A new report from Navigant Research examines potential applications of weather data in the utility industry, providing recommendations on strategic approaches.
As climate change-related extreme weather events continue to cause significant problems around the world, weather data is becoming increasingly important. In the utility sector, though, this type of data is often underutilized, and the lack of a strategic approach can lead to missed opportunities to improve operations and develop new business models. According to the report, many technology and analytics vendors hope to improve utilities’ approach to weather data.
“Utilities have been using weather data for years, but only in a handful of applications, which means the responsibility for weather insights is fragmented across the enterprise,” says Stuart Ravens, principal research analyst. “For example, owners of a hydroelectric power station pay close attention to rainfall statistics to predict when and how much power to produce. The more accurate hydro owners are at predicting future rainfall, the more accurate their power trading strategies.”
According to the report, utility and technology vendors can help address utility challenges by taking a strategic view of weather data and making better use of existing weather data assets. In addition, they can incorporate weather data into new and existing services, centralize weather management, and recognize the mutual benefits between utilities and weather data vendors.
The report, Unlocking the Value of Weather Data through Strategic Management, examines the potential applications of weather data in the utility industry and provides recommendations on more strategic approaches when using it. The study explores the emerging discipline of weather management and how it can support operating and business model innovation. It also discusses select use cases for weather data in the utility industry that depict how such data can be used to provide valuable insights across the entire utility value chain.