Electric Light & Power: Cognizant’s VP & Global Delivery Head, Energy & Utilities on why the Future of Energy Relies on the Programmable Grid

“Utilities that create end-to-end automation and programmable grid strategies will be best-positioned to move into high margin, adjacent markets, develop innovative services and new revenue streams, and build deeper relationships with their traditional and new customers,” writes Ganesh Kalyanaraman. “Those that don’t will likely be running a cost-plus commodity business while new entrants and newly nimble incumbents make off with large slices of value.”

Excerpts from Kalyanaraman’s article in Electric Light & Power:

“The future belongs to the programmable grid; one that seamlessly provisions resources, continually ensures optimum operating state, and autonomously manages itself using distributed artificial intelligence (AI) and advanced control mechanisms by ingesting real-time data from thousands of smart sensors in a continuous feedback loop. The programmable grid will thus take in data faster than humans can process it, turn it into meaning, manage the grid in real time, and deliver the most cost-efficient services at the highest achievable levels of reliability.

Sponsored by Cognizant Technology Solutions, Ovum, a research and market analysis company, recently conducted a survey of 100 utilities in the USA, Europe, Australia, and the Middle East about their programmable grid maturity. While many are investigating the new grid, most do so for regulatory reasons.

Survey respondents said their top concern driving programmable grid investments was fear of regulatory fines and licensing issues (62 percent) for not meeting their renewables commitments. The next two drivers were rising operational costs caused by intermittent energy on the grid (57 percent) and the inability of retail operations to meet revenue growth targets for new customers (57 percent).

The programmable grid requires—and enables--utility companies to rethink operations and business models. It also opens the door to new industry entrants, from prosumers to digitally native consumer giants like Amazon and Google, who could recast the industry’s shape and value proposition. Change of this magnitude is not unprecedented; the telecom and insurance industries experienced it, and the companies that adapted have thrived. For utilities, an initial step is thoroughly assessing strengths and weaknesses in five key categories: technology, system operations, organization, strategic alignment, and DER readiness.”

Click here to read more.