Did IDC’s European Utilities Xchange live up to its name? It’s a yes from us

In May 2023, we joined other energy and water professionals in Vienna for IDC’s European Utilities Xchange 2023. The talking points were wide-ranging, from the growing pains of grid modernization to the promise of AI. Joining the discussion were our own Brad Kitchin, Group Vice President, and Linda Jackman, Strategic Sales Executive. Here are their takeaways from this year’s summit.

Addressing the pressure, together

Sustainability, affordability, and accountability: As the world is gripped by social and environmental concerns, utilities are under ongoing pressure to demonstrate these qualities. Connecting with other utilities to share experiences and solve problems is more important than ever–and the IDC’s European Utilities Xchange provided a perfect forum.

During May 8–9, utilities and key partners assembled for two-days of talks, roundtable discussions, and presentations. Most attendees came from utilities, particularly Distribution System Operators (DSOs). However, everyone had a voice in the discussions. Brad says, “We were included as an equal participant as the utilities.” And the format of the event provided plenty of opportunities for interaction with our energy and water peers.

Xchange by name, exchange by nature

For Brad, the event lived up to its name. “It was definitely an exchange,” he remarks before explaining: “The general format was that they would have a speaker, and then they would present a problem–or statement–they would break us up into small groups, and we would have to come up with solutions and present back to the group.”

While some conferences offer a chance to trade business cards, Brad was impressed by the high level of interaction IDC facilitated. He says, “What IDC did effectively was facilitated introductions and required you to really engage. I thought the format was great. It gave us the ability to establish relationships and gain feedback on how our customers see the market.”

Linda agrees, “This multi-format idea–some chalk and talk, some breakout sessions, some one-on-ones–that mixture of interactions was the best thing.” To maintain this dynamic atmosphere, attendees switched tables during the event, which opened up fresh opportunities for dialogue. She continues, “We had brainstorming sessions and got to hear things from people who are really thinking about what they do and what the challenges are.”

With a high proportion of DSOs present, grid modernization was a particularly hot topic.

The growing pains of grid modernization

“Probably the most important thing for me was hearing about the constrains that exist on the DSOs with respect to the regulation,” Linda shares.

As the energy transition continues, developing renewable energy sources has attracted a lot of attention. However, less focus has been given to adapting the grid to cope with the energy they generate. Brad summarises the frustration for DSOs: “The problem is that the network is constrained. It can’t handle any more supply. Yet the EU is not giving them any money to spend any time on that.”

Linda expands, “Regulation has not caught up with the complexity of the environment DSOs find themselves in, whether that’s to do with battery storage, electric vehicles, distribution level renewables, photovoltaics, mini wind turbines. DSOs have got all that complexity, but they’re not being given any relief on their capital expenditure at all.”

Instead, the legacy grid is expected to cope with today’s diverse energy ecosystem. This has consequences, as Linda illustrates: “Transformers have been designed to operate within a one-way flow of electricity paradigm. You’re now asking it to accept input from a number of different areas. This causes high levels of fluctuation, meaning equipment starts to fail more quickly.”

This issue is particularly prevalent as the electrification of transport accelerates, particularly the adoption of electric vehicles (EVs). Brad notes, “Proliferation of EVs is a huge issue. The network cannot support demand, even though the supply is there.” He recollects, “The last speaker posed some big questions about the challenges the EU market is facing regarding the state of regulation, and whether it’s putting money in the right places for the challenges they’re trying to solve.”

Fortunately, technology is helping to address some of these challenges. Linda says, “The biggest takeaway for me was not to underestimate the complexity of the new DSO environment. Luckily, that plays into what we do–whether that’s DERMS and renewable energy management or Flex-SCADA.” Brad adds, “That’s why they need our NMS to manage the network and create microgrids to support particular areas.”

While AI is making fresh headlines each day, technology received much airtime at the event too.

Cyber threats and fresh potential

Utilities operate critical infrastructure, so protection against malevolent players is crucial. But how concerned should they be about the threat of cyber-attacks?

A session on security dispelled any complacency. Linda recalls, “One of the speakers did a fantastic security demo that has stuck in my head. They asked an attendee for their mobile number and their wife’s phone number, and the speaker was able to send a text to her from the attendee’s phone.” The speaker also overrode somebody’s smart home system and unlocked the front door. While these may seem like theatrical examples, the presentation stressed a very important point. Brad highlights, “It was a very applicable talk about the state of cybersecurity, educating people on the fallacy–they think things are secure when they’re not.”

The tone was more optimistic when discussing robotics and AI, which are already helping some attendees improve safety and accuracy.

During a breakout on Linda’s table, big questions were being asked about how robotic engineering can be applied to some of the riskiest roles in the field. One utility was already experimenting with AI and robotics for cable splicing. She explains, “When you run a cable under the ground you have to break the cable apart. That job of cable splicing is incredibly complex and very dangerous. They now have a robot that goes to work and does the cable splicing for them, resulting in fewer accidents and errors.”

Brad spoke to attendees investing in other AI use cases. He says, “One utility in the UK is using AI to reduce the number of call centre staff they have. A lot of companies at the conference were seeing how they could leverage it. Everyone sees it as a way to save money, provide better customer service or more accurate data.”

As with cybersecurity, Brad is keen to separate the myths from the truth. He shares, “In my personal opinion, the perception of what AI can do and what it actually does are vastly different. There’s a gap. Everyone thinks it’s like The Terminator. But in reality, it’s a large language model. It responds to inputs. It’s not as sophisticated as the Press would like to believe.” However, he is enthusiastic about AI’s potential, particularly for detecting patterns and identifying anomalies, such as identifying a failing transformer and detecting what needs fixing. This is just one way AI could improve utilities’ resilience–and with so many industries depending on utilities, resilience is key.

Resilient economies rely on resilient utilities

The conference literature emphasized utilities’ importance for the entire economy's resilience. Linda reasons, “The utilities sector is the engine that drives the economy. If you don’t have electricity and clean water, you have nothing.”

While recent breakthroughs in AI may transform utilities, AI itself relies on utilities to operate. On Linda’s table, one attendee spoke passionately about this challenge. “He spoke about AI in the context of energy usage,” she recollects. “If the energy we’re using today is anything to go by, imagine the spike in energy that will be needed to feed these AI engines.”

We have no definitive roadmap for what lies ahead. That’s why events like the IDC Utilities Xchange are so important–they allow energy and water professionals to map out the future together. 

Moving forward

During the event, Brad and Linda joined eye-opening debates about how energy and water professionals are navigating the challenges and opportunities of our times. They left Vienna enthusiastic about the conference and the ways Oracle can help. “I always think these events are absolutely invaluable,” Linda confirms. “They make you think about how you can meet customers where they are, and how you can help them move forward.”

“We got a chance to talk to people and understand how we can help them,” Brad concludes, “I would go again. It was a very positive experience–probably one of the best conferences I’ve been to.”

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