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Saturday, January 27, 2024

Grid energy storage

From Wikipedia, the free encyclopedia
Simplified electrical grid with energy storage
Simplified grid energy flow with and without idealized energy storage for the course of one day

Grid energy storage (also called large-scale energy storage) is a collection of methods used for energy storage on a large scale within an electrical power grid. Electrical energy is stored during times when electricity is plentiful and inexpensive (especially from intermittent power sources such as renewable electricity from wind power, tidal power and solar power) or when demand is low, and later returned to the grid when demand is high, and electricity prices tend to be higher.

As of 2020, the largest form of grid energy storage is dammed hydroelectricity, with both conventional hydroelectric generation as well as pumped-storage hydroelectricity.

Developments in battery storage have enabled commercially viable projects to store energy during peak production and release during peak demand, and for use when production unexpectedly falls giving time for slower responding resources to be brought online. Green hydrogen, which is generated from electrolysis of water via electricity generated by renewables or relatively lower carbon emission sources, is a more economical means of long-term renewable energy storage in terms of capital expenditures than pumped-storage hydroelectricity or batteries.

Two alternatives to grid storage are the use of peaking power plants to fill in supply gaps and demand response to shift load to other times.

Benefits

Any electrical power grid must match electricity production to consumption, both of which vary drastically over time. Any combination of energy storage and demand response has these advantages:

  • fuel-based power plants (i.e. coal, oil, gas, nuclear) can be more efficiently and easily operated at constant production levels
  • electricity generated by intermittent sources can be stored and used later, whereas it would otherwise have to be transmitted for sale elsewhere, or shut down
  • peak generating or transmission capacity can be reduced by the total potential of all storage plus deferrable loads (see demand side management), saving the expense of this capacity
  • more stable pricing – the cost of the storage or demand management is included in pricing so there is less variation in power rates charged to customers, or alternatively (if rates are kept stable by law) less loss to the utility from expensive on-peak wholesale power rates when peak demand must be met by imported wholesale power
  • emergency preparedness – vital needs can be met reliably even with no transmission or generation going on while non-essential needs are deferred

Energy derived from solar, tidal and wind sources inherently varies on time scales ranging from minutes to weeks or longer – the amount of electricity produced varies with time of day, moon phase, season, and random factors such as the weather. Thus, renewables in the absence of storage present special challenges to electric utilities. While hooking up many separate wind sources can reduce the overall variability, solar is reliably not available at night, and tidal power shifts with the moon, so slack tides occur four times a day.

How much this affects any given utility varies significantly. In a summer peak utility, more solar can generally be absorbed and matched to demand. In winter peak utilities, to a lesser degree, wind correlates to heating demand and can be used to meet that demand. Depending on these factors, beyond about 20–40% of total generation, grid-connected intermittent sources such as solar power and wind power tend to require investment in grid interconnections, grid energy storage or demand-side management.

In an electrical grid without energy storage, generation that relies on energy stored within fuels (coal, biomass, natural gas, nuclear) must be scaled up and down to match the rise and fall of electrical production from intermittent sources (see load following power plant). While hydroelectric and natural gas plants can be quickly scaled up or down to follow the wind, coal and nuclear plants take considerable time to respond to load. Utilities with less natural gas or hydroelectric generation are thus more reliant on demand management, grid interconnections or costly pumped storage.

The French consulting firm Yole Développement estimates the "stationary storage" market could be a $13.5 billion opportunity by 2023, compared with less than $1 billion in 2015.

Demand side management and grid storage

A sense of units and scale for electrical energy production and consumption

The demand side can also store electricity from the grid, for example charging a battery electric vehicle stores energy for a vehicle and storage heaters, district heating storage or ice storage provide thermal storage for buildings. At present this storage serves only to shift consumption to the off-peak time of day, no electricity is returned to the grid.

The need for grid storage to provide peak power is reduced by demand side time of use pricing, one of the benefits of smart meters. At the household level, consumers may choose less expensive off-peak times to wash and dry clothes, use dishwashers, take showers and cook. As well, commercial and industrial users will take advantage of cost savings by deferring some processes to off-peak times.

Regional impacts from the unpredictable operation of wind power has created a new need for interactive demand response, where the utility communicates with the demand. Historically this was only done in cooperation with large industrial consumers, but now may be expanded to entire grids. For instance, a few large-scale projects in Europe link variations in wind power to change industrial food freezer loads, causing small variations in temperature. If communicated on a grid-wide scale, small changes to heating/cooling temperatures would instantly change consumption across the grid.

A report released in December 2013 by the United States Department of Energy further describes the potential benefits of energy storage and demand side technologies to the electric grid: "Modernizing the electric system will help the nation meet the challenge of handling projected energy needs—including addressing climate change by integrating more energy from renewable sources and enhancing efficiency from non-renewable energy processes. Advances to the electric grid must maintain a robust and resilient electricity delivery system, and energy storage can play a significant role in meeting these challenges by improving the operating capabilities of the grid, lowering cost and ensuring high reliability, as well as deferring and reducing infrastructure investments. Finally, energy storage can be instrumental for emergency preparedness because of its ability to provide backup power as well as grid stabilization services". The report was written by a core group of developers representing Office of Electricity Delivery and Energy Reliability, ARPA-E, Office of Science, Office of Energy Efficiency and Renewable Energy, Sandia National Laboratories, and Pacific Northwest National Laboratory; all of whom are engaged in the development of grid energy storage.

Energy storage for grid applications

Energy storage assets are a valuable asset for the electrical grid. They can provide benefits and services such as load management, power quality and uninterruptible power supply to increase the efficiency and supply security. This becomes more and more important in regard to the energy transition and the need for a more efficient and sustainable energy system.

Numerous energy storage technologies (pumped-storage hydroelectricity, electric battery, flow battery, flywheel energy storage, supercapacitor etc.) are suitable for grid-scale applications, however their characteristics differ. For example, a pumped-hydro station is well suited for bulk load management applications due to their large capacities and power capabilities. However, suitable locations are limited and their usefulness fades when dealing with localized power quality issues. On the other hand, flywheels and capacitors are most effective in maintaining power quality but lack storage capacities to be used in larger applications. These constraints are a natural limitation to the storage's applicability.

Several studies have developed interest and investigated the suitability or selection of the optimal energy storage for certain applications. Literature surveys comprise the available information of the state-of-the-art and compare the storage's uses based on current existing projects. Other studies take a step further in evaluating energy storage with each other and rank their fitness based on multiple-criteria decision analysis. Another paper proposed an evaluation scheme through the investigation and modelling of storage as equivalent circuits. An indexing approach has also been suggested in a few studies, but is still in the novel stages. In order to gain increased economic potential of grid connected energy storage systems, it is of interest to consider a portfolio with several services for one or more applications for an energy storage system. By doing so, several revenue streams can be achieved by a single storage and thereby also increasing the degree of utilization. To mention two examples, a combination of frequency response and reserve services is examined in, meanwhile load peak shaving together with power smoothing is considered in.

Forms

Air

Compressed air

One grid energy storage method is to use off-peak or renewably generated electricity to compress air, which is usually stored in an old mine or some other kind of geological feature. When electricity demand is high, the compressed air is heated with a small amount of natural gas and then goes through turboexpanders to generate electricity.

Compressed air storage is typically around 60–90% efficient.

Liquid air

Another electricity storage method is to compress and cool air, turning it into liquid air, which can be stored, and expanded when needed, turning a turbine, generating electricity, with a storage efficiency of up to 70%.

A commercial liquid-air energy storage plant is under construction in the North of England, with commercial operation planned for 2022. The energy storage capacity of 250MWh of the plant will be nearly twice the capacity of the world's largest existing lithium-ion battery, the Hornsdale Power Reserve in South Australia.

Compressed carbon dioxide

Gaseous carbon dioxide can be compressed to store energy at grid scale. The gas is well suited to this role because, unlike air, it liquifies at ambient temperatures. Liquid CO2 can be stored indefinitely in high-pressure cylinders, for use when needed.

The main proponent of the technology is start-up company Energy Dome, which in 2022 built a 2.5MW/4MWh demonstrator plant in Sardinia. The company claim a round trip efficiency of 75% and a projected cost of EUR220/kWh of storage capacity, which is half that of Li-ion batteries.

Batteries

A 900 watt direct current light plant using 16 separate lead acid battery cells (32 volts) from 1917.
Learning curve of lithium-ion batteries: the price of batteries declined by 97% in three decades.

Battery storage was used in the early days of direct current electric power. Where AC grid power was not readily available, isolated lighting plants run by wind turbines or internal combustion engines provided lighting and power to small motors. The battery system could be used to run the load without starting the engine or when the wind was calm. A bank of lead–acid batteries in glass jars both supplied power to illuminate lamps, as well as to start an engine to recharge the batteries. Battery storage technology is typically around 80% to more than 90% efficient for newer lithium-ion devices.

Battery systems connected to large solid-state converters have been used to stabilize power distribution networks. Some grid batteries are co-located with renewable energy plants, either to smooth the power supplied by the intermittent wind or solar output, or to shift the power output into other hours of the day when the renewable plant cannot produce power directly (see Installation examples). These hybrid systems (generation and storage) can either alleviate the pressure on the grid when connecting renewable sources or be used to reach self-sufficiency and work "off-the-grid" (see Stand-alone power system).

Contrary to electric vehicle applications, batteries for stationary storage do not suffer from mass or volume constraints. However, due to the large amounts of energy and power implied, the cost per power or energy unit is crucial. The relevant metrics to assess the interest of a technology for grid-scale storage is the $/Wh (or $/W) rather than the Wh/kg (or W/kg). The electrochemical grid storage was made possible thanks to the development of the electric vehicle, that induced a fast decrease in the production costs of batteries below $300/kWh. By optimizing the production chain, major industrials aimed to reach $150/kWh by the end of 2020, but actually achieved $140/kWh. The rate of decline in battery prices has consistently outpaced most estimates, reaching $132/kWh in 2021. These batteries rely on a lithium-ion technology, which is suited for mobile applications (high cost, high density). Technologies optimized for the grid should focus on low cost per kWh. Lithium iron phosphate batteries are increasingly being used in both vehicles and grid storage because of their low cost, scale and acceptable energy density for many applications.

Grid-oriented battery technologies

Sodium-ion batteries are a cheap and sustainable alternative to lithium-ion, because sodium is far more abundant and cheaper than lithium, but it has a lower power density. However, they are still on the early stages of their development.

Automotive-oriented technologies rely on solid electrodes, which feature a high energy density but require an expensive manufacturing process. Liquid electrodes represent a cheaper and less dense alternative as they do not need any processing.

Molten-salt/liquid-metal batteries

These batteries are composed of two molten metal alloys separated by an electrolyte. They are simple to manufacture but require a temperature of several hundred degree Celsius to keep the alloys in a liquid state. This technology includes ZEBRA, sodium-sulfur batteries and liquid metal. Sodium sulphur batteries are being used for grid storage in Japan and in the United States. The electrolyte is composed of solid beta alumina. The liquid metal battery, developed by the group of Pr. Donald Sadoway, uses molten alloys of magnesium and antimony separated by an electrically insulating molten salt. It is being brought to market by MIT spinoff company Ambri, which is currently contracted to install a first 250MWh system for TerraScale data centre company near Reno, Nevada.

Flow batteries

In rechargeable flow batteries, that store energy in liquids, such solutions of transition metal ions in water at room temperature. Flow batteries have the advantages of low capital cost for charge-discharge duration over 2-4 h, and of long durability (many years). Flow batteries are inferior to lithium-ion batteries in terms of energy efficiency. Flow batteries are currently deployed for storing energy from intermittent renewable sources, such as wind and solar.

Vanadium redox batteries is most technologically and commercially advanced type of flow battery. Currently there are dozens of Vanadium Redox Flow batteries installed at different sites including; Huxley Hill wind farm (Australia), Tomari Wind Hills at Hokkaidō (Japan), as well as in non-wind farm applications. A 12 MW·h flow battery was to be installed at the Sorne Hill wind farm (Ireland). These storage systems are designed to smooth out transient wind fluctuations.

Examples

In Puerto Rico a system with a capacity of 20 megawatts for 15 minutes (5 megawatt hour) stabilizes the frequency of electric power produced on the island. A 27 megawatt 15-minute (6.75 megawatt hour) nickel-cadmium battery bank was installed at Fairbanks Alaska in 2003 to stabilize voltage at the end of a long transmission line.

In 2014, the Tehachapi Energy Storage Project was commissioned by Southern California Edison.

In 2016, a zinc-ion battery was proposed for use in grid storage applications.

In 2017, the California Public Utilities Commission installed 396 refrigerator-sized stacks of Tesla batteries at the Mira Loma substation in Ontario, California. The stacks are deployed in two modules of 10 MW each (20 MW in total), each capable of running for 4 hours, thus adding up to 80 MWh of storage. The array is capable of powering 15,000 homes for over four hours.

BYD proposes to use conventional consumer battery technologies such as lithium iron phosphate (LiFePO4) battery, connecting many batteries in parallel.

The largest grid storage batteries in the United States include the 31.5 MW battery at Grand Ridge Power plant in Illinois and the 31.5 MW battery at Beech Ridge, West Virginia. Two batteries under construction in 2015 include the 400 MWh (100 MW for 4 hours) Southern California Edison project and the 52 MWh project on Kauai, Hawaii to entirely time shift a 13MW solar farm's output to the evening. Two batteries are in Fairbanks, Alaska (40 MW for 7 minutes using Ni-Cd cells), and in Notrees, Texas (36 MW for 40 minutes using lead–acid batteries). A 13 MWh battery made of used batteries from Daimler's Smart electric drive cars is being constructed in Lünen, Germany, with an expected second life of 10 years.

In 2015, a 221 MW battery storage was installed in the US, with total capacity expected to reach 1.7 GW in 2020.

The UK had a 50 MW lithium-ion grid-battery installed in Hertfordshire in 2018. In February 2021, construction began on a 50 MW battery storage development in Burwell, Cambridgeshire and a 40 MW site in Barnsley, South Yorkshire.

In November 2017 Tesla installed a 100 MW, 129 MWh battery system in South Australia. The Australian Energy Market Operator stated that this "is both rapid and precise, compared to the service typically provided by a conventional synchronous generation unit".

Technology comparison
Technology Moving Parts Ambient Temperature Flammable Toxic Materials In production Rare metals
Vanadium flow Yes Yes No Yes Yes No
Liquid Metal No No Yes No No No
Sodium-Ion No Yes Yes No No No
Lead–Acid No Yes No Yes Yes No
Sodium–sulfur batteries No No Yes No Yes No
Ni–Cd No Yes No Yes Yes Yes
Al-ion No Yes No No No No
Li-ion No Yes Yes No Yes No
Fe-air Yes No Yes No No No

Electric vehicles

Nissan Leaf, the world's top-selling highway-capable electric car as of 2015

Companies are researching the possible use of electric vehicles to meet peak demand. A parked and plugged-in electric vehicle could sell the electricity from the battery during peak loads and charge either during night (at home) or during off-peak.

Plug-in hybrid or electric cars could be used for their energy storage capabilities. Vehicle-to-grid technology can be employed, turning each vehicle with its 20 to 50 kWh battery pack into a distributed load-balancing device or emergency power source. This represents two to five days per vehicle of average household requirements of 10 kWh per day, assuming annual consumption of 3,650 kWh. This quantity of energy is equivalent to between 60 and 480 kilometres (40 and 300 mi) of range in such vehicles consuming 0.1 to 0.3 kilowatt-hours per kilometre (0.16 to 0.5 kWh/mi). These figures can be achieved even in home-made electric vehicle conversions. Some electric utilities plan to use old plug-in vehicle batteries (sometimes resulting in a giant battery) to store electricity However, a large disadvantage of using vehicle to grid energy storage would be if each storage cycle stressed the battery with one complete charge-discharge cycle. However, one major study showed that used intelligently, vehicle-to-grid storage actually improved the batteries longevity. Conventional (cobalt-based) lithium-ion batteries break down with the number of cycles – newer li-ion batteries do not break down significantly with each cycle, and so have much longer lives. One approach is to reuse unreliable vehicle batteries in dedicated grid storage as they are expected to be good in this role for ten years. If such storage is done on a large scale it becomes much easier to guarantee replacement of a vehicle battery degraded in mobile use, as the old battery has value and immediate use.

Flywheel

NASA G2 flywheel

Mechanical inertia is the basis of this storage method. When the electric power flows into the device, an electric motor accelerates a heavy rotating disc. The motor acts as a generator when the flow of power is reversed, slowing down the disc and producing electricity. Electricity is stored as the kinetic energy of the disc. Friction must be kept to a minimum to prolong the storage time. This is often achieved by placing the flywheel in a vacuum and using magnetic bearings, tending to make the method expensive. Greater flywheel speeds allow greater storage capacity but require strong materials such as steel or composite materials to resist the centrifugal forces. The ranges of power and energy storage technology that make this method economic, however, tends to make flywheels unsuitable for general power system application; they are probably best suited to load-leveling applications on railway power systems and for improving power quality in renewable energy systems such as the 20MW system in Ireland.

Applications that use flywheel storage are those that require very high bursts of power for very short durations such as tokamak and laser experiments where a motor generator is spun up to operating speed and is partially slowed down during discharge.

Flywheel storage is also currently used in the form of the Diesel rotary uninterruptible power supply to provide uninterruptible power supply systems (such as those in large datacenters) for ride-through power necessary during transfer – that is, the relatively brief amount of time between a loss of power to the mains and the warm-up of an alternate source, such as a diesel generator.

This potential solution has been implemented by EDA in the Azores on the islands of Graciosa and Flores. This system uses an 18 megawatt-second flywheel to improve power quality and thus allow increased renewable energy usage. As the description suggests, these systems are again designed to smooth out transient fluctuations in supply, and could never be used to cope with an outage exceeding a couple of days.

Powercorp in Australia have been developing applications using wind turbines, flywheels and low load diesel (LLD) technology to maximize the wind input to small grids. A system installed in Coral Bay, Western Australia, uses wind turbines coupled with a flywheel based control system and LLDs. The flywheel technology enables the wind turbines to supply up to 95 percent of Coral Bay's energy supply at times, with a total annual wind penetration of 45 percent.

Hydrogen

Hydrogen is being developed as an electrical energy storage medium. Hydrogen is produced, then compressed or liquefied, cryogenically stored at −252.882 °C, and then converted back to electrical energy or heat. Hydrogen can be used as a fuel for portable (vehicles) or stationary energy generation. Compared to pumped water storage and batteries, hydrogen has the advantage that it is a high energy density fuel. Green hydrogen, from electrolysis of water, is a more economical means of long-term renewable energy storage in terms of capital expenditures than pumped-storage hydroelectricity or batteries.

Hydrogen can be produced either by reforming natural gas with steam or by the electrolysis of water into hydrogen and oxygen (see hydrogen production). Reforming natural gas produces carbon dioxide as a by-product. High temperature electrolysis and high pressure electrolysis are two techniques by which the efficiency of hydrogen production may be able to be increased. Hydrogen is then converted back to electricity in an internal combustion engine, or a fuel cell.

The AC-to-AC efficiency of hydrogen storage has been shown to be on the order of 20 to 45%, which imposes economic constraints. The price ratio between purchase and sale of electricity must be at least proportional to the efficiency in order for the system to be economic. Hydrogen fuel cells can respond quickly enough to correct rapid fluctuations in electricity demand or supply and regulate frequency. Whether hydrogen can use natural gas infrastructure depends on the network construction materials, standards in joints, and storage pressure.

The equipment necessary for hydrogen energy storage includes an electrolysis plant, hydrogen compressors or liquifiers, and storage tanks.

Biohydrogen is a process being investigated for producing hydrogen using biomass.

Micro combined heat and power (microCHP) can use hydrogen as a fuel.

Some nuclear power plants may be able to benefit from a symbiosis with hydrogen production. High temperature (950 to 1,000 °C) gas cooled nuclear generation IV reactors have the potential to electrolyze hydrogen from water by thermochemical means using nuclear heat as in the sulfur-iodine cycle. The first commercial reactors are expected in 2030.

A community based pilot program using wind turbines and hydrogen generators was started in 2007 in the remote community of Ramea, Newfoundland and Labrador. A similar project has been going on since 2004 in Utsira, a small Norwegian island municipality.

Underground hydrogen storage

Underground hydrogen storage is the practice of hydrogen storage in caverns, salt domes and depleted oil and gas fields. Large quantities of gaseous hydrogen have been stored in caverns by Imperial Chemical Industries (ICI) for many years without any difficulties. The European project Hyunder indicated in 2013 that for the storage of wind and solar energy an additional 85 caverns are required as it cannot be covered by PHES and CAES systems.

Power to gas

Power to gas is a technology which converts electrical power to a gas fuel. There are 2 methods, the first is to use the electricity for water splitting and inject the resulting hydrogen into the natural gas grid. The second less efficient method is used to convert carbon dioxide and water to methane, (see natural gas) using electrolysis and the Sabatier reaction. The excess power or off peak power generated by wind generators or solar arrays is then used for load balancing in the energy grid. Using the existing natural gas system for hydrogen, fuel cell maker Hydrogenics and natural gas distributor Enbridge have teamed up to develop such a power to gas system in Canada.

Pipeline storage of hydrogen where a natural gas network is used for the storage of hydrogen. Before switching to natural gas, the German gas networks were operated using towngas, which for the most part consisted of hydrogen. The storage capacity of the German natural gas network is more than 200,000 GW·h which is enough for several months of energy requirement. By comparison, the capacity of all German pumped-storage power plants amounts to only about 40 GW·h. The transport of energy through a gas network is done with much less loss (<0.1%) than in a power network (8%). The use of the existing natural gas pipelines for hydrogen was studied by NaturalHy

The power-to-ammonia concept

The power-to-ammonia concept offers a carbon-free energy storage route with a diversified application palette. At times when there is surplus low-carbon power, it can be used to create ammonia fuel. Ammonia may be produced by splitting water into hydrogen and oxygen with electricity, then high temperature and pressure are used to combine nitrogen from the air with the hydrogen, creating ammonia. As a liquid it is similar to propane, unlike hydrogen alone, which is difficult to store as a gas under pressure or to cryogenically liquefy and store at −253 °C.

Just like natural gas, the stored ammonia can be used as a thermal fuel for transportation and electricity generation or used in a fuel cell. A standard 60,000 m³ tank of liquid ammonia contains about 211 GWh of energy, equivalent to the annual production of roughly 30 wind turbines. Ammonia can be burned cleanly: water and nitrogen are released, but no CO2 and little or no nitrogen oxides. Ammonia has multiple uses besides being an energy carrier, it is the basis for the production of many chemicals, the most common use is for fertilizer. Given this flexibility of usage, and given that the infrastructure for the safe transport, distribution and usage of ammonia is already in place, it makes ammonia a good candidate to be a large-scale, non-carbon, energy carrier of the future.

Hydroelectricity

Pumped water

Mingtan Pumped-Storage Hydro Power Plant dam in Nantou, Taiwan

In 2008, world pumped-storage generating capacity was 104 GW, while other sources claim 127 GW, which comprises the vast majority of all types of grid electric storage – all other types combined are some hundreds of MW.

In many places, pumped-storage hydroelectricity is used to even out the daily generating load, by pumping water to a high storage reservoir during off-peak hours and weekends, using the excess base-load capacity from coal or nuclear sources. During peak hours, this water can be used for hydroelectric generation, often as a high value rapid-response reserve to cover transient peaks in demand. Pumped storage recovers about 70% to 85% of the energy consumed, and is currently the most cost effective form of mass power storage. The chief problem with pumped storage is that it usually requires two nearby reservoirs at considerably different heights, and often requires considerable capital expenditure.

Pumped water systems have high dispatchability, meaning they can come on-line very quickly, typically within 15 seconds, which makes these systems very efficient at soaking up variability in electrical demand from consumers. There is over 90 GW of pumped storage in operation around the world, which is about 3% of instantaneous global generation capacity. Pumped water storage systems, such as the Dinorwig storage system in Britain, hold five or six hours of generating capacity, and are used to smooth out demand variations.

Another example is the 1836 MW Tianhuangping Pumped-Storage Hydro Plant in China, which has a reservoir capacity of eight million cubic meters (2.1 billion U.S. gallons or the volume of water over Niagara Falls in 25 minutes) with a vertical distance of 600 m (1970 feet). The reservoir can provide about 13 GW·h of stored gravitational potential energy (convertible to electricity at about 80% efficiency), or about 2% of China's daily electricity consumption.

A new concept in pumped-storage is utilizing wind energy or solar power to pump water. Wind turbines or solar cells that direct drive water pumps for an energy storing wind or solar dam can make this a more efficient process but are limited. Such systems can only increase kinetic water volume during windy and daylight periods. A study published in 2013 showed rooftop solar, coupled to existing pumped-storage, could replace the reactors lost at Fukushima with an equivalent capacity factor.

Hydroelectric dams

Fetsui hydroelectric dam in New Taipei, Taiwan

Hydroelectric dams with large reservoirs can also be operated to provide peak generation at times of peak demand. Water is stored in the reservoir during periods of low demand and released through the plant when demand is higher. The net effect is the same as pumped storage, but without the pumping loss. Depending on the reservoir capacity the plant can provide daily, weekly, or seasonal load following.

Many existing hydroelectric dams are fairly old (for example, the Hoover Dam was built in the 1930s), and their original design predated the newer intermittent power sources such as wind and solar by decades. A hydroelectric dam originally built to provide baseload power will have its generators sized according to the average flow of water into the reservoir. Uprating such a dam with additional generators increases its peak power output capacity, thereby increasing its capacity to operate as a virtual grid energy storage unit. The United States Bureau of Reclamation reports an investment cost of $69 per kilowatt capacity to uprate an existing dam, compared to more than $400 per kilowatt for oil-fired peaking generators. While an uprated hydroelectric dam does not directly store excess energy from other generating units, it behaves equivalently by accumulating its own fuel – incoming river water – during periods of high output from other generating units. Functioning as a virtual grid storage unit in this way, the uprated dam is one of the most efficient forms of energy storage, because it has no pumping losses to fill its reservoir, only increased losses to evaporation and leakage.

A dam which impounds a large reservoir can store and release a correspondingly large amount of energy, by controlling river outflow and raising or lowering its reservoir level a few meters. Limitations do apply to dam operation, their releases are commonly subject to government regulated water rights to limit downstream effect on rivers. For example, there are grid situations where baseload thermal plants, nuclear or wind turbines are already producing excess power at night, dams are still required to release enough water to maintain adequate river levels, whether electricity is generated or not. Conversely there's a limit to peak capacity, which if excessive could cause a river to flood for a few hours each day.

Superconducting magnetic energy

Superconducting magnetic energy storage (SMES) systems store energy in the magnetic field created by the flow of direct current in a superconducting coil which has been cryogenically cooled to a temperature below its superconducting critical temperature. A typical SMES system includes three parts: superconducting coil, power conditioning system and cryogenically cooled refrigerator. Once the superconducting coil is charged, the current will not decay and the magnetic energy can be stored indefinitely. The stored energy can be released back to the network by discharging the coil. The power conditioning system uses an inverter/rectifier to transform alternating current (AC) power to direct current or convert DC back to AC power. The inverter/rectifier accounts for about 2–3% energy loss in each direction. SMES loses the least amount of electricity in the energy storage process compared to other methods of storing energy. SMES systems are highly efficient; the round-trip efficiency is greater than 95%. The high cost of superconductors is the primary limitation for commercial use of this energy storage method.

Due to the energy requirements of refrigeration, and the limits in the total energy able to be stored, SMES is currently used for short duration energy storage. Therefore, SMES is most commonly devoted to improving power quality. If SMES were to be used for utilities it would be a diurnal storage device, charged from base load power at night and meeting peak loads during the day.

There are significant technical challenges yet to be solved for superconducting magnetic energy storage to become practical.

Thermal

In Denmark the direct storage of electricity is perceived as too expensive for very large scale usage, albeit significant usage is made of existing Norwegian Hydro. Instead, the use of existing hot water storage tanks connected to district heating schemes, heated by either electrode boilers or heat pumps, is seen as a preferable approach. The stored heat is then transmitted to dwellings using district heating pipes.

Molten salt is used to store heat collected by a solar power tower so that it can be used to generate electricity in bad weather or at night.

Building heating and cooling systems can be controlled to store thermal energy in either the building's mass or dedicated thermal storage tanks. This thermal storage can provide load-shifting or even more complex ancillary services by increasing power consumption (charging the storage) during off-peak times and lowering power consumption (discharging the storage) during higher-priced peak times. For example, off-peak electricity can be used to make ice from water, and the ice can be stored. The stored ice can be used to cool the air in a large building which would have normally used electric AC, thereby shifting the electric load to off-peak hours. On other systems stored ice is used to cool the intake air of a gas turbine generator, thus increasing the on-peak generation capacity and the on-peak efficiency.

A pumped-heat electricity storage system uses a highly reversible heat engine/heat pump to pump heat between two storage vessels, heating one and cooling the other. The UK-based engineering company Isentropic that is developing the system claims a potential electricity-in to electricity-out round-trip efficiency of 72–80%.

A Carnot battery is a type of energy storage systems that stores electricity in heat storage and converts the stored heat back to electricity via thermodynamics cycles. This concept has been investigated and developed by many research projects recently. One of the advantage of this type of system is that the cost at large-scale and long-duration of thermal storage could be much lower than other storage technologies.

Physical battery; Gravitational potential energy storage with solid masses

Alternatives include storing energy by moving large solid masses upward against gravity. This can be achieved inside old mine shafts or in specially constructed towers where heavy weights are winched up to store energy and allowed a controlled descent to release it. In rail energy storage, rail cars carrying large weights are moved up or down a section of inclined rail track, storing or releasing energy as a result; In disused oil-well potential energy storage, weights are raised or lowered in a deep, decommissioned oil well.

Economics

The levelized cost of storing electricity depends highly on storage type and purpose; as subsecond-scale frequency regulation, minute/hour-scale peaker plants, or day/week-scale season storage.

Using battery storage is said to have a levelized cost of $120 to $170 per MWh. This compares with open cycle gas turbines which, as of 2020, have a cost of around $151–198 per MWh.

Generally speaking, energy storage is economical when the marginal cost of electricity varies more than the costs of storing and retrieving the energy plus the price of energy lost in the process. For instance, assume a pumped-storage reservoir can pump to its upper reservoir a volume of water capable of producing 1,200 MW·h after all losses are factored in (evaporation and seeping in the reservoir, efficiency losses, etc.). If the marginal cost of electricity during off-peak times is $15 per MW·h, and the reservoir operates at 75% efficiency (i.e., 1,500 MW·h are consumed and 1,200 MW·h of energy are retrieved), then the total cost of filling the reservoir is $22,500. If all of the stored energy is sold the following day during peak hours for an average $40 per MW·h, then the reservoir will see revenues of $48,000 for the day, for a gross profit of $25,500.

However, the marginal cost of electricity varies because of the varying operational and fuel costs of different classes of generators. At one extreme, base load power plants such as coal-fired power plants and nuclear power plants are low marginal cost generators, as they have high capital and maintenance costs but low fuel costs. At the other extreme, peaking power plants such as gas turbine natural gas plants burn expensive fuel but are cheaper to build, operate and maintain. To minimize the total operational cost of generating power, base load generators are dispatched most of the time, while peak power generators are dispatched only when necessary, generally when energy demand peaks. This is called "economic dispatch".

Demand for electricity from the world's various grids varies over the course of the day and from season to season. For the most part, variation in electric demand is met by varying the amount of electrical energy supplied from primary sources. Increasingly, however, operators are storing lower-cost energy produced at night, then releasing it to the grid during the peak periods of the day when it is more valuable. In areas where hydroelectric dams exist, release can be delayed until demand is greater; this form of storage is common and can make use of existing reservoirs. This is not storing "surplus" energy produced elsewhere, but the net effect is the same – although without the efficiency losses. Renewable supplies with variable production, like wind and solar power, tend to increase the net variation in electric load, increasing the opportunity for grid energy storage.

It may be more economical to find an alternative market for unused electricity, rather than try and store it. High Voltage Direct Current allows for transmission of electricity, losing only 3% per 1000 km.

The United States Department of Energy's International Energy Storage Database provides a free list of grid energy storage projects, many of which show funding sources and amounts.

Load leveling

The demand for electricity from consumers and industry is constantly changing, broadly within the following categories:

  • Seasonal (during dark winters more electric lighting and heating is required, while in other climates hot weather boosts the requirement for air conditioning)
  • Weekly (most industry closes at the weekend, lowering demand)
  • Daily (such as the morning peak as offices open and air conditioners get switched on)
  • Hourly (one method for estimating television viewing figures in the United Kingdom is to measure the power spikes during advertisement breaks or after programmes when viewers go to switch a kettle on)
  • Transient (fluctuations due to individual's actions, differences in power transmission efficiency and other small factors that need to be accounted for)

There are currently three main methods for dealing with changing demand:

  • Electrical devices generally having a working voltage range that they require, commonly 110–120 V or 220–240 V. Minor variations in load are automatically smoothed by slight variations in the voltage available across the system.
  • Power plants can be run below their normal output, with the facility to increase the amount they generate almost instantaneously. This is termed 'spinning reserve'.
  • Additional generation can be brought online. Typically, these would be hydroelectric or gas turbines, which can be started in a matter of minutes.

The problem with standby gas turbines is higher costs; expensive generating equipment is unused much of the time. Spinning reserve also comes at a cost; plants running below maximum output are usually less efficient. Grid energy storage is used to shift generation from times of peak load to off-peak hours. Power plants are able to run at their peak efficiency during nights and weekends.

Supply-demand leveling strategies may be intended to reduce the cost of supplying peak power or to compensate for the intermittent generation of wind and solar power.

Portability

This is the area of greatest success for current energy storage technologies. Single-use and rechargeable batteries are ubiquitous, and provide power for devices with demands as varied as digital watches and cars. Advances in battery technology have generally been slow, however, with much of the advance in battery life that consumers see being attributable to efficient power management rather than increased storage capacity. Portable consumer electronics have benefited greatly from size and power reductions associated with Moore's law. Unfortunately, Moore's law does not apply to hauling people and freight; the underlying energy requirements for transportation remain much higher than for information and entertainment applications. Battery capacity has become an issue as pressure grows for alternatives to internal combustion engines in cars, trucks, buses, trains, ships, and aeroplanes. These uses require far more energy density (the amount of energy stored in a given volume or weight) than current battery technology can deliver. Liquid hydrocarbon fuel (such as gasoline/petrol and diesel), as well as alcohols (methanol, ethanol, and butanol) and lipids (straight vegetable oil, biodiesel) have much higher energy densities.

There are synthetic pathways for using electricity to reduce carbon dioxide and water to liquid hydrocarbon or alcohol fuels. These pathways begin with electrolysis of water to generate hydrogen, and then reducing carbon dioxide with excess hydrogen in variations of the reverse water gas shift reaction. Non-fossil sources of carbon dioxide include fermentation plants and sewage treatment plants. Converting electrical energy to carbon-based liquid fuel has potential to provide portable energy storage usable by the large existing stock of motor vehicles and other engine-driven equipment, without the difficulties of dealing with hydrogen or another exotic energy carrier. These synthetic pathways may attract attention in connection with attempts to improve energy security in nations that rely on imported petroleum, but have or can develop large sources of renewable or nuclear electricity, as well as to deal with possible future declines in the amount of petroleum available to import.

Because the transport sector uses the energy from petroleum very inefficiently, replacing petroleum with electricity for mobile energy will not require very large investments over many years.

Reliability

Virtually all devices that operate on electricity are adversely affected by the sudden removal of their power supply. Solutions such as UPS (uninterruptible power supplies) or backup generators are available, but these are expensive. Efficient methods of power storage would allow for devices to have a built-in backup for power cuts, and also reduce the impact of a failure in a generating station. Examples of this are currently available using fuel cells and flywheels.

Distributed cognition

From Wikipedia, the free encyclopedia

Distributed cognition is an approach to cognitive science research that was developed by cognitive anthropologist Edwin Hutchins during the 1990s.

From cognitive ethnography, Hutchins argues that mental representations, which classical cognitive science held that are within the individual brain, are actually distributed in sociocultural systems that constitute the tools to think and perceive the world. Thus, a native of the Carolina Islands can perceive the sky and organize his perceptions of the constellations typical of his culture (the groupings of stars are different than in the traditional constellations of the West) and use the position of the stars in the sky as a map to orient himself in space while sailing overnight in a canoe.

According to Hutchins, cognition involves not only the brain but also external artifacts, work teams made up of several people, and cultural systems for interpreting reality (mythical, scientific, or otherwise).

Distributed cognition theory is part of the interdisciplinary field of embodied cognitive science, also called embodied cognition.

Hutchins' distributed cognition theory influenced philosopher Andy Clark, who shortly after proposed his own version of the theory, calling it "extended cognition" (see, for example, the paper The Extended Mind).

Hutchins' distributed cognition theory explains mental processes by taking as the fundamental unit of analysis "a collection of individuals and artifacts and their relations to each other in a particular work practice".

"DCog" is a specific approach to distributed cognition (distinct from other meanings) which takes a computational perspective towards goal-based activity systems.

The distributed cognition approach uses insights from cultural anthropology, sociology, embodied cognitive science, and the psychology of Lev Vygotsky (cf. cultural-historical psychology). It emphasizes the ways that cognition is off-loaded into the environment through social and technological means. It is a framework for studying cognition rather than a type of cognition. This framework involves the coordination between individuals, artifacts and the environment.

According to Zhang & Norman (1994), the distributed cognition approach has three key components:

  1. Embodiment of information that is embedded in representations of interaction
  2. Coordination of enaction among embodied agents
  3. Ecological contributions to a cognitive ecosystem

DCog studies the "propagation of representational states across media". Mental content is considered to be non-reducible to individual cognition and is more properly understood as off-loaded and extended into the environment, where information is also made available to other agents (Heylighen, Heath, & Overwalle, 2003). It is often understood as an approach in specific opposition to earlier and still prevalent "brain in a vat" models which ignore "situatedness, embodiment and enaction" as key to any cognitive act (Ibid.).

These representation-based frameworks consider distributed cognition as "a cognitive system whose structures and processes are distributed between internal and external representations, across a group of individuals, and across space and time" (Zhang and Patel, 2006). In general terms, they consider a distributed cognition system to have two components: internal and external representations. In their description, internal representations are knowledge and structure in individuals' minds while external representations are knowledge and structure in the external environment (Zhang, 1997b; Zhang and Norman, 1994).

DCog studies the ways that memories, facts, or knowledge is embedded in the objects, individuals, and tools in our environment. DCog is a useful approach for designing the technologically mediated social aspects of cognition by putting emphasis on the individual and his/her environment, and the media channels with which people interact, either in order to communicate with each other, or socially coordinate to perform complex tasks. Distributed cognition views a system of cognition as a set of representations propagated through specific media, and models the interchange of information between these representational media. These representations can be either in the mental space of the participants or external representations available in the environment.

These interactions can be categorized into three distinct types of processes:

  1. Cognitive processes may be distributed across the members of a social group.
  2. Cognitive processes may be distributed in the sense that the operation of the cognitive system involves coordination between internal and external (material or environmental) structure.
  3. Processes may be distributed through time in such a way that the products of earlier events can transform the nature of related events.

Early research

John Milton Roberts thought that social organization could be seen as cognition through a community (Roberts 1964). He described the cognitive aspects of a society by looking at the present information and how it moves through the people in the society.

Daniel L. Schwartz (1978) proposed a distribution of cognition through culture and the distribution of beliefs across the members of a society.

In 1998, Mark Perry from Brunel University London explored the problems and the benefits brought by distributed cognition to "understanding the organisation of information within its contexts." He considered that distributed cognition draws from the information processing metaphor of cognitive science where a system is considered in terms of its inputs and outputs and tasks are decomposed into a problem space. He believed that information should be studied through the representation within the media or artifact that represents the information. Cognition is said to be "socially distributed" when it is applied to demonstrate how interpersonal processes can be used to coordinate activity within a social group.

In 1999, Gavriel Salomon stated that there were two classes of distributive cognition: shared cognition and off-loading. Shared cognition is that which is shared among people through common activity such as conversation where there is a constant change of cognition based on the other person's responses. An example of off-loading would be using a calculator to do arithmetic or a creating a grocery list when going shopping. In that sense, the cognitive duties are off-loaded to a material object.

Later, John Sutton (2006) defined five appropriate domains of investigation for research in Dcog:

  1. External cultural tools, artifacts, and symbol systems.
  2. Natural environmental resources.
  3. Interpersonal and social distribution or scaffolding.
  4. Embodied capacities and skills.
  5. Internalized cognitive artifacts.

Theory

In ontogenesis, the first act of the mental representation distribution succeeds in the mother-child dyad that constitutes in the child the tools to think and perceive the world. Based on evidence in hyperscanning research and psychophysiological research studies, Research Professor Igor Val Danilov developed the Shared intentionality notion first introduced by Professor of psychology Michael Tomasello. According to the hypothesis, the mother distributes the mental representation to the child to teach the young nervous system how to respond to environmental changes correctly. Due to this ecological learning, the child grasps the perception of objects and begins to cognize the environment at the simple reflexes stage of development without communication and abstract thinking. According to Igor Val Danilov, Shared intentionality switches on cognition in the child beginning from the embryonal period.

Applications

The application area of DCog is systems design and implementation in specific work environments. Its main method is field research, going into the workplace and making rigorous observations, e.g. through capturing work performances with video, studying and coding the recorded activities using qualitative research methods to codify the various ways in which cognition is distributed in the local environment, through the social and technical systems with which the workers engage.

Distributed cognition as a theory of learning, i.e. one in which the development of knowledge is attributed to the system of thinking agents interacting dynamically with artifacts, has been widely applied in the field of distance learning, especially in relation to computer-supported collaborative learning (CSCL) and other computer-supported learning tools. For example, in the field of teaching English Composition, Kevin LaGrandeur has argued that CSCL provides a source of common memory, collaborative space, and a cognitive artifact (tool to enhance cognition) that allows students to more easily build effective written compositions via explicit and implicit machine-human collaboration. Distributed cognition illustrates the process of interaction between people and technologies in order to determine how to best represent, store and provide access to digital resources and other artifacts.

Collaborative tagging on the World Wide Web is one of the most recent developments in technological support for distributed cognition. Beginning in 2004 and quickly becoming a standard on websites, collaborative tagging allows users to upload or select materials (e.g. pictures, music files, texts, websites) and associate tags with these materials. Tags can be chosen freely, and are similar to keywords. Other users can then browse through tags; a click on a tag connects a user to similarly tagged materials. Tags furthermore enable tag clouds, which graphically represent the popularity of tags, demonstrating co-occurrence relations between tags and thus jump from one tag to another.

Dcog has also been used to understand learning and communication in clinical settings and to obtain an integrated view of clinical workplace learning. It has been observed how medical actors use and connect gestural practices, along with visual and haptic structures of their own bodies and of artifacts such as technological instruments and computational devices. In so doing they co-construct complex, multimodal representations that go beyond the mental representations usually studied from a cognitive perspective of learning.

Distributed cognition can also be seen through cultures and communities. Learning certain habits or following certain traditions is seen as cognition distributed over a group of people. Exploring distributed cognition through community and culture is one way to understand how it may work.

With the new research that is emerging in this field, the overarching concept of distributed cognition enhances the understanding of interactions between individual human beings and artifacts such as technologies and machines, and complex external environments. This concept has been applied to educational research in the areas of distributed leadership and distributed instruction.

Distributed cognition between internal and external processing has also been used to study problem-solving and Bayesian reasoning. For example, it has been observed that the use of external manipulable materials such as cards and tokens can help improve performance and reduce cognitive bias such as the base-rate fallacy, even among adult problem-solvers, as long as they physically interact with these artefacts. It has also been reported that interacting with tokens can reduce the impact of mathematical anxiety on mental calculation performance and supports insight although the evidence is mixed with regards to the impact of distributing cognition between internal and external processing with regards to insight.

Metaphors and examples

Distributed cognition is seen when using paper and pencil to do a complicated arithmetic problem. The person doing the problem may talk with a friend to clarify the problem, and then must write the partial answers on the paper in order to be able to keep track of all the steps in the calculation. In this example, the parts of distributed cognition are seen in:

  • setting up the problem, in collaboration with another person,
  • performing manipulation/arithmetic procedures, both in one's head and by writing down resulting partial answers.

The process of working out the answer requires not only the perception and thought of two people, it also requires the use of a tool (paper) to extend an individual's memory. So the intelligence is distributed, both between people, and a person and an object.

Another well-researched site for analyzing distributed cognition and applying the discovered insights towards the design of more optimal systems is aviation, where both cockpits and air traffic control environments have been studied as scenes that technologically and socially distribute cognition through systems of externalized representational media. It is not the cognitive performance and expertise of any one single person or machine that is important for the continued operation or the landing and takeoff of airplanes. The cognition is distributed over the personnel, sensors, and machinery both in the plane and on the ground, including but not limited to the controllers, pilots and crew as a whole.

Hutchins also examined another scene of distributed cognition within the context of navigating a US navy vessel. In his book on USS Palau, he explains in detail how distributed cognition is manifested through the interaction between crew members as they interpret, process, and transform information into various representational states in order to safely navigate the ship. In this functional unit, crew members (e.g. pelorus operators, bearing takers, plotters, and the ship's captain) play the role of actors who transform information into different representational states (i.e. triangulation, landmark sightings, bearings, and maps). In this context, navigation is embodied through the combined efforts of actors in the functional unit.

In his study on process, representation and task world, Mark Perry demonstrated how distributed cognition analysis can be conducted in a field study. His example was design analysis in Civil engineering. In this work, he showed how an information processing approach can be applied by carrying a detailed analysis of the background of the study - goals and resources, inputs and outputs, representations and processes, and transformational activity, "how information was transformed from the design drawings and site onto tables of measurements (different representations)" and then onto "a graphical representation" which provided a clearer demonstration of the relationship between the two data sets.

Quotes

On educational psychology:

People think in conjunction and partnership with others and with the help of culturally provided tools and implements.

— Salomon, 1997 p. xiii

On cognitive science:

Nervous systems do not form representations of the world, they can only form representations of interactions with the world.

The emphasis on finding and describing "knowledge structures" that are somewhere "inside" the individual encourages us to overlook the fact that human cognition is always situated in a complex sociocultural world and cannot be unaffected by it.

— Hutchins, 1995 p. xiii

Smart village

From Wikipedia, the free encyclopedia

Concept of smart villages is a global modern approach for off-grid communities. Vision behind this concept is to assist the policy makers, donors and socio-economic planner for rural electrification worldwide.

The concept has received much attention in the context of Asian and African countries, although it is also found in other parts of the world such as Europe. Smart villages concept is engaged in efforts to combat the real barriers to energy access in villages, particularly in developing countries with technological, financial and educational methodology. A major focus of smart villages is the adoption of renewable resource in place of fossil fuel, which is seen as the best approach that can be developed through off-grid systems or communities.

Off-grid systems and off-grid communities

The term “Off-grid” itself is very broad and simply refers to "not using or depending on electricity provided through main or national grids and generated by main power infrastructures. The term is also used to describe a particular lifestyle which is embodied by autonomous structures. Off-grid systems have a semi or autonomous capability to satisfy electricity demand through local power generation. The term off-grid systems cover both mini-grids for serving multiple users and stand-alone systems for individual appliance or users. In spite witnessing use of fossil fuel for power generation by mini or individual off-grid system, it is broadly defined that off-grid systems are actually based on renewable energy resources. The terms "micro-grid, nano-grid and pico-grid are used to differentiate different kinds of mini-grids with size thresholds under off-grid approach.

Access to un-interrupted and low cost electricity for socio-economic development is an important requirement. There is a universal demand of grid-based and off-grid solutions to ensure access to electricity all over the world, without off-grid approach increasing demand and decreasing supply cannot be stabilized for the mankind on this planet.

About 80% of world's population live in rural areas and majority of these people do not have access to electricity. Due to lack of employment people from rural areas migrate to urban areas where they find employment opportunities much easily because of industrial infrastructure established primarily on availability of electricity. International Renewable Energy Agency (IRENA) power generation projects based on renewable energy technology at low cost are the attractive option for off-grid electrification in most of the rural areas of Asian countries. Its work will satisfy the rural electricity demand and provide employment opportunities to minimize the rapid urbanization.

ICT Village Model

The ICT Village model stems from the need to provide technologies and services to the most disadvantaged communities to enable them to promote their own development. The replicable model of ICT Village focuses on three types of intervention: i) ensuring an education to young people aimed at enhancing local resources and creating jobs; ii) ensuring a basic level of health; iii) providing internet access to the whole community to strengthen its capacity for socio-economic development.

The ICT Village model, developed and launched by OCCAM, The Observatory on Digital Communication has had a large echo, influencing deeply different levels of the society: the model has even been cited by the USSTRATCOM Global Innovation and Strategy Center in one of its document concerning the Village Infrastructure Kit-Alpha (VIKA).

ICT Village in Honduras: The Solar Village

The first ICT village project was carried out in 1999 in Honduras, hit by the devastating hurricane Mitch. With the support of UNESCO, the INFOPOVERTY PROGRAMME, the Organization of American States (OEA), the Ministry of Science and Technology (COHCIT) and the local University (UCyT) and the main international organization, it was possible to implement two projects initially called Solar Village in the communities of San Ramon and San Francisco de Lempira. Thanks to the use of solar panels and the first satellite equipped for the Internet of OnSatNet, the supply of electricity was guaranteed, and a connection to 108 mb / sec, a real record for the time, able to provide more than 30,000 people the first e-learning and telemedicine services provided, allowing the population to use these new technologies advantageously and to connect to the rest of the world through e-commerce and e-government initiatives.

ICT Village in Tunisia: Borji Ettouil

Presented and discussed in several Infopoverty World Conferences, held annually at the United Nations Headquarters in New York, the model is proposed to the Government of Tunisia for an experimentation in the village of Borji Ettouil at the WSIS Summit in November 2003. The success of this WSIS - ICT Village - supported by the National Solidarity Fund and visited by numerous government delegations and personalities, who appreciated the operational applications of telemedicine, e-learning and internet community access - allows validating their effectiveness and opens the doors to numerous invitations to replicate it over the years in various countries, including Peru, Ethiopia, Dominican Republic, Lesotho, Tunisia, Ghana, South Lebanon, Navajo Nation, Madagascar.

ICT Village in Lebanon: Meiss al-Jabal

In particular, in the village of Meiss al-Jabal, in South Lebanon, born from a collaboration with Staffan de Mistura, High Representative of the UN Secretary General in the region, as a support action for the refugee communities, it was provided with two digitized classrooms, satellite connection and various specialized devices for remote consultation and assistance services, obtaining a rapid professionalization of the students, to offer them hope for the future. Unfortunately, with the War in Lebanon in 2006, many villages have been destroyed, including Meiss al-Jabal. Moreover, OCCAM promoted the birth of the Beirut Film Festival with the Ministry of Culture and the International Council for Film Television and Audiovisual Communication, and the reconstruction of the National Film Archive to make a contribution to the UN Peacekeeping action.

John Shirley, at that time, President of the Navajo Nation, at the WSIS - Tunis, 2005, where he announced the birth of the Navajo Nation Portal.

ICT Village and Navajo Nation

John Shirley, at that time, President of the Navajo Nation, at the World Summit on the Information Society, organized by the ITU in Tunis, 2005, where he announced the birth of the Navajo Nation Portal. Another important project is the Navajo Nation Portal, announced in 2005 during the intervention at the WSIS in Tunis by John Shirley, president of the Navajo Nation co-signatory of the Memorandum of understanding with ITU and OCCAM, for the development of digitalization in indigenous populations, which sees the creation in many pueblos of access and training centers.

ICT Village in Madagascar: The UN Millennium Village of Sambaina

A longlasting project is the ICT Village of Sambaina, born also thanks to the support of the then President of the Malgasy Republic S.E. Marc Ravalomanana.

Here the project has been developed focusing on:

2006, Jeffrey Sachs with Pierpaolo Saporito, president of OCCAM and the Permanent Representative of Madagascar to the United Nations, Zina Andrianarivelo at the Sambaina ICT Village. In this occasion Sambaina was proclaimed Millennium Village by Jeffrey Sachs.

• telemedicine, with the establishment of a new digitalized health unit, especially on maternal care, achieving a reduction in pre-postpartum and early childhood mortality,

• e-learning, with classes equipped with computers and other digital devices and courses.

• center for internet access for the population of the district.

All the vast territory, after a first satellite coverage provided by Eutelsat / Skylogic, was connected in broadband using the state frequencies, so that hospitals, schools, municipalities, operated without charges, stating the principle, then decided in UNGAID, that public services must be able to take advantage of public broadband networks.

Sambaina soon arouses international attention, including the visit of Jeffrey Sachs, director of the UN Millennium Project and Special Advisor of the Secretary General Kofi Annan, who proclaimed him in 2006 the first and only one of its kind, Millennium Village towards which both UNDP and the Millennium Challenge Corporation USA will launch support programs.

The Ville Village Project

In support of Sambaina and the other ICT Village, OCCAM launched the Ville Village Project in 2005 to encourage direct collaboration  between communities in developing countries and cities in advanced countries, which have greatly encouraged the integration in the perspective of mutual cultural and social enrichment and in order to optimize the resources put in place by both local authorities and NGOs in development cooperation projects.

The first Ville-Village realization was ratified with the agreement signed by the Ambassador of Madagascar in Italy, H.E. Jean Pierre Razafi, on 4 December 2008, and the mayor of Lodi Lorenzo Guerini, Within this initiative the city of Lodi has been selected to better employ the features of its territory, such as the Padano Technology Park, the Hospital (already active in the telemedicine sector) and the NGOs operating in its territory. Innovative digital development service centers have also been created, focusing on e-phytopathology, and e-veterinary.

The ICT Village in Lesotho: Mahobong

The ICT Village of Mahobong, in Lesotho, experimented in 2007 the Digital Services Global Platform, both in the field of Food Security with applications of e-phytopathology and parasitology and of telemedicine, through a new ultrasound device, which allow remote ultrasounds suitable for prevent pre- and post-natal mortality and assist emergency interventions. The project realized by OCCAM in collaboration with the Department of Protection of Agrifood and Urban Systems and Biodiversity Valorization of the University of Milan and with the International Telemedicine Institute (IITM), supported by the Municipality of Milan, has allowed to export knowledge in the field of cultivation and protection of plants and food and limit production losses caused to production, giving considerable development to the communities involved.

Smart villages in Asia

According to a publication written for the International Finance Corporation (IFC) in 2012, Asia has the largest off-grid population in the world, with 55% of the global off-grid population, and 798 million people having no access to electricity. As per estimates about 700 million or 90% were located in rural Asia. However, research studies reveal that South Asian and Sub-Saharan African countries have been unable to expand their electrification rate. Whereas electrification progress in regions such as Latin America and East Asia (China) indicates a rapid growth. Central Asian countries are blessed with sufficient resources and export their extra electricity to neighboring countries.

Electrification is highly desired by all rural communities. Different international, national and local organizations use different indicators for measuring and reporting mini-grids or stand-alone systems. South Asian countries have been focusing on off-grid electrification of current trend for Rural Electrification (RE) at regional level. India, Bangladesh, Sri Lanka and Nepal have shown good results for RE through off-grid communities.

Eastern Asia/East Asia

About 38% of the population of Asia and 22% in the world, live in East Asia.

 Japan Public confidence in safety of nuclear power was greatly damaged by the Fukushima Daiichi nuclear disaster, consequently Off-grid concept was applied more conveniently in Japan. Alternative energy technologies have become standard in newly constructed homes. Sekisui House Ltd, a famous Japanese house building firm pointed out that 80% of single-family homes were constructed with alternative energy technology such as solar panels and fuel cells. Reflecting the nation's mood, Executive Director of Sekisui Company states that "If you’re going to use electricity, you might as well make it yourself".

 South Korea In June, 2015 Smart Villages (New thinking for off-grid communities worldwide) has conducted a workshop in Seoul to familiarize the people of South Korea about the fast evolving technology moving towards off-grid communities and its support for bright ideas and entrepreneurial efforts in the field of rural energy access.

Wind farm in Xinjiang, China

 China According to IRENA report China in 2013, besides wind farms, had roughly 60,000 diesel and hydro mini-grid systems, most of them connected to the centralized grid. It has further installed 118 GW of solar Photovoltaics systems, of which 500 MW was installed in off-grid systems.

 Malaysia Acknowledging Solar as green technology, Malaysia has been encouraging solar power for rural electrification and reaffirmed its support of research into off-grid electricity through alternate energy. Malaysian Government also considering potential of smart villages and each village would differ according to the needs of its population.

 Indonesia People of Indonesia living in rural areas have been facing low electrification and using fossil fuel for power supply. Additionally many remote communities still lack access to any power at all with little expectation of being supplied on-grid power by the state-owned electricity company (PLN). In the recent past Indonesian government has initiated a properly developed, constructed and sustainable community-owned renewable energy plan to raise the quality of life in rural communities, and under this project plants should be owned, managed and maintained by the rural communities. In 2013 EnDev Indonesia was awarded first prize in the category “Community-based Off-grid”, with its project on micro-hydro power in Lembah Derita, Sumatra Barat.

 Philippines With more than 2,000 inhabited islands, it is difficult in Philippines to extend electrical grid to communities in remote areas. In a documentary presentation, CEO of Hybrid Social Solutions Inc. indicated distribution of solar products that have been delivered to poor communities across the Philippines with a future plan of building an ecosystem to support standalone solar energy devices for use by the rural communities. They have also considered it essential to ensure the sustainability and future growth in remote areas with community based solar projects.

 North Korea has been focusing on modern technologies for overcoming its chronic energy shortage. Utilization of alternative energy sources in place of fossil fuel consumption is being considered to satisfy the socio-economic requirements of its people.

Western Asia/West Asia and Middle East

Geographical marking in the Western Asia consists of 19 countries/territorial states. 5 countries of Asia from this region hold strong financial stability and resources for social development. In this region three countries, According to population demography Turkey, Iraq and Yemen stand at 10th, 13th and 20th position respectively.

 Turkey With a substantial potential for the renewable energy resources, Turkey holds seventh position in the world (and first in Europe) in terms of geothermal energy. It has also planned to further increase its hydro, wind and solar energy resources. Turkey envisages producing 30% of its electricity need from the renewable by 2023.

 Iraq Ten years after the war, the power supply was short of demand. But in April, 2013 Oil Ministry of Iraq highlighted its plan stating that: "By the end of 2013, the crisis will be over for households with supply of electricity around the clock across the country. By the end of 2014, Iraq would have met industrial demand as well”. However, political instability and role of terrorism by the terrorists in Iraq reliable and neutral assessment is still a hard job.

 Yemen Prior to Saudi Arabian-led intervention in Yemen in Yemen, energy and power supply scenario reveals that 93% Yemenis rural population was using gas canisters as their primary source of fuel. They also spent 55% of their income on food, water and energy. Power supply, where available, comes from government-run plants, the majority of which run on diesel. New capacity additions were slow with poor transmission network

Northern Asia

 Russia Covers largest part of Asia with a 17,098,242 km2 area in the Northern sub-region of Asia. Russia is the world's fourth largest electricity producer after the United States, China, and Japan. Russia exports electricity to countries e.g. Latvia, Lithuania, Poland etc. However, import and export reversal has also been reported due to cost of production.

South Asia

 Afghanistan With its insufficient power supply infrastructure covers its electricity demand through import from electricity-exporting countries i.e. Uzbekistan, Tajikistan, Turkmenistan and Iran, these countries mostly sell their surplus electricity to Afghanistan. Above 4 billion US dollars have so far been disbursed to build power supply infrastructure in Afghanistan but deficiencies not only to its rural/remotes areas but country's capital needs more considerable help from developed countries for supply of electrification to whole Afghanistan One of the largest solar power project funded at a cost $18 by the government of New Zealand has started functioning for supply of energy to 2,500 households, businesses and government buildings in central Bamyan Province of Afghanistan.

 Bangladesh According to a World Bank document, about 62% of Bangladesh's population had access to electricity in 2013, indicating 90% and 43% wide disparity between urban and rural areas. Bangladesh while standing at 134th out of 144 countries on the quality of electricity supply, Renewable Energy for Rural Economic Development (RERED) Project sought to raise levels of social development and economic growth by increasing access to electricity in rural areas. Under REFED notable contribution to social and economic outcomes in rural areas by extending access to electricity through off-grid Solar Home Systems (SHS), has been witnessed and noted with significant increase in Household appliances. The World Bank report envisaged that Off-grid systems can accelerate the benefits of “lighting” in a cost-effective manner, to populations that face uncertain waiting periods for grid-based electricity, or are unlikely to obtain grid-based electricity due to remote or inaccessible locations. Report also focus the role of off-grid communities based on public-private partnership model for off-grid electricity services to the deprived population of Bangladesh.

 India With mini-grids and off-grid applications, India is a leading country. The Jawaharlal Nehru National Solar Mission (JNNSM) is its main policy initiative to promote solar energy, including off-grid power development. International Finance Corporation (IFC) and the World Bank collaborate with various stakeholders for global off-grid lighting market for reliable electricity to people who have no access to national grids. A neutral, independent, not for profit association called Global Off-Grid Lighting Association (GOGLA) was conceived out of a joint World Bank/IFC Lighting Africa and private sector effort in 2012. India is the first Asian lighting programs for IFC. Lighting Asia/India program was planned to enable access of two million rural Indians to off-grid lighting solutions by 2015. The program is designed with a series of interventions to alter market behavior by removing specific barriers, for example, the market spoilage created by poor products, lack of information on quality products and on distribution channels, lack of financing for companies and consumers, lack of awareness that quality solar appliances are affordable and viable.

Solar cells

India's first smart village has been developed by Eco Needs Foundation at Dhanora village of Rajasthan. The concept is prepared by Prof. Priyanand Agale, Dr. Satyapal Singh Meena an officer of Indian Revenue Service (IRS) also copyrights of smart village is on the name of Prof.Priyanand Agale ,Dr.Satyapal Singh Meena and Mr. Attdeep Agale. This concept consists of five elements Retrofitting, Redevelopment, Greenfield, e-Pan and Livelihood. Under the project of smart village the Foundation is adopting villages and putting efforts for sustainable development by providing basic amenities like sanitation, safe drinking water, internal road, tree plantation, water conservation. The Foundation is also working for inculcating moral values in the society and for improving the standard of living of the villagers. The Foundation has developed Village Dhanora, Teh. Bari, District Dholpur, one of the remotely situated village of Rajasthan as India's First Smart Village. The village is situated 30 km away from Dholpur district headquarter and 248 km from Jaipur city, Capital of Rajasthan State of India. The population of the village was nearly about 2000 having no sanitation facility, potable water facility, which were adversely causing the health of the villagers. The internal roads are also not there and it causes great hardship to the people especially in rainy season. Owing to unawareness and non-availability of sanitation facility and toilets the people of the village use to go open for defecation. There are other problems also which villagers were facing such as Fluoride concentration in drinking water, No water conservation System, Encroachment on the roads, Electrical power fluctuation No outcome base education, Unemployment and poverty. ProF. Priyanand Agale Founder, president of Foundation and Dr. Satyapal Singh Meena officer of the Indian Revenue service has converted this village as India's first Smart Village and now Dhanora has become a role model of Rural Development. Following are the major success achieved within a short span of two years of the project and project is still underway:

  1. Construction of 822 toilets in the Panchayat area with the help of district administration and public participation accordingly, the Dhanora Gram Panchayat has been declared as the first “Open Defecation Free” (ODF) Panchayat by District Administration.
  2. Village Dhanora become India's first village having sewerage line with treatment plant. The Foundation has laid down nearly 2 km long sewerage line of diameter 450 mm in the village. Each of the toilets of Dhanora village have been connected to sewerage line with inspection chambers.
  3. Construction of nearly 2 km long cement concrete internal roads constructed with 3.5 m to 4.5 m width with high quality.
  4. Construction of eight Percolation tank connecting with nearly 2.5 km artificial channel of 10 feet in width and 10 feet in depth for water conservation and ground water recharge with public participation and with the help of government having groundwater recharge capacity of 97.49 Million liters in one time recharge, which will provide irrigation facility to farms of the village and nearby villages resulting into economic growth of farmers.
  5. The work of the removal of encroachments and road widening has been completed without using any police force. Now the whole village is having motorable road in the village.
  6. Construction of nearly 2 km approach road at Dhodekapura village of the Dhanora Panchayat, which was not done in last 65 years.
  7. The police Administration is going to declare the village as “APRADH MUKKTA GAON” (Crime Free Village), no case or FIR in Police Station.
  8. village Dhanora has been converted into an Art gallery. The paintings in the village are spreading social awareness among villagers
  9. The foundation stone for community centre and information centre has been laid down, work under progress. Work of solar street light, skill development centre, library, meditation centre, sport complex, Wi-Fi facility, and community toilet will be taken up in due course of time and as per availability of funds.

 Maldives President of Maldives has already launched an initiative to make the Maldives a solar power stronghold to provide rooftop solar panels in the rural and remote areas of the country. Under this project together with a plan to achieve carbon neutral Maldives by 2020, first solar energy panels was installed in one of the school in Villimale district of Male that accompanied the inauguration of the project. However, Maldives needs more concentration over electrification demand of its people especially in rural and remote areas.

   Nepal Hydro power and solar resources are sufficient enough to satisfy the electricity demand of the Nepal. However, most of the country's current energy needs are met with inefficiently used biomass, including firewood (75%), agricultural residues (4%) and animal waste (6%). The rest is met by commercial sources, including petroleum, coal and electricity. Only about 12 percent of the country's population uses electricity derived from water, wind or sun.In Nepal above 50% households mostly in urban or semi-urban areas are connected to the national grid. Its 80% population is rural. Government of Nepal has launched National Rural and Renewable Energy Program in 2012 with subsidize strategy in an attempt to electrify long-deprived areas. Per Nepal Living Standard Survey 2011 estimates 96% urban 63% rural population has access to electricity. With a total capacity of 107 kW, Nepal's first mini-grid of its kind was set up in 2012 connecting the micro-hydro plants in Rangkhani, Paiyuthanthap, Sarkuwa and Damek. Besides UNDP is encouraging to put the community at the center of the planning, installing, and operating processes of micro-hydro plants.

Jhimpir Wind Farm

 Pakistan Geographically is located to a place where exploitation of solar energy is most conducive, as it is 6th country in the world in terms of solar irradiance where sunshine availability is 8 to 10 hours per day in its most parts. Mini wind farming projects (1-50 kWatts) along with small solar farms scattered over remote inaccessible areas. Use of solar energy in rural villages of Pakistan with solar panels is growing on off-grid concept with increasing community systems. The Aga Khan Rural Support Programme and the Sarhad Rural Support Programme (through Programme for Economic Advancement and Community Empowerment) have been encouraging village organizations to promote and establish community based micro hydro power projects across Khyber Pakhtunkhwa, Gilgit–Baltistan, Federally Administered Tribal Areas and Azad Jammu and Kashmir districts and villages. Both Rural Support Programmes have received the Ashden Award in this regard. The Khyber Pakhtunkhwa Government has also decided to increase the number of micro hydropower generation projects to 1000, with total power generation capacity of 100 megawatts (MW). There are several barriers that are keepng Pakistan from nationwide off grid electrification, in spite of enough wind, water and sun to poweroff grid communities in Pakistan but the rate of conversion from no energy to alternative energy remains slow. As per World Bank Study, almost 44% of Pakistani households have no access to grid based electricity. 80% of this deprived population resides in remote and rural areas.

900MW Lakvijaya Power Station

 Sri Lanka Off-grid electrification schemes are still operating in Sri Lanka in spite 89% systematic grid expansion projects carried out by the Sri Lankan government to national grid. Most of the Village Hydro Schemes (VHS) in Sri Lanka are aided by RERED project funded by World Bank and Global Environment Facility (GEF) these initiatives have established 100-150 Village Hydro Schemes in the country with capacities ranging from 3-50 kW. However, off-grid generation is a diminishing component on the supply side. This is a result of the fast expanding national grid, which now serves more than 90% of all homes.

Awareness competitions in India and Pakistan

Access to reliable and uninterrupted electricity is a chronic demand in villages all over the world. The best solution for overcoming this problem is utilization of alternative energy with modern advancement with implementation of off-grid system.

India

In India competition[73] for all enthusiastic entrepreneurs, individuals and organizations running energy access programmes and businesses in rural villages in India has also been launched and is about to close in November-2015. The participants were asked to highlight close sustainable examples where off-grid system is being practiced providing a platform for "energy entrepreneurs" to discuss the ways for achieving off-grid systems. This competition has also good rewards for successful winners i.e. Cash Prize of I million Indian Rupees, a trip to world Sustainable Development Forum to showcase their business on the main stage, etc.

Pakistan

Pie chart of survey conducted by a female student of Aga Khan Higher Secondary School.

In Pakistan the Agha Khan University Examination Board in October-2015 launched a "Poster Competition" with the title "when ideas flow villages grow" as an initiative to introduce the idea of Smart Villages among young students and to evaluate best measures for its implementation.The most outstanding poster presentation from across the country will get a chance to visit the University of Cambridge, UK, besides other good prizes.

A female student of Aga Khan Higher Secondary School, one of the participant of the competition conducted the survey from her home place to villagers in remote areas by making connections with them through social media and cellular phones. According to her survey 50% of the people were found not satisfied with the rural electrification rate of PEPCO and other power distribution companies. They also believe that off grid system is now a need for the villages of Pakistan. Majority of the people were in favor of installing solar panels and wind turbines for energy generation in remote areas of Pakistan to boost up the development in energy sector of the country.

Smart villages in Europe

The concept of smart villages has been discussed in the European context, for example with regards to some communities in Czech Republic, Montenegro and Poland. For example, some offshoots of the European Youth Parliament are going to debate the topic as a part of a debate on regional development.

Analytics

From Wikipedia, the free encyclopedia

Analytics is the systematic computational analysis of data or statistics. It is used for the discovery, interpretation, and communication of meaningful patterns in data. It also entails applying data patterns toward effective decision-making. It can be valuable in areas rich with recorded information; analytics relies on the simultaneous application of statistics, computer programming, and operations research to quantify performance.

Organizations may apply analytics to business data to describe, predict, and improve business performance. Specifically, areas within analytics include descriptive analytics, diagnostic analytics, predictive analytics, prescriptive analytics, and cognitive analytics. Analytics may apply to a variety of fields such as marketing, management, finance, online systems, information security, and software services. Since analytics can require extensive computation (see big data), the algorithms and software used for analytics harness the most current methods in computer science, statistics, and mathematics. According to International Data Corporation, global spending on big data and business analytics (BDA) solutions is estimated to reach $215.7 billion in 2021. As per Gartner, the overall analytic platforms software market grew by $25.5 billion in 2020.

Analytics vs analysis

Data analysis focuses on the process of examining past data through business understanding, data understanding, data preparation, modeling and evaluation, and deployment. It is a subset of data analytics, which takes multiple data analysis processes to focus on why an event happened and what may happen in the future based on the previous data. Data analytics is used to formulate larger organizational decisions.

Data analytics is a multidisciplinary field. There is extensive use of computer skills, mathematics, statistics, the use of descriptive techniques and predictive models to gain valuable knowledge from data through analytics. There is increasing use of the term advanced analytics, typically used to describe the technical aspects of analytics, especially in the emerging fields such as the use of machine learning techniques like neural networks, decision trees, logistic regression, linear to multiple regression analysis, and classification to do predictive modeling. It also includes unsupervised machine learning techniques like cluster analysis, Principal Component Analysis, segmentation profile analysis and association analysis.

Applications

Marketing optimization

Marketing organizations use analytics to determine the outcomes of campaigns or efforts, and to guide decisions for investment and consumer targeting. Demographic studies, customer segmentation, conjoint analysis and other techniques allow marketers to use large amounts of consumer purchase, survey and panel data to understand and communicate marketing strategy.

Marketing analytics consists of both qualitative and quantitative, structured and unstructured data used to drive strategic decisions about brand and revenue outcomes. The process involves predictive modelling, marketing experimentation, automation and real-time sales communications. The data enables companies to make predictions and alter strategic execution to maximize performance results.

Web analytics allows marketers to collect session-level information about interactions on a website using an operation called sessionization. Google Analytics is an example of a popular free analytics tool that marketers use for this purpose. Those interactions provide web analytics information systems with the information necessary to track the referrer, search keywords, identify the IP address, and track the activities of the visitor. With this information, a marketer can improve marketing campaigns, website creative content, and information architecture.

Analysis techniques frequently used in marketing include marketing mix modeling, pricing and promotion analyses, sales force optimization and customer analytics e.g.: segmentation. Web analytics and optimization of websites and online campaigns now frequently work hand in hand with the more traditional marketing analysis techniques. A focus on digital media has slightly changed the vocabulary so that marketing mix modeling is commonly referred to as attribution modeling in the digital or marketing mix modeling context.

These tools and techniques support both strategic marketing decisions (such as how much overall to spend on marketing, how to allocate budgets across a portfolio of brands and the marketing mix) and more tactical campaign support, in terms of targeting the best potential customer with the optimal message in the most cost-effective medium at the ideal time.

People analytics

People analytics uses behavioral data to understand how people work and change how companies are managed.

People analytics is also known as workforce analytics, HR analytics, talent analytics, people insights, talent insights, colleague insights, human capital analytics, and HRIS analytics. HR analytics is the application of analytics to help companies manage human resources. Additionally, HR analytics has become a strategic tool in analyzing and forecasting Human related trends in the changing labor markets, using Career Analytics tools. The aim is to discern which employees to hire, which to reward or promote, what responsibilities to assign, and similar human resource problems. For example, inspection of the strategic phenomenon of employee turnover utilizing People Analytics Tools may serve as an important analysis at times of disruption.  It has been suggested that People Analytics is a separate discipline to HR analytics, representing a greater focus on business issues rather than administrative processes, and that People Analytics may not really belong within Human Resources in organizations. However, experts disagree on this, with many arguing that Human Resources will need to develop People Analytics as a key part of a more capable and strategic business function in the changing world of work brought on by automation. Instead of moving People Analytics outside HR, some experts argue that it belongs in HR, albeit enabled by a new breed of HR professional who is more data-driven and business savvy.

Portfolio analytics

A common application of business analytics is portfolio analysis. In this, a bank or lending agency has a collection of accounts of varying value and risk. The accounts may differ by the social status (wealthy, middle-class, poor, etc.) of the holder, the geographical location, its net value, and many other factors. The lender must balance the return on the loan with the risk of default for each loan. The question is then how to evaluate the portfolio as a whole.

The least risk loan may be to the very wealthy, but there are a very limited number of wealthy people. On the other hand, there are many poor that can be lent to, but at greater risk. Some balance must be struck that maximizes return and minimizes risk. The analytics solution may combine time series analysis with many other issues in order to make decisions on when to lend money to these different borrower segments, or decisions on the interest rate charged to members of a portfolio segment to cover any losses among members in that segment.

Risk analytics

Predictive models in the banking industry are developed to bring certainty across the risk scores for individual customers. Credit scores are built to predict an individual's delinquency behavior and are widely used to evaluate the credit worthiness of each applicant. Furthermore, risk analyses are carried out in the scientific world and the insurance industry. It is also extensively used in financial institutions like online payment gateway companies to analyse if a transaction was genuine or fraud. For this purpose, they use the transaction history of the customer. This is more commonly used in Credit Card purchases, when there is a sudden spike in the customer transaction volume the customer gets a call of confirmation if the transaction was initiated by him/her. This helps in reducing loss due to such circumstances.

Digital analytics

Digital analytics is a set of business and technical activities that define, create, collect, verify or transform digital data into reporting, research, analyses, recommendations, optimizations, predictions, and automation. This also includes the SEO (search engine optimization) where the keyword search is tracked and that data is used for marketing purposes. Even banner ads and clicks come under digital analytics. A growing number of brands and marketing firms rely on digital analytics for their digital marketing assignments, where MROI (Marketing Return on Investment) is an important key performance indicator (KPI).

Security analytics

Security analytics refers to information technology (IT) to gather security events to understand and analyze events that pose the greatest risk. Products in this area include security information and event management and user behavior analytics.

Software analytics

Software analytics is the process of collecting information about the way a piece of software is used and produced.

Challenges

In the industry of commercial analytics software, an emphasis has emerged on solving the challenges of analyzing massive, complex data sets, often when such data is in a constant state of change. Such data sets are commonly referred to as big data. Whereas once the problems posed by big data were only found in the scientific community, today big data is a problem for many businesses that operate transactional systems online and, as a result, amass large volumes of data quickly.

The analysis of unstructured data types is another challenge getting attention in the industry. Unstructured data differs from structured data in that its format varies widely and cannot be stored in traditional relational databases without significant effort at data transformation. Sources of unstructured data, such as email, the contents of word processor documents, PDFs, geospatial data, etc., are rapidly becoming a relevant source of business intelligence for businesses, governments and universities. For example, in Britain the discovery that one company was illegally selling fraudulent doctor's notes in order to assist people in defrauding employers and insurance companies is an opportunity for insurance firms to increase the vigilance of their unstructured data analysis.

These challenges are the current inspiration for much of the innovation in modern analytics information systems, giving birth to relatively new machine analysis concepts such as complex event processing, full text search and analysis, and even new ideas in presentation. One such innovation is the introduction of grid-like architecture in machine analysis, allowing increases in the speed of massively parallel processing by distributing the workload to many computers all with equal access to the complete data set.

Analytics is increasingly used in education, particularly at the district and government office levels. However, the complexity of student performance measures presents challenges when educators try to understand and use analytics to discern patterns in student performance, predict graduation likelihood, improve chances of student success, etc. For example, in a study involving districts known for strong data use, 48% of teachers had difficulty posing questions prompted by data, 36% did not comprehend given data, and 52% incorrectly interpreted data. To combat this, some analytics tools for educators adhere to an over-the-counter data format (embedding labels, supplemental documentation, and a help system, and making key package/display and content decisions) to improve educators' understanding and use of the analytics being displayed.

Risks

Risks for the general population include discrimination on the basis of characteristics such as gender, skin colour, ethnic origin or political opinions, through mechanisms such as price discrimination or statistical discrimination.

Human extinction

From Wikipedia, the free encyclopedia https://en.wikipedia.org/wiki/Human_ext...