Cloud power: digitalisation case studies from US energy executives

cloud use cases for energy
From left to right: Moderator Rolf Gibbels, Head of Business Development Power & Utilities​- AWS; Patricia Hoffman, Principal Deputy Director, Grid Deployment Office - US DOE; Richard Donaldson, Vice President of Digital Transformation and Enterprise Data - Duke Energy Corporation; Casey Cathey, Senior Director, Grid Asset Utilization - Southwest Power Pool

The energy sector is at a point where it is no exaggeration to say that no digitalization means no net zero. In fact, we have moved beyond questioning its importance and rather looking into advanced use cases of its implementation. One major example tends to stand out: the digital cloud.

During DISTRIBUTECH International in Orlando, Florida, energy sector executives from the US Department of Energy (DoE), Duke Energy and Southern Power Pool discussed just this – exploring the role of the cloud in enhancing transmission planning, data transparency and the integration of AI to drive efficiency and innovation in the industry.

“We want to break the logjam in some of the conversations out there,” said Patricia Hoffman of the DoE.

Transmission planning

“If I had to choose, it would probably go back to the transmission planning landscape,” said Hoffman, who is the DoE’s principal deputy director of the grid deployment office

Hoffman illustrated the use case by referencing an example of the National Renewable Energy Laboratory (NREL) and Pacific Northwest National Laboratory (PNNL):

“We have NREL and PNNL working on transmission planning scenarios, looking at (…) different futures with respect to, for example, a climate point of view, a supply point of view and a resiliency point of view and thinking about the core transmission requirements.

“Being able to utilize the national laboratories [by having them research] in the cloud environment to do collective analysis and really support the industry moving forward from that perspective – doing analysis that goes beyond what they would do today.

“From my perspective [it would be great to see use cases to] really solve some of those tough problems.”

Data transparency

Also discussing the importance of transmission planning was Casey Cathey of Southern Power Pool, in reference specifically to predictability: “Predictability and looking at future planning is definitely one of my top use cases.”

For Cathey, as senior director of grid asset utilization, such planning is already a core responsibility. However, he believes that it is through cloud-based solutions that it can be better enabled.

Comparing power loads on the grid as a kind of “shopping between utilities” he referenced tools under development by Southern Power Pool – such as a capacity hosting transfer tool – to make data more transparent.

Specifically, states Cathey, understanding optimal load siting and generation siting can be made more efficient.

There is a lot of GIS (Geographic Information System) data available, he added, “and if you look at just the way transmission planners historically did it (…) it’s good, but it’s not great and it’s not perfect.

“That’s where I see [the benefit] of being able to utilize the cloud for more data analysis and being able to predict risk management associated with particular portfolio changes.

“You can then actually shake the portfolio for benefits to cost ratios and be able to be much more confident. These are long-term fixed assets – 40 year useful life. We need to make sure that we’re confident in doing this, especially as variability is just going to continue growing.”

Cloud for AI

Echoing the AI theme was Duke Energy’s Richard Donaldson. But, rather than commenting on something he’d like to see being done, he referenced something they have been doing – a generative AI interface.

Donaldson, Duke Energy’s vice president of digital transformation and enterprise data, referenced the utility’s initiative to take a page out of the ChatGPT book, which last year became the tool that sparked discussions, both in the energy sector and beyond, on the role of AI.

Commenting on the interplay between AI and the cloud, Donaldson called the latter “price of admission to do AI, because we need that massive compute. And that’s why ChatGPT has gotten so popular.”

At Duke Energy, he added, “We’ve built our own (…) generative AI interface platform. We haven’t named it anything cute yet, but it does everything from document interrogation of massive documents to starter sets for, for example, an email that could go to a customer to a filing.

“Obviously, you have to have humans in the loop to review everything, but it’s something we reap the benefits from as much as anything else. To me, it’s a work force multiplier, as we need all the smart people we’ve hired at Duke Energy.”

According to Donaldson, this is where the use of AI truly shines, using generative AI “up in the cloud to not only protect data, but to give meaningful insights (…) so that you can spend the majority of your time on the things that you were hired to do and not the other more menial workflows and tasks.”

Donaldson added that these tech advancements in the sector, have somewhat changed the ‘boring’ image of the energy industry, now creating opportunity for new talent and attracting this talent to work alongside utilities and system operators.

“It’s no longer boring to work in these spaces.

“More than anything, these young kids that are coming out of school (…) they don’t want to help your company make another penny on the dollar.

“They want to save the world and we’re in a space where we get a chance to kind of do that.”

Originally published in Smart Energy International.

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