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Smart Energy Decisions, US: Cognizant’s Vice President & Global Delivery Head, Energy & Utilities Discusses the Impact of Local Energy Marketplaces on Corporate Energy Management

“The disruption of the energy industry by prosumers and new competition is underway,” writes Ganesh Kalyanaraman. “To remain key players, leading utilities will deliver new service offerings and ideas such as LEMs to corporate energy managers.” Excerpts:

“Have you considered whether your captive power generation may be to the power industry what spare bedrooms are to Airbnb and car-sharing is to Lyft? Distributed energy resources—power generated by businesses and homeowners, usually via renewables—may prove highly disruptive to traditional utilities. That disruption, which is in its early days, may generate income and reduce energy costs for your organization.

One development to watch for is the rise of the local energy marketplace (LEM). A LEM is a localized mini-grid of businesses, institution, and homes generating, storing and selling power. Here are other LEM-driven developments to watch for:

  • Utility-backed LEMs. While a utility isn’t likely to be threatened by a single solar-equipped home generating 3 kW to 5 kW, 100,000 customers generating a total of 500,000 kW becomes significant.
  • Data-sharing with utilities. . Sensors and analytics will help utilities aggregate home and business power generation into their grids and monitor and analyze power use at granular levels.
  • Being green. Many utilities could use power from LEMs to help them meet local regulatory quotas for green power generation.

LEMs are still largely uncharted territory. However, LEM participation should be a win for corporations, providing an avenue for income from captive power generation, power use forecasts and insights and another source of green power.”

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