IT has been sweeping through, and extracting value from, just about every part of almost all organisations. Except the energy sector. That’s according to Gregg Dixon of EnerNOC in a recent report written with Forbes Insights (https://www.forbes.com/forbesinsights/enernoc/).
Frankly, the facts support Dixon’s assertion. For example, since 1980 the cost per mile flown by air passengers in the US has dropped 40%. Boston Consulting Group claim that within five years 30% of Chinese exports could cost-effectively be made in the US because of advances in technology. Nearly two-thirds of Salesforce customers have reduced the cost of sales, service and marketing through integration of CRM systems,
while improving customer retention and cross-selling by over 50%.
Undeniably, software has done a great job in driving efficiency.
But what about the energy sector? Why hasn’t that seen similar advances? Tim Healy, CEO of EnerNOC says it’s because of the fragmented and muddled landscape of energy management. Energy ownership is often decentralised and disconnected, while in developed economies, energy has been cheap, abundant and incredibly reliable – and therefore easy to waste.
To solve this problem, some politicians have been advocating higher energy costs. This is instinctively and understandably something that most people would shy away from. But would it be such a bad thing? It would drive the very efficiency that has been absent in energy management, which is something that the market badly needs.
For example, Navigant predicts that the global market for building energy management systems will be USD $5.6 billion by 2020, up from $1.9 billion in 2011. And even that huge number appears not to include the management of demand response, residential appliances or energy storage. So, however you want to define it, energy management is going to be huge, and Energy Intelligence Software (EIS) is a term that’s set to become increasingly familiar to us.
Yes, this huge market will create jobs and wealth while reducing our energy use – all good outcomes – but it also has to be managed as efficiently as possible, and that means IT.
Barack Obama and Bill Shorten have both recently said all kids should learn to code. I am not convinced about all kids, but there is certainly a huge opportunity for many kids. And since some of the most interesting advances and developments, particularly in energy management, are being made as we speak, now is the time to get involved.
Freshwater Group is a renewable energy recruitment business that focuses on all renewable and low carbon emission, energy efficiency and disruptive clean technology businesses as well as energy infrastructure, storage and management.
- Posted by Freshwater Group
- On August 6, 2015
- 0 Comment