2025.02.13 |
The Growing Demand for Electrification Globally
Demand for electricity is accelerating at a staggering rate, with electricity consumption expected to almost triple in some scenarios between now to 2050.
Source: McKinsey & Company
According to the World Economic Forum, the rise in demand is driven by economic activity, increasing use of air conditioning due to frequent and intense heatwaves, and a boost in the use of technologies such as electric vehicles and heat pumps. The surge in data centers being built is further contributing to the increase in demand as they are largely powered by electricity and have constant demand, straining local grids.
Electrification from clean energy sources is also necessary to meet global decarbonization targets. To meet the International Energy Agency’s (IEA) Net Zero Emissions by 2050 goals, electricity’s share in final energy consumption needs to be almost 30% by 2030. Considering the share of electricity in final energy consumption is estimated to have reached 20% in 2023 from 18% in 2015, the rate of electrification needs to accelerate much more quickly to meet this goal.
As the push toward electrification gets stronger, utility companies are facing unique challenges in meeting the increasing demand for power. In order to stay ahead, utilities must tackle the dual objectives of generating large amounts of new, clean energy while optimizing their existing systems for maximum efficiency.
Meeting Electrification Demands Through Energy Efficiency and Clean Energy Generation
Generating more power from fossil fuels is no longer a viable solution, both for the planet and for utilities. Clean, renewable energy sources such as solar, wind, and hydro, are a key part of the solution to meeting rising electricity demand while remaining on target to achieve net zero goals. However, to ensure that clean energy sources are being implemented effectively, existing energy waste needs to be reduced. Buildings contribute to a significant portion of existing energy waste, with the operations of buildings accounting for 30% of global final energy consumption. The building envelope, what separates the interior and exterior environments, is particularly important in reducing this energy waste, with the IEA stating that high performing building envelopes are the most effective way to reduce the thermal needs of a building. Therefore, understanding the energy performance of a building’s envelope and knowing what retrofits to complete to increase efficiency is necessary in ensuring a seamless transition to clean energy sources.
However, a key challenge for utilities today is identifying inefficiencies in how energy is consumed. Energy audits that leverage innovative prop tech can help solve this challenge for utilities, making the identification of energy inefficiencies across buildings that they power a seamless and scalable process. For example, drones can be used to take thousands of thermal images across entire cities, providing utilities with ample data needed to understand key areas and sources of energy loss in an efficient manner. Additionally, AI models can be trained using data such as thermal images to effectively identify common energy loss issues within buildings, such as thermal bridging, poorly performing windows, and lack of insulation. With this data, utilities and utility customers can make more informed decisions on the retrofits they implement, optimizing energy efficiency and return on investment.
Demand Management: Preventing Grid Overload
Increases in extreme weather events—such as heatwaves, cold snaps, and storms—are placing intense strains on power grids. This requires utilities to meet growing electricity demand in a way that ensures reliability and resilience. To do this, utilities are beginning to leverage advanced technologies such as AI algorithms and internet of things (IoT) devices to manage energy demand and mitigate against grid overload. For example, cloud-based Demand Response Management Systems (DRMS) enable utilities to analyze grid loads and adjust demand in real time, reducing grid strain, preventing outages, and lowering costs. Additionally, with 5G connectivity, utilities can process large volumes of data from smart grids and IoT devices, enabling more reliable communication between grid components, improved energy distribution, and quicker responses to anomalies. AI is also transforming grid management by enabling utilities to predict, optimize, and enhance energy distribution. Through machine learning and predictive analytics, utilities can forecast demand for energy, allocate resources proactively, and improve resilience by identifying and addressing grid vulnerabilities.
Energy audits can help utilities develop better demand management strategies by identifying peak demand periods and locations. This allows them to invest in the necessary infrastructure to avoid grid overload and better manage fluctuations in supply and demand. When it comes to buildings, utilities can adopt technology, such as drones and AI systems, to efficiently collect and analyze large volumes of data that help identify peak demand periods and locations. Using the data available through energy audits (e.g. quantified energy loss for different building elements, identification of energy loss issues) utilities can gain necessary insights on where to prioritize investments that will improve energy efficiency of the buildings they power. This ensures better distribution of energy across the grid, avoids spikes on the grid caused by building occupants overworking their heating and cooling systems, and prevents outages.
Leveraging Energy Audits to Connect with Customers
The benefits of energy audits for utilities go beyond improved energy management. The precise insights energy audits provide increases the value utilities can deliver to their customers. The detailed data and analysis provided by energy audits are often summarized in interactive portals and easy to read reports. This gives utility customers the ability to view data on the energy usage of their building as well as customized recommendations on how to optimize energy savings. Additionally, utilities can leverage the analysis energy audits provide to gain insight into energy consumption trends across the buildings they power, allowing them to develop customized programs that incentivize energy conservation.
Building an Energy Efficient Future for Utilities
As utilities grapple with growing demands for electricity, the challenges that come with climate change, and the need for cleaner power generation, energy audits and prop tech at scale have become an indispensable tool in maximizing energy use, identifying inefficiencies, and paving the way for sustainable solutions.
Contact QEA Tech for a free quote on our AI-powered building envelope energy audit to accelerate the energy savings process across your building portfolio.
