Matthew BoyleHow energy suppliers can help data become more environmentally aware.
One of the most significant energy transitions since records were created is taking place right now. Businesses in the UK and elsewhere have been inspired to think about environmental accountability by the rising availability of fresh electrons. and for a valid reason. Customers are drawn to economic accountability because it satisfies regulators, keeps employees on the job, and can also get government handouts.
The world’s transition to a greener future will just pick up speed. By 2025 only, the proportion of solar energy in the power generation mix is expected to increase to over a third. The renewable energy market is anticipated to grow from its current $1.21 trillion compound annual growth rate (CAGR) of 17.2% between now and 2030, with solar and wind driving the majority of the growth.
For energy suppliers, capturing perhaps a small portion of this market is incredibly advantageous. Some people, though, must put in a lot of effort to win again clients. Some energy suppliers have engaged in “greenwashing” to exaggerate their climate credentials in their drive to appeal.
Those suppliers, as well as those who have acted fairly, have acknowledged the need for increased economic accountability. To demonstrate that the energy they produce comes from the renewable sources they claim to use, they are attempting to produce an authentic certificate, such as a Renewable Energy Certificate (RECs).
Unlocking environmental accountability: Leveraging AI for Renewable Energy Certificates
The challenge in creating a REC or something similar is that it is still extremely challenging to guarantee total energy genealogy throughout the supply chain. Lack of reliable data from top to bottom is one of the causes. This is partially due to the fact that the majority of energy production worldwide also uses unwieldy, frequently customized software. Data becomes segmented and difficult to evaluate as a result.
Additionally, the systems were created for repetitive assets like coal or oil rather than powerful ones like wind and solar. As more data is produced as a result of this dynamism, the problem of capturing intelligence becomes more complicated. It is currently estimated that the energy sector produces up to 200 exabytes of data annually.
Thankfully, technology that can quickly sort through this mountain of data is now available, supported by Artificial Intelligence (AI) and Machine Learning (ML). By gathering the necessary data to create the preceding REC, doing this facilitates climate accountability.
Obtaining the necessary information to provide climate accountability
Technology has long facilitated everything from providing an end-to-end connected journey for energy sales to controlling risk during unheard-of price volatility.
However, cutting-edge technological developments like Internet of Things (IoT) sensors, robotics, and AI have aided in the development of fresh strategies for achieving sustainability and climate goals. Accessing these devices and the data stored inside, but, can also require regular and time-consuming procedures.
It is important to keep in mind that even when technology like AI can be useful, it can only be as great as the data that enters it.
It won’t be about gathering more data from these devices in 2024 or later, but rather the right data. So much so that during the forecast period (2023–2028), the market for such Big Data analytics use within the energy sector is anticipated to grow from $8.37 billion in 2023 to $14.28 billion by 2028, at a CAGR of 11.28%.
Driving Sustainability: IoT and AI Revolutionize Renewable Energy Management
Numerous fresh competitors want to stand out by being perceived as an environmentally conscious alternative, in addition to legacy energy suppliers looking to clean up their act. and for a valid reason. Any suppliers who can make it possible for the world to access cleaner and more affordable energy sources will just become a dependable brand over time.
Climate responsibility is crucial. Since energy production has become more decentralized as a result of decarbonization, it has been challenging to ensure energy genealogy throughout the supply chain. IoT sensors, yet, can make this accountability easier by gathering energy information from a variety of distributed devices.
Data has been crucial in the industry for a while now in order to optimize operation process efficiency and forecast weather patterns and production demand. However, there has never been a time when it has been more crucial to demonstrate that the energy that energy companies produce is from clean sources as regulators, stakeholders, and customers look to hold them responsible for their claims. or more challenging. However, using the most recent AI-enabled technology can aid in rounding the circle.
The advantages come in two. Energy management solutions will even become more accurate as data becomes more widely used and available, enhancing the advantages that solar energy can offer businesses. Companies will be able to save money on energy costs at the same time, whether it be by buying energy from the least expensive supplier or by making it easier to use energy when prices are lowest.
