Data sharing is the foundation of smart cities

Utilities are the bedrock on which smart cities will be built, but they will have to share data with other companies if the potential of the city of the future is to be realised, says Martin Dunlea.

The smart city offers us a compelling vision of the future, one in which digital and communication technologies combine to help deliver public services efficiently. It has the potential to create a world where energy is used more efficiently, water is supplied more reliably, cities are planned more intelligently, and where people and businesses are expected to thrive.

Whether we arrive at this point will depend on the wholehearted support of the energy sector. Energy companies must embrace change to an unprecedented degree as we enter the smart city era. Crucially, the success of smart cities hinges on the intelligent integration of data, and utilities must be willing to look beyond the walls of their own organisations to share and draw on data and knowledge from businesses in other sectors.

More efficient energy consumption depends on having the information to make smart decisions. The more insight into network and customer data companies have, the more they are able to provide high-quality services. Utilities have begun to move towards data-led business models, with smart meter rollouts in the US and some European markets. The rapid and dependable throughput of data also underpins more efficient network performance, more dependable processes, and more timely revenue flow.

However, even when combined with the other information utilities habitually collect, such as Scada and substation data, smart meter data is just one element of the smart city vision. A truly transformational approach will demand that utilities incorporate data from companies outside the industry into their infrastructure management, service planning and delivery processes.

Consider how data from weather centres, demographic figures and information on production cycles from heavy industries can help energy utilities develop a more strategic approach to managing energy. If an industrial plant near a city centre plans to ramp up production during a cold spell, for example, its utility provider will be able to model energy demand beforehand and take measures to ensure it does not outstrip supply.

Utilities also have data that is of value to other industries. In some countries, information on energy use in financially deprived neighbourhoods can be shared with social services organisations to help them identify vulnerable people during winter cold snaps and direct extra assistance their way.

For decades, cities have been collecting data from a range of sources, for traffic monitoring, public safety, health and human services, and public works. But each discipline organised its own operational support. The time – and technology – is ripe for cross-industry collaboration and data exchange.

The main barrier to a smart city is a cultural one. Utilities, and businesses in most sectors, are used to working in silos and guarding their data. A willingness to accept shared ownership of the energy value chain with companies outside the sector is a crucial step towards meaningful integration.

There is also the issue of privacy. In the UK and other EU countries, for example, customers’ personal data is protected by law and businesses that collect this information must comply with a number of controls on how they will use it. Wider data use may become possible with energy users’ consent, but to get buy-in from customers utilities will have to explain how giving them access to their data will benefit them.

People are becoming more engaged with their energy use and changing their consumption behaviours in the interest of sustainability. One has only to look at the enthusiastic uptake of consumer energy monitoring devices such as the Google Nest thermostat to appreciate this shift.

To this point, the public will increasingly turn to utilities for expertise and support as they become more inclined to manage their energy. Technologies that deliver rich insights derived from smart metering and data information let utilities deliver personalised services and create truly innovative offerings to differentiate themselves.

For example, by analysing peoples’ individual energy use, utilities can tailor their programmes to each customer’s preferences and help them consume intelligently on their own terms. This will help energy retailers build strong, long-lasting relationships with customers that are eco-conscious.

There is also a technical challenge. At present there is no standardisation of data systems within companies in the same sector, let alone across industry lines.

To tap into the full potential of the data they collect, organisations need a base upon which to implement an Internet of Things (IoT) offering — a scalable, secure platform where data can be acquired and managed according to standards, integrated throughout the business, and analysed and acted upon to improve operations and service. It’s also crucial that all devices linked by the IoT can work together, and that they can communicate seamlessly with businesses’ connected systems and infrastructure.

The fragmentation of public services over the past 20 years also has to be addressed – most cities outsource energy provision, waste collection, water distribution and other services to independent third-party vendors.

A number of European countries, including France and Germany, are embracing the municipalisation of essential services, a trend that is laying the groundwork for smart cities by reducing the complexity involved in linking up crucial services such as energy, public lighting, transport and waste disposal.

The technologies that will underpin the smart city vision are in large part already available. Advanced data capture, storage and analytics engines already deliver powerful insights for utilities, and smartphones, connected cars, and a growing crop of IoT-enabled devices are extending the flow of data to more aspects of our lives.

Utilities can now start to develop new ways to collaborate across industry lines and build new business models to support a shared infrastructure. The challenge for them is to become more open, both with their data and with the way they do business. The reward will be a more sustainable approach to energy and a smarter lifestyle for generations to come.

Martin Dunlea, global industries lead, utilities, Oracle Utilities