- .Electricity demand is expected to grow at a CAGR of 2% over the next two decades, driven largely by industrial motors, space cooling, household appliances and electric vehicles
- Renewable energy sources are changing the energy value chain, allowing “prosumers” to feed energy into the grid while consuming it.
- Ericsson is partnering with several utilities industry players to deliver business value and digitalization through cellular connectivity.
Ericsson (NASDAQ: ERIC) today released a Connected Energy Utilities report in partnership with Arthur D. Little, highlighting the importance of cellular technology in digitizing the energy sector.
As energy costs and demand for electricity rise, the report explores a vision of the near future in which the utility industry leverages cellular connectivity to alleviate the growing complexities of meeting the needs of a rapidly changing electrical grid and consumer demand profiles – enabling utility providers to increase capacity, optimize infrastructure utilization, increase grid reliability, and increase operational efficiency through a secure network and reliable.
In addition to growing demand and an ever-changing mix of energy sources, the utility industry also faces growing challenges in cost control and cybersecurity. With demand for electricity growing at a projected compound annual growth rate (CAGR) of 2% over the next two decades, the report notes that utility providers need to invest in new technologies in order to meet these demands and better serve consumers. Ericsson technology provides management services for private networks, public critical infrastructure and IoT deployments.
The report also highlights changes in the energy value chain. As renewable energy sources continue to become more available and viable, consumers are becoming “prosumers”, feeding energy back into the grid – through solutions such as residential rooftop solar PV – while consuming simultaneously, shifting the value chain from traditional one-way electricity flow to be circular in nature. 4G LTE technologies in particular will prove crucial over the next decade and beyond to manage the two-way power flow of prosumers and increased fluctuations in power generation from renewable energy sources, connectivity 5G to come into play in the future.
Koustuv Ghoshal, Vice President and Head of Utilities at Ericsson, said, “Cellular connectivity is helping to accelerate the digital transformation of utilities. Power infrastructure has an operational life of up to five decades. So for utilities, connectivity technology is a worthwhile investment because it will continue to deliver tremendous business value for years to come. As electricity generation methods expand to include renewable energy and demands on transmission/distribution networks become more complex, it is vital that the utility sector evolves with it through the continued integration of advanced cellular technology.
Several benefits of this technology have already been proven, supporting internal communications, worker safety, automation, user experience and knowledge-driven innovation, bringing digitization to the forefront of efficient business operations. Although still evolving, cellular technology also already has use cases for real-time data exchange, automatic network outage detection, distribution automation, connected electric vehicle charging and building energy management and optimization. Ericsson’s report also highlights future use cases in partnership with companies around the world such as Thales, Chungwa Telecom, Southern Linc and Blue Corner, drone inspections at remote sites and a workforce digital to legacy communications modernization and predictive maintenance.
Ericsson enables communications service providers and businesses to take full advantage of connectivity. The company’s portfolio covers the following business areas: networks, software and cloud services, enterprise wireless solutions, global communications platform, and technologies and new businesses. It is designed to help our customers go digital, increase efficiency and find new sources of revenue. Ericsson’s investments in innovation have brought the benefits of mobility and mobile broadband to billions of people around the world. Ericsson shares are listed on Nasdaq Stockholm and Nasdaq New York. www.ericsson.com