclusive, safe, resilient
and sustainable,” is particularly relevant to the work of the Urban Institute’s
Justice Policy Center, which seeks to reduce crime and incarceration while
promoting opportunity and fairness. In support of Goal 11, the Justice
Policy Center is partnering with the Urban Institute’s Center on Nonprofits
and Philanthropy and the Technology and Innovation in the Public Sector
program to develop and test a model that uses artificial intelligence (AI)
and microgrid technology to help communities advance economic, racial,
and environmental equity. The underlying idea of the concept is that
while microgrids can supply communities with the energy they require to
power their homes and businesses and increase resilience in the face of
catastrophic weather events, AI can be used to detect and focus resources
on regions of most need.
The project is piloted in two communities in the United States: Detroit,
Michigan, and New Orleans, Louisiana. In each community, the project
team works with local partners to identify areas of greatest need and
develop plans for deploying AI and microgrid technology. The project is
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still in its early stages, but the team is already seeing promising results. For
example, in Detroit, the team is working with Housing and Revitalization
Department, using AI to identify vacant and abandoned properties that
could be redeveloped into housing or commercial space. The plan is
to power these vacant and abandoned spaces with microgrids. In New
Orleans, the team uses AI to identify blighted properties that could be
redeveloped into green space. The team also works with local partners to
develop plans for deploying microgrids in both communities.
Electrifying Remote Places

In many remote places worldwide, people still do not have access to
electricity. This is often due to a lack of infrastructure, which can be
expensive and difficult to build in these areas. New technology, however,
can assist in bringing electricity to these remote places. Microgrids are
one of these technologies. Microgrids are small, localized power grids
that can provide electricity to a small area. They are often used in rural or
remote areas where it is not possible to connect to the main power grid.
Another technology that can be used to electrify remote places is artificial
intelligence (AI). AI can be used to manage and improve the operation
of microgrids as well as to assist in their planning and construction. This
can ensure that they are as effective as possible and that the demands of
the local population are met. Together, microgrids and AI can be used to
electrify even the most remote places in the world. This can improve the
quality of life for people in these areas and provide them access to the
modern world.
Electrifying Remote Indian Village
In a remote village in India, electrification has been a challenge.
Traditional kerosene lamps, which are not only expensive but also
unhealthy, have been used in the community for lighting. However, the
village has a good amount of sunshine, so a microgrid powered by solar
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panels and batteries is a viable option. The microgrid is designed such that
it can be operated with minimal human intervention. It is equipped with
sensors and an AI system that can predict the load on the grid and adjust
the output accordingly. Additionally, the system can detect faults and take
necessary actions to fix those faults. The villagers are very happy with the
new system. They no longer have to worry about kerosene lamps and have
access to reliable and affordable electricity.
Improving Power Quality Index

There are several ways that microgrids can help to raise the power quality
index. One way is by providing a more reliable and consistent power
supply. This can help to reduce or eliminate power outages and brownouts,
which can cause major disruptions to businesses and households. Another
way microgrids can improve the power quality index is by providing
cleaner and more efficient energy. This can help to reduce pollution and
carbon emissions and can also help to save money on energy costs.
Improving Equitable Grid Reliability

Microgrids are a promising solution for improving grid reliability,
particularly in regions where the grid is vulnerable to weather-related
disruptions. Microgrids can be created to run independently from the
grid, acting as a backup power supply when the primary grid is down.
In addition, microgrids can be equipped with smart grid technologies,
such as advanced sensors and artificial intelligence (AI), to help optimize
power generation and distribution. Artificial intelligence (AI) can be used
to forecast demand trends and instantly improve microgrid operations.
For example, AI-enabled sensors can monitor grid conditions and adjust
power generation and distribution to meet demand. This can help avoid
outages and ensure that power is delivered reliably and efficiently.
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In addition, microgrids can be used to support the integration of

renewable energy sources, such as wind and solar, into the grid. Microgrids
can store excess energy generated by renewables when demand is low
and release it when demand is high. This can help to balance the grid and
improve its overall reliability. Microgrids are versatile solutions that can be
tailored to the specific needs of each community. Microgrids can offer a
dependable and resilient power source and enhance the grid’s integration
of renewable energy when used in conjunction with AI.
Investing for a Greener Future

Microgrids can play an important role in modernizing the power grid
by improving reliability, efficiency, and sustainability and enabling the
integration of clean energy sources and other advanced technologies.
Microgrids are considered a solution to grid modernization for several
reasons:
1. Increased reliability and resilience: Microgrids
can operate independently from the main grid and
provide backup power during outages, improving
the reliability and resilience of the power supply.
2. Improved energy efficiency: Microgrids can
optimize local renewable energy sources, reducing
the need for energy imports and increasing energy
efficiency.
3. Enhanced grid flexibility: Microgrids can support
the integration of renewable energy sources, electric
vehicles, and other distributed energy resources into
the grid, enhancing its flexibility and adaptability.
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4. Better integration of renewable energy: Microgrids

can facilitate the deployment of renewable energy
sources in remote or underserved communities,
enabling the integration of clean energy into
the grid.
5. Improved security and control: Microgrids
can provide a secure and controllable power
supply, reducing dependence on the main grid
and providing more localized control over the
energy system.
Renewable microgrids are appealing because they offer a range

of benefits that improve energy security, reduce costs, and enhance
sustainability for communities. Renewable microgrids are typically
owned and controlled by local entities, allowing for more localized
decision-making and control over the energy system. They can operate
independently from the main grid and provide backup power during
outages, improving the reliability and resilience of the power supply. Also,
renewable microgrids can rely on clean, renewable energy sources, such as
solar or wind power, reducing the community’s dependence on fossil fuels
and improving air quality. In addition, renewable microgrids can reduce
energy costs for communities by reducing dependence on imported
energy and utilizing local renewable energy sources. Lastly, renewable
microgrids can provide communities with greater energy independence
and security, reducing dependence on external energy sources and
improving energy security.
Microgrids can provide many benefits to both the electric grid
and the environment. One benefit of microgrids is that they can help
increase the electric grid’s resilience. For example, when there is a power
outage, a microgrid can disconnect from the primary grid and operate
independently. This can help to prevent blackouts from spreading
throughout the grid.
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Another benefit of microgrids is that they can help to reduce carbon

emissions. Renewable energy-powered microgrids can aid in replacing
fossil fuels and cutting greenhouse gas emissions. In addition, microgrids
can help to increase the efficiency of the electric grid by reducing
line losses.
Microgrids are a smart investment for a greener future. Microgrids can
help increase the electric grid’s resilience and reduce carbon emissions. In
addition, microgrids can help to increase the efficiency of the electric grid.
Integrating Microgrid with Energy

Ecosystem
The traditional grid is a centralized system that delivers electricity from
a handful of large power plants to millions of customers. The grid is an
aging system vulnerable to weather, cyberattacks, and other disruptions. A
microgrid is a decentralized system that generates, stores, and manages its
power. Microgrids can be powered by renewable energy sources, such as solar
and wind, or by conventional sources, such as natural gas. Microgrids are
more resilient than the traditional grid because they can island themselves
from the grid and continue to operate during a grid outage. Microgrids can
also provide grid stability by responding to real-time fluctuations.
The traditional grid is a one-way system that delivers electricity
from power plants to customers. Microgrids are two-way systems that
can send electricity back to the grid when needed. Microgrids can help
utilities meet their renewable energy goals by providing a way to integrate
renewable energy into the grid. Microgrids can also provide grid stability
and resiliency, becoming increasingly important as the grid becomes more
complex. Utilities are beginning to recognize the value of microgrids and
are starting to invest in them. In the future, microgrids will become an
integral part of the energy ecosystem, providing a cleaner, more reliable,
and more resilient power system.
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Key Takeaways
• Microgrid is a solution that has the potential to tackle
both energy poverty and clean energy mission.
• One way to provide remote communities with
clean, affordable, and reliable electricity is through
microgrids. Microgrids are small-scale energy
systems that can operate independently from the
traditional grid. They can be powered by renewable
energy sources like solar and wind providing a more
reliable and cost-effective energy solution for remote
communities.
• Investing in microgrid technologies will help bring
energy security and improve the overall reliability of
the power system.
• Sophisticated AI solutions will help embrace, adopt,

and integrate microgrid solution with the overall
energy ecosystem.
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CHAPTER 8
Intelligent
Transmission and
Distribution
The dawn of the 21st century has seen tremendous advancement in the field
of technology, and the introduction of artificial intelligence (AI) has only
accelerated the rate of innovation. In particular, the application of AI to the
transmission and distribution of electricity has been a game changer in terms
of efficiency, safety, and reliability. This chapter will discuss the potential
applications of AI in the transmission and distribution of electricity and the
implications for the industry’s future. Specifically, the chapter will explore
how AI can optimize electricity transmission and distribution, including
predictive maintenance, dynamic demand response, and autonomous grid
operation. Additionally, the chapter will examine the challenges associated
with using AI in transmission and distribution networks and the steps that
must be taken to ensure successful implementation.
Introduction
In 1882, Thomas Edison opened America’s first power plant at Pearl
Street Station in lower Manhattan, serving just 59 customers. Since then,
the customer base across the utility industry has grown to hundreds of

CHAPTER 8 INTELLIGENT TRANSMISSION AND DISTRIBUTION
millions. However, the overall structure of the industry – comprising a

vast network of approximately 5800 power plants, over 2.7 million miles
of power lines, and numerous distribution centers – has not undergone
significant modernization.
High costs for infrastructure and distribution lines, as well as stringent
governmental regulations, naturally create opportunities for monopolies
to develop in the market. As a result, three separate US grids produce and
transmit power under the mandate to provide low-cost, reliable energy as
a public good.
In the United States, the average age of power plants is over 30 years,
and of power, transformers are over 40 years. According to the federal
task force charged with its investigation, this deteriorating transmission
system led to the 2003 Northeast blackout, the largest failure in US
history. It left 50 million people without power for several days when an
overloaded transmission line sagged and struck a tree. These incidents
can ripple and impact the entire area grid and are challenging for utility
providers to handle. In addition, the growth of distributed production,
in which individual users produce and utilize their electricity from
renewable sources like wind and solar, presents another difficulty. Due
to the complicated nature of supply and demand, utility companies are
compelled to purchase excess energy from individual consumers who
produce more power than they consume and transmit the extra energy
back to the system. Since 2010, solar use has more than tripled, and this
trend is poised to continue as photovoltaic cells, the devices that generate
electricity from sunlight, decrease in cost and increase in efficiency.
The current system was not built to accommodate this diversification
in energy sources, especially not the rise in renewable resources. Instead,
when demand outpaces supply, utilities turn on backup fossil fuel-
powered plants, known as ‘peaker plants,’ at a minute’s notice to avoid a
cascading catastrophe. This procedure is the most expensive and wasteful
part of business for these companies, manifesting in higher electricity
bills for consumers and enhanced greenhouse gas emissions into the
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atmosphere. These problems will be exacerbated as the US energy demand

is projected to increase steadily.
The smart grid is a system that uses information technology to manage
electricity delivery from generation sources to consumers. The smart
grid includes a variety of technologies and systems that work together to
provide a more reliable, efficient, and environmentally friendly electricity
system. However, the smart grid still needs to be intelligent. The current
smart grid is limited in its ability to self-diagnose problems, make
decisions, and adapt to changing conditions. An intelligent smart grid
could do all these things and more. AI can help to make the smart grid
more intelligent. AI can be used to create a virtual power plant that can
predict demand and supply, optimize the use of resources, and provide
real-time feedback to users. AI can also be used to create smart meters that
can provide detailed information about electricity usage and help identify
potential problems. Transitioning from a smart grid to an intelligent smart
grid will require a significant investment of time and money. However, the
benefits of an intelligent smart grid will be well worth the investment.
AI will be the brain of this future smart grid. To quickly decide how to
effectively allocate energy resources, the system will continuously gather
and synthesize enormous volumes of data from millions of smart sensors
across the country. Additionally, the advances made from ‘deep learning’
algorithms, a system where machines learn independently from spotting
patterns and anomalies in large data sets, will revolutionize both the
demand and supply side of the energy economy.
Asset Management
Electric utilities can manage important assets by using utility asset
management, which keeps track of various factors like age, usage,
maintenance history, and more. Asset performance management (APM)
enhances asset management with data analytics, condition monitoring,
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and predictive maintenance to support better operational decisions. The

risk of equipment failure is reduced while equipment life is optimized
using a utility asset management system with APM capabilities. The
results are seen in gained efficiency, lower emissions, and reduced costs,
with maximum uptime and reliability of service for end users. However,
utilities sit at the convergence of a technology revolution impacting both
distributed and centralized assets, as well as complex business processes.
When combined with the persistent challenges of aging infrastructure,
an aging workforce, and increasing regulatory requirements, operational
leaders need to reduce risk while improving financial performance and
infrastructure resilience. This is achieved through the coordinated activity
of an organization to realize value from its assets.
Intelligent Asset Analytics

Predicting the RUL (Remaining Useful Life)
for an Asset
Utilities have the problem of preserving their current asset portfolio
while offering good customer service with constrained resources
worldwide. Asset management is critical to ensuring that utilities meet
this challenge; however, cost-effective approaches for assessing asset
condition, performance, and remaining service life are required. The
current state of the art for estimating remaining life by applying several
methodologies depends heavily on asset lifespan. There are many
ways to predict the remaining useful life (RUL) of a utility asset using
AI. Regression algorithms are frequently used to forecast the RUL based on
historical performance data. Another strategy is constructing a decision
tree to pinpoint the important variables affecting an asset’s RUL. Both
approaches have their advantages and disadvantages. Regression is a more
mathematically complex approach, but it can be more accurate if the past
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performance data represents the future. Although decision trees are more
understandable and sometimes simpler to read, they may be less accurate
if the major variables that affect the RUL are not understood beforehand.
Ultimately, the best approach to predicting the RUL of a utility asset
using AI will depend on the specific data and circumstances. In general,
however, either regression or a decision tree can be a helpful tool for
making predictions about the RUL of an asset.
Producing Recommendations About Service

or Maintenance
In recent years, there has been an increasing trend of using artificial
intelligence (AI) to produce recommendations about the service or
maintenance of utility assets.
The advantages of using AI in this context are numerous:
1. AI can help to identify patterns that may not be
readily apparent to human analysts.
2. AI can process large amounts of data much more
quickly than humans, meaning that more data can
be considered when making recommendations.
3. AI can help improve the accuracy of

recommendations by reducing certain human
biases. However, it’s important to note that bias can
still be unintentionally introduced if the input data
is not carefully designed and curated.
AI offers powerful tools for producing recommendations about the
service and maintenance of utility assets by leveraging deep analytics
to identify predictive variables for asset breakdowns. Instead of simply
scheduling annual maintenance based on past patterns, AI can analyze
complex data sets to predict when an asset is likely to fail. This allows
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for proactive, risk-based maintenance schedules that optimize asset

performance and prevent unexpected breakdowns, rather than relying on
fixed time-based intervals.
Another approach is to use AI to generate recommendations based
on the specific needs of a particular asset. For example, if data indicates
that a particular asset is consistently operating at below-optimal levels, AI
can recommend that the asset be serviced or maintained to improve its
performance.
AI is a powerful tool that can be used to produce recommendations
about the service or maintenance of utility assets. The advantages of using
AI in this context are numerous, and the different approaches that can be
used to generate recommendations offer a great deal of flexibility. As such,
AI is likely to play an increasingly important role in the future service and
maintenance of utility assets.
Utility Pole Deterioration Modeling

The electric grid is one of the most important infrastructure systems in the
United States. In addition, it is one of the most vulnerable, as evidenced
by the recent major power disruptions brought on by hurricanes. The
grid comprises millions of miles of wire, hundreds of thousands of
transformers, and millions of poles and other structures. The poles are
particularly important, as they support the wires that carry electricity from
the power plants to our homes and businesses.
Utility poles are made of wood, concrete, or metal and can be as tall as
100 feet. As a result, they are constantly exposed to the elements, and over
time, they can deteriorate. This can lead to the poles falling over, which can
cause blackouts and other problems.
To prevent widespread outages, it is important to be able to predict
which poles are most likely to fail. This is a challenging undertaking
because a variety of factors, such as weather, insects, and pole age, can
cause pole deterioration. Fortunately, there is a growing body of research
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on utility pole deterioration modeling using AI. This research is helping to

create better models for predicting pole failure, which will ultimately help
to keep the power grid running smoothly.
Long-Term Health Index Prediction

for Power Asset
The long-term health index (LTHI) is a key performance indicator for
power assets. It is a measure of an asset’s ability to generate electricity over
its lifetime and is used to predict the lifetime performance of the asset.
LTHI is influenced by several factors, including the asset’s design,
operating conditions, and maintenance regime. Unfortunately, many
of these factors are difficult to predict or control, making it difficult to
accurately forecast an asset’s LTHI.
However, recent advances in artificial intelligence (AI) provide new
ways to accurately predict an asset’s LTHI. In addition, AI can be used
to analyze data from various sources, including asset performance data,
maintenance records, and weather data.
AI-based models can identify patterns and relationships that would be
difficult to spot using traditional methods. This allows for more accurate
predictions of an asset’s LTHI.
Some companies are already using AI to predict the LTHI of power
assets. This is likely to become more widespread as the technology
develops and becomes more affordable.
Health Monitoring of Timber Utility Poles

The use of timber utility poles is widespread in the utility industry. The
health of these poles is critical to the electrical grid’s stability. AI can be
used to monitor the health of these poles.
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Artificial intelligence (AI) can be used to spot early degradation in

wooden utility poles. This information can be used to plan maintenance
and repairs before the pole fails. This can help to avoid power outages and
keep the electrical grid stable.
AI can also be used to monitor the environment around the utility
poles. The potential dangers that could harm the poles can be found
using this information. Utilizing this knowledge will enable you to take
precautions to protect the poles. In addition, AI can help to improve the
safety and reliability of the electrical grid. This technology can help to save
money and avoid power outages.
Assets Inspection Using Drone

The power transmission business will be transformed by the deployment
of drones and AI for asset inspection. By using these technologies,
inspectors can quickly and easily identify potential problems with power
lines, towers, and other critical infrastructure.
Drones with high-resolution cameras and AI software can quickly scan
large areas for potential problems. This can save inspectors substantial
time and effort and allow them to focus on other tasks.
AI-driven software can also aid in detecting issues that might not
be immediately obvious by analyzing data from various sources. By
identifying patterns and potential dangers, AI can improve maintenance
schedules and prevent potential outages. Moreover, this can be done at
a scale that is not easily achievable by humans, thanks to the automation
and processing power of AI.
The power transmission business is already demonstrating the value
of asset assessment using drones and AI. As these technologies continue
to develop, they are likely to have an even greater impact on the efficiency
and safety of power transmission assets.
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Benefits of Assets Inspection Using Drone

1. Reducing risk and danger: Using drones
significantly improves worker safety. This is made
even clearer in the case of buildings like oil and
gas refineries, which feature a variety of dangerous
situations like tight spaces, tall, intricate stacks and
pipelines, toxic compounds, and locations with
low oxygen levels. Reducing the human interaction
required for such asset assessment significantly
lowers the possibility of worker fatalities or injuries.
2. Minimize downtime: Since less scaffolding, towers,

and other equipment need to be set up, surveillance
can be completed more quickly. This not only
reduces downtime and increases productivity but
also allows for more frequent inspections, further
enhancing operational efficiency.
3. Lowered insurance premiums: Removing the need

for manual inspection reduces the cost of worker
and inspector insurance. Additionally, it eliminates
the need for pricey Health, Safety, and Environment
(HSE) procedures.
Consumer Behavior
Smart Grid Consumer Behavioral Model
Smart grid consumer behavioral models use artificial intelligence (AI) to
better understand and predict consumer behavior. These models can help
utilities optimize the grid, reduce energy costs, and improve customer
satisfaction.
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Behavioral models can be used to understand various customer

behaviors, including energy consumption, load shedding, and demand
response. Analyzing historical data using AI-powered models can reveal
patterns and trends in consumer behavior. This information can be used to
develop predictions about future behavior.
Utilities can use behavioral models to develop targeted marketing
and outreach programs. For example, a utility may use a model to identify
customers likely to participate in a demand response program. The utility
can then develop targeted marketing materials and programs to encourage
these customers to participate.
Additionally, behavioral models can be employed to enhance grid
operations. For example, a model may predict how customers will respond
to a power outage. This information can be used to improve outage
management and restoration plans.
Smart grid consumer behavioral models are a powerful tool for
utilities. These models can help utilities reduce energy costs, improve
customer satisfaction, and optimize grid operations.
Anomaly Detection Techniques in Advanced

Metering Infrastructure
Anomaly detection techniques are used to find unusual or unexpected
patterns in data. These techniques can be used to find equipment or
systems problems, identify fraudulent activities, or detect other unusual
behavior.
There are many different anomaly detection techniques, but some
of the most common are machine learning, statistical analysis, and data
mining. Machine learning is a type of artificial intelligence that can be
used to find patterns in data. Statistical analysis can be used to identify
unusual patterns by looking at the distribution of data. Data mining is a
process of searching through data to find patterns.
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Anomaly detection techniques are used in various industries, but they

are significant in advanced metering infrastructure (AMI). AMI systems
are used to measure and track electricity, water, and gas usage. In addition,
these systems are used by utilities to manage resources and bill customers.
Anomaly detection techniques can be used to find problems with AMI
systems. For example, if there is a sudden increase in electricity use, this
could indicate a problem with the system. Anomaly detection can also be
used to find fraudulent activities. For example, if someone uses a water
meter to steal water, they will likely have a higher water usage than others
in the same area.
Data mining is a particularly important anomaly detection technique
for AMI systems. This is because AMI systems generate a large amount of
data. This data can be used to find patterns that indicate problems with
the system. For example, if there is a sudden increase in electricity use, this
could indicate a problem with the system.
Anomaly detection techniques are important for AMI systems because
they can help to find problems with the system. These techniques can
also be used to find fraudulent activities. Data mining is a particularly
important anomaly detection technique for AMI systems.
Household Characteristics from Electricity

Meter Data
There is a lot of potential in using AI to understand household
characteristics from electricity meter data. This data can be used to
understand how a household uses energy, their appliances, and even their
economic status.
Utilizing clustering algorithms is one approach within AI to better
understand household characteristics. While clustering itself is a data
analytics technique, when combined with AI, it can go further by not only
grouping households with similar electricity usage patterns but also by
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predicting future behaviors, optimizing energy distribution, and tailoring

services to different household types, such as those with high or low
energy usage.
Another way AI can be utilized to understand household
characteristics is through the use of classification algorithms. While
classification itself is a data analytics technique, AI enhances this process
by learning from large datasets and improving its predictions over time.
For example, AI-driven classification algorithms can predict the types of
appliances in a household based on electricity usage patterns. Beyond
merely identifying energy-efficient or high-energy appliances, AI can
provide insights into usage behaviors, optimize energy consumption, and
suggest personalized energy-saving strategies.
Finally, regression algorithms can be used to understand the economic
status of electricity meter data. This can be used to identify families that
use more or less energy than usual, or those that are spending a lot of
money on energy.
Building Load Prediction

In the past, predicting how much load a building would experience was a
complex and inexact science. But with the advent of artificial intelligence
(AI), it’s now possible to create more accurate models that consider a
variety of factors.
For example, the peak demand for a building can be predicted using
historical data and weather trends by using artificial intelligence (AI). This
information can be used to help utilities and building managers plan for
increased demand and avoid blackouts or brownouts.
AI can also be used to monitor real-time data from sensors to identify
trends and incipient problems. For example, suppose a sensor detects
a sudden drop in water pressure. In that case, AI can automatically shut
off water to non-essential areas of the building to prevent damage. In
the future, AI will become even more important in managing buildings
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and their loads. For instance, AI will be necessary to control the intricate
interconnections between these various systems as more buildings
install solar panels and other renewable energy sources. However, as AI
continues to evolve, the potential applications for building load prediction
are limited only by our imagination.
Grid Security
Energy Theft Detection
Energy theft has been a problem for utilities for many years. With the
advent of AI, energy theft detection is becoming much more sophisticated.
AI can assist in identifying probable cases of energy theft and assisting in
its prevention by analyzing patterns in energy usage. Meter manipulation
is one of the most prevalent types of energy theft. This is when someone
circumvents or illegally disconnects their meter to avoid paying for the
energy they use. AI can help to identify meter tampering by analyzing
patterns in energy usage. For example, if there is a sudden drop in energy
usage, this could be an indication that someone has tampered with
their meter.
Another form of energy theft is known as non-technical losses. Here
the energy is lost due to faulty equipment or poor maintenance. AI can
help to identify non-technical losses by analyzing patterns in energy usage.
For example, if there is a sudden increase in energy usage, this could
indicate a problem with the equipment.
AI can be used to detect energy theft in many ways. One is by analyzing
the pattern of energy usage over time. If there is a sudden spike in usage, it
could be an indication that someone is tampering with the meter. Another
way is to use AI to compare the energy usage of similar buildings. If one
building is using significantly more energy than others, it could be an
indication of theft.
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Energy theft is a serious problem that can significantly impact the

energy costs. AI is a powerful tool that can be used to detect energy theft
and help to reduce the cost of energy.
AI algorithms use energy consumption patterns, technical parameters
of phase currents, neutral currents, voltages, power factors, and available
smart meter events to identify where and how meter tampering is most
likely to have occurred in cases where electricity thieves take steps to
prevent energy consumption from being recorded. Significant decreases
in usage often occur along with electrical anomalies when there are
tampering tendencies. AI can be leveraged to tackle energy theft by
analyzing large amounts of energy data to detect and prevent fraudulent
electricity usage. This can be done through techniques such as:
1. Anomaly detection: AI algorithms can analyze

electricity usage patterns to identify abnormal
behavior, such as excessive usage during off-peak
hours, which could indicate theft.
2. Load profiling: AI algorithms can create a profile

of electricity usage for each consumer, which can
then be used to identify suspicious behavior, such as
significant changes in usage patterns.
3. Image processing: AI algorithms can process
images captured by cameras to detect theft. For
example, identifying the unauthorized connection
of cables to electrical infrastructure.
4. Predictive maintenance: AI algorithms can predict

equipment failure and prevent energy theft by
detecting problems before they occur, reducing the
likelihood of theft by exploiting these vulnerabilities.
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Cyberattack Detection
The nation’s critical infrastructure is under constant attack from various
cyber adversaries. In response, the Department of Homeland Security
(DHS) is turning to artificial intelligence (AI) to help defend our nation’s
utilities.
DHS’s Science and Technology Directorate (S&T) is funding the
development of a prototype system that uses AI to detect anomalies in
utility data that could indicate a cyberattack. The Electric Infrastructure
Security (EIS) Cyber-Attack Detection System, is being developed by a
team of researchers from the University of Maryland, Argonne National
Laboratory, and S&T.
The EIS system will use a variety of data sources, including control
system data, power grid data, and weather data, to train a machine learning
algorithm to detect anomalous behavior that could indicate a cyberattack.
Additionally, the system will be designed to work in real time, providing
alerts to utility operators so they can take action to mitigate the threat.
The EIS system is just one example of how AI is being used to defend
our nation’s critical infrastructure. S&T is also funding the development
of AI-enabled systems to detect threats to the nation’s water supply and
to protect against cyberattacks on the electric grid. AI will become more
crucial in keeping our critical infrastructure secure as the threat landscape
changes.
Intrusion Detection System for Advanced

Metering Infrastructure
An intrusion detection system (IDS) is a device or software application that
monitors a network or system for malicious activity or policy violations.
Any malicious activity or violation is reported to an administrator or
collected centrally using a security information and event management
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(SIEM) system. The outputs from many sources are combined by a SIEM
system, which filters and analyzes the data using correlation techniques.
IDS come in a variety of forms, including network-based IDS (NIDS),
host-based IDS (HIDS), and application-based IDS (AIDS). NIDS monitors
traffic on a network segment and analyzes it for suspicious activity. HIDS
monitors activity on a single host, such as a server, and can be used to
detect malicious activity, such as viruses or unauthorized access attempts.
To detect malicious activity, such as SQL injection attacks or cross-
site scripting (XSS) attacks, Intrusion Detection Systems (IDS) are used
to monitor activity within a particular application, such as a web server.
SQL injection attacks involve inserting malicious SQL code into a query,
allowing attackers to manipulate a database, while cross-site scripting
attacks involve injecting malicious scripts into web pages viewed by other
users, potentially stealing information or hijacking sessions.
In recent years, there has been increasing interest in using artificial
intelligence (AI) for IDS. AI can perform various tasks, such as data pre-
processing, feature selection, classification, and anomaly detection. AI-
based IDS can improve the accuracy of detection by reducing the number
of false positives (i.e., alerts not caused by malicious activity) and false
negatives (i.e., malicious activity not detected by the IDS).
There are several different AI algorithms that can be used for IDS,
including decision trees, rule-based systems, artificial neural networks,
and support vector machines. IDS powered by AI are generally more
accurate than traditional IDS but tend to be more sophisticated and
resource intensive. As such, AI-based IDS are typically used in conjunction
with traditional IDS to provide the best possible coverage.
False Data Injection Attacks in Power Systems

False data injection attacks in power systems involve attackers injecting
misleading or incorrect data into the grid’s monitoring systems. These
attacks can disrupt the operation of the power grid by causing incorrect
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decisions, such as improper load balancing or triggering unnecessary

shutdowns, leading to potential blackouts or equipment damage. As these
attacks become more prevalent, AI can play a crucial role in detecting and
preventing them by monitoring data for anomalies and suspicious activity.
AI-based systems can identify patterns that indicate malicious behavior,
allowing for swift responses to protect the integrity of the grid.
AI can help identify false data injection attacks by analyzing data for
patterns and inconsistencies. For example, if data from a sensor shows a
sudden increase in power usage, this could indicate an attack. AI is also
capable of observing grid communications for indications of tampering.
Preventing false data injection attacks requires real-time monitoring and
analysis of data. AI can provide the speed and accuracy needed to detect
attacks as they happen and take action to prevent them. Additionally,
AI can help identify trends and vulnerabilities that attackers can exploit.
By understanding these weaknesses, power companies can take steps to
protect their systems.
False data injection attacks are a serious threat to the power grid.
AI can help detect and prevent these attacks by monitoring data for
anomalies and suspicious activity. By understanding the trends and
vulnerabilities that attackers can exploit, power companies can take steps
to protect their systems and keep the grid safe.
Communications and Security Management

Grid communications and security management is a process of handling
communications and security for electric power grids. It involves using
various technologies and protocols to ensure the grid’s availability and
security.
With the increasing complexity of electric power grids, there is a
need for more sophisticated methods of managing communications and
security. The application of artificial intelligence is one such strategy (AI).
AI can be used to manage communications in many ways. For example,
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it can be used to monitor communications traffic to identify and isolate

abnormal or unauthorized activity. It can also be used to automatically
generate and distribute security updates to grid operators.
In addition, AI can be used to manage security for electric power grids.
For example, it can be used, to keep an eye out for signals of hacking or
attack on grid infrastructure. It can also be used to create and maintain
security plans and procedures.
Overall, using AI can improve the efficiency and effectiveness of grid
communications and security management. It can help to identify and
resolve problems more quickly and can help to prevent or mitigate the
impacts of disruptions and attacks.
Grid Resiliency
Harmonic Analysis in Power
Distribution Networks
Harmonic analysis is the study of the waveforms of alternating current
(AC) power. AI-powered harmonic analysis can be used in a power
distribution network to find and fix issues brought on by harmonic
currents. Harmonic currents can damage power distribution networks
by overheating machinery and lowering the voltage. They can also cause
interference with communication systems.
AI can be used to identify harmonic currents in a power distribution
network. This information can correct the problem by re-routing the
power or adding filters to the system.
AI-based harmonic analysis can assist in increasing the effectiveness
of power distribution networks and preventing issues brought on by
harmonic currents.
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Fault Diagnosis of Smart Meters

In the past, electrical meters were read manually by meter readers who
physically came to read the meter once a month. This process was not only
time-consuming and costly, but it was also prone to human error.
With the advent of smart meters, this process has been automated.
Smart meters communicate with the utility company via a wireless
network and are read automatically.
However, even with this automation, some issues can still arise.
One issue is that of false readings. Numerous factors, including meter
tampering, radio interference, and even equipment failure, might cause
this. Another issue is that of meter misreading. This can occur when the
meter cannot properly communicate with the utility company or when
there is an error in the meter itself.
To combat these issues, many utility companies are now turning to
artificial intelligence (AI) for fault diagnosis of smart meters. AI can be used to
detect false readings, and it can also be used to diagnose meter misreading.
One AI-based system that is being used for fault diagnosis is the Smart
Meter Error Detection and Correction (SMEDAC) system. This system uses
various algorithms to detect and correct errors in smart meter readings.
The Smart Meter Data Analytics and Visualization (SMDAV) system
is another AI-based solution. This system uses data analytics to visualize
smart meter data, and it can also be used to detect errors.
Utility providers are also using machine learning to diagnose smart
meter faults. Machine learning is a type of AI that allows computers to
learn from data.
One machine learning-based system is the Smart Meter Fault
Detection and Isolation (SMFDI) system. This system employs several
algorithms to find and isolate inaccuracies in readings from smart meters.
As utility companies continue to adopt AI for fault diagnosis of smart
meters, the accuracy of meter readings is expected to improve. This will
ultimately lead to more reliable and accurate utility bills for customers.
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Severity Analysis of Tree and Utility Pole

Crashes (TUOP)
Electric utilities will use artificial intelligence to analyze weather
conditions and improve the safety of their workers. They will also use data
analytics to improve their maintenance activities. The AI-based tools will
be used to predict and analyze the risk of falling trees or utility poles and
reduce the risk of utility workers being injured or killed.
A research paper by the Pacific Northwest National Laboratory explores
the potential of artificial intelligence for analyzing incidents involving tree
and utility pole crashes to improve electric grid reliability. While trees can
become hazards if they fall on power lines, causing outages or damage,
utility poles are essential structures that support the power lines themselves.
If a utility pole is damaged or removed, it can directly disrupt the grid’s
reliability. The study investigates how AI can help mitigate these risks by
analyzing data to enhance the safety and stability of the electric grid.
This can be done using various pattern recognition algorithms like
convolutional neural networks or support vector machines. The data
needed for this analysis can be sourced from call center logs, social media,
or crowdsourcing. Additionally, the information can be gathered manually
by driving around areas and noting where trees and utility poles are
located. This analysis can predict the risk of a crash at a particular location
and suggest a maintenance schedule to avoid future crashes.
Emergency Response and Coordination

Electric utilities can now use artificial intelligence technology to automate
emergency response and coordination, increasing efficiency and
reducing costs.
Artificial intelligence can be used in electrical grid monitoring to
provide early warning signs of emergencies. For example, an AI system can
monitor grid data and search for patterns in the data to ascertain whether
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there is a chance of electrical surges or power outages. Once an emergency

is declared, AI can be used to coordinate response efforts. For example,
AI can monitor critical facilities such as hospitals or airports and shut
off power if those systems are in danger. AI can also track down critical
emergency information from media sources, such as the whereabouts of
those needing help.
Artificial intelligence can help electric utilities in their disaster
response and coordination using AI by analyzing data from sensors in the
grid, weather reports, and other inputs to predict and prevent outages,
track assets, and monitor critical infrastructure. With the increasing
adoption of smart grids, utilities are generating massive amounts of data.
AI is a perfect fit to analyze this data and provide actionable insights.
Here, the emphasis is on giving users access to real-time data analysis
and information to facilitate quick decision-making in an emergency. The
key here is to monitor, analyze, and react to changing conditions. These
real-time solutions can be deployed on existing devices such as tablets and
smartphones or used as part of a larger system. Again, the key here is to be
able to monitor, analyze, and react to changing conditions.
Geographic Situational Awareness

Unsurprisingly, AI is starting to make a big impact on location-based
services, and more and more people are discovering how AI can help
them navigate their world. AI is playing a more prominent role in assisting
you in making well-informed decisions about where to go and how to
get there, from suggesting the finest travel locations to booking the best
flights. AI can be used to analyze data and predict the best time to book a
flight or whether a certain airport will likely experience delays. It can also
be used to collect data about a location, such as weather patterns, cultural
activities, and other events that might be happening. Then, a mobile app
can offer suggestions for potential future travel destinations or assist you in
making travel arrangements.
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Artificial intelligence is now being used to help business decision-

makers understand their customers’ location and how it relates to their
product or service offering. AI-powered data analysis can be used for
this, or location-based data can be incorporated into current commercial
software. AI is now being used to assist marketers in understanding the
location of their customers and how it relates to their product or service
offering. Businesses can improve the accuracy of their marketing initiatives
by collecting information on the whereabouts of their clients. By analyzing
data on customers’ locations, marketers can better tailor their product or
service offerings to meet the needs of their customers.
AI can transform the way a utility does business. It may be applied
to automate tasks, predict client needs, and make data-driven decisions.
Businesses are currently investigating the use of AI to enhance their
operational procedures. For example, AI can be used to analyze data,
collect signals, and generate visualizations to create situational awareness.
Key Takeaways
• Smarter and more connected – The network will be
more responsive to real-time conditions and demands,
making it more efficient and reliable.
• More renewable energy – A growing share of electricity
will be generated from renewable sources, such as solar
and wind.
• More electric vehicles – More electric vehicles on the
road will mean more demand for electricity, which the
network will need to be able to accommodate.
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• More distributed generation – More electricity will be

generated closer to where it is needed rather than at
centralized power plants.
• Greater use of data, analytics, and AI – Data, analytics,
and AI will be used increasingly to help manage the
network and make it more efficient.
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CHAPTER 9
Utilities Retail
Reimagined
The way consumers interact with utility companies is changing rapidly,
and AI is the driving force behind this transformation. Utilities Retail
Reimagined using AI explores how AI is revolutionizing the retail side of
utility companies, from customer service to energy consumption. We'll
examine how AI impacts the customer experience and how companies
leverage AI to optimize their operations and streamline customer
engagement. We'll also explore how leading utilities are using AI-enabled
solutions to transform customer engagement and drive customer loyalty.
Finally, we'll discuss the implications of AI on the energy sector and what
the future of utility retail looks like in an AI-driven world.
Introduction
The utility sector is undergoing a major technological transformation.
Utilities find it challenging to hold on to customers and protect themselves
against new distributed generation threats in highly competitive retail
markets and traditionally regulated regimes. By digitizing the customer
experience, utilities can simultaneously improve satisfaction and lower
costs. Thanks to AI, utilities are positioned to take advantage of customer
interest in deeper engagement. Utilities already have what AI needs to
thrive on. They have a mountain of customer data. For machine learning

CHAPTER 9 UTILITIES RETAIL REIMAGINED
to operate or to be successful, it must have a cache of data to learn against.

This is an unnatural advantage that they have that they are currently not
exploiting or leveraging.
Empowering Customers
AI will be implemented to make customer service more efficient and
effective. Customer service representatives can use AI to process data and
respond to customers in real-time. AI can be used to monitor social media
to identify customer issues, receive feedback, and suggest solutions. AI
can also be used to automate processes like receiving orders from new
clients, maintaining client information, and drafting service agreements.
The use of pattern recognition, computer vision, and natural language
processing enhances the utility experience. From switching to a new
supplier to managing usage, customers are now given tools to help them
navigate the utility experience. In the future, utilities are expected to invest
in technologies to enable remote monitoring and management of critical
infrastructure, such as power grids, water, and gas networks, etc.
Optimizing Customer–Agent Interactions

with Natural Language Processing
and Machine Learning
In the utility industry, customer–agent interactions are critical to providing
excellent customer service. Utilities can improve customer satisfaction
and cut operating costs by streamlining these interactions using natural
language processing (NLP) and machine learning (ML). NLP can
automatically extract customer information from unstructured text, such
as emails, chat transcripts, and call notes. This data can then be utilized
to direct consumers to the right agent, solve problems more quickly, and
enhance self-service alternatives. ML can be used to predict customer
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needs and proactively offer solutions. For instance, using machine

learning (ML), it is possible to spot trends in customer interactions
that point to a high likelihood of churn. Utility companies can decrease
customer attrition and raise customer satisfaction by proactively
addressing these problems. In addition to NLP and ML, utilities can use
data analytics to improve customer–agent interactions. Data analytics
can be used to identify customer service issues, understand customer
sentiment, and track customer interactions over time. Utilities may
improve customer experiences by better understanding the facts
underlying customer–agent interactions.
Conversational AI Chatbot in Energy Informatics

The use of Conversational AI chatbots in the utility industry has been on
the rise in recent years. The chatbots are used to handle customer queries
and complaints and to promote and sell products and services.
There are many advantages of using chatbots in the utility industry.
The chatbots are available 24/7 and can handle a large number of queries
at the same time. They are also able to provide personalized service and
can remember customer preferences.
Another advantage of using chatbots is that they can help to reduce
customer effort. The chatbot can assist customers who are having trouble
paying their bills, for instance, by guiding them through the procedure.
As a result, the customer may find it time- and frustration-saving. In
addition, chatbots can help to improve customer satisfaction levels. This
is because they can provide a quick and efficient service tailored to the
customer’s needs.
Some challenges need to be considered when using chatbots in the
utility industry. For example, chatbots need to handle a high volume of
queries and complaints. They also need to be able to understand the
customer’s needs and provide relevant information.
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Overall, the use of chatbots in the utility industry has many advantages.
Chatbots can provide a quick and efficient service that is tailored to the
customer’s needs. Additionally, they can aid in lowering consumer effort
and raising customer satisfaction levels.
Distributed Machine Learning for Energy Trading

The environment for energy trading has drastically changed during the last
two decades. The once-niche market has become increasingly globalized,
with energy trading taking place on exchanges worldwide. At the same
time, the advent of new technologies has allowed for the development of
new trading strategies and the rise of new energy trading firms.
Energy trading companies have had to adapt to and adopt new
technology to stay up with the constantly shifting environment.
Distributed machine learning (DML) is one of the most significant
technologies in recent years. DML is a form of artificial intelligence (AI)
that allows for training machine learning models on distributed data sets.
Machine learning (ML) is the study of algorithms and statistical
models that computer systems use to perform a specific task without
being explicitly programmed. On the other hand, Distributed Machine
Learning (DML) refers to the distribution of an ML algorithm across
multiple computers or devices to work together in solving a computational
problem, often involving large amounts of data. In DML, the workload is
divided among multiple nodes, enabling the processing of larger data sets,
faster training times, and better scalability. The main difference is that ML
focuses on the algorithms, while DML focuses on their distribution and
execution on multiple computers.
Deep Learning is a subset of Machine Learning that focuses on
creating artificial neural networks to model and solve complex problems.
These neural networks are designed to learn end-to-end, meaning they
learn the mapping between input and output without requiring manual
feature extraction or engineering. This allows Deep Learning algorithms
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to automatically identify patterns in large amounts of data and make

predictions or decisions based on that data. In other words, Deep Learning
is a type of Machine Learning, and Distributed Machine Learning is
a way of executing Machine Learning algorithms, but the two are not
synonymous.
In contrast, traditional Machine Learning algorithms often require
the problem to be broken down into smaller parts. They require manual
feature engineering, where the input data is transformed into a set of
numerical features that can be used as input to the algorithm. These
features are then combined at the final stage to solve the problem. This
approach can still be effective in solving certain problems, but it can also
be time-consuming and may not always lead to the best results.
Deep Learning has outperformed traditional Machine Learning in
many applications, such as computer vision, natural language processing,
and speech recognition, among others.
Deep Learning can improve the performance of Distributed Machine
Learning in several ways. Deep Learning algorithms are designed to
handle large amounts of data, making them well suited for Distributed
Machine Learning. With the ability to divide the workload among multiple
nodes, Distributed Machine Learning can process even larger data
sets and train Deep Learning models more efficiently. Deep Learning
algorithms can process high-dimensional inputs, such as images and text,
making them a good fit for Distributed Machine Learning when processing
these types of inputs. Deep Learning algorithms are designed to scale well
in terms of the size of the input data and the number of parameters in the
model. This makes them well suited for Distributed Machine Learning,
where the goal is to scale the computational power and memory available
to the algorithm. Deep Learning algorithms have been shown to perform
well on various tasks, including image classification, natural language
processing, and speech recognition. Distributed Machine Learning can
leverage the strengths of Deep Learning algorithms to achieve even better
performance by distributing the workload among multiple nodes.
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Energy trading companies can benefit from DML in a variety of ways.

First, compared to standard machine learning techniques, it enables
model training on a significantly more extensive data set. This is important
because the energy market is extremely complex and data-rich, and a
machine learning model that is trained on a larger data set is more likely to
be accurate.
Second, Deep Learning techniques (DML) tend to solve the problem
end to end, whereas machine learning techniques need the problem
statements broken down into different parts to be solved first, and then
their results to be combined at the final stage.
Third, compared to conventional machine learning techniques,
DML is more effective. This is because DML can parallelize the training
process, meaning multiple models can be trained simultaneously. This
is significant because it makes it possible for energy trading companies
to train models more quickly, which is essential in a constantly shifting
market. Fourth, DML is more flexible than traditional machine learning
methods. This is because DML can be used to train various models,
including deep learning models. Deep learning is a type of machine
learning that is particularly well-suited to the energy market because
it can handle the large and complex data sets that are characteristic of
the market.
Fifth, DML is more accurate than traditional machine learning
methods. This is because DML can learn from data distributed across
multiple servers. This is significant because it enables energy trading
companies to train models using information from many sources, which
is crucial for obtaining a precise market picture. Finally, DML is more
scalable than traditional machine learning methods. This is because DML
can be deployed on various systems, including the cloud. This is important
because it allows energy trading firms to deploy models on a large scale,
which is necessary for dealing with the large and complex data sets
characteristic of the market.
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In conclusion, DML is a powerful tool energy trading firms can use

to improve their performance. DML has several advantages, including
the ability to train models on larger data sets, the ability to parallelize the
training process, the ability to train a variety of different models, the ability
to learn from data that is distributed across multiple servers, and the ability
to deploy models on a large scale.
Digital Field Workforce

Utility companies can enhance their operations in various ways with the
aid of digital field workforce solutions that leverage AI. For example, AI can
be used to manage and optimize field workflows, dispatch field workers
to job sites, and track and analyze field worker performance. Additionally,
AI can recognize and anticipate issues in the field, including equipment
failures, and offer suggestions for how to deal with them.
Digital field workforce solutions that use AI can help improve the
efficiency and effectiveness of utility operations. By managing and
optimizing field workflows, AI can help ensure that field workers are
dispatched to the most appropriate job sites and have the information they
need to complete their tasks. AI can also assist utilities in monitoring and
analyzing the performance of field workers, spotting issues on the ground,
and offering solutions.
Digital field workforce solutions can help improve the safety of utility
workers by providing them with the information they need to avoid hazards
in the field. Additionally, AI can recognize and anticipate issues in the field,
including equipment failures, and offer suggestions for how to deal with them.
AI-powered digital field labor solutions can increase utility operations'
effectiveness, efficiency, and safety. By managing and optimizing field
workflows, dispatching field workers to job sites, and tracking and
analyzing field worker performance, AI can help utilities improve their
operations and ensure that their workers are safe.
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Integrated Customer Analytics

In the current business scenario, customer analytics is one of the most
powerful tools companies use to understand customers and make better
business decisions. It can help organizations in various ways, such as
reducing customer churn, improving customer satisfaction, and increasing
customer loyalty.
With the advent of artificial intelligence (AI), customer analytics has
become even more powerful. Organizations can use AI to automate the
customer analytics process and obtain more precise and useful insights.
In addition, an extensive consumer perspective is provided by integrated
customer analytics, a technique that uses AI to evaluate customer data
from many sources. This process can help organizations better understand
the customer and make more informed decisions. Utilities greatly impact
our daily lives since they supply the water and electricity needed to run our
homes and businesses. However, managing these essential services can
be challenging, especially for large organizations. That's where integrated
customer analytics can help.
Customer analytics may provide utilities with a thorough
understanding of their consumers, usage patterns, and preferences by
integrating data from numerous sources. This information can be used to
improve customer service, reduce costs, and make better decisions about
infrastructure investments.
For example, customer analytics can help utilities identify areas of high
demand, so they can plan for future needs and avoid service disruptions.
To provide targeted efficiency initiatives, it can also assist them to identify
places where consumers are using more energy than they should. And
it can help them understand which customers are at risk of leaving for
another provider, so they can take steps to keep them happy.
In short, integrated customer analytics is a powerful tool that can
help utilities provide better service, lower costs, and make more informed
decisions.
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Future of Compliance
The future of regulatory compliance management is shrouded in potential
but fraught with uncertainty. But as industries across the globe face
increasing compliance pressures, many are turning to artificial intelligence
(AI) for help.
By automating the compliance process, AI can free up time and
resources that might be better used in other business-related areas.
Additionally, AI can help identify compliance risks before they
become problems and can even provide recommendations on how to
mitigate those risks. Artificial Intelligence (AI) has the potential to help
organizations tackle a variety of challenges, including
1. Improving Efficiency: AI can automate tasks
previously performed by humans, freeing up time
for employees to focus on higher-level work. This
can lead to increased productivity and efficiency.
2. Enhancing Customer Experience: AI can

personalize customer interactions and provide
more relevant information and recommendations,
leading to an improved customer experience.
3. Streamlining Operations: AI can analyze data
from various sources to identify inefficiencies and
improvement opportunities, helping organizations
streamline their processes and make data-driven
decisions.
4. Reducing Costs: AI can automate tasks previously
performed by humans, reducing labor costs.
Additionally, AI can help organizations make better
decisions by analyzing data, leading to cost savings.
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5. Improving Decision-Making: AI can provide

organizations with valuable insights and
recommendations by analyzing large amounts
of data, helping decision-makers make informed
decisions.
6. Managing Risks: AI can help organizations identify
and manage risks by analyzing data and providing
early warnings of potential issues.
7. Improving Predictive Maintenance: AI can be used

to predict when equipment or machinery is likely to
fail, allowing organizations to perform maintenance
before a breakdown occurs.
8. Facilitating Compliance: AI can help organizations
ensure compliance with regulations by automating
compliance checks and providing real-time insights
into compliance risks.
But while the potential benefits of AI are clear, the technology is still in
its early stages, and there are various challenges that need to be addressed
before it can truly be called a compliance game-changer.
One of the biggest challenges is data. Access to high-quality data is
necessary for AI to function effectively. But in many cases, companies' data
is siloed, inaccurate, or simply doesn’t exist.
Another challenge is that AI is only as good as the algorithm it’s based
on. And right now, there are no “off-the-shelf” solutions for compliance.
Each algorithm must be specially created because every business has
different requirements. This is a costly and time-consuming process.
Finally, there’s the question of trust. Can companies trust an AI system to
handle something as sensitive as compliance?
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These challenges are not insurmountable, but they must be addressed

before AI becomes a compliance game-changer. But for companies willing
to invest the time and resources, the potential rewards are clear.
Connected Energy Service Provider

Utilities are emerging as a connected energy service provider, offering their
customers a suite of energy management and efficiency services. These
services are made possible by deploying smart meters and other advanced
metering infrastructure and using big data and analytics to identify and
target customer needs.
Utilities are well-positioned to provide these services, as they have
a unique relationship with their customers and a deep understanding
of their energy usage. By offering these services, utilities can help their
customers save money, reduce their carbon footprint, and become more
energy efficient.
The deployment of smart meters is a key enabler of these services.
Energy usage data from smart meters is real time and can be utilized to
spot patterns and trends. This data can be used to target specific customers
with specific services that can help them save energy and money.
Utilities also use big data and analytics to identify customer needs
and target their services. For example, utilities can determine which
consumers are most likely to benefit from particular services by looking at
data on client energy usage. This data-driven approach allows utilities to
tailor their services to the specific needs of their customers.
The emergence of utilities as connected energy service providers
is a positive development for the energy sector. In addition to helping
consumers save money and use less energy, it gives utilities a new source
of income.
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Key Takeaways
• Digital transformation is critical to the future of
the sector.
• Utilities will need to focus on customer experience; in
this case, a frictionless customer experience is the best.
• The future of utility retail is data-driven. Getting to
know the customer better and making data-driven
decisions must be embedded in every facet of the
business.
• Empowering the customer should be an important
priority for utilities. Giving clients decision-making
and experience control is a key component of
customer empowerment. It also means giving them the
information they need to make informed decisions.
• Utilities will need to partner with other industries
and integrate better to emerge as a connected service
provider.
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CHAPTER 10
Transforming Mobility
Through EV
The world is rapidly changing. Technological advances are transforming
the way we move around; from how we commute to work to how we travel
for leisure. Electric vehicles (EVs) and artificial intelligence (AI) are two of
the most exciting new technologies revolutionizing how people commute
and travel.
EVs are becoming increasingly popular due to their low emissions,
cost-effectiveness, and convenience. AI is also transforming the way
people travel by providing personalized recommendations, traffic
route optimization, and even autonomous driving. Together, these two
technologies are creating a new era of mobility that is more efficient,
convenient, and sustainable.
In this chapter, we will explore how EVs, and AI are changing the way
people move and how they are transforming mobility. We will look at the
benefits these technologies bring to individuals, businesses, and society.
We will also discuss the challenges that need to be addressed to make the
most of this new era of mobility. Finally, we will consider the potential of
EVs and AI to shape the future of mobility.

CHAPTER 10 TRANSFORMING MOBILITY THROUGH EV
Introduction
Futurists like Thomas Edison predicted that electric cars would replace
most modes of transportation. However, they were nearly a century behind
in technology, and advancements are still required for mass-
market EVs. Understanding each Industrial Revolution’s market dynamics
highlights the continuing conflict between electric and gasoline-powered
automobiles. Electric vehicle adoption failed during the Second Industrial
Revolution (1900s steel, electric, and petroleum) because of customer
dynamics, expensive electricity storage technologies, and oil and gas
business. However, the electric vehicle is becoming a mainstream
transportation mechanism worldwide with recent technological
advancements.
The global automotive industry is facing an unprecedented period of
transformation. Electric vehicles (EVs) are becoming increasingly popular,
with sales and market share increasing yearly. This trend is driven by a
combination of factors, including government incentives, falling battery
prices, and increasing consumer awareness of the benefits of EVs. The
automobile industry is poised to undergo a dramatic change over the
next ten years, with EVs likely to account for a sizable share of sales. This
transformation will have a profound impact on the global economy, and
we must understand the implications.
Electric vehicles have the potential to help drive economic growth and
improve the quality of life for millions of people around the world. They
are cleaner, more effective, and less expensive to fuel than gas-powered
vehicles. EVs could greatly expand access to transportation, especially in
rural areas where public transportation is limited or non-existent. EVs can
also be built to suit the mobility needs of people with disabilities.
Electric vehicles (EVs) are poised to revolutionize the auto industry.
EVs have several advantages over conventional vehicles. They are cheaper
to maintain, produce no emissions, and are more energy efficient than
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traditional gas-powered vehicles. According to Bloomberg New Energy

Finance, EVs will account for half of all cars sold by 2040. A confluence
of factors, including the falling cost of batteries, increasing regulatory
pressure on conventional cars, and the emergence of autonomous
mobility services, drives this trend. As a result, electric vehicles are quickly
becoming the preferred choice for many drivers, mainly due to their
significant savings in fuel costs.
The average fuel economy for cars in the United States varies widely,
with many newer models and hybrids achieving well above 18 miles per
gallon (MPG). Considering this, the estimated monthly fuel cost can differ
significantly. For example, a typical gasoline-powered car that averages
18 MPG could cost about $300 monthly to fill the tank, assuming average
driving habits and fuel prices. In contrast, the monthly electricity cost
for running an electric vehicle (EV) averages about $100 in the United
States. However, the savings can be less substantial when comparing
high-efficiency vehicles, such as hybrids that average 45 MPG, to electric
vehicles. Transitioning from a high-MPG hybrid to an EV might yield
nominal savings. It’s essential to evaluate your specific circumstances,
including the type of vehicle and driving habits, to accurately assess
the potential monthly savings when switching to an electric vehicle. In
addition to the enormous savings, electric cars are easier to maintain
and often come with more extended warranties than gas-powered
vehicles. Better fuel economy also means lower emissions and a healthier
environment. These benefits make electric cars an obvious choice for
many people, but there are some things you can do to make the switch
even easier.
Artificial intelligence plays a significant role in electric vehicle
adoption, supporting event-driven operations, enhancing retail and
customer experiences, and shaping the future of autonomous vehicle
solutions.
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Charging Infrastructure Development

The development of electric vehicle (EV) charging infrastructure is a
key part of enabling the widespread adoption of EVs. While many EV
owners find that charging at home is the most practical option, public
charging infrastructure is also required to allow for longer trips and offer
backup charging choices. There are several different types of EV charging
infrastructure, from Level 1 chargers that provide a slow charge using a
standard 120-volt outlet to Level 2 chargers that use 240 volts for faster
charging to DC fast chargers that can charge an EV in minutes rather
than hours.
Governments, utilities, and private businesses have all invested in
expanding charger networks, speeding up the development of EV charging
infrastructure. As a result, in the United States, there are now over 46,000
public EV chargers, up from just 3500 in 2013.
Several challenges are associated with developing EV charging
infrastructure at scale, including the high up-front costs, the need for
coordination among multiple stakeholders, and the lack of standardization
across charger types and networks. However, these challenges are being
addressed by a growing number of initiatives and programs to accelerate
the deployment of EV chargers.
For EVs to reach their full potential as a transportation option,
adequate charging infrastructure must be developed to support them. This
objective is attainable with continuous work and investment, and it will
support the development of a cleaner, more sustainable transportation
system – acceleration in charging infrastructure buildup.
The global surge in electric vehicle (EV) adoption poses a significant
challenge due to the potential shortfall in charging infrastructure. With
only about 300,000 public charging spots available worldwide – far fewer
than the millions of gasoline and diesel fuel stations – the need for efficient
management of these resources is critical. To tackle this issue, the research
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team at Artificial Lightning has developed advanced artificial intelligence

(AI) algorithms designed to predict electric vehicle charging demand at
specific locations and times.
This AI-driven approach allows for “scheduled charging,” which
means charging can be strategically timed during off-peak hours when
electricity demand is lower and, importantly, when a higher proportion of
renewable energy sources are feeding the grid. By optimizing the timing of
EV charging, not only can energy costs be reduced, but carbon emissions
associated with non-renewable power generation during peak times can
also be significantly lowered. This smarter scheduling helps balance the
load on the electrical grid, reducing the need for carbon-intensive energy
production that would otherwise be necessary to meet peak demands.
Furthermore, by predicting and managing the times when EVs charge,
congestion at public charging stations can be minimized, reducing
wait times and enhancing the overall user experience. This systematic,
predictive approach ensures that charging infrastructure is used more
efficiently and sustainably, aligning with broader environmental goals
The power grid faces significant stress in the United States due to the
growing percentage of electric cars. With the average electric car using a
high amount of power compared to gasoline-powered cars, electric cars
may cause strain on the grid in areas where they make up a significant
percentage of the total cars on the road. Researchers have proposed that
AI may be utilized to improve grid management to lessen grid stress
considering the rising share of electric vehicles and the anticipated rise
in adoption rates for electric vehicles. AI-enabled systems may be able to
monitor the grid and react to changes in the grid to better manage and
balance the load on the grid. AI may also be used to analyze historical
data to predict future trends to better plan for grid changes and adjust grid
management systems to optimize the grid for changes in load.
The main purpose of AI in electric vehicles (EVs) is to optimize
and streamline the charging process. Advanced AI technologies enable
charging stations to automatically detect the arrival of a car and initiate
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charging without manual intervention. More importantly, AI enhances

the efficiency of the charging process itself by dynamically adjusting the
current according to the specific needs of the vehicle, which can help in
efficiently managing the power supply and reducing wear on the battery.
While AI does not directly increase the charging speed, it plays a crucial
role in ensuring the vehicle is only plugged in for the necessary amount of
time, by automatically stopping the charge when the battery is full. This
feature prevents overcharging and energy waste, thereby contributing to
the overall effectiveness and sustainability of the charging process.
Additionally, AI is being leveraged to improve the infrastructure of
charging stations themselves, making them smarter and more responsive
to both the grid’s conditions and the vehicles’ requirements. This
integration of AI not only helps in making the charging process more
user-friendly but also enhances the operational efficiency of EV charging
stations.
To ensure that the automobile is aware of how much power it needs
to reach its following location, systems that can connect with the vehicle
are being created. In addition, AI is also being used in the development
of smart grids. These grids can monitor electricity usage and adapt to the
grid’s needs. By doing this, they can balance out peaks and troughs in
demand, ensuring enough power.
Interoperability of Charging Stations

Charging stations are machines used to recharge electric vehicles’
batteries. They are also known as EV charging stations. AI can manage the
interoperability of charging stations. This means that the charging stations
can work together, regardless of their brand or make. This would make it
easier for people to use charging stations, regardless of the brand of their
electric vehicle.
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AI can also be used to manage the pricing of charging stations. This

means that the charging stations can charge different prices for different
times of the day, depending on the demand. This would make it easier for
people to use charging stations, as they would know how much it would
cost to charge their electric vehicles.
Predictive Maintenance That Uses AI to Identify

Potential Issues and Schedule Repairs
Large battery packs power electric vehicles. These battery packs are
expensive, and their failure can cause significant inconvenience and
expense.
Artificial intelligence (AI) is a tool that may be used to predict possible
problems with EV batteries and set up maintenance appointments before
the batteries malfunction. This can help to avoid unexpected downtime
and associated costs.
To find possible problems, predictive maintenance systems employ a
range of data sources, including data from the battery pack itself. The data
is analyzed using AI algorithms to identify patterns that may indicate a
pending issue.
Based on the severity of the problem and the availability of parts and
manpower, the predictive maintenance system then develops a repair
timetable. The goal is to repair the issue before it causes a battery pack to fail.
Predictive maintenance systems are still in the early stages of
development, and their effectiveness is still being evaluated. However,
they have the potential to significantly improve the reliability of EV battery
packs and reduce the cost of ownership.
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Intelligent Charging Planning

In a world where electric vehicles are becoming increasingly popular, the
need for reliable and efficient EV charging infrastructure is more important
than ever. One way to ensure EVs are charged in a timely and efficient
manner is using intelligent EV charging scheduling.
With intelligent EV charging scheduling, EVs can be charged at times when
excess energy is available on the grid. This lessens the burden on the system
during high usage times and lowers energy prices. In addition, intelligent EV
charging scheduling can help to prolong battery life by avoiding overcharging.
Various approaches can be used for intelligent EV charging scheduling.
One approach is to charge EVs based on their predicted range. This
considers factors such as the vehicle’s previous driving history and
expected routes. Another approach is to charge EVs based on their owner’s
schedule. For example, this could involve charging EVs overnight or when
they are not being used.
The benefits of intelligent EV charging scheduling are clear. However,
some challenges need to be considered. One challenge is the need for
accurate data about the grid and EV usage patterns. Another challenge is
ensuring EV owners can access charger locations and understand and use
the scheduling system.
Despite these difficulties, scheduling intelligent EV charging has
the potential to revolutionize the way EVs are charged. It can potentially
improve grid stability, reduce energy costs, and prolong battery life. It is an
important part of creating a future-proofed EV charging infrastructure.
State of Charge Prediction of EV Batteries

The State of Charge (SOC) of a battery measures the amount of charge
remaining in the battery. It is typically expressed as a percentage of the
total charge that the battery can hold. For example, a battery with a SOC of
50% has 50% of its charge remaining.
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A battery’s SOC is significant since it dictates how long it will operate

before recharging. Therefore, a battery with a low SOC will need to be
recharged more often than a high SOC.
There are many methods for predicting the SOC of a battery, but one
of the most promising is using artificial intelligence (AI). AI-based SOC
prediction algorithms can learn from past data to accurately predict the
SOC of a battery in the future.
One advantage of using AI for SOC prediction is that it can consider
a variety of factors that might affect the SOC of a battery. For example, AI
can consider a battery’s temperature, voltage, current, and capacity when
predicting. Another advantage of using AI for SOC prediction is that the
predictions can be made in real time. This is important because the SOC of
a battery can change quickly and unexpectedly. AI can assist in preventing
battery failure and extending battery life by forecasting the SOC in real
time. There are many potential applications for AI-based SOC prediction.
For example, AI could be used to predict the SOC of a battery in an electric
vehicle (EV) so that the driver knows when to recharge the battery. AI
could also be used to predict the SOC of a battery in a power grid so that
operators can take steps to avoid blackouts.
AI-based SOC prediction is a promising technology with many
potential applications. It can improve the efficiency of battery usage and
prolong the life of batteries.
Electric Vehicle Routing Management

Electric vehicle routing management is a process of planning and
optimizing the routes of electric vehicles to ensure efficient and cost-
effective operations. It is a complex process that involves various factors
such as the type of electric vehicle, the battery capacity, the charging
infrastructure, the weather conditions, and the traffic conditions.
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Electric vehicle routing management systems use artificial intelligence

(AI) techniques to design efficient routes for electric vehicles. These AI
algorithms consider all the relevant factors and create safe, efficient, cost-
effective routes.
The use of AI in electric vehicle routing management has several
advantages:
1. AI-based systems can consider many factors and
create optimized routes that are not possible for
humans to create.
2. AI-based systems can constantly monitor the

conditions on the ground and adjust the routes
accordingly. This is impossible for human planners
who rely on static data.
3. AI-based systems can create customized routes
for each electric vehicle, considering its specific
characteristics.
The use of AI in electric vehicle routing management is still in its

early stages. However, it has the potential to revolutionize the way electric
vehicles are operated and managed.
Data-Driven Smart Charging

Data-driven smart charging is a type of charging method for electric vehicles
(EVs) that optimizes the use of the grid by using data to determine when
and how to charge each vehicle. The goal of data-driven smart charging is to
minimize the overall cost of charging the EV fleet while also maximizing the
use of renewable energy sources and reducing the impact on the grid.
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There are many benefits to data-driven smart charging, including the

following:
1. Reduced overall charging costs: By using data to
optimize the charging of each EV, the overall cost of
charging the fleet can be reduced. This is because
the data can be used to determine the most efficient
time to charge each vehicle, and the most cost-
effective type of electricity to use.
2. Increased use of renewable energy: Data-driven

smart charging can help to increase the overall use
of renewable energy sources, such as solar and
wind power. This is because the data can be used
to determine when the EV fleet is most likely to be
charged and, thus, when renewable energy sources
are most likely to be available.
3. Reduced impact on the grid: Data-driven smart
charging can help to reduce the impact of the EV
fleet on the grid. This is because the data can be
used to determine when the EV fleet is most likely to
be charged and, thus, when the demand on the grid
is likely to be lower.
4. Increased flexibility: Data-driven smart charging
can increase flexibility for EV fleets. This is because
the data can be used to determine the most efficient
time to charge each vehicle and the most cost-
effective type of electricity to use. This can help
to make EV fleets more responsive to changes in
demand and more adaptable to the grid’s needs.
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5. Increased transparency: Data-driven smart

charging can help to increase the transparency of
the EV charging process. This is because the data
can be used to determine the most efficient time to
charge each vehicle and the most cost-effective type
of electricity to use. This can help make EV charging
more transparent and easier to understand for EV
fleet operators and the general public.
Data-driven smart charging is an important part of the future of
electric vehicles. Data-driven smart charging can help lower the overall
cost of charging the EV fleet while simultaneously maximizing the usage of
renewable energy sources and minimizing the grid’s effect by optimizing
each EV’s charging.
EV Analytics and Security

As the world progresses, data analytics is becoming increasingly relied
on to make decisions. This is especially true for businesses; they need to
understand their customers and what they are looking for to stay ahead of
the competition. However, data analytics is not just limited to businesses –
it can also be used for other purposes, such as environmentalism. In fact,
EV analytics is growing in popularity as people become more aware of the
need to be environmentally friendly.
EV analytics is gathering and analyzing data about electric vehicles
(EVs) to better understand their impact on the environment. Many
sources, including EV owners, manufacturers, and governmental
organizations, can provide this information. It can be used to respond to
inquiries about EVs, like how many are on the road, how frequently they
are used, who owns them, and so forth. Additionally, EV analytics can be
used to study the environmental impact of EVs and how they compare to
other vehicles.
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There are many benefits to using EV analytics. For one, it can help
make EVs more popular by showing people that they are being used and
that they are having a positive impact on the environment. Additionally,
it can help policymakers make better decisions about incentives and
regulations surrounding EVs. Finally, EV analytics can assist companies in
better understanding the needs of their clients and informing marketing
and product development decisions. In general, EV analytics is an effective
technique that can be utilized to enhance our comprehension of electric
vehicles and their environmental impact. As EVs become more popular,
it will become increasingly important to use data analytics to ensure that
they are being used effectively and that their environmental impact is
minimized.
The deployment of electric vehicles (EVs) varies between developed
and developing nations due to several factors, including infrastructure,
economic development, and consumer demand.
Developed Nations:
• In developed nations, EV deployment is driven by
government policies, consumer demand, and industry
investments. These countries have the infrastructure,
technology, and financial resources to support
the widespread adoption of EVs, such as charging
networks, battery production facilities, and high-tech
manufacturing capabilities.
• Governments in developed nations have implemented

a variety of incentives to encourage the adoption
of EVs, such as tax credits, subsidies, and charging
infrastructure development. These policies have helped
create a favorable environment for the growth of the
EV market, and consumers have responded positively,
leading to increased demand for EVs.
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Developing Nations:
• In contrast, the deployment of EVs in developing
nations is still in the early stages and faces several
challenges, including a lack of infrastructure, low
consumer awareness, and limited access to financing.
• The development of charging infrastructure is a
major challenge in developing nations, as the cost of
building and maintaining a charging network can be
prohibitively high. Moreover, this lack of infrastructure
makes it difficult for consumers to adopt EVs, as they
are often concerned about the availability of charging
stations.
• Another factor limiting the deployment of EVs in
developing nations is the limited access to financing
for consumers and manufacturers. Many consumers
in developing nations may not have the financial
resources to purchase an EV, and manufacturers
may struggle to secure funding for production and
marketing.
In conclusion, deploying EVs in developed nations is driven by

favorable government policies, consumer demand, and industry
investments. The lack of infrastructure, low consumer awareness, and
limited financing access limit EVs’ deployment in developing nations.
Facial Recognition for Driver Authentication

and Security
In a world where driver authentication and security are increasingly
important, facial recognition using AI is becoming a more popular
solution. AI can check the driver’s identity and that they are permitted
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to drive the car by taking a picture of their face with a camera. This
verification can be used to unlock the vehicle’s doors, start the engine, and
even authenticate the driver’s identity for payment purposes.
Facial recognition is not only more convenient than traditional
methods such as keys or keycards, but it is also more secure. For example,
driver authentication using facial recognition is virtually impossible to
spoof, making it a much more reliable verification method. Additionally,
facial recognition can be used in conjunction with additional security
measures like GPS tracking and geofencing to further secure vehicles and
their contents.
While facial recognition is a promising solution for driver
authentication and security, it is important to note that the technology is
still in its early stages of development. As such, there are a few challenges
that need to be addressed before it can be widely adopted. Firstly, the
accuracy of facial recognition systems can vary greatly, depending on
factors such as lighting and angle of view. Secondly, facial recognition
systems can be fooled by masks or other objects that obscure the
face. Finally, facial recognition systems can be biased against certain
demographics, such as people of color or women.
Despite these challenges, facial recognition is a promising driver
authentication and security solution. It is anticipated that these issues
will be resolved as technology advances and facial recognition will gain
popularity as a solution.
EV Charging Behavior
As the world progresses, more and more people are beginning to use
electric vehicles to save on gas and help the environment. However, one of
the issues that still need to be addressed is the lack of public EV charging
stations. To help with this, many companies are now using AI to create
better EV charging behavior.
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Some ways that AI is being used to improve EV charging

behavior include
1. Optimizing routes: AI can be used to help plan the
most efficient route for EV owners, considering the
location of public charging stations.
2. Scheduling charging times: AI can also be used to
schedule charging times based on the owner’s needs
and power availability.
3. Managing power usage: AI can help to manage EV
charging stations’ power usage, ensuring that they
are not overused and that everyone has a fair chance
to charge their vehicle.
4. Improving customer service: AI can be used to
improve customer service at EV charging stations,
providing helpful information and guidance
to owners.
5. Preventing fraud: AI can help to prevent fraud at EV
charging stations by identifying suspicious behavior
and alerting authorities.
Overall, AI is beginning to play a big role in improving EV charging
behavior. AI simplifies charging EVs by planning routes, scheduling
charging periods, and controlling power use. AI is also improving
customer service and preventing fraud at EV charging stations.
Monetizing EV Operational Data

One of the most significant trends in the automotive industry right now is
the electrification of automobiles. With the rise of electric vehicles (EVs),
there is a growing need for new ways to monetize EV operational data
using AI.
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One way to monetize EV operational data is to use it to improve

the efficiency of EV charging infrastructure. For example, charging
infrastructure providers may better understand how EVs are being
utilized and adjust their charging networks by utilizing AI to examine EV
operational data. Another way to monetize EV operational data is to use it
to improve the accuracy of demand-side management (DSM) programs.
Utilities use DSM programs to manage the demand for electricity on the
grid. Using AI to analyze EV operational data, utilities can more accurately
predict when and how much electricity EVs will need and adjust their DSM
programs accordingly.
Finally, EV operational data can also be used to improve the accuracy
of vehicle-to-grid (V2G) services. V2G services allow EVs to provide
power to the grid when there is excess demand. By using AI to analyze EV
operational data, V2G service providers can better understand how EVs are
used and optimize their services accordingly.
All these examples show how AI can be used to monetize EV
operational data. Using AI to analyze this data, businesses can better
understand how EVs are being used and optimize their services
accordingly.
However, several challenges lie ahead when monetizing electric
vehicle (EV) operational data. One of the main challenges in monetizing
EV operational data is ensuring the privacy and security of the data.
Consumers may be concerned about the potential misuse of their personal
and sensitive information, and organizations must implement robust
security measures to protect the data from unauthorized access and
breaches. Another challenge is determining who owns and controls the
data generated by EVs. In some cases, the vehicle manufacturer may own
the data, while in others, the consumer may own the data. This lack of
clarity can make it difficult for organizations to monetize the data.
Monetizing EV operational data requires integrating data from
multiple sources, such as vehicles, charging stations, and other connected
devices. However, the lack of standardization in the industry makes it
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difficult to ensure the interoperability of data from different sources. In

addition, the monetization of EV operational data is subject to various
regulations, such as data protection laws and privacy regulations.
Organizations must ensure that they comply with these regulations, which
can be complex and time-consuming. The monetization of EV operational
data is a growing industry, and many competitors are offering similar
services. Organizations must differentiate themselves in the market to
succeed and compete effectively.
Creating value for consumers and monetizing vehicle data requires a
multifaceted approach that involves several steps:
1. Building Trust: To create value for consumers,

organizations must build trust by demonstrating
their commitment to data privacy and security.
This can be done by implementing robust data
protection measures, such as encryption and secure
data storage, and by being transparent about the
data being collected and how it will be used.
2. Offering Value-Added Services: One way to create

value for consumers and monetize vehicle data is by
offering value-added services that leverage the data
generated by EVs. For example, organizations can
offer predictive maintenance services, personalized
energy management services, or real-time traffic
and routing services.
3. Partnerships and Collaboration: Organizations
can also create value by partnering with other
organizations in the industry, such as charging
network providers or connected vehicle service
providers, to create new and innovative services.
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4. Data Monetization: Organizations can monetize

vehicle data by selling it to third-party organizations,
such as data analytics companies, or by using it to
inform their own decision-making processes and
improve their products and services.
5. Continuously Improving Services: To continue to
create value for consumers and monetize vehicle
data, organizations must continuously evolve
and improve their services. This can be done by
incorporating new and emerging technologies,
such as artificial intelligence and machine learning,
and by incorporating consumer and stakeholder
feedback into the development process.
Advanced Analytics on Electric Vehicle Charging

Station Usage
The electric vehicle charging station usage data set consists of data
collected from electric vehicle charging stations in the United States.
The data includes specifics about the number of charging sessions, their
length, the kind of charger utilized, when it was utilized, and where the
charger was located. The data also includes information on the vehicle
make and model and the user’s zip code.
As the number of electric vehicles (EVs) on the road continues to grow,
so does the demand for EV charging stations. However, designing and
managing a charging station network is a complex task, made even more
difficult because EV charging patterns can vary significantly from one
driver to the next.
To address this challenge, many EV charging station operators are
turning to artificial intelligence (AI) for help. AI can be used to optimize
the charging stations’ operation in real time and predict when and
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where EV drivers will likely need to charge their vehicles. One of the
most promising applications of AI for EV charging station operators is
the use of data from EV charging station usage. AI systems can gain a lot
of knowledge about EV driver behavior by evaluating this data, and they
can use this information to increase the effectiveness of charging station
operations. For example, AI-powered systems can identify charging
patterns indicative of driver anxiety about range and adjust charging
station operations accordingly.
AI can also be used to monitor EV charging station usage data to
identify potential problems, such as overloaded circuits or stations that
are not being used as much as expected. As a result, AI can assist in
making sure that EV drivers always have access to the necessary charging
infrastructure by promptly addressing these problems. AI is anticipated to
become even more crucial to managing EV charging station networks in
the future. As the number of EVs on the road continues to grow, so will the
demand for charging infrastructure, and AI will be essential for managing
this demand efficiently and effectively.
Key Takeaways
• EV adoption is not just about vehicle technology,
it’s about an entire ecosystem of cities, utilities, and
companies that must work together.
• There is a business case for EVs, and it will only get
stronger as the cost of batteries comes down.
• The transportation sector is responsible for significant
greenhouse gas emissions, and EVs can help reduce
those emissions.
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• Infrastructure is a critical piece of the EV puzzle, and

cities and utilities are working to build it up.
• Consumer education is also key to EV adoption,
and many resources are available to help people
understand the benefits of EVs.
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CHAPTER 11
Age of DERs
The dawn of the Age of Distributed Energy Resources (DERs) is upon us.
Once dismissed as too expensive and unstable, DERs are now considered
reliable, sustainable, and cost-effective energy sources. From large-scale
solar farms to microgrids powering individual households, DERs are
revolutionizing how we think about energy production, consumption, and
storage. In this chapter, we will discuss the future of DER systems and how
AI will play a role.
Introduction
The need for more efficient and environmentally friendly energy sources
in a rapidly developing world has never been greater. One promising
solution is the use of distributed energy resources (DER), which are
small-scale technologies that generate electricity at or near where it will be
used. Costs for Distributed Energy Resources (DER) continue to fall, and
standards continue to progress, and, of course, new DER interconnections
continue to take place. The future of DER has never looked better. Still the
uncertainty that it brings to the utility industry is a challenge that needs to
be continually addressed collaboratively.
The future may likely include much more integration of DER into
utility systems and interaction between the consumer and the utility. How
the utility industry can better prepare now for this future is an important
topic for discussion. Ratepayer advocates and other organizations are
pressing for affordability and fairness issues to take center stage as

Chapter 11 age of Ders
California regulators launch a comprehensive effort to prepare the electric

grid for an anticipated flood of electric vehicles and other distributed
energy resources (DERs). California is bracing for considerable increases
in DERs on the grid over the next decade behind-the-meter solar, behind-
the-meter storage, and electric vehicle demand are expected to increase
by 260%, 770%, and 370%, respectively, from 2019 to 2030, according to
regulatory forecasts.
Distributed energy resources (DERs) are energy resources that are
geographically dispersed, like rooftop solar panels, or that are non-
traditional and non-centralized, like electric vehicles (EVs).
DERs are one of the promising options for environmentally friendly
energy sources because they can help to reduce greenhouse gas emissions
and mitigate the impacts of climate change. By producing energy at or near
the point of consumption, DERs can reduce the need for long-distance
transmission and distribution of energy, which is often associated with
high energy losses and greenhouse gas emissions.
In addition, DERs can improve energy security and resilience by
reducing dependence on large-scale energy generation facilities, which
can be vulnerable to disruptions or failures. By providing a distributed
and decentralized energy source, DERs can help ensure a more stable
and secure energy supply. Furthermore, DERs can help to create local
economic benefits by generating revenue for the owners of the systems
and by creating jobs in the renewable energy sector. By providing a source
of clean energy, DERs can also help reduce energy costs for consumers
and contribute to energy independence and self-sufficiency.
DERs can play an important role in the operation of EVs by reducing
their carbon footprint, improving energy management, and enhancing the
integration of renewable energy into the energy system. By utilizing DERs,
EVs can become a more environmentally friendly and sustainable mode of
transportation. DERs can be used to charge EVs by integrating renewable
energy sources, such as solar or wind power, into charging stations. This
can help reduce EVs’ carbon footprint by reducing the dependence on
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grid-based electricity, which is often generated from fossil fuels. DERs

can also be utilized through V2G technology, which allows EVs to supply
excess energy back to the grid. This can help balance the grid’s energy
demand and supply and reduce the need for additional power plants.
DERs can be integrated into the energy management system of EVs to
optimize energy use and reduce energy costs. For example, by using the
information on the battery state of charge, driving patterns, and renewable
energy generation, the energy management system can optimize the
use of renewable energy and minimize the need to purchase grid-based
electricity. In addition, the batteries in EVs can also be used as DERs
by using them for energy storage. This can help to store excess energy
generated from renewable sources, such as solar or wind power, and use it
to power EVs or supply it back to the grid.
Energy storage, combined heat and power, microgrids, and distributed
generation are commonly used to describe distributed energy resources.
These resources are installed at the customer site, often at or near the
load, and operate independently of the main electrical grid. Due to their
location, they can respond more quickly to changes in demand and are
often co-located with renewable energy sources, such as solar panels.
AI in DER
Through proactive equipment maintenance, real-time grid monitoring,
and automated control of DER resources, AI can significantly improve the
utilization of DER. Predictive maintenance of DER equipment can help
to avoid costly downtime and ensure that resources are used as efficiently
as possible. Artificial intelligence (AI) can be used to keep an eye out for
wear and tear on equipment and forecast when repair or replacement is
likely to be required. The utilization of DER resources can be maximized,
and blackouts can be avoided with the use of real-time grid condition
monitoring. AI can be used to monitor power usage and demand and
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predict when demand is likely to exceed supply. This information can be

used to automatically control DER resources, such as turning on backup
generators or curtailing power usage.
Automated control of DER resources can help to optimize power
generation and usage and reduce the need for manual intervention. AI can
be used to automatically adjust the output of DER resources in response to
changes in demand, weather conditions, and other factors. This can help
to ensure that power is generated and used efficiently and that resources
are used as effectively as possible.
DER Planning
Uncertainty Modeling of Distributed
Energy Resources
Integrating Distributed Energy Resources (DERs) into the grid is challenging
because of the inherent variability and uncertainty of these resources.
Therefore, accurate DER models that can anticipate its output under different
circumstances are crucial for efficient grid management. Artificial intelligence
(AI) techniques can be used to create accurate models of DERs. One
approach is to use a neural network (NN) to learn the relationship between
the input (e.g., weather conditions) and output (e.g., power output) of the
DER. Another approach is to use a support vector machine (SVM) to create a
model that can predict the output of the DER under different conditions.
Both AI techniques are effective in modeling DERs. However, there is
still some ambiguity regarding how well these models will function in actual
use. This uncertainty can be reduced by using a combination of multiple AI
techniques. For example, it is possible to develop a more accurate model
of the DER that can better handle the unpredictability and uncertainty of
the resource by combining a NN and SVM. Geographic decision support
systems powered with AI can optimize the placement of distributed energy
resources.
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Geographic decision support systems (GDSS) are designed to help

organizations optimize the placement of distributed energy resources
(DER) using artificial intelligence (AI). By considering factors such as load,
topography, weather, and infrastructure, GDSS can help identify the most
efficient placement of DERs to meet the energy needs of a specific area.
In many cases, AI-based GDSS can provide more accurate results than
traditional optimization methods. This is because AI can more quickly
and easily identify patterns and relationships that would be difficult for
humans to discern. As a result, AI-based GDSS can help organizations
save time and money by reducing the need for trial-and-error when
placing DERs.
In addition to optimizing DER placement, GDSS can help forecast
energy demand, assess the impact of proposed energy projects, and
monitor changes in the energy landscape. Organizations may make better
choices regarding their energy strategy with the support of GDSS, which
offers insights into the future of energy demand.
Quantifying Rooftop Photovoltaic Solar Energy

Potential: A Machine Learning Approach
There is a growing interest in incorporating artificial intelligence (AI)
into the analysis of renewable energy sources, such as solar photovoltaic
(PV) systems. AI can be used to predict the output of PV systems and to
optimize their performance. In this way, AI can help unlock rooftop PV
systems’ full potential.
The use of AI in the analysis of rooftop PV potential can help to
improve the accuracy of estimates. For example, AI can be used to identify
the best orientation and tilt for PV panels, considering the local climate.
AI can also be used to predict the amount of shading a PV system will
experience and to optimize the layout of PV panels to minimize shading.
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In addition to improving the accuracy of estimates, AI can also help

optimize PV systems’ performance. For example, AI can automatically
adjust the PV inverters’ settings to maximize energy output. AI can also be
used to monitor the performance of PV systems in real-time and to identify
and diagnose problems.
The use of AI in the analysis of rooftop PV potential can help to make
the most of this renewable energy resource. In doing so, AI can play a key
role in transitioning to a low-carbon future.
Machine Learning for Solar Irradiance

Forecasting of Photovoltaic System
Solar irradiance forecasting uses machine learning algorithms to predict
the amount of solar radiation a photovoltaic (PV) system will receive.
A range of potential values for sun irradiation can be provided in a
probabilistic forecast, which can be generated for a specific location
and time. Solar irradiance forecasting is a valuable tool for PV system
operators, as it can help them schedule maintenance and repairs and
optimize the system’s output. In addition to assisting with integrating the
PV system into the grid, the forecast can be used to estimate the quantity of
power the system will produce.
Solar irradiance forecasting is a relatively new field, and there is still
much research to be done to improve the forecasts’ accuracy. However,
using machine learning algorithms to make projections is a promising
strategy, and it’s possible that as more data is gathered and more expertise
is gained, the forecasts will become more accurate.
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DER Generation
Autonomous Energy Grids: Controlling the Future
Grid with Large Amounts of Distributed
Energy Resources
The electric grid is a power generation, transmission, and distribution
facility network that delivers electricity to customers. The grid is a complex
system that must be operated and maintained to ensure reliability
and safety.
The traditional electric grid is transforming due to the increasing
penetration of renewable energy sources, such as wind and solar, and
the rise of distributed energy resources (DERs), such as storage and
demand response. This transformation is enabled by advances in digital
technology, which provide new capabilities for monitoring, managing, and
controlling the grid.
One of the critical challenges in this transformation is maintaining grid
reliability and security while accommodating the variability of renewable
energy sources and the distributed nature of DERs. This challenge is being
addressed by developing autonomous energy grids that use artificial
intelligence (AI) to control the flow of electricity on the grid.
AI-enabled energy grids can learn from data and adapt to changing
conditions in real-time. This enables them to provide reliable and secure
power delivery even as the mix of energy sources and the distribution of
resources on the grid change.
Although the use of AI in energy grids is still in its infancy, several pilot
projects are already underway that showcase this technology’s potential.
For example, in Germany, a consortium of utilities and technology
companies uses AI to control the flow of electricity on a virtual power plant
that includes more than 1000 DERs. The project demonstrates that AI can
manage a complex power system in real time and provide grid services,
such as balancing, that centralized power plants traditionally offer.
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In the United States, the Department of Energy’s Argonne National

Laboratory is developing an AI-enabled microgrid that can operate
autonomously to provide power during grid outages. In addition, critical
loads like hospitals and emergency shelters will be powered by the
microgrid using a combination of solar, thermal, and storage resources.
These pilot projects are just the beginning of the potential for AI in energy
grids. As the technology matures, it is anticipated that as technology
develops, it will become more crucial to the operation of the electric grid.
Data-Driven Secondary Control

of Distributed Energy Resources
The 21st century has seen an increase in the use of data-driven methods
to control various systems. One such system is the distribution of energy
resources. The use of data-driven methods can help to optimize the
distribution of these resources and make the system more efficient.
In the past, the distribution of energy resources was controlled by
primary controllers. These controllers oversaw making sure that the
resources were allocated securely and effectively. However, they could
not consider the system’s changing needs. This often led to inefficient
distribution of resources.
Data-driven methods can help to address this problem. By using
data to control the distribution of resources, the system can be more
responsive to the system’s changing needs. This can lead to a more
efficient distribution of resources and can help to reduce the overall cost of
the system.
Data-driven methods can also help to improve the safety of the system.
The principal controllers can be made aware of possible issues before
they arise by using data to monitor the system. This can help to prevent
accidents and can make the system more reliable.
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The use of data-driven methods is not without its challenges. One

challenge is that data can be difficult to collect and process. In addition,
data can be misinterpreted, which is another problem. This may result in
the distribution of resources being decided upon incorrectly. Despite these
difficulties, data-driven approaches have certain benefits that make them
ideal for managing the distribution of energy resources. These methods
can help to optimize the system and make it more efficient. They can also
help to improve the safety of the system.
Load Modeling and Non-intrusive Load

Monitoring to Integrate Distributed
Energy Resources in Low- and
Medium-Voltage Networks
The electric grid is a power generation, transmission, and distribution
facility network that delivers electricity to customers. The grid is a complex
system that must be operated and maintained to ensure reliability
and safety.
The traditional electric grid is transforming due to the increasing
penetration of renewable energy sources, such as wind and solar, and
the rise of distributed energy resources (DERs), such as storage and
demand response. This transformation is enabled by advances in digital
technology, which provide new capabilities for monitoring, managing, and
controlling the grid.
One of the critical challenges in this transformation is maintaining grid
reliability and security while accommodating the variability of renewable
energy sources and the distributed nature of DERs. This challenge is being
addressed by developing autonomous energy grids that use artificial
intelligence (AI) to control the flow of electricity on the grid.
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AI-enabled energy grids can learn from data and quickly adapt to
changing conditions. This enables them to provide reliable and secure
power delivery even as the mix of energy sources and the distribution of
resources on the grid change.
DER Operation and Security

A Battery-Based Authentication Scheme
for Distributed Energy Resources
We assume that each DER is equipped with a battery, and the battery can
be used to store the energy generated by the DER. The proposed scheme is
based on the fact that the energy stored in the battery can be used to power
the DER, and the DER can be authenticated using the energy stored in the
battery.
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187
Interconnection Protection of Distributed Energy

Resources Using Intelligent Schemes
A crucial problem in the electricity system is the interconnection
protection of distributed energy resources (DER). Renewable energy
resources, energy storage systems, and microgrids may all be a part of the
DER. The traditional protection schemes cannot provide optimized and
intelligent protection for the DER. The AI-based intelligent schemes can
provide optimized and intelligent protection for the DER. The DER and
power system features can be learned by the AI-based schemes, and they
can then use this knowledge to decide whether to defend a system or not.
The AI-based schemes can learn the DER and power system features, and
they can then use this knowledge to decide whether to defend a system or
not. AI-based techniques can enhance the protective capabilities of the
DER. The AI-based schemes can also provide self-adaptive protection for
the DER. The AI-based schemes can learn the changes in the DER and the
power system make the protection decision accordingly.
AI-based schemes can provide optimized protection for the DER. The
number of false alerts and misoperation of the protective devices can be
reduced using AI-based methods. The AI-based schemes can also provide
coordinated protection for the DER. The AI-based schemes can coordinate
the protection devices of the DER to provide optimized protection.
The AI-based schemes can provide self-learning protection for the
DER. The AI-based schemes can determine a protective strategy based
on their knowledge of the DER and power system features. The AI-based
schemes can also provide self-adaptive protection for the DER. The AI-
based schemes can learn the changes in the DER and the power system
and make the protection decision accordingly.
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Key Takeaways
• Distributed energy resource penetrates the overall
energy ecosystem at a rapid pace.
• AI will play an important role in seamlessly integrating
the DER into the core energy ecosystem and
smoothening the uncertainty.
• Integrating distributed energy resources (DERs) and
artificial intelligence (AI) can help create a more
efficient, sustainable, and resilient electricity grid.
• AI has the potential to transform the electricity grid and
the way we manage our distributed energy resources in
the future.
• AI can be used to improve the power system’s
resilience and to reduce the risk of blackouts and other
disruptions.
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CHAPTER 12
Utilities in the
Metaverse
The use of Metaverse in the utility sector is a rapidly growing trend that has
seen a marked increase in recent years. This technology has the potential
to revolutionize the utility sector, as it can provide faster, more reliable,
and more secure services. This chapter will discuss the advantages and
potential applications of Metaverse in the utility sector and how it can
be used to improve customer experience, reduce costs, and increase
efficiency.
Introduction
The Metaverse is coined by science fiction writer Neal Stephenson in
his 1992 novel Snow Crash. It is a blockchain-based virtual reality (VR)
environment with avatars as its inhabitants. The Metaverse is a user-
created virtual world that exists on the Internet. It is a 3D space where
users can interact with each other and create their content. The Metaverse
is similar to other virtual worlds, such as Second Life, but it is unique in
that it is entirely user-created. This means that anyone can create their
world within the Metaverse, and there are no limits to what can be created.
The Metaverse is constantly evolving and expanding as new users add
their creations.

CHAPTER 12 UTILITIES IN THE METAVERSE
The Metaverse is a place where people can be anyone they want to be.
There are no rules or restrictions on what users can do or create. Because
of this, it's a fantastic location for people to discover their creativity
and interact with new people from around the globe. In addition, the
Metaverse is a fantastic environment for information sharing and learning
new skills. There are many user-created tutorials and resources available,
and users can also learn from each other through trial and error. The
Metaverse is constantly changing and expanding, and it is impossible to
predict what it will look like in the future. However, one thing is certain: the
Metaverse is an amazing place that allows users to interact with each other
in previously impossible ways.
Metaverse refers to a virtual shared space, typically with a high degree
of user interactivity, and sometimes including the ability for users to
represent themselves through virtual avatars. The concept of a Metaverse
has been popularized in various forms of science fiction. It is now being
explored as a potential future development of the Internet and the
convergence of real and virtual reality. It is envisioned as a decentralized
and immersive virtual world where users can engage in various activities,
from socializing to commerce and gaming.
In the movie starring Keanu Reeves, “The Matrix,” the Metaverse
refers to a simulated reality created by sentient machines in which most of
humanity is unknowingly trapped. The Matrix serves as a means of control
and energy source for the machines, while the human mind is connected
to the simulation and experiences it as reality. The term "Metaverse" in this
context refers to a virtual world that is parallel to the physical world. The
concept of a Metaverse in "The Matrix" has been widely discussed and has
significantly impacted popular culture, influencing the way people think
about virtual reality and the nature of reality itself.
192
Training in the Metaverse

Virtual Reality (VR) technology has the potential to significantly improve
the training model for utilities by providing a highly immersive and
interactive learning experience. Here are some ways in which VR can
improve the training model:
1. Hands-on Training: VR simulations can provide
a realistic and safe environment for workers to
practice and test their skills, reducing the risk of
accidents and mistakes in real-life scenarios.
2. Enhanced Realism: VR simulations can recreate

real-life situations, equipment, and processes in
a highly detailed and accurate manner, allowing
workers to experience and practice their responses
to various scenarios.
3. Scalability: VR technology allows for training to

be delivered to many workers simultaneously,
regardless of location, reducing the costs and time
required for traditional in-person training.
4. Improved Retention: VR simulations can create
an engaging and memorable learning experience,
helping workers retain and recall information more
effectively.
5. Customizable Training: VR simulations can be
easily modified to match specific training needs,
making it possible to train workers on specific tasks
and scenarios relevant to their jobs.
193
Overall, VR technology has the potential to revolutionize the training

model for utilities, making it more efficient, effective, and engaging for workers.
However, the question that looms in the minds of individuals is, how
do you safely train personnel working on and around dangerous, high-
voltage substation equipment without exposing them to actual danger
during training? The answer is Virtual Reality.
Virtual Reality (VR) technology can safely train personnel working
on and around dangerous, high-voltage substation equipment without
exposing them to actual danger during training. Here are some ways VR
can be used for this purpose:
1. Simulation-Based Training: VR simulations

can recreate real-life situations, equipment, and
processes in a highly detailed and accurate manner,
allowing workers to practice and test their skills in a
safe virtual environment.
2. Hands-on Practice: VR simulations provide a
realistic and safe environment for workers to
practice procedures and responses to emergencies,
reducing the risk of accidents and mistakes in real-
life scenarios.
3. Interactive and Engaging: VR simulations can
create an immersive and engaging learning
experience, helping workers retain and recall
information more effectively.
4. Reduced Costs and Time: VR technology allows

for training to be delivered to many workers
simultaneously, regardless of location, reducing the
costs and time required for traditional in-person
training.
194
5. Customizable Training: VR simulations can be

easily modified to match specific training needs,
making it possible to train workers on specific tasks
and scenarios relevant to their jobs.
Burns & McDonnell, an engineering, architecture, and construction
firm headquartered in Kansas City, Missouri, has launched a new virtual
reality (VR) training program for utility personnel. Utilizing virtual
reality (VR) technology, the software will present accurate simulations
of numerous work settings and scenarios that utility staff may face. The
program aims to increase productivity and safety by giving employees
a greater grasp of their surroundings and any potential hazards they
may encounter. Burns & McDonnell has a long history of working with
the utility industry, dating back to its founding in 1898. The company
has worked on projects such as the Hoover Dam and the Kansas City
Power & Light Company's coal-fired power plant. More recently, Burns &
McDonnell has been involved in developing smart grid technologies and
renewable energy projects. The launch of the VR training program is part
of Burns & McDonnell's commitment to innovation in the utility industry.
The company believes VR can provide a more immersive and effective
training experience than traditional methods such as lectures or videos.
Burns & McDonnell believes VR can help cut expenses by lowering the
need for travel and time away from work in addition to increasing safety.
San Diego Gas and Electric Virtual Reality

for Immersive Learning
SDG&E's digital innovation team used virtual reality to create a safe
and realistic training environment for Journeymen Linemen. The VR
experience helped employees hone their abilities in a secure environment
and boosted their capacity to react to emergencies in the real world.
A Virtual Reality training environment was developed to teach field
195
workers how to identify and respond to potential utility-related wildfires.

The software allows employees to simulate different situations to better
understand the risks that can occur and address them more quickly.
The use of virtual reality in training can provide a more immersive
and varied experience that can supplement traditional classroom and
field training. This can help workers continually build skills and allow
instructors to identify learning trends. In addition, technology allows
workers to train in a safe environment and receive instant feedback on
their performance.
Augmenting Field Workforce

The potential uses of augmented reality (AR) in field service have drawn
more attention because of the technology's growth. AR has the potential
to improve efficiency and accuracy in several ways, from providing
real-time visualizations of data to helping workers find and identify
parts. Additionally, AR can be utilized to provide a more immersive and
engaging customer experience, as well as to train and support field service
personnel.
Some field service organizations are already using AR to provide many
benefits. For example, Telstra, a leading telecommunications company in
Australia, uses AR to provide technicians with real-time visualizations of
underground cables, helping them easily locate and repair faults. Similar
to this, John Deere, a major producer of agricultural equipment, uses
augmented reality to give technicians real-time visuals of equipment
parts as well as step-by-step instructions for repairs. There are a few other
potential applications of AR in field service, and we will likely see more
and more organizations adopting this technology in the coming years.
196
Marketing of Utility Services

Utility services are necessary for the functioning of modern society, such
as electricity, gas, water, waste management, etc. In recent years, there has
been a trend toward using virtual worlds as a platform for marketing these
kinds of services.
There are several advantages to using virtual worlds for marketing
utility services. First off, unlike traditional marketing techniques, virtual
worlds provide a highly immersive and dynamic environment that can
be used to engage with potential clients. Secondly, virtual worlds can be
used to create realistic simulations of the services offered, which can help
potential customers understand their benefits. Finally, virtual worlds offer
a large and growing potential customer base, which is difficult to reach
through other channels.
There are many ways in which virtual worlds can be used to market
utility services. Making a virtual version of the provided service, such as
a water treatment facility or power plant, is one typical strategy. This can
be used to provide potential customers with a realistic understanding
of how the service works and how it can benefit them. Another strategy
is to develop a virtual environment where potential users can test the
service before utilizing it in the real world. This can be an effective way of
demonstrating the value of the service and building trust with potential
customers.
Whatever strategy is employed, it is critical to make sure that the virtual
environment is user-friendly and well-designed, as this will significantly
impact whether potential customers are eager to interact with it. In
addition, the virtual world should be regularly updated with new content
and features to keep users engaged and ensure sustained interest.
197
Key Takeaways
• The metaverse is an exciting technology, and there is
significant early enthusiasm surrounding it within the
utility industry.
• Metaverse can play an important role in new ways
of operating the critical infrastructure operation and
training utility workforce.
• Investing in the metaverse will require a robust IT

infrastructure, powered by a metaverse-ready network
and advanced AI technologies.
198
Index
A traditional methods, 64
utility industry, 10, 11
Advanced metering infrastructure
wait-or-adopt syndrome, 63
(AMI), 128–129,
Asset analytics
133–134, 153
drone, 126
Agility software, 54–56
recommendations, 123, 124
AI Adoption Maturity Model, 71
RUL, 122, 123
experimenting, 72
utility poles, 124, 125
exploring phase, 72
Asset management, 4, 121–122
formalizing, 72
Asset performance management
optimizing, 72
(APM), 121, 122
transforming, 73
Assets inspection, drone, 127, 128
Alternative Current (AC), 2, 136
Augmented reality (AR), 196
Anomaly detection, 128, 129, 132
Augmenting human talent, 57–60
Application-based IDS (AIDS), 134
Automation, 50, 63, 92, 105, 126, 137
Artificial intelligence (AI), 4, 42, 45,
Autonomous energy grids, 183–185
49, 57, 86, 94, 104–106,
111–113, 119, 123, 125, 130,
134, 137, 140, 155, 156, 163, B
180, See also Electric Battery-based
vehicles (EVs) authentication, 186–188
challenges, 151, 152 Battery technologies, 94, 95
climate change, 22 Behavioral models, 127, 128
DERs, 179, 180 Bioenergy, 91–93
electricity, 26 Blockchain technology, 98
factors, 65–67 Boiler Turbine Generators
organizational factors, 68–71 (BTG), 105

D. Roy, AI for Utilities, https://doi.org/10.1007/979-8-8688-0202-7
INDEX
C Community Choice Aggregator

(CCA), 29
Capability
benefits, 29, 30
customer service, 59
operation, 29
energy platform, 59, 60
regulation, 30, 31
innovation platform, 60, 61
The Community Impact
Carbon footprint, 29, 31, 89, 95,
Platform, 97
153, 178
Competition, 66, 90–92, 166
Carbon optimization, 106–107
Compound annual growth rate
Carbon pollution-free electricity
(CAGR), 35, 63
policy, 77–79
Computer-based control
Charging infrastructure, EVs
systems, 105
AI-driven approach, 159
Consumer behavior
battery, 160
load prediction, 130, 131
challenges, 158
smart grid, 128
global surge, 158
Consumers, 60, 70, 104, 120
interoperability, 160, 161
demands, 85
power grid, 159
and monetizing vehicle, 172, 173
predictive maintenance, 161
Consumer to prosumers, 31
Chatbots, 145, 146
energy poverty, 32
Chess-beating computers, 57, 58
Conversational AI chatbots, 145, 146
Clean Power Plan, 76
Cost, 65, 89–91, 151, 194
Clean Power Research, 54
COVID-19 pandemic, 40
Climate change, 4–8, 17, 75, 106, 108
Customer-centric, 53
Climate-resilient
Customers
infrastructure, 83, 84
analytics, 150
Cloud-first philosophy, 53
empowering, 144–149
Cloud-related courses and
Cyber-attack detection, 133, 134
programs, 43, 44
Cloud strategy, 40–42
Clustering algorithms, 129 D
Coal-fired power plants, 30, Data as electricity
75, 85, 195 foundation, 45, 46
Collaboration, 52, 81, 172 service, 46, 47
200
INDEX
Data-driven load management, 98 self-sufficiency, 178

Data-driven methods, 184–186 small-scale technologies, 177
Data-driven reliability, 46, 47, 51, 53 uncertainty modeling, 180, 181
Data-driven smart Distributed machine learning
charging, 164–166 (DML), 146–149
Data mining, 128, 129 Driver authentication, 168–169
Data monetization, 47 Drones, 104, 126, 127
Deep learning, 121, 146–148
Demand-side management (DSM)
programs, 171 E
Department of Homeland Security Economic benefits, 66, 97, 178
(DHS), 133 Electric Infrastructure Security
Deterioration modeling, 124, 125 (EIS), 133
Detroit, 112, 113 Electricity, 19, 20, 26, 63, 103, 104,
DevOps approach, 53 118, 150, 197
Digital DNA, 39, 40 consumer to prosumer, 31
cloud continuum, 40–44 consumption, 98
Cloud strategy, 41, 42 generation and
data as electricity, 45 consumption, 109
Digital field workforce, 149 history, 2, 3
Direct Current (DC), 2, 158 supply and demand, 27
Distributed energy resources usage, 22
(DERs), 24–26, 103, 109 Electric vehicle routing
in AI, 179, 180 management, 163–164
battery-based Electric vehicles (EVs), 25, 79, 80,
authentication, 186–188 97, 115, 155
data-driven methods, 184–186 analytics & security, 166–168
energy resources, 178 auto industry, 156
greenhouse gas, 178 charging, 158–161
grid-based electricity, 179 charging behavior, 170
interconnection protection, 188 charging station usage, 173, 174
load modelling, 185, 186 fuel cost, 157
photovoltaic solar energy, operational data, 171–174
181, 182 sales and market, 156
201
INDEX
Electric virtual reality, 195–196 Environmental Defense Fund

Electrification, 3, 21, 23, 80, 111, (EDF), 79
113, 114 Environmental factors, 70
Enel X, 80, 81 Environmental Protection Agency
Energy, 2, 64, 67, 89, 192, 195, (EPA), 7, 8, 75, 82
See also Renewable energy Environmental, social,
consumption, 15 and governance
costs, 104 (ESG), 55, 86
ecosystem, 117 activism by investors, 87, 88
efficiency, 22 measurement and
marketplace, 34 reporting, 88, 89
photoelectric effect, 102 portfolios, 86
production and Environmental threats, 4–6
consumption, 109 Equality, 111, 112
service provider, 153 Equitable grid reliability, 114, 115
services, 36
sources, 16, 101, 115
storage, 179 F
transition, 19, 20 Facial recognition, 168–169
usage and maintenance, 82 False data injection attacks,
Energy-as-a-service 134, 135
(EaaS), 33, 34
Energy consumption, 4, 15, 36, 67,
81–83, 132 G
Energy ecosystem, 23 Geographic decision support
DERs, 23–25 systems (GDSS), 180, 181
intelligent grid, 25 Geothermal energy, 90
Energy informatics, 145, 146 Global warming, 5, 7, 8, 22
Energy poverty, 8, 9, 32, 111, 112 Greenhouse gas emissions, 7, 8, 22,
Energy-producing 30, 103, 106, 110
technology, 24–26 Grid communications, 135, 136
Energy theft detection, 131, 132 Grid resiliency
Enterprise resource planning emergency response and
(ERP), 48, 49 coordination, 138, 139
202
INDEX
geographic situational data-driven smart

awareness, 139, 140 charging, 164–166
harmonic analysis, 136 electric vehicle
Grid security routing, 163
communications, 135 SOC, 162
cyber-attack detection, 133, 134 Intelligent grid, 26
energy theft detection, 131, 132 benefits, 26
false data injection attacks, components, 26
134, 135 goal, 26
intrusion detection system, and smart grid, 27
133, 134 Intelligent operation, 50
Grid-tied systems, 110 automation, 50
operational analytics, 52
SRE, 51
H International Energy Agency
Harmonic analysis, 136 (IEA), 5, 22
Host-based IDS (HIDS), 134 Internet of Things (IoT), 46
Household characteristics, 129, 130 Intrusion detection system (IDS),
Housing and Revitalization 133, 134
Department, 113 IT Operating Model, 52, 53
Human capital management, 55
Hydropower cost, 90, 91
L
Legacy applications, 43, 44
I, J, K Lift-and-shift method, 44
Image processing, 132 Load profiling, 132
Infrastructure planning, 103, 104 Long-term health index
Integrated customer analytics, (LTHI), 125
150, 151 Low-carbon economy, 83
Intelligent enterprise ancient solar laser
transformation, 48 beam, 102
utility companies, 49 emissions, 101
Intelligent EV charging infrastructure planning,
scheduling, 162 103, 104
203
INDEX
Low-carbon economy (cont.) Net-Zero Buildings, 81–83

solar cells, 101 Neural network (NN), 134, 136,
utilities, 103 138, 180
New market entrants, 6, 7
M
Machine learning (ML), 45, 66, 128, O
144, 146 Ocean energy, 91
autonomous energy grids, Operational analytics, 52
183, 184 Optibus, 80, 81
PV solar energy, 181, 182 Organizational
solar irradiance, 182 culture, 66, 68
Metaverse, 193, See also Virtual Organizational factors, 68–71
reality (VR) technology culture, 68
electric virtual environmental factor, 70
reality, 195, 196 goals, 69
science fiction, 192 resources, 69
training model, 193 size, 68
user-created tutorials, 192 structure, 68
VR, 191 technological factors, 70
Microgrid-as-a-Service
(MaaS), 34–36
Microgrids, 28, 110, 115 P, Q
with energy ecosystem, 117 Pacific Northwest National
grid modernization, 115, 116 Laboratory, 138
renewable, 116 Photons, 102
Monopolies, 1, 120 Photovoltaic (PV) solar energy,
181, 182
Platform economy, 61, 62
N Power asset, 125
National Grid, 84 Power generating
Natural language processing assets, 104–106
(NLP), 144, 145 Power quality index, 114
Network-based IDS (NIDS), 134 Power transmission business, 126
204
INDEX
Predictive maintenance, 4, 119, Shareholder

122, 132, 152, 172 benefit, 96
Predictive maintenance demands, 85
systems, 161 Site reliability engineering (SRE)
data-driven, 51
reliability, 51
R systems and services, 51, 52
Real-time data, 15, 83, 87, 130, 139 Smart grid, 25, 27, 45–47, 114,
Regulation, 12, 30–31, 65 121, 195
Remaining useful life (RUL) asset, Smart Grid Consumer, 127–128
122, 123 Smart Meter Data Analytics and
Renewable energy, 89, Visualization (SMDAV)
110, 115–117 system, 137
bioenergy, 91–93 Smart Meter Error Detection and
cost of geothermal energy, 90 Correction (SMEDAC)
hydropower cost, 90, 91 system, 137
ocean energy cost, 91 Smart Meter Fault Detection and
solar energy, 93, 94 Isolation (SMFDI)
Renewable microgrids, 116 system, 137
Return on investment (ROI), 24 Smart meters, 26, 46, 50, 104,
Risk-based maintenance 137, 153
schedules, 124 Social inequity, 96, 97
Rural Electrification Agency Solar energy, 93, 94, 102, 181, 182
(REA), 112 Solar irradiance, 182
State of Charge (SOC),
162–163, 179
S Supply and demand, 24, 25, 27, 120
Scalability, 40, 53, 104, 146, 193 Sustainability, 17–19, 75, 115, 116
Science and Technology electric decade, 20, 21
Directorate (S&T), 133 energy efficiency, 22
Security information and event energy transition, 19, 20
management (SIEM) ESG factors, 86
system, 133 ethical enterprises, 95
Security management, 135–136 government regulation, 76–85
205
INDEX
Sustainability (cont.) clean energy revolution, 9, 10

greenwashing, 85 customer data, 143
investment opportunity, 86 Digital DNA (see Digital DNA)
investments, 85 electric utility, 2, 3
Sustainable Development Goals industry, 3, 4
(SDGs), 97, 112 marketing, 197
sustainability, 16 (see also
Sustainability)
T
Talent transformation, 55, 56
Technical expertise, 43, 66 V
Technological factors, 70–71 Vehicle-to-grid (V2G) services, 171
Telecommunications, 1, 2, 96 Virtual reality (VR) technology,
Timber utility poles, 125–126 54, 191–196
Tree and utility pole crashes
(TUOP), 138
Two-way communication W, X, Y
technology, 27, 36 Waste management, 2, 37, 86, 197
Water, 2, 18, 37, 67, 90, 98, 144, 197
and electricity (see Electricity)
U natural gas, 109
Utility business model, 6, 7
Utility providers, 24, 31, 67, 99,
120, 137 Z
Utility sector, AI, 10, 11, 75, 143 Zero-emission vehicle
businesses and industries, 1, 2 policy, 79–81
206

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AI for

Dr. Debashish Roy

ISBN-13 (pbk): 979-8-8688-0201-0 ISBN-13 (electronic): 979-8-8688-0202-7

Copyright © 2024 by Debashish Roy

Preface: Author’s Note ........................................................................xv

Chapter 1: AI for Utilities ......................................................................1

Chapter 2: Utilities of the Future ........................................................15

Intelligent Energy Ecosystem ..............................................................................23

Chapter 3: Utilities Building Digital DNA.............................................39

Data As Electricity ...............................................................................................44

Chapter 4: AI Adoption in Utilities ......................................................63

AI Adoption Maturity Model for Utilities ..............................................................71

Chapter 5: Sustainability Imperative for Utilities ...............................75

Tech for Good Initiatives ................................................................................98

Chapter 6: Generating Power in the New Low Carbon Economy ......101

Chapter 7: Microgrid – Macro Impact ..............................................109

Chapter 8: Intelligent Transmission and Distribution .......................119

Health Monitoring of Timber Utility Poles ....................................................125

Chapter 9: Utilities Retail Reimagined ..............................................143

Digital Field Workforce ......................................................................................149

Chapter 10: Transforming Mobility Through EV ................................155

Chapter 11: Age of DERs ...................................................................177

Machine Learning for Solar Irradiance Forecasting of Photovoltaic

Chapter 12: Utilities in the Metaverse ..............................................191

and machine learning enable utilities to optimize operations, predict and

Forces Shaping the Future

5 Advantages Utilities Should Leverage

5 Opportunities Ahead of Utilities

© Debashish Roy 2024 1

4. Waste management: The utility sector is

Business transformation plans that leverage the power of artificial

Environmental Threats Posed by

Figure 1-1. Key messages from United in Science report (2020)

On the other hand, the Energy Progress Report (2019) published

actions were defined: mitigating greenhouse gas emissions into the

New Market Entrants Are Upending

• The electric power sector is undergoing a digital

Global Warming and Greenhouse

inadequate access to energy in developing countries, involving economic,

Clean Energy Revolution

AI in the Utility Industry

Outline of the Chapters

• Chapter 11 focuses on the increasing penetration

• Finally, Chapter 12 gives a glimpse of the metaverse

Utilities of the Future

© Debashish Roy 2024 15

2. Climate change: Climate change is one of the

4. Economic development: Sustainability is becoming

to lead to increased demand for cleaner energy and, thus, an increase in

The Electric Decade

Today, the drivers of rapidly shifting demand patterns are changing

Intelligent Energy Ecosystem

Distributed Energy Resources

Power autonomy refers to the ability of individuals, communities,

From the utility’s perspective, distributed storage systems can help

What Is an Intelligent Grid?

The Intelligent grid is the future of electric power distribution. It is a

What Is the Goal Behind Creating

What Are the Components of an Intelligent Grid?

What Are the Benefits of an Intelligent Grid?