Chapter
Develop energy data strategy at the executive level
Leadership sets the agenda for power and utilities companies to advance digital initiatives.
In an EY report, The DNA of the Chief Data Officer, we explore the potential the chief data officer (CDO) holds in power and renewable companies as organizations look to align data strategy to business strategy. An effective CDO is the foundation for helping energy and resources organizations build transformative, digital and data-driven capabilities.
While a CDO, specifically, isn’t mandatory, it is essential to have a formal oversight, process or center of excellence that works collaboratively to manage how data is collected, protected, shared and controlled. Centralize the data, establish who is going to own it and empower them to become the “data governor” of the organization. Creating one source of truth is the goal. From there, information can be organized and extracted by each function of the business and stakeholder group.
Does your organization have a data strategy?
29%A recent EY survey shows most utilities do not have a data strategy that services both IT and business needs. (Source: EY Power & Utilities Data Governance Survey, December 2021)
Chapter
Changing times will require data and power to flow both ways
Utilities are examining their data strategy and governance to prepare for reporting requirements.
Power and utility data executives must also look ahead to compliance needs and the changes that will come with renewable energy integration and global warming, including mitigation strategies related to environmental disasters and climate change.
New regulations will transform the way utilities use data. In addition to using asset data for system planning, operations and scheduled inspections, companies will use asset data to enable emissions reporting and other forthcoming environmental, social and governance (ESG) data reporting mandates, where consistent, accurate and timely energy data and statistics are fundamental.
A free flow of information across the sector will also be necessary for utilities to meet customer expectations and to effectively embrace the future of the sector — such as when renewable energy (wind, hydro, solar) is purchased from customers or the increased adoption of electric vehicles (EVs). Some utilities are experimenting with two-way power flows, which send excess energy from a residential customer through EVs or solar panels back to the grid during peak demand.
Utilities whose data capabilities do not transform to meet these levels of performance stand to have their shortcomings exposed. Many utilities are conducting a comprehensive review of whether their data systems are accurate.
Some data systems and architectures have been patched together after mergers and acquisitions or infrastructure upgrades, resulting in mismatched data. One utility found it had three record systems that contained materially different data about the number of transmission towers, and it could not identify a single system of record. Advanced digital systems cannot work to their full potential if sensors are not recording the right information, if data is assigned to the wrong asset, if data is stored across a wide array of business functions or if the business users don’t have access to reliable data.
Utilities need to establish data strategy now to meet stakeholders’ expectations.
How would you assess the maturity of data governance within your organization?
57%Of power and utility executives surveyed are at a developing or initial level or maturity; none have advanced practices.
Questions to ask when establishing data strategy:
- How are we measuring data quality?
- Are our key internal stakeholders involved, including senior leaders and IT?
- Have we identified the ESG sustainability trends that will impact our business?
- Do we have the right data strategy to give business users the right access to the right data at the right time?
- Do we have the right data strategy to advance self-service analytics?
- How can we understand all stakeholders’ needs, to deliver on their expectations?
- How can we use our data as our most valuable product?
- Who is reviewing those data quality results?
Summary
For most power and utilities companies, their existing data systems and strategy will not enable tomorrow’s needs for data sharing and interconnected digital technologies. Energy companies need to operationalize their data strategy to prepare for needs across the value chain. However, many utilities are not able to manage the process because they haven’t established a centralized model for data governance or a future-focused data strategy.
