The utility industry is experiencing significant transformation. Traditionally characterized by carbon-intensive generation and a rigid, one-way power grid, it is now at the forefront of digital innovation. Central to this shift is Southern California Edison, a major utility embracing artificial intelligence (AI) and big data to redefine energy production, distribution, and consumption.
This article examines how Southern California Edison is leading this change, based on insights from a conversation at Avasant’s Empowering Beyond event between Avasant’s Managing Partner, Henry Guapo, and Todd Inlander, Senior Vice President and Chief Information Officer of Southern California Edison. Their discussion highlights the impact of advanced analytics, intelligent infrastructure, and a dedication to decarbonization on the future of utilities.
We will explore the reasons why big data has become indispensable in traditional industries such as utilities. Additionally, we will discuss how Southern California Edison is deploying it on a scale, along with the cultural and operational challenges that accompany this transformation. This analysis delves into areas such as grid modernization, cybersecurity, and renewable integration, revealing how digital intelligence is driving the advancement of next-generation energy systems.
Why use Big Data in the Utilities industry?
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- Increased electricity usage.
Todd Inlander highlighted several key factors driving companies like Southern California Edison to adopt big data solutions in their operations. One major driver is the anticipated surge in electricity demand by 2045, projected to increase by 80% to 100%, largely due to the electrification of 90% of buildings, widespread adoption of electric vehicles reaching 90%, and the ongoing challenges posed by wildfires. Another critical factor is the targeted reduction of greenhouse gas emissions, with a goal of achieving a 30% decrease. These ambitious objectives necessitate a shift away from relying solely on human efforts, emphasizing instead the vital role of advanced technology to enable data-driven decisions in meeting these objectives. - Increase in cyber-attacks.
There has been a notable rise in cyberattacks, with Southern California Edison dedicating significant efforts to combating and analyzing threats posed by nation-state actors. Nation-state cyberattacks are defined as targeted assaults conducted by state-sponsored entities against governments, organizations, or individuals. These attacks often aim to achieve espionage, disrupt critical infrastructure and operations, or deliver political messages. The use of big data can enhance cybersecurity defenses against nation-state cyberattacks by enabling early threat detection, identifying vulnerabilities, and improving incident response. By analyzing massive datasets, organizations can uncover patterns and anomalies that might indicate malicious activity, often before an attack fully develops. - Integration of multiple sources of energy
Southern California Edison will need to procure additional renewable energy sources such as solar and wind to meet its decarbonization objectives and address the growing electricity demand by 2045. This initiative is in alignment with the state of California’s goals, as Governor Gavin Newsom has articulated targets to reduce greenhouse gas emissions by 48% by 2030 and achieve carbon neutrality by 2045. Enhanced integration methods are essential to manage this anticipated increase. Big data analytics can play a crucial role for utility companies by optimizing energy production, distribution, and consumption through detailed insights into grid behavior, usage patterns, and resource availability, ultimately leading to improved efficiency and cost reductions.
- Increased electricity usage.
The implementation of Big Data in the Utilities industry.
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- Technology transformation
Southern California Edison has transitioned from traditional manual data entry to using advanced sources such as satellite imagery, drones, third-party weather forecasters, and weather stations. Data Science teams are responsible for converting this data into actionable intelligence. As operational technology (OT) systems become increasingly software-driven, their integration with information technology (IT) systems has become essential. Consequently, IT personnel must ensure the maintenance and functionality of OT systems. This integration is additionally supported by smart grids and meters. Smart grids in combination with smart meters provide consumers with feedback on their energy usage, promoting energy conservation and cost reduction.
Southern California Edison currently operates approximately five million smart meters, with plans to install an additional six million sensors by 2030. This expansion will facilitate the development of an autonomous grid, supported by a private LTE network and thousands of weather stations, resulting in the daily generation of multiple petabytes of data. This transformation marks a shift from a traditional system to one that leverages big data to drive an intelligent enterprise. Big data analytics will allow for accurate demand forecasting by analyzing inputs from smart meters and other sources, thus aiding utilities in capacity planning and energy pricing optimization. Furthermore, big data can be utilized for predictive analytics, which allows for early detection of equipment issues, enabling proactive maintenance and improving grid reliability. - People transformation
Southern California Edison has revamped data methodologies, yet changing employee interactions with data remains challenging. Transforming the culture of a legacy industry is difficult. Despite ongoing technology infrastructure implementation, employee buy-in is tough to achieve. Effective data ownership and governance among employees is crucial for ensuring accurate, reliable, and secure data.
- Technology transformation
Conclusion
The journey of Southern California Edison illustrates that big data and artificial intelligence have become fundamental to establishing a resilient and intelligent utility enterprise. These technologies not only improve grid performance and customer experience but also empower the industry to address rising demands, counter cyber threats, and accelerate the transition to renewable energy.
Utility firms should prioritize investments in data infrastructure, foster a culture of data ownership, and align their technology strategies with long-term sustainability objectives. The future of utilities will be determined by those who can transform data into actionable insights and convert these insights into decisive, measurable actions.
By Kayla Noel, Managing Consultant