Humans are consuming more energy every year, and utility companies are scrambling to meet the demand. As energy needs have grown, so too have the challenges, including: aging infrastructures, complex and interdependent systems, increasing regulatory controls and higher consumer expectations. The International Energy Agency expects global energy demand to increase by 37% by 2040, which would likely put a strain on energy supplies. Fortunately utility companies are finding solutions, thanks to the Internet of Things. The IoT is making energy use more efficient, which should help relieve some of the stress on energy demand.
Energy organizations can meet challenges with new advances in technology including innovative Internet of Things (IoT) solutions that securely leverage sensors, meters and digital controls, and analytics to better monitor and manage the flow of energy and information to help enable a smart grid and smarter energy usage. With these new solutions, energy organizations can optimize grid performance, ensure uptime of assets, reduce costs and outages, and enable businesses and consumers to better manage their own energy usage to meet their individual needs.
There are many more ways the IoT will help the energy industry, specifically water, electric, oil, and gas utilities. Use of IoT in companies is making energy consumption more efficient. Smart meters have become the top IoT device among companies in the last several years. These devices attach to buildings and connect to a smart energy grid, which allows these companies to more effectively manage energy flow into buildings.
These smart devices allow users to track their energy consumption in much the same way that water sensors do, and this monitoring also has a significant financial effect. It is expected that companies can save 157 million dollars by 2035 by using IoT for energy conservation.
The oil and the gas industry are also included under the influence cycle of IoT. One connected oil well can produce 500,000 data points every 15 seconds to give oil companies unprecedented understanding to how well their wells are performing. IoT has increased U.S. oil production by 283% since 2010, with a far more efficient production per rig.
It is estimated by the BI Intelligence, Business Insider’s premium research service that the global installed base of smart meters will increase from 450 million in 2015 to 930 million in 2020, which would mark a compound annual growth rate of 15%. Total smart meter installations will grow to 134 million by 2020.
More than 62% of the executives in the business around the world plan to increase their investments in digital technology in the next three to five years.
Iot provides a high level platform that reduces cost in managing energy across a smart building, home or a factory and thus conserving energy.