Extreme weather events from heat waves to hurricanes have been on the rise in the past 20 years. These events are dangerous and expensive. Every single U.S. state has seen at least one billion dollar event since 1980. In 2020 alone, there were 20 of them. Most of these billions of dollars are spent addressing critical infrastructure failures, like electrical grid failure or blackouts. But in a survey about preparedness for extreme weather events, only a little over 1% of utility services said they were fully prepared to provide regular and accurate estimated times of restoration, an alarming statistic. When disasters happen, it's critical for utilities to communicate with their customers about when power will be restored. Because the consequences aren't just financial. A blackout during a heat wave can put people at risk of heat stroke. Deep freezes can cause hypothermia. And many rely on electricity for medical devices.
To mitigate the impact and cost of extreme weather, utility companies need to overhaul the way they operate. One way to do this is by using advanced data and analytics to predict and respond to weather events before they happen. With predictive data, utilities can communicate warnings and updates quickly and clearly by using virtual storm rooms to coordinate responses remotely. If the power goes out, they can improve their communication systems to reach all of their customers at once with the most up-to-date info about when to expect their power back. And it pays off. Research shows that every dollar spent on disaster preparedness saves $5 in the future.
But is there a way utilities can prevent outages from happening in the first place? We're in the midst of an energy transition. Scientists warn that we must limit global emissions by 50% by 2030 and reach net zero energy use by 2050. And the energy sector contributes about 40% of all CO2 emissions. While critical, utilities say the shift to renewables could cause some hiccups in getting power to people's homes. In a survey, only 9% of utilities indicated that the shift to clean energy would not pose a challenge to service reliability. To ensure that the supply of renewables can meet demand, utilities will have to focus on both modernizing the grid and helping customers develop mindful energy use habits. There are a lot of strategies from coming up with creative rate structures, to building smarter and more energy efficient buildings and appliances, to developing apps that track personal energy use, working toward a future where energy is both reliable and better for the environment. What do you think utility companies should tackle first? Let us know in the comments.