Information Systems for Environmental Sustainability

IT, Resource Productivity, Environmental Preservation, and the Fourth Industrial Revolution

Internet of Things and C3 Energy – Implications for Energy Management

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The Internet of Things, or IoT for short, refers to a network of physical devices connected via sensors with data and intelligence capabilities. In a way, it’s merely an extension of the Internet of computers to an Internet of physical things like trains, people, and wind turbines. For example, the network may look like a wind farm in which one turbine senses a change in wind direction, alters its blade pitch to optimize efficiency, and tells the other turbines to do so.

The basic ideas have been around for some time, but recent advances in storage, communication, and processing have enabled the vision to become a reality.

One implementation of the IoT is by GE, which refers to its IoT as the “Industrial Internet”. GE is developing a platform that allows developers from any company to quickly develop apps to power their own equipment and leverage GEs infrastructure of storage, processing, etc.

In the energy domain, C3 has just announced its own Internet of Things platform called Cyberphysix. According to the email I received this morning, this is a “platform for deploying industrial-scale cyber physical applications for the energy industry” that “offers [an] integrated suite of services for developers to rapidly develop and deploy IoT applications in an open, scalable, secure environment.” C3 says that Cyberphysix is used now at “numerous” large global companies. An example is Enel:

“Enel, the largest power company in Italy and the second largest in the world, is deploying C3 Energy Smart Grid Analytics solutions as its software platform for enabling Enel smart grid and smart city services. The rollout of C3 Energy Smart Grid solutions across 44 million meters in Italy and Spain will be the largest software‐as‐a‐service (SaaS) smart grid applications deployment in the world with the potential to deliver €15 per meter in annual economic benefit.

So what does this mean for the future of energy management? It’s hard to say at this early stage, but a few things are clear:

  1. As predicted years ago, energy is being transformed by digital technologies, leading to new business models and potentially enabling a new wave of energy efficiency, deployment of renewables, and reduced GHG emissions.
  2. The future energy management leader knows as much about PAAS, IoT, cloud, and BI as she does about kWh, line voltage, and FERC regulations.
  3. There will be platform competition and a potential winner take all market (see iTunes).

It will be interesting to see how these platforms evolve as their success will depend to some extent on how many members join and succeed.

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Author: nigelpm

Associate Professor of Information Systems, Stephen M. Ross School of Business, University of Michigan - Helping organizations to navigate digital transformation.

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