There is something interesting about electricity bills. They are very good at telling us what has already happened.
They can tell us how much electricity we consumed and how much we need to pay. For commercial facilities, they can also reveal the financial impact of Maximum Demand. The problem is that by the time we see the bill, the event that caused the cost may have happened weeks earlier.
That is a good example of what I call operational blindness.
The Problem Is Not Lack of Data
I recently looked at an IoT project developed to monitor Maximum Demand in real time. The problem it addressed was surprisingly common.
A large facility can have air-conditioning systems, computers, laboratory equipment, motors and other electrical loads operating simultaneously. At certain times, these loads can push electrical demand sharply upward.
Without continuous monitoring, the people managing the facility may not realise that a demand spike is happening.
The spike occurs. The cost is incurred. The bill arrives later.
Only then does somebody ask, “What happened?”
The organisation had data, but it did not have visibility when the information could still influence an operational decision.
Seeing the Problem While It Is Happening
The project approached the problem differently. Electrical parameters such as voltage, current, power factor and demand were continuously measured and transmitted through an IoT architecture.
Operators could then observe demand behaviour as it happened rather than depending entirely on periodic readings and historical bills.
During testing, the system captured a live demand peak of 664.8 kW, compared with 680 kW recorded for billing purposes.
That difference tells an interesting story. Real-time IoT monitoring can provide a sufficiently close picture of what is happening operationally to help people recognise potentially costly conditions earlier.
The Dashboard Is Not the Real Value
We sometimes become too fascinated by dashboards. We talk about graphs, gauges, sensors, protocols and cloud systems.
But nobody wakes up in the morning saying, “I need another dashboard.”
What the operations team really needs is an answer to practical questions:
- Are we approaching a costly demand threshold?
- When do our highest demand periods normally occur?
- What activities coincide with those peaks?
- Is something behaving differently today?
- Should somebody act now?
That changes the purpose of IoT. We are no longer collecting data simply because we can. We are giving people enough visibility to make a decision while there is still time to act.
From Seeing to Predicting
The next step becomes even more interesting.
Once months or years of operational data have been collected, machine learning can begin looking for patterns that humans may miss. Instead of only showing that demand is high, the system could eventually warn that current conditions resemble patterns that previously led to a demand spike.
This moves us from monitoring towards early warning.
For me, that is where AIoT becomes meaningful. IoT allows us to see the physical world. AI helps us understand what those observations may mean.
Technology creates value when it shortens the distance between something happening and somebody knowing about it.
Because when the electricity bill finally arrives, the opportunity to change what happened last month is already gone.
[Note: This is one of Favoriot‘s Use Case – Energy Monitoring]
