energy data analytics | energy efficiency | india

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This white paper/forward looking note focuses on the role that energy data analytics can play in driving energy efficiency practices and investments, especially in the Indian context. It’s based on extensive desk research and supported by an online survey conducted on industry personnel and other experts

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  • 1 ENERGY DATA ANALYTICS By Sumit Jadwal, Indian Institute of Management, Lucknow This white paper/forward looking note focuses on the role that energy data analytics can play in driving energy efficiency practices and investments, especially in the Indian context. Its based on extensive desk research and supported by an online survey conducted on industry personnel and other experts.
  • 2 Executive summary In the present era energy consumption has a very significant role to play in input costs and thus reduction of energy consumption has taken precedence in the industry over other cost optimization measures. Despite this fact, any large scale adoption and implementation of energy efficient practices has not been observed in India and this can largely be attributed to scanty knowledge with regards to energy efficiency best practices and interpretation of process and energy data. Moreover the inability to draw meaningful and actionable inferences from the data excavated from in-plant metering and the regular energy audits being conducted at plants has largely rendered such exercises useless. In April 2014, E-cube surveyed over 90 executives, academicians, OEMs and consultants from Energy and allied sectors to ascertain the perspective on the present energy scenario in industries, the scope of data analytics in driving energy efficiency practices and to identify the key enablers that are likely to influence industrial energy efficiency strategy in the coming years. Following are the key highlights from the survey:- 90% of the respondents believe that "energy optimisation" is the best cost reduction strategy. 98% of the respondents agree that "energy efficiency"is going to be a key energy optimising strategy 89% of the respondents believe "Data Analytics" is the next frontier to drive energy efficiency strategies. 80% of the respondents will use Data Analytics, as it is an excellent way to track long term health of the unit/system 89% of the respondents stressed that capacity building is required to maximise the returns from Data Analytics
  • 3 "Over and above the key takeaways from the survey as noted above, some very interesting findings also transpired. For example, even though the survey revealed the unanimous agreement among respondents regarding the benefits of data analytics, surprisingly only 46% considered data analytics as something that (would) add significant value to their core energy efficiency (work) strategy." The need of having an Indian Perspective lies in the fact that in India, concepts like energy data analytics have not been on the radar for most industries and though adoption of good metering practices and energy audits has gained traction, lack of utilization with respect to procured data, has prevented Data analytics from taking on a larger role. Recently, large global firms have started opening up to such concepts, thus contributing to the genesis of a similar trend in India as well. Mindset has a strong role to play in acceptance of such practices and concepts and this survey brings out the perception, though in a rationalized scale. This white paper/forward looking focused on the role energy data analytics can play in driving energy efficiency practices and investments, especially in the Indian context. Its based on extensive desk research and supported by an online survey conducted on industry personnel and other experts Respondents Profile: A total of 90 respondents from academia, industry, consulting, policy makers etc participated in the survey.The survey also had good representation from some of the largest stakeholders in the Indian Energy Efficiency Markets.The fairly broad-based respondents base makes us believe that the findings represent the perceptions of the Indian industry fairly well. Some of the organization represented by the respondents: The Ruby Mills Limited NTPC BHEL Prayas Energy Alliance for Energy Efficiency Economy BSL Limited TCS Tata Motors Cheema Boilers L&T cKinetics FICCI Gujarat Energy Development Agency BEE Century Plywoods Mahindra & Mahindra Shakti Foundation IIT-Bombay IIM- A,IIM-L
  • 4 Introduction& Overview An expanding role for data analytics Today we live in a digital world. The quantum of structured as well as unstructured data being generated and channeled from diverse sources like transactions, videos, audios, etc. has increased exponentially over the years in line with global digitization. Global players spent more than $15 billion on software firms only specializing in data management and analytics in 2010. Today, this industry on its own is worth more than $140 billion and growing at almost 15 percent a year: about twice as fast as the software business as a whole2 1 2 It is increasingly becoming imperative for organizations to mine this data in order to stay competitive. Analyzing data can provide significant competitive advantage for an enterprise. Proper and careful analysis of this data can lead to the inheritance of a wealth of information which can further be used for redefining business strategies accordingly. 1http://www.forbes.com/sites/louiscolumbus/2012/08/16/roundup-of-big-data-forecasts-and-market-estimates-2012/ 2Fig :Data Investments by Industry. Source: Gartner (July 2012) 2http://en.wikipedia.org/wiki/Big data
  • 5 Applications of Data Finance and Banking 34 Proper utilization of Data differentiates financial service providers and forms the bedrock for a flourishing business. In the most recent study on big data in 95 countries from IBM Institute for Business Value in collaboration with the University of Oxford, it was founded that 71% of the banking and financial markets firms report that the use of information and analytics is creating a competitive advantage for their organizations, compared with 63% of cross-industry respondents. The number of firms reporting an advantage in this area has nearly doubled in just two years when compared to a similar study in 2010. 5 E-Commerce E-Commerce companies are one of the fastest adopters of Big Data. The dynamics of the industry are constantly changing and many companies are operating with wafer thin margins. These companies are looking for opportunities to increase their sales and profit margins by using Data Analytics to stay on top of the game 1. Personalization 2. Dynamic pricing 3. Data-Driven Decisions 3 http://blogenterprisesearch.de/wp-content/uploads/2013/06/bigdata_studie.jpg 4 http://thefinancialbrand.com/38801/big-data-profitability-strategy-analytics-banking/ 5 http://www.cuecommerce.com/3-ecommerce-big-data-predictions/ Globally 60% of financial institutions believe that big data analytics offers a significant competitive advantage and 90% think that successful big data initiatives will define the winners in the future Source :
  • 6 Healthcare Digitization of patient medical records has paved the way for the creation of a huge database. Technology may replace 80% of what doctors do. This will ultimately reduce costs, reduce physician workloads and improve patient care. 6 7 6http://coolhealthinfographics.com/post/52105286141/big-data-and-the-future-of-healthcare 7 http://www.saviance.com/news_letters/MayJuly2013/ Among all, Utilities/ Energy Intensive Industries have significantly higher data value potential index
  • 7 GlobalenergyleadersbelieveEnergydataisanasset.TheIndustrialProcessDataisconsideredasapotentialproductivity goldmine.Theanalysisofbigenergydataisimportantinimprovingenergymanagement.Over80%ofenergygiantssaid thattheirdataholdsstrategicvalueandmoreclientsaremovingfromtacticaltostrategicenergymanagementbyleveraging energydataasabiglever.Expertsnowpointto4300%increaseinannualdatagenerationby2020thannow. Role of data analytics in energy domain Worldwide Energy consumption of the industrial sector is expected to grow from 200 quadrillion Btu in 2010 to 307 quadrillion Btu in 2040, increasing by an average of 1.4 percent per year. Based on Indias GDP growth rate of 6.1 percent per year from 2010 to 2040, an average increase of 1.5 percent per year in energy consumption pertaining to the industrial sector can be expected. Although operating companies can still save energy in specific areas, the full potential of energy saving can only be ascertained through a holistic and integrated analysis of the complete value chain of the plant or system. It is estimated that in our country, about 48% of the total energy consumed in the industrial sector can be attributed to Small and Medium Enterprises (SMEs) and by adopting energy conservation measures, at least 25% of it could be potentially saved, without any substantial investments. But, in quantitative terms, there is not much authentic information and data available with respect to their energy consumption and energy saving opportunities, which perhaps acts as one of the biggest hindrances to implementation of sustainable energy efficiency practices. Energy Analytics combines energy data management with the knowledge of energy experts to uncover hidden saving potential, thereby contributing effectively in making faster and quality business decisions. Also, with usage data, companies can save money and energy by retrofitting or optimizing the operation of their equipment. And data analytics can provide information about how systems function on a day-to-day, even minute-by-minute basis. Less visible and less publicized than wind and solar farms, energy efficiency is the aspect that is the most misunderstood of the energy transition, and yet the one that works best," said

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