As the utilities sector evolves, asset management will remain pivotal in ensuring operational efficiency, reliability, and sustainability.
Effective asset management can drive substantial benefits amid the pressing need for modernization and integration of new technologies. For partners and subject matter experts (SMEs), this underlying reality presents a unique opportunity to provide thought leadership to the ASUG community, sharing insights and innovations that can shape the industry's future.
The Role of Asset Management in Utilities
Asset management in the utilities sector involves the strategic oversight and optimization of a wide range of physical assets, including water purification and treatment, natural gas transmission, distribution networks, power generation facilities, and renewable energy installations. The goal is to maximize the value and lifespan of these assets while minimizing costs and risks. Effective asset management enables utilities to meet customer demands, comply with regulatory requirements, and adapt to changing market conditions.
Key Drivers of Change
1. Digital Transformation: Adopting digital technologies such as the Internet of Things (IoT), artificial intelligence (AI), and machine learning is transforming asset management. These technologies enable utilities to collect and analyze vast amounts of data, facilitating real-time monitoring, predictive maintenance, and more informed decision-making. As a result, utilities can improve efficiency, reduce downtime, and extend the lifespan of critical assets.
2. Sustainability and Regulatory Compliance: With increasing emphasis on sustainability and stringent regulatory standards, utilities must adopt asset management practices that promote environmental stewardship. This includes optimizing resource use, reducing greenhouse gas emissions, and ensuring compliance with environmental regulations. Sustainable asset management supports regulatory compliance and enhances the utility’s reputation and customer trust.
- Fact: Utilities invest heavily in digital transformation, with global spending on digital transformation expected to reach $3.4 trillion by 2026. Moreover, 78% of global utilities CEOs plan to increase investments in digital transformation, highlighting its importance in the sector (Gartner).
- How Delaware Can Help: Delaware has extensive experience leveraging the SAP Business Technology Platform (BTP) to converge IT and OT data. This convergence drives real-time insights, supporting predictive maintenance, and enables utilities to enhance operational efficiency and reliability.
- Fact: The Inflation Reduction Act has spurred over $122 billion in planned investments for clean energy projects and more than $110 billion for clean energy manufacturing, underscoring the push toward sustainability (McKinsey & Company).
- How Delaware Can Help: Delaware brings a wealth of experience in evaluating asset management strategies. Utilities should ask critical questions about their current asset management approach and how they can leverage SAP best practices to support sustainability and regulatory compliance. Delaware helps utilities optimize their resources and minimize environmental impact while ensuring they meet regulatory standards.
3. Water Leakage/Non-Revenue Water (NRW) Management: Increased and competing demands on limited resources, such as water, further highlights the need for utilities to act proactively while striving to eliminate waste in their operations. According to the EPA, national studies indicate that, on average, 14% of water treated by water systems is lost to leak. Some water systems reported losses exceeding 60%.
- Fact: Spending on water and wastewater utilities increased significantly, with a 16% rise in water supply construction and a 29% increase in sewage and waste disposal from October 2022 to October 2023 (IDC) (Gartner).
- How Delaware Can Help: Delaware’s approach to NRW reduction includes leveraging advanced applications to detect, analyze, and manage leaks proactively. Our solution provides utilities with real-time data and analytics to identify anomalies and take corrective actions promptly. Utilities can significantly reduce water loss and improve operational efficiency by implementing these technologies.
4. Aging Infrastructure: Many utilities are grappling with aging infrastructure that requires significant investment in maintenance and upgrades. Strategic asset management helps utilities prioritize these investments, ensuring that resources are allocated effectively and that infrastructure improvements are made in a timely and cost-efficient manner. Developing technology allowing utilities to detect anomalies in their networks before they become major events can help further address the effects of aging infrastructure, with optimized replacement and resource management focusing efforts where they add the most value.
- Fact: Investment in electric power infrastructure construction increased by 21% from October 2022 to October 2023, indicating a focus on updating and expanding infrastructure (IDC).
- How Delaware Can Help: By harnessing data from the field and using this to identify anomalies across the network. Any immediate follow-up activity can be prioritized and focused onto the right assets. Advanced analysis techniques can be further utilized to identify where the real issues are, drive strategy, and focus expenditure and effort on where it will be most effective. Delaware offers an end-to-end solution focused on key objectives such as reducing NRW loss.
Conclusion
Asset management is a cornerstone of operational excellence in the utilities sector. By embracing digital transformation, sustainability, proactive water management, and modernizing aging infrastructure, utilities can achieve greater efficiency, reliability, and environmental stewardship.
Delaware Consulting’s innovative solutions and deep industry expertise position utilities to navigate these challenges effectively, ensuring they meet customer demands and regulatory requirements while driving sustainable growth.
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By addressing these critical issues with the support of Delaware’s innovative solutions, utilities can ensure they meet the growing demands of their customers while contributing to a more sustainable and resilient energy future.
This article was brought to you by Delaware Consulting. ASUG develops and publishes insights regularly in partnership with its members and customers. For more information on ASUG sponsored content, contact isaac.feldberg@asug.com.