Connecting with the UK’s utility experts
The energy and water sectors are experiencing rapid transformation, driven by the need for decarbonisation, digitalisation, and improved operational efficiency. This shift demands robust, reliable, and secure connectivity solutions. Without connectivity, utilities face major obstacles in harnessing new technologies and optimising operations, such as smart grids and real-time water monitoring.
In June, Arqiva teamed up with Utility Week to explore how utilities see their current and future connectivity and communications infrastructure. Through a combination of survey results and in-depth interviews, we uncovered some fascinating insights.
Why is connectivity so important for utilities?
As utilities rely on data-driven operations, the role of connectivity becomes critical. Whether it’s powering smart meters, enabling real-time system adjustments, or supporting the transition to a low-carbon economy, robust communication networks are at the heart of these changes.
However, confidence among utility leaders in meeting their future connectivity needs is wavering. Nearly half of the sector is uncertain whether their future connectivity demands are fully understood, especially in the water sector. This uncertainty is a significant obstacle to effective digital transformation, which is vital for meeting environmental targets and regulatory demands.
Strong connectivity is essential for major utilities priorities:
- Operational efficiency and resilience: Connectivity underpins everything from day-to-day operations to crisis management. For example, in the wake of Storm Arwen in 2021, power and telecommunications outages crippled essential services. Some utilities faced significant challenges, including the inability to monitor assets and communicate effectively during the storm. This incident highlighted the deep interdependencies between power and communication networks, reinforcing the need for resilient connectivity.
- Smart meters and real-time monitoring: In the energy sector, accurate, real-time data is critical for the management of renewable energy sources and maintaining grid stability. Smart meters in the water sector allow companies to track water usage and detect leaks, helping them meet regulatory targets like reducing water wastage. However, these systems are only as effective as the communication networks supporting them. Without reliable connectivity, smart meters are essentially ‘dumb’ devices that cannot fulfil their purpose.
- Future proofing for decarbonisation: With climate change accelerating, the energy sector must evolve to support renewable energy generation and a more decentralised grid. A large part of this transformation is integrating low-carbon distributed energy resources (DERs) like solar panels and wind turbines. This requires real-time, dynamic data flows supported by resilient connectivity infrastructure.
“Without good, reliable connectivity moving forwards, getting the most from
smart meters and smart networks will not be possible.”Douglas Whitfield, Operations Director, South East Water
What are some of the challenges utilities face in meeting their connectivity needs?
Despite the critical role of connectivity, the utility sector is facing big challenges in adapting to the changing communications landscape:
- Lack of confidence in future connectivity plans: The research reveals that around half of utility leaders are not confident in their organisations’ ability to fully understand or meet future connectivity needs. This is especially true in the water sector, where only 38% of respondents feel confident their future connectivity needs are understood.
- Technology obsolescence: Many utilities rely on outdated communication systems, such as BT’s PSTN network, which is set to be retired by 2027. This poses a significant challenge as utilities are forced to transition to newer, more secure, and higher bandwidth solutions like fibre networks or 5G, all while ensuring system resilience.
- Cybersecurity concerns: With the increasing reliance on public and private networks, utilities face heightened cybersecurity risks. Many utility leaders express concerns about the ability of their current and future communication systems to meet the stringent security requirements needed for critical national infrastructure. With the looming update to the Network and Information Systems (NIS) regulations, utilities will need to ensure their networks can withstand cyber threats.
- Complex integration: Managing a mixed suite of technologies, including satellite, cellular, and fibre networks, is another challenge. This complexity requires specialised skills and knowledge, which many utilities lack. The ability to integrate and manage this diverse connectivity landscape is seen as a significant hurdle for the sector.
“The more solutions you have, the more you have to maintain going forwards,
which increases the number of different sets of skills and expertise you need
across the team. Our preference is therefore to limit that as much as possible, so
we know we have an estate we can look after.”Lauren Knight, Head of Operational Technology, Anglian Water
How can utilities solve these connectivity challenges?
While the challenges are significant, there are several pathways to overcome them:
- Collaboration between utilities and telecoms: The need for better collaboration between the utilities and telecommunications sectors is widely recognised. A majority of respondents (77%) called for increased cooperation to develop suitable connectivity solutions. By working together, these sectors can address gaps in coverage, security, and technological integration.
- Private networks and satellite solutions: To meet their evolving connectivity needs, many utilities are exploring private networks and satellite communications. These solutions offer resilience and the ability to connect remote or hard-to-reach areas where traditional fibre or cellular networks may not suffice.
- Skilled workforce development: Ensuring that utilities have the right talent in place to manage and implement connectivity solutions is another priority. With only half of respondents confident in their organisation’s in-house expertise, there is a clear need for expanded training and recruitment efforts in this area. Utilities must also consider working with third-party providers to manage complex communications networks.
- Regulatory support and spectrum allocation: Regulatory intervention is seen as crucial for ensuring future connectivity needs are met. There is strong demand for the appointment of a leading body to oversee strategic connectivity planning and spectrum allocation. Many respondents also support the idea of allocating dedicated radio spectrum for utilities.
“We have to make sure the wireless communication systems we use for mission
critical applications are capable of riding through, whether it’s a localised event,
a storm, or network outages.”Power network executive
Conclusion
The future of utilities is deeply intertwined with the development of robust, secure, and adaptable connectivity solutions. As energy and water sectors push toward decarbonisation and digital transformation, addressing connectivity gaps will be essential to achieving these goals.
By fostering collaboration, investing in cutting-edge technologies, and addressing the skills gap, utilities can overcome the challenges identified in this report. Connectivity is more than just an enabler—it is a strategic asset that will determine the future resilience and success of UK utilities.
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