Solar, wind, and other renewable energy sources offer great opportunities in the energy generation industry despite their sometimes unpredictable nature. Maintaining a balance between demand and supply for power consumers can be eased for utilities with the right software. To compound this challenge, governments are creating policies that compel energy providers to add more renewables in their systems.
The energy industry is becoming more competitive every passing day. Players in renewables are finding themselves in situations where their profitability can be improved. The key lies in adapting to the current energy model in order to obtain good profit in the process.
Big data and advanced analytics are modern answers to the intermittence challenge of renewables. Indeed, these solutions add value to the entire energy and power industry.
Fig 1: Benefits of Big Data in the Energy Sector (the source)
How well do you know how to apply software and data solutions for competitive renewables? We explore how this industry is more competitive with renewable asset management software.
Still Challenging Times for RE Projects
The renewable energy industry is struggling with monumental issues emanating from investment bang. However, renewable energy asset owners have to establish a profitable business. They need to maintain this status for at least three decades, assuming it is a solar PV project.
Every place in the world has its unique challenges regarding executing a RE project. Operating costs may be reduced if you take a global view, but some places are still relatively expensive. For instance, it is typically more expensive to operate a solar PV project in Australia than in Germany. Costs increase because of unplanned maintenance arising from weather extremes, remote locations, and related environmental factors.
If your project is in a country where reliability and safety compliance requirements are stringent, this translates to higher overheads for technicians and management. For instance, all your non-specialists must receive work-at-height training in Germany and Spain. These countries consider working at height as Work Equipment.
Consider the intense pressure on revenue owing to excess capacity during the daytime, yet the energy demand can sometimes dwindle. Some factors likely to promote this scenario are equipment problems, grid limitations, and negative pricing. The covid-19 pandemic and the ensuing lockdowns may also contribute to higher capacity variability.
All these result in headaches for project operators and owners because of concerns about competitive renewables. How can software and data solutions ensure the competitiveness of these projects despite the challenges?
Role of Software & Data Solutions in RE Asset Management
Over the years, asset management has shown its worth in not only renewable energy projects but also in mining, transport, and other asset-centric industries. Investors in renewable energy have access to more capacity when they apply this discipline.
Quality renewable asset management software maximizes asset value by combining financial management and operations and maintenance (O&M) plus engineering. With advanced analytics in RE, it is possible to not only optimize scarce resources but also lower energy costs through efficient operations.
Operators and owners of RE projects have the chance to leverage the successes of renewable asset management software applications. QBI Solutions helps transform raw data into useful business insights to improve and secure the value of your assets.
Using the Software for Higher Competitiveness
So, how does renewable energy management software solve the challenges that threaten business in the current environment of competitive renewables? Asset owners need to be certain that their portfolios are delivering optimum value. Is financial reporting enough for reliable insight into RE asset performance? I seriously doubt.
Asset management is incomplete without a determination and measurement of KPIs. Every O&M contract should contain a performance ratio, uptime guarantee, and related measures. With the capability to measure and report on these elements, the RE asset manager is in a good position to promote the accountability of every provider.
For the best competitiveness, the asset manager should be armed with a tool that detects issues early. You don’t want a case where there are already cost overruns or lost revenues by the time you get the signal to take corrective action. Renewable energy asset management software that combines financial and operational data gives a complete picture. Is there a better way to analyze future opportunities and risks?
What is the tracking capability of the software? This is another area of focus, considering that most contractors have varied performance and warranty issues. Missing these things during construction can cause a huge setback during operation. The earlier you address them at the Engineering, Procurement, and Construction (EPC) stage, the better for your project.
RE projects that pass the profitability test ensure that forecast and actual generation are as close as possible. Again, only guidance and insight from the best software & data solutions can give a wide range of data to compare with actual performance. Cloud data and market data are just some of the sources that the asset manager needs to accomplish this. Get a good tool and you will be able to create a concrete report from multiple-source data.
Software & data solutions can also help counter negative pricing to protect the project from losses. When generation management is under control, penalties from negative pricing are forgotten.
The secret for competitive renewables is to engage with proven asset management software. While effective in covering all your data needs, QBI Solutions software is easy to use. Within no time, your employees and stakeholders will be comfortable interacting with the product. Remember that we offer a free demo so you can be sure you are getting the most relevant item.
QBI offers an end-to-end process optimization and information integration platform that allows our clients to manage their assets and operate optimally in all stages of the project: development, construction, asset management, and M&A. It is designed by, and for, renewable energy professionals, and is flexible and configurable by country, state or region, and technology, regardless of the energy source. Your projects, associated tasks, documentation, dashboards and other project-related information are centralized and digitized.
Additionally, we can connect to any peripheral information system, thus optimizing the use of your infrastructure and assets, reducing operational costs, driving energy efficiency initiatives and improving the financial return on your investment. If you want to join the more than 17 GW of Controlled Capacity managed through QBI, then we have all the information you need in our website.