Robotics: Digital Transformation in the US Energy Market

A recent ABI Research B2B Survey with 50 US-based energy firms showed high familiarity on robotics (88%). However, penetration rates remain low since only 2 out of 10 utility firms shared that they have deployed robotics in their current operation. However, ABI Research expects deployment of robotics to accelerate because18% of respondents shared that they are likely to deploy robotics in the next 12 months, and 50% shared that they are on the early investigation stage and/or assessing deployments. A more detailed discussion on digital transformation in the U.S. Energy market can be found in the ABI Research report Industry Survey: Transformative Technology Adoption and Attitudes - Utilities.

Robotics such as drones or Unmanned Aircraft Systems, (UASs) is a disruptive technology enabling utility firms to reduce inspection costs, boost the safety of workers and citizens when conducting routine inspections of transmission towers and surveying damage to energy networks after natural disasters. This technology also increases data collection efficiency and improves inspections access.  Drivers include:

• Legislation: The Energy Reliability Standard mandates annual inspection of electric power transmission and distribution networks. Failure to comply can result in fines of up to US$1 million per day, per incident, until a state of compliance is ultimately achieved. Interestingly, the Federal Aviation Administration (FAA) has allowed the use of drones across commercial operations provided UASs weighs less than 55 pounds, it’s pilot has passed the drone certification exam, and flys a maximum of 400 feet above ground-level (AGL). Additionally, the FAA has granted 1,074 waivers as of July 2017 allowing drones to fly at night, beyond line of sight, etc., enabling drones to conduct aerial photography, construction and infrastructure inspection, etc.
• Aging Electric Power Infrastructure: Per the U.S. Department of Energy, North America has an estimated 900,000 steel electric utility transmission and distribution structures, which were built between 1950 and 1990, and the average age of the utility infrastructure is 45 years old. Hence, the risk of critical failures is high. As such, the government mandated comprehensive inspection, assessment, and maintenance of the electric transmission and distribution system.
• Lower Inspection Cost: Traditionally, inspection of transmission and distribution networks is cost-intensive, difficult, and dangerous. Electric operators use line crews, helicopters, and third-party inspection services to conduct line inspections and maintenance, storm damage assessments, and vegetation management to mitigate encroachment.
• Boost Worker’s Safety Environment: Traditionally, line crews need to climb high-voltage transmission towers when conducting routine inspections, which is deemed dangerous. UASs enable remote inspection of transmission lines, which boosts the safety of the work environment.
• Improved situational awareness & Predictive Maintenance: UASs equipped with LIDAR technology can conduct aerial surveillance and capture accurate images from real-world conditions. Leveraging data collected from UAS coupled with machine learning and artificial intelligence, utility firms can conduct remote diagnosis of transmission and distribution system, and predictive maintenance. Hence, robotics optimizes network uptime, schedule timely infrastructure maintenance and repair, and mitigate risks of power outages and other disasters.
• First Responders: Drones can provide support to first responders during emergencies such as fire, floods and earthquakes.

Similarly, drones can play a crucial role in smart cities, including mission-critical communications to boost public safety such as aerial surveillance and monitoring (e.g. environment, pollution and traffic monitoring), providing situational awareness support to first responders during emergencies, remotely deliver disaster relief supplies and equipment faster than ground transportation, etc. Additionally, drones can enhance the safety of law enforcement officers by remotely providing situational awareness of various crime and disaster scenes. ABI Research expects the market for small unmanned Aerial Systems (sUAS) in public safety to increase (purchases by civil entities, such as police departments, the Environmental Protection Agency, etc.) with a CAGR of 15% from US$ 585 million in 2017 to US$1.2 billion in 2022.