The Power Grid and Big Data
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The electric-utility business is going through a major business process reengineering (BPR), stemming from technology improvements, economic forces, and public awareness. The electricity sector is transforming from large plants that produce hundreds or thousands of megawatts of power that are sent to users through distribution grids, thanks to factors including lower cost natural gas and solar power. Other factors include advanced control systems; more compact, smarter, and efficient electrical inverters; smart electricity meters and the growing Internet of Things; and the ever-growing ability to extract actionable information from big data.
Use this forum to discuss solar power as an alternate to electricity. Although solar panels for most homes is not yet cost effective, discuss government subsidies that aim to put solar panels on more rooftops. What is ‘community solar’ and would you join such an initiative? What is a microgrid and its advantages/disadvantages to our current electricity grid?
The electric-utility business is going through a major business process reengineering (BPR)
Introduction
A major business process reengineering (BPR) is taking place in the electric-utility business. This is a shift from vertically integrated utilities to deregulated power markets and independent power producers (IPPs).
In the past, utilities were vertically integrated. They owned generation and transmission assets, which they used to supply electricity to their retail customers. Now deregulated, utilities are no longer vertically integrated; they must operate as separate businesses: generation (generating), transmission (transmitting), and distribution (distributing).
In the past, utilities were vertically integrated.
In the past, utilities were vertically integrated. Electricity was generated, transmitted and distributed by the same company. Utilities were regulated by state public utility commissions (PUCs) which served as the only game in town for electricity-related businesses.
The advent of deregulation changed everything for utilities because it enabled them to enter new markets without having to go through an unnecessary process of getting approval from their PUCs first.
Now deregulated, utilities are no longer vertically integrated.
The current business process reengineering (BPR) program is focused on three important areas:
Utilities are no longer vertically integrated, meaning they’re no longer responsible for generation and transmission of electricity, but only distribution. This means that utilities must now focus on the customer experience and value proposition—and how to best deliver those services to customers.
The new business model requires a different kind of thinking from employees working in the utility industry because they must move from being “utility people” who are all about protecting their turf, to becoming entrepreneurs who can innovate within new environments created by deregulation.
The consequence of the deregulation is that generation and transmission are separate businesses.
The electric-utility business is going through a major BPR. As a result, generation and transmission are separate businesses.
Independent power producers (IPPs) have been selling in wholesale markets.
The wholesale market is a competitive market. That means that electricity prices are determined by the wholesale market, which is open to all players.
The price of electricity in this country has come down significantly over the past decade due to IPPs entering into long-term contracts with utilities.
Distribution companies have been selling in retail markets.
Distribution companies have been selling in retail markets. In the past, distribution companies would sell electricity at wholesale prices directly to consumers. Nowadays, however, most distribution companies are selling electricity through their retail subsidiaries and not directly to consumers.
The role of the distribution company is changing because it’s becoming less strategic for them to own their own generation assets and more strategic for them to buy from third parties or invest in other ways (e.g., building renewables).
Distribution companies need to make sure that they keep up with changes in technology so that they can continue providing products and services customers want at reasonable prices without additional costs related directly or indirectly associated with these changes such as increased capital expenditures required just because there’s now more competition out there trying hard not only compete but also win new business against one another which could mean lower prices overall due simply because there will always be someone willing enough spend lots more money than anyone else simply because they believe they’ll get some kind better return on investment compared those who choose not do so despite having no idea what exactly happened last night when everyone went home drunk again tonight anyway?
The electricity market has been re-arranged into different areas.
The electricity market has been re-arranged into different areas. Each area has an independent system operator (ISO) that administers the bulk power transmission network (“grid”) of wires and generators within each area.
There are three main types of energy markets:
Each area has an independent system operator (ISO).
The ISO is a private, non-profit corporation that focuses on maintaining the reliability of the grid in its area. It is responsible for ensuring that the grid can meet demand and expand to meet future demand, as well as ensuring that each area has an independent system operator (ISO). Each ISO is responsible for maintaining the reliability of its own local grid.
ISOs administer the bulk power transmission network (“grid”) of wires and generators within each area.
ISOs are responsible for operating the grid.
They manage the wholesale electricity market, which is essential to ensuring that electricity is available when needed and at a fair price to consumers.
They ensure that grid reliability by managing equipment such as transformers, substations and other components of the network that ensure safe passage of power across it.
ISOs also manage their respective wholesale electricity markets.
The ISO’s wholesale electricity markets are administered by the Independent System Operators (ISOs). ISOs also manage their respective wholesale electricity markets.
Each state in the United States has its own independent system operator, who is responsible for ensuring that the wholesale electric market is reliable and efficient. The ISO’s primary responsibilities include:
Operating a reliable transmission system
Maintaining an effective generation mix that provides power when needed
The electric-utility business is undergoing a major BPR (business process re-engineering).
BPR is a way to improve the efficiency and effectiveness of business processes. It’s also a way to improve customer satisfaction, profitability, and other outcomes that are important for your organization.
BPR can be thought of as an ongoing process that involves identifying opportunities for improvement within the organization’s current operations; analyzing performance gaps; developing new strategies for addressing these gaps; implementing those strategies; and measuring their effectiveness over time.
Conclusion
The electric-utility business is undergoing a major BPR (business process re-engineering). In the past, utilities were vertically integrated. Now deregulated, utilities are no longer vertically integrated. The consequence of the deregulation is that generation and transmission are separate businesses. Independent power producers (IPPs) have been selling in wholesale markets. Distribution companies have been selling in retail markets. The electricity market has been re-arranged into different areas. Each area has an independent system operator (ISO). ISOs administer the bulk power transmission network (“grid”) of wires and generators within each area. ISOs also manage their respective wholesale electricity markets