The energy industry has undergone more rapid change in the last 5 years than the previous 501 – the big question is what can we expect in the next 10 years?
Technology, innovations, and consumers, are more inter-connected than ever and this opens up huge opportunities for the energy sector. Energy companies now rank amongst the most important – and sophisticated – technology companies in the world2 and the role of the consumer is key in this mix.
“Increasingly it is the demands of the consumer that is controlling action and investment within the energy sector. As the pace of innovation increases, and increasingly places more control in the hands of consumers, the consumer will be the most powerful and potent player in the energy system.”
Mark Toner, Public Policy and Regulatory Council, Vector
From smart phones, to smart meters, the smart grid and smart homes. Everything is getting smarter – including us as consumers. Add in the growing sophistication of artificial intelligence and we see the rise of ever impressive machine learning; your home energy system and all smart appliances will ultimately have a mind of their own, collecting data and analysing trends while delivering real-time decisions for optimum usage.3
Energy storage is big business and is set to be a real game changer. It’s estimated that the market will quadruple by 2020 to a forecasted value of US$6 billion worldwide1 and some have even made the bold prediction that battery storage will be as common as broadband in 10 years.4 With energy storage technology comes the opportunity to keep powered up with renewable energy 24/7; it will bring a rise in the number of ‘prosumers’ who will not only consume but also produce, store and trade electricity among peers.5
"The current pace of technology development, and especially the advent and maturing of what is being termed as 'exponential technologies' (artificial intelligence, machine learning, elastic storage and compute, big data and analytics), not only impact the energy sector but is exerting profound changes on the way people live and work. But what makes the energy sector even more exciting is that the impact of these exponential technologies is coinciding with some incredibly exciting advances in energy-specific hardware, be it in generation (solar, wind, artificial photosynthesis), distribution (IoT, smart transformers, smart poles) or storage (batteries, EVs) – and it is this combinatory effect that we believe will unlock true innovation in the sector and deliver significant value to our communities and businesses"
Nikhil Ravishankar, Chief Digital Officer
In this era, you can sip your coffee with ease on your way to work, freely check your phone and organise your life, perhaps all controlled with your very own artificial intelligence assistant, like Siri6. All made possible by your autonomous EV car. This technology is already here, and in-depth testing is now taking place as manufacturers gear up to have the driverless car in production by 2021.7 Can you imagine handing over that trust of driving completely to your car? It’s very James Bond but it might not be so far away.
Technology is undoubtedly driving us towards a very different energy future from that of just 10 years ago. The pace and scale at which these changes take place depends on many factors, including how quickly costs can be brought down, efficiencies maximised and of course how government policy and regulation adapt with industry change. But one thing is for sure, the power will be in the hands of the consumer like never before.
Vector, in partnership with Auckland Council and in collaboration with the NZ transport agency, is excited to be lighting the Harbour Bridge with smart energy technology. This article is one in a series about the Vector Lights project. See more here.
References:
- 2016 Utilities Industry Trends, Industry Perspectives, Strategy& https://www.strategyand.pwc.com/trends/2016-utilities-industry-trends
- Energy’s Next Frontiers, Deloitte University Press https://dupress.deloitte.com/dup-us-en/industry/oil-and-gas/energys-next-frontiers.html
- The rise of the Prosumer, LinkedIn https://www.linkedin.com/pulse/rise-prosumer-evolving-smart-grid-architecture-peer-mclauchlan
- Battery storage will be as common as broadband in 10 years, CleanTechnica, https://cleantechnica.com/2015/09/01/battery-storage-will-be-as-common-as-broadband-in-10-years-says-simon-hackett/
- Transparency Market Research “Microgrid Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2014 – 2020.”
- The CEO of an electric vehicle startup said she's making the iPhone of cars -- here's her plan. Business Insider https://www.businessinsider.com.au/nio-ceo-padmasree-warrior-electric-self-driving-car-plans-2017-5?r=US&IR=T
- These 19 companies are racing to build self-driving cars in the next 5 years, Business Insider http://www.businessinsider.com/companies-making-driverless-cars-by-2020-2017-1/?r=AU&IR=T