- Smart meters to realize $18 billion in value in 2025
- Value of digital flexibility shows most growth potential
Annual value of the benefits of digitalization to utilities, consumers
Source: Bloomberg New Energy Finance. Note: DR is demand response, O&M is operations and maintenance, HEMS is home energy management systems, DA is distribution automation.
Industrial giants GE and Siemens, along with innovative utilities like Enel and Engie have recently announced large investments in digitalization. However, there is little information on the value digital tech provides to the energy industry. BNEF analyzed 7 sectors and predicts annual benefits will rise from $17 billion in 2017 to $38 billion in 2025. More mature technologies like smart meters and modernizing power plants show the biggest pay-off initially, but services to provide flexibility to the grid and leverage residential energy loads grow fastest. Streamlining operations and maintenance provides the greatest savings overall, but access to new markets like grid services is also a key incentive.