Thanks to population growth and rapid industrialization, global utility consumption is skyrocketing at a remarkable rate. The world is using more energy and water today than yesterday, and this trend is not expected to change.

Data from the U.S. Energy Information Administration (EIA) shows that energy consumption will grow by almost 50% over the next 30 years. In addition, water demand is predicted to increase by 30% in the same period, significantly stretching natural resources. This rising demand for utilities places the sector under immense pressure to optimize operations and overcome service reliability, equipment failures, and workforce safety challenges.

Fortunately, industry players can drive significant positive changes with emerging technologies like the Internet of Things. With IoT, utility providers and managers can gain solutions for long-standing challenges, unlock revenue, and achieve the necessary transformations for a cleaner and more sustainable future.

This article looks into how IoT can revolutionize the utility sector and deliver benefits to companies, consumers, the public, and even the natural environment.

The Internet of Things is a hot sensation today. Across industries, IoT solutions are emerging as key drivers of efficiency, cost-saving, and sustainability. Below are five notable ways IoT can benefit the vast utility ecosystem.

1. Reduced Spending

Cost-saving is among the major reasons why utility companies and governments are exploring the capabilities of IoT. Smart metering, usage monitoring, and data-driven forecasting can help management teams better control spending and minimize waste.

2. Streamlined Asset Maintenance

Similar to using sensors and cameras in industrial facilities, connected devices can monitor the performance and condition of equipment in utility plants, distribution networks, and renewables in real-time. That way, maintenance teams can uncover faults before they morph into costly problems.

3. Predictive Decision-making

An IoT-powered utility management system with artificial intelligence and machine learning capabilities can predict energy and water consumption trends, enabling managers to plan for the future with unmatched accuracy.

4. Lower Emissions

The utility sector is going through monumental changes to keep pace with the emerging sustainability regulations. Integrating intelligent IoT solutions in utility operations can help authorities to analyze the environmental impact of their processes and take corrective measures in good time.

5. Support for Green Energy

Every player in the utility sector understands that green energy is the industry’s future. With sensors and real-time consumption data, utility managers can better understand how to improve their use of renewables and adopt conservation strategies.

The Internet of Things offers solutions for real-time monitoring and data analytics. As a result, it can improve operations and service delivery across all utility segments, from public grids to oil and gas. Read on for four notable IoT use cases in utility management today.

Smart Public Grids

Smart grids are causing dramatic ripples in the electrification business. Introducing digital connectivity to legacy energy systems is helping service providers save costs, take better care of assets, and improve customer satisfaction through fewer interruptions and timely emergency response. For consumers, smart grids empower them to make better electricity usage decisions.

IoT is instrumental in smart grid implementation in several ways. For starters, IoT sensors and the data they collect can give operators the insights they need to react to supply and demand quickly and efficiently. Sensors in substations and distribution lines can deliver real-time consumption data, which operators can use to optimize configurations, saving costs, and improving customer service. They can also provide alerts about faults and outages, enabling repair teams to swiftly turn off power to affected lines, preventing hazards like fire and electrocution.

Smart Off-grid Systems

Thanks to the proliferation of sustainable energy solutions, consumer energy is a lot more distributed today than it was just two decades ago. Off-grid power has contributed to the extension of energy access to millions worldwide. Policymakers, investors, and customers have all embraced off-grid products as affordable and sustainable alternatives to public grids. Solar, for instance, has experienced remarkable growth, having reached 420 million users over the last decade. According to industry reports, the number of homes using solar energy could triple by 2025.

This exponential advancement in off-grid power represents a major disruption for energy companies, which now have to manage the growing number of off-grid resources in addition to their own facilities. Fortunately, IoT technologies can help streamline resource management. Smart meters across the distribution network can detect load changes and optimize equipment performance to minimize faults, save operational costs, and improve safety.

IoT also provides a better channel for information to customers regarding their utility usage. Utility monitoring devices in homes and buildings can measure the power that appliances consume, identifying waste points and helping customers take control of their utility consumption.

Smart Water

A study by the United Nations indicates that water scarcity could affect 20% of the global population by 2025. Smart water management systems powered by the Internet of Things can help stop these predictions from becoming a reality and undo the mess caused by the current imprudence in water conservation.

The primary objective of integrating IoT in water systems is to drive sustainable usage and recycling in the areas that most utilize water, such as agriculture, manufacturing, power production, and homes. With IoT, farm managers can introduce high-tech practices like smart irrigation, precision farming, crop water management, and real-time metering to optimize watering and reduce wastage. IoT and data solutions for water treatment plants and recycling centers can help companies control critical parameters like water pressure, temperature, flow, and chemical composition.

IoT can also connect leak and moisture sensors to end-user monitoring devices, enabling operators to efficiently detect and respond to damages. Given that the water distribution sector spends $2.6 billion annually fixing leaks, leakage control with IoT is essential to safeguard water resources and budgets.

Smart Oil & Gas

IoT presents numerous opportunities for oil and gas companies to drive efficiency. One example is managing wells in remote locations. Traditionally, resources found in remote areas can take years to exploit fully due to poorly studied environmental factors that limit operations. IoT sensors deployed on-site can monitor changing conditions like ice cover and humidity, enabling companies to plan more effectively.

Oil and gas companies can also use IoT to optimize production and equipment performance through the real-time and precise monitoring of essential parameters like pipe pressure and low rate. Sensors can be placed in areas hard to reach by human operators, delivering round-the-clock monitoring in refineries. According to a Bain report, oil companies can improve production by as much as 8% with proper IoT and data utilization.

Most significantly, IoT gives the oil and gas sector meaningful solutions for addressing risks like oil leaks and explosions. With IoT, companies can monitor their pipeline system closely and carry out effective routine maintenance. Furthermore, employees can get real-time alerts of faults and assess the situation remotely before rushing to the scene. That way, they can take the best course of action, protecting themselves and minimizing losses.

The utility scene is undergoing tremendous changes in response to increasing calls for efficiency, tighter budgets, and heightening environmental regulations. As a result, service providers are exploring technologies like IoT to drive optimization and transformation in the sector. The potential of IoT systems in enhancing efficiency, saving costs, promoting safe operations, and supporting sustainability cannot be understated. Down the road, IoT innovations in utility management will only get more advanced and accessible.

If you are a player in the utility industry, integrating IoT into your operations can help you better position your company in response to current and future disruptions. With IoT2Market, you can get your hands on the top IoT solutions for utility management and begin transforming your business.