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Growing Complexity and Transformations of the Power Sector: India as an Example of Developing Regions using Enterprise Architecture and Smart Grids
Abstract
Enterprise Architecture (EA) can be thought of as a powerful tool to transform electricity (distribution) utilities into more service-oriented and also economically viable enterprises, if not sustainable enterprises (spanning the so-called triple-bottom-line, viz., profits, people, planet). Developing regions (such as India) face even greater challenges than global concerns about electricity. Developing regions’ utilities are often loss making and have numerous operational challenges (including high theft and a weak/unstable grid). They also face a populace with limited means to pay (putting pressures on pricing) but also a large swath of potential consumers whom they have not yet reached. The rise of Information and Communications Technology (ICT) offers the ability to know what (and how much) is going where, with high time and geographic precision, covering not merely flows of electricity but also money, information, control, manpower, etc. More than converting data into information, it can lead to improved decision-making (“knowledge” and “wisdom”). Ultimately, harnessing ICT not only speeds up processes, but also transforms the enterprise. The widest-reaching form of EA transformation has been called a Smart Grid, an ongoing transformation of utilities worldwide. EA done right is complex, but so is electricity distribution. Instead of hiding or ignoring complexities, EA internalizes them into the decision-making process. While decision-makers cannot ignore issues of political economy, an Enterprise Architecture lens focuses on incentives, operations, and planning important for all enterprises independent of public versus private ownership.
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