I have recently returned from DistribuTECH 2013 in San Diego and I have to say, the depth and breadth of the intellect and levels of achievement on that show floor were absolutely electric. Although every major subject and topic surrounding energy was represented, a few items kept popping up in conversation and at many booths. Smart grid was everywhere as one might expect with the natural extension ‘big data’ being a large part of the buzz.

At first blush, the term ‘big data’ seemed to me a rather colloquial way to describe something so key to the success and future of the grid. But this type and sheer volume of information is something utilities have never had full use of until now. On the other hand, until now, they haven’t had to face the huge task of accessing, analyzing, managing, and delivering smart grid deployed data coming at them at increasingly faster speeds. Data that is essential to optimizing business operations and enhancing customer relationships.

We are told that somewhere in this flood of data exists the way to more efficiency but vital questions are arising:

• Will access to this new information change the way utilities grow their businesses and, if so, how?
• Will predictive analytics spur operational change and improvements?
   

While at the show, I quizzed an expert* in big data about what they have found and this is what they told me.

• The average utility with at least one smart meter program in place has increased the frequency of its data collection by 180x – collecting data once every four hours as opposed to just once a month for those without smart meters
• Utilities with smart meter programs in place say they are somewhat prepared to manage the data deluge, rating themselves a 6.7 on a scale of one to ten where one means they are not at all prepared and ten indicates completely prepared
• Utilities are collecting critical information, such as outage (78 percent) and voltage data (73 percent), and many are using it to support business decisions, improve service reliability, and enhance customer satisfaction¹
• In the next five years, utilities plan to leverage smart grid data to improve customer service through efforts such as delivering demand response programs, forecasting demands, complying with regulatory requirements and minimizing outages²
   

Taking this into account, I was able to more fully understand the opportunities and challenges such data presents:

• Despite improvements, 45 percent of utilities still struggle to report information to business managers as fast as they need it and 50 percent miss opportunities to deliver useful information to customers
• Utilities see a need to improve their ability to translate information into actionable intelligence and leverage data for strategic decision-making. Sixty-four percent say it is one of their top three priorities. Meter Data Management (MDM) systems may provide help: Seventy percent of those with an MDM system in place and who rank themselves a 7 to 10 in preparedness say they are prepared to successfully manage the data influx versus just 51 percent of those without.³ Breaking this down further shows how utilities rank their data management abilities on a scale of I to 10:
  
  a) Securing/safeguarding data – 8.4
  b) Capturing information – 7.8
  c) Putting timely information into the hands of people who need it most – 7.1
  d) Reporting on information – 7.1
  e) Translating information into actionable intelligence – 6.8
  f) Making strategic decisions based on the information – 6.6
   

Smart meters are bringing in a constant stream of data including outage, interval, voltage, tamper events, and diagnostic flags. In addition to smart meter information, utilities receive an influx of data from their outage/distribution management systems; customer data/feedback; alternative energy sources; and advanced sensors, controls and grid-healing elements.

I’ve often said to my kids that they are growing up in the most exciting time in our history and if you don’t embrace the technological advantages at your fingertips, you could end up going down the road kicking stones instead of reaching for the stars. To my point, many utilities with smart meter programmes are experiencing big challenges in the shortage of skilled talent in the field of intelligence delivery, which is essential to executing data analysis. This is also creating headaches as it translates into limited, often debilitating, processing speed. Seventy-one percent of utilities claim they are being held back because there are too few available hires capable of dealing effectively with big data. This is likely part of the reason some utilities are collecting new data but are failing to use it to support business processes and decision-making. For example, 23 percent are collecting diagnostic flag data but not using it; 19 percent are not using their outage data; 16 percent are letting voltage data slip away; and of the 63 percent that are collecting tamper event data, only 47 percent are using it. To move forward, utilities need a better understanding of how they can extract value from data and use the information to better serve their customers.

One of the findings that I found most interesting is which department claims to own or is responsible for smart meter and/or smart grid data. This is an on-going issue that utilities are struggling with. Within the utility operations (by percentage): metering lays claim to 60; customer service – 43; IT – 43; T&D – 29; other (i.e. billing, engineering) – 20; and business analysts – 15.

At the end of the day, the take on all of this ‘Big Data, Bigger Opportunities’ looks like this:⁴

Use Analytics for Operational Efficiencies: With data coming in from every corner of the business, utilities must not only make data collection a priority, but invest in the systems and people needed to analyze a growing number of new data sources collected from smart meters and other smart grid components to drive operational improvements.

Tackle Ownership Issues: Data ownership resides in various organization departments. Smart meter/interval data should be considered enterprise-level data, so utilities must ensure they have an enterprise data strategy in place.

Consider MDM: Utilities with meter data management systems are better prepared to handle the data deluge. Consider MDM as a means to get the most out of smart meter data.

Remember the Customer: In addition to streamlining business operations, successful data management should greatly improve the customer experience – both through improved outage management/service reliability and stronger customer communication around smart grid changes and benefits.

According to Rodger Smith, senior vice president and general manager, Oracle Utilities, “A vast majority of utility executives are working to enhance their ability to glean real intelligence from smart grid data – to ultimately create new opportunities to improve service reliability and deliver useful information to customers. Utilities can benefit from establishing enterprise information strategies, and investing in the systems and people needed to make better business decisions.”⁵

That’s Big Data. Imagine what Bigger Data will bring?

*In April 2012, Oracle conducted telephone and online interviews with 151 North American senior-level utility executives (U.S. 62%/Canada 38%). All respondents have implemented at least one smart metering programme.
 

¹ Vespi, C. “Big Data, Bigger Opportunities: Plans and Preparedness for the Data Deluge.” Oracle Utility Transformations (July 10 2012): 5

² van der Laan, C. “Utilities See Opportunities to Leverage Big Data to Improve Business Operations.” Oracle Press Release (July 10 2012)

³ Vespi, C. “Big Data, Bigger Opportunities: Plans and Preparedness for the Data Deluge.” Oracle Utility Transformations (July 10 2012): 5

⁴ Ibid. 15

⁵ van der Laan, C. “Utilities See Opportunities to Leverage Big Data to Improve Business Operations.” Oracle Press Release (July 10 2012)