Energinet and eSmart Systems leverage synergies between human experts and AI-based analytics to succeed in the transition from manual to automated processes thanks to a revolutionary new Grid Vision® corrosion module.
A co-development within eSmart Systems’ Grid Vision Innovation Lab programme
The need for automated processes
Rust detection on aging infrastructure is a challenging task. With steel towers constructed primarily in the 1960s and 1970s and in a maritime climate, Energinet faces a particular challenge when it comes to rust.
We needed a solution to help streamline our rust inspections and at the same time improve the end-to-end maintenance process,” said Kenneth Nørup Knudsen, Team Leader and Senior Specialist at Energinet of Energinet. “Working with eSmart Systems gives us access to world class AI and inspection management tools, and the ability to participate in the design of this all-new module is an exciting step on our innovation and digitalization journey.
From images to actionable information
Energinet and eSmart Systems have a long history together. The journey towards a strong partnership began in 2017 when Energinet needed a solution to instantly detect and quantify rust on their towers. The companies now embark in a co-development to create an all-new module of eSmart Systems’ inspection software Grid Vision, which gives Energinet an overview of grid condition by assessing the percentage of deep rust on each asset using advanced AI algorithms.
eSmart Systems will deliver an asset-based inspection solution relying on collaborative AI to harness SMEs expertise, increase automation and asset insight. That allows Energinet to monitor rust evolution on towers over time and even to enable predictive maintenance.
We are excited to partner with eSmart Systems to co-design a solution that will streamline our inspection processes. Grid Vision uses an asset-based approach that is easy to leverage in operations and integrate with our existing systems
Energinet is one of the early movers in the market, and we are thrilled to partner with them within the Grid Vision Innovation Lab programme to develop user-friendly solutions that improve the inspection process and reduce costs. This approach will ensure the resulting solution incorporates user-driven criteria and provides maximum business value to Energinet
eSmart Systems’ Grid Vision Innovation Lab is a revolutionary programme whereby customers are invited to co-design new solutions with eSmart Systems’ team of industry digitalization experts. Members of the programme have the chance to directly influence Grid Vision’s development and get early access to the new features while eSmart benefits from this unique forum to gather feedback and fine-tune the solutions before official release.
Leveraging synergies between human experts and AI-based analytics, E.ON, one of Europe’s largest energy companies, and eSmart Systems, a leading provider of grid inspection AI-powered software, are joining forces to improve European distribution grid asset management by making inspection processes safer for people, more efficient for utilities, and more sustainable for the environment.
The partnership, which is initially set to run for 12 months, commenced in January with the deployment of eSmart Systems’ Grid Vision™. This AI-based solution is supporting the full inspection and maintenance workflows across the three E.ON distribution system operators E.DIS, MITNETZ STROM and Westnetz, totaling approx. 45 000 kilometers of high- and medium voltage overhead lines. The software detects, analyzes and visualizes components and potential defects within the infrastructure on the basis of pictures made by drones. E.ON will leverage eSmart Systems’ technologies to adopt asset-based virtual inspections of distribution lines into existing business processes.
Thomas König, responsible for networks on the E.ON Board of Management, emphasizes: “Digital and innovative solutions are key for our grids in being the backbone of the energy transition. In order to achieve the best for our network customers, we also rely on strong partnerships with start-ups. By partnering with eSmart Systems, we are improving the accuracy of power grid inspections and the security of supply. Ultimately, fewer mast climbs will be necessary, resulting in an increase in work safety.”
Strong partnerships are the key to success. Together with E.ON, we are moving toward operational excellence using state-of-the-art tools that leverage digital technologies and artificial intelligence. We are pleased to combine E.ON’s leading energy expertise and operational skills with eSmart Systems’ expertise in applied AI to pioneer the energy transition
About E.ON
E.ON is an international investor-owned energy company, which focuses on energy networks and customer solutions. As one of Europe’s largest energy companies, E.ON plays a leading role in shaping a clean, digital, decentralized world of energy. To this end, around 75,000 employees develop and sell products and solutions for private, commercial and industrial customers. More than 50 million customers purchase electricity, gas, digital products or solutions for electric mobility, energy efficiency and climate protection from E.ON. As an innovation leader, E.ON provides newest technological solutions to its customers, and drives cross-industry partnerships in the energy sector and beyond. E.ON is headquartered in Essen, Germany. For more information, please visit www.eon.com.
About eSmart Systems
eSmart Systems is a leading provider of AI-powered solutions for the inspection and maintenance of critical infrastructure. With our software solution, Grid Vision™, we revolutionize how Power Utilities operate and maintain their transmission and distribution networks. eSmart Systems offers a data-driven and condition-based approach to infrastructure inspections that can be managed from one single platform. We support companies worldwide by ensuring reduced costs, safer inspections, and prolonged asset life.
This year, German energy companies E.ON and innogy merged their venture capital teams and portfolios under a new venture arm called Future Energy Ventures. The new entity’s mission is to identify, fund, and mentor some of the most exciting start-ups in the future energy sector.
innogy Ventures, now Future Energy Ventures, was one of the investors that helped eSmart Systems raise 34,4 million USD of capital in 2019. As an owner, they have provided valuable support and have played a vital role in eSmart Systems’ expansion in the European market.
We sat down with Jan Palasinski, Investment Partner at Future Energy Ventures and member of the Board of Directors at eSmart Systems, to talk about Future Energy Ventures goals as a new entity, their investment strategies, and their relationship with eSmart Systems.
Can you start by telling us about Future Energy Ventures, what it does, and what are your focus areas at the moment?
Future Energy Ventures is the venture capital and collaboration platform of E.ON. As a newly launched organization, we focus on helping our existing portfolio companies find new business opportunities and scale with our mother company E.ON. Given that a share of our combined portfolio is exposed for the first time to E.ON, we want to make sure their solutions reach the Business Units.
Aside from growing our existing portfolio, we are also actively scouting the market for start-ups developing digital and digitally-enabled technologies and business models that have the potential to redefine the future energy landscape. We focus on digital, scalable, and asset-light companies seeking Series A and beyond funding.
Our goal is to capitalize on the investment opportunities presented by the transition to this new energy future and maximize scaling opportunities for our portfolio.
Earlier this year, the merger between E.ON and innogy was completed. Why did integrating E.ON and innogy as one entity make sense?
Following E.ON’s acquisition of innogy, the two venture businesses have now been fully integrated into one operating structure. This is an extremely exciting development. Not only does the integration makes E.ON one of Europe’s largest operators of energy networks, energy-related infrastructure, and innovative customer solutions, but E.ON and innogy share the same vision for the future of energy.
Aside from its core operational activities, innogy’s venturing activities were also combined with E.ON’s to create a brand new entity that continues to identify, fund, and mentor some of the most exciting start-ups in the future energy sector. This entity is Future Energy Ventures.
We at Future Energy Ventures, share a common vision and approach to investing and help growing the start-ups solutions for a more digital, decarbonized, and democratized energy system. We believe that businesses need more than just money to succeed. They need collaboration, mentoring, and the opportunity to partner with other organizations that can help accelerate their growth trajectory and build their business.
We build on the foundations laid by the teams from both E.ON and innogy and the more than 60 portfolio companies we have worked with and invested in over 10 years. We reinvented ourselves to be more visionary, more connected and more impactful.
Why did Future Energy Ventures invest in eSmart Systems, and how does eSmart fit with your strategy?
My colleagues invested in eSmart Systems mainly because of its innovative approach to grid asset management and maintenance. eSmart’s technology fits perfectly into E.ON’s energy networks business, as it helps to prolong asset life and to increase operational and capital efficiency.
eSmart Systems’ AI and digital capabilities are paired with a profound knowledge of the energy industry. This is a perfect match for our investment hypothesis to invest in startups that support the digital transformation of the energy system. eSmart’s main product, Grid Vision, which automates grid asset inspections, is the perfect example of how machine learning can reduce maintenance costs while also increasing its quality.
Since I have joined eSmart’s board of Directors I have also been impressed by the experienced management team and the traction they had already established with their global customer base, as well as with prestigious international co-investors.
How do you give growth support to your investments and eSmart Systems in particular?
Future Energy Ventures’ investment team is in constant exchange with all E.ON’s business units, in a dialogue that aims at capturing their most pressing problems and at proposing innovative solutions coming from the startup world. We typically start our match-making activities between startups and business units even before investing, to make sure that the expectations of both parties will be met during our journey together.
In the specific case with eSmart Systems, the collaboration started already back in 2019 when innogy Ventures, now Future Energy Ventures, made an investment and linked the start-up with two of our DSOs (WestNetz & MitNetz). This connection resulted in two very successful PoCs on automated asset inspection.
What role do you see eSmart Systems play in the future energy industry?
eSmart Systems will be one of the leading AI-driven software providers for the inspection of powerlines, grid maintenance planning, and asset management. The more data will be processed by the eSmart software, the better the quality of the service will become, and thus customer satisfaction.
eSmart Systems, the energy industry’s leader in AI-based grid inspection and grid maintenance planning software, recruited Steve Hambric last October as President of North America. Steve has been driving the company’s vision through rapid expansion and the implementation of a long-term growth strategy during the first year in his role. In this interview, he shares with us his experience as President, the value of eSmart Systems’ products to North American Utilities, and the role of AI in the energy industry.
A year ago, you took the role of President of North America Operations at eSmart Systems. You were recruited to lead an ambitious strategy and to expand business to North America. What have you achieved in your first year?
Before joining, I was fortunate enough to spend time with some eSmart leaders and board members working on our North America strategy. So when I became part of the team, we were aligned and confident in our focus from day one.
First, we focused on deploying Grid Vision™ to help utilities revolutionize how they inspect and manage their transmission and distribution networks. This is the best product-market fit I’ve had in my career, and it creates compelling value for utilities, their customers, regulators, and partners. In addition to focusing on our solution and its application, we were committed to being more disciplined in the opportunities we pursued.
We focused on programmatic inspections of a core group of utilities with clear opportunities to scale. The results have been fantastic. When I joined, we had recently signed our first Grid Vision™ contract in North America. Since then, we’ve added six more leading utilities with a great pipeline to follow. In spite of the disruption we’re all battling with Covid-19, we have more than doubled North America revenue in 2020 while executing a dramatic strategic pivot. The broader eSmart team has done amazing work to make this happen. Additionally, we’ve laid the foundation in 2020 for a compelling future with Grid Vision™.
What are other focus areas for 2020?
Partnerships are very important to how we’ll deliver maximum value to the utility industry. We aren’t trying to do everything. Instead, we are focused on building and delivering technology in a way that maximizes the value our partners deliver for utilities. These partners primarily include aerial image capture and inspection services firms.
We even changed the name of our product from Connected Drone to Grid Vision™ this year to be more clear about what we do and what we don’t do. We don’t own or operate drones and our AI software analyzes images from aerial and ground-based sources.
Can you explain how eSmart Systems’ Grid Vision™ brings value to your customers in North America?
Absolutely. eSmart Systems builds and delivers fantastic technology that helps the industry conduct inspections that are more accurate, thorough, fast, safe, and cost-effective. We don’t need to completely replace existing inspection processes. In fact, we’ve designed our tools to flexibly integrate with existing processes to make them both more efficient and more effective. Utilities will get the best results when human experts and AI work collaboratively. It’s also important that we make all this data and insight available for a host of other use cases to support utilities asset management, maintenance, supply chain, analytics, and more.
What are the key challenges you foresee for utilities looking to revolutionize inspections and asset management? How is eSmart Systems positioned to help the industry overcome these challenges?
Risk, whether real or perceived, is always going to influence how rapidly you can change processes as mission critical as these. We developed an approach we call Collaborative AI. It allows utilities to use algorithms to learn from the subject matter experts while they do their inspections. Then gradually, the AI can handle a greater share of the inspections. This can be done with as much or as little human expert oversight as desired.
Another risk with such a massive opportunity is creating a project so complicated that it takes too long to begin. If we as an industry try to jump headfirst into AI-enabled predictive maintenance, it’s going to be a long jump. We think there are some great first steps that have quick paybacks. It will build a foundation for a more compelling and integrated vision of the future.
With the acquisition of some big utilities as customers, eSmart Systems has got a solid foothold in the US market. For continued growth, what is the most important thing to focus on going forward?
This is so basic, but we need to listen to our utilities and partners first. Then process that information to continually improve our products and how we deploy them. Utilities have an amazing track record of maintaining safe and reliable networks. By collaborating with them we’ll deliver the next generation of technology solutions and create massive value for the industry.
eSmart Systems is certainly poised to continue disrupting the status quo for Utility companies. What role do you see AI playing in the future of our energy systems?
As in most industries, there are almost limitless applications for AI in utilities. But as a partner to utilities, it’s critical that we not get distracted by chasing too many use cases. Until AI reaches a certain level of competence, and I believe that level of competence will be very high, we aren’t going to create value at a scale relative to current business processes. So, we need to maintain the narrow focus we spoke of earlier while delivering incredibly compelling value for electric T&D inspections before we branch off into too many other use cases.
At the end of the year 2018, eSmart Systems successfully completed a capital raise joined by Equinor Ventures. Equinor’s corporate venture fund is dedicated to investing in attractive and ambitious early phase high-growth companies. As a hands-on investor, Equinor has taken an active role in the ownership of eSmart Systems.
We sat down with Investment Manager at Equinor Ventures, Thor Olav Thorsnes Egeland, to talk about the investment in eSmart Systems, how Equinor Ventures gives growth support and the transitioning of the energy industry.
Can you start by telling a bit about your company, what it does and what are you focusing on in particular at the moment?
Equinor Ventures is Equinor’s corporate venture fund dedicated to investing in attractive and ambitious early phase and growth companies. We believe that the innovation, creativity and agility of start-ups can drive change and transition the energy industry towards a low carbon future. Equinor Ventures invests in companies that support and enable our current operations, which are future potential growth legs for Equinor, or have high impact technologies and business models that support the energy transition.
Partnered with Equinor Ventures, how do you see eSmart Systems shape the future of energy?
eSmart Systems is already changing how large utilities are working It will continue to support more efficient, precise and cheaper monitoring of the grid. eSmart is delivering the technology of the future for grid inspection.
We are among the few of Equinor’s European portfolio companies from the power industry. Why did you invest in eSmart Systems, and how does it fit with your strategy?
The company’s technical ability paired with a proven entrepreneurial team attracted us. eSmart Systems was early in delivering commercial AI solutions to the power industry and attracted international recognition. This is a great fit with our strategy of investing in companies that could potentially support Equinor’s core business but also in our strategy of investing in companies with high-impact technologies that support the energy transition.
How do you give growth support to your investments, and eSmart Systems in particular?
We are an active investor that typically takes board seats in our portfolio companies. As a hands-on investor we also typically support our companies, like eSmart Systems, in fundraising, recruitment, business development, and M&A.
eSmart Systems’ industry leading AI-based grid inspection software has been rebranded as Grid Vision™. This platform will continue to reduce operational costs, increase reliability, generate accurate and detailed asset records, and extend the life of utility infrastructure.
This year, eSmart Systems announced it had rebranded its industry leading AI-based grid inspection software as Grid Vision™, in order to better serve utilities and more accurately reflect the value and benefits it delivers for its global utility partners. Previously known as “Connected Drone”, the software is already utilized by over 35 utilities in the U.S. and Europe and is the most widely adopted AI-based grid inspection software product in the industry.
2020 is a critical year in the growth of eSmart Systems, with a focus on Grid Vision™ and enabling more efficient and effective utility T&D inspections. This rebranding of our core product Grid Vision™ is an important step in our global expansion. Our prior name implied that we owned and operated drones which is not the case and could be confusing for our important ecosystem of partners
The name Grid Vision™ more accurately reflects the software’s agnostic approach to how high resolution images are captured, supporting image capture from any aerial or ground-based source, to analyze and inspect the world’s critical electric grid infrastructure for transmission and distribution assets. The product currently analyzes grid assets throughout Europe and North America by using a combination of AI and human intelligence to update asset inventories, detect defects, extend asset life, and inform critical decision making.
Grid Vision supports Collaborative Intelligence
eSmart Systems’ Collaborative Intelligence approach combines human intelligence from Subject Matter Experts with Grid Vision™. Together they analyze high-resolution images captured by Unmanned Aircraft Systems, manned helicopters, and ground crews. As algorithms are localized, the software delivers greater value and accuracy over time. These capabilities are a key linchpin transitioning from today’s manual grid inspection practices to a process that uses the optimal combination of humans, AI, and images. These synergies result in more efficiently inspected grid systems, reduced failure rates, and extended asset life.
Read more about Grid Vision here, or contact us to get more information.
At the beginning of the year 2019 eSmart Systems announced a capital raise of 18 MUSD. Nysnø Climate Investments joined the investment round with a strong belief that eSmart Systems has a key role in the future energy industry.
We had the pleasure of talking with Siri Kalvig, CEO of Nysnø and Tina Skagen, COO of eSmart Systems, to learn more about their collaborative partnership, sustainability, and challenges and opportunities in the new energy paradigm.
Can you start by telling a bit about your company, what it does and what are you focusing on in particular at the moment?
Siri Kalvig: Nysnø Climate Investments (Nysnø) was established as a state-owned investment company in 2018. We invest in companies with profitable climate technologies. We focus on companies that are ready to scale into new markets and invest across several sectors including clean energy technologies, digital and enabling technologies, resource efficiency, sustainable demand and the circular economy. Our most recent investment is in a company called Saga Robotics who are developing an autonomous robot for several precision farming applications.
eSmart Systems deliver inspection services to power grid companies through collaborative AI. Its mission is to accelerate the transition to a digital future. What do you think it takes to succeed in that mission?
Tina Skagen: Dedication to the mission and our customers, a strong team and perseverance. It takes time to change work processes and the ways that things have always been done. Digitalization happens gradually all around us, and our value proposition to the power utilities is strong. We need to make sure we are there and ready to deliver when our customers are mature.
Nysnø’s goal is to make profitable, long-term investments that contribute to reducing greenhouse gas emissions. How does eSmart Systems fit with that strategy, and why did you invest in eSmart Systems?
Siri: Because of their unique technology that is ready for international expansion and backed by a highly talented and dedicated team. The combination of world leading AI competence and domain expertise in the energy utility space has resulted in a unique product offering. Producing more renewable energy and utilizing power grids optimally is critical for reducing greenhouse gas emissions. The eSmart software enables a robust and smart grid, capable of meeting challenges related to future global energy systems.
How do you give growth support to your investments, and eSmart Systems in particular?
Siri: We are a long-term investor with a strategy of following up our initial investments with further growth capital over time. We have an international network of specialized co-investors and corporates that are committed to accelerating the energy transition, as well as relationships with policy makers in the energy field. We actively work to position our portfolio companies in this ecosystem.
eSmart Systems has a clear value proposition and a unique opportunity to scale globally, and we are highly committed to support this growth through our network, which includes potential future co-investors, other financing providers, relevant policy makers, potential customers and key talent for recruitment. We also work actively with the company in relation to other funding schemes, such public soft funding and growth loans.
What makes Nysnø different to other investors, and can you provide some examples of growth support from Nysnø?
Tina: Nysnø has a crystal-clear focus on sustainability and the environment. Their focus and competencies on growth challenges and the business that eSmart Systems is in, are of great value to us. Nysnø has been a valuable partner especially when it comes to network, funding, and financials.
What role do you see eSmart Systems play in the future energy industry?
Siri: Because the energy systems are changing towards more intermittent renewables, eSmart Systems offers a crucial solution to enable this shift by providing tools to increase the robustness of the grid. A robust, smart, and agile power grid is the most important asset in an entirely renewable energy system – and we see that eSmart Systems has both the technology and business model to take utilities into this new energy paradigm.
Tina: eSmart Systems will undoubtedly play an important role in the operations of power grids in the future. Being able to inspect the grid remotely and autonomously, and to analyze and extract actionable insight from the data is the future for the utility business as well as for other industries. We have built a product that can take the power utilities into this future and give them value on their data.
Many utilities face major challenges and costs related to vegetation near power lines. In a research and development project supported by the Research Council of Norway, eSmart Systems has partnered up with utilities to develop an operational software solution for the assessment of vegetation and safety near power line spans.
Vegetation insight to prevent tree falls
The name of the project is “AI-based risk model for vegetation near power lines”. Its members are five utilities, the Norwegian Institute of Bioeconomy Research (NIBIO), and eSmart Systems. As a result of this project, the utilities are flying drones to collect data on growth conditions and vegetation.
We are finishing up the first, out of two rounds of data collection, and have collected thousands of images of power lines and the surrounding forest
With the data collected, the project will try to identify which trees have fallen from one year to another. Furthermore, it will identify which properties of the trees and their place of growth are predictive of tree falls.
We hope to help develop a system that can detect tree falls before they happen
Using AI to analyze data
eSmart Systems will use AI to analyze the data and identify the important properties of vegetation. After that, NIBIO uses the research to determine risk.
Our main input in this project is to develop a mathematical risk model for tree falls on power lines. In addition, we are providing basic inputs to the field and drone measurement protocol for the recording of important tree and forest property variables
By combining the probability of treefall with the consequences of it occurring at span level on the grid, the utilities can plan and prioritize the vegetation management more efficiently than with current practices while also reducing the number of outages.
Innovation to be at the forefront
The advantage of this project is that we can sit together and look at 3D images, get an overview of the area, and see which trees can pose a danger to the power lines
Evensen is positive about participating in research projects that can improve operations and help prevent power outages. The same goes for Irina Pirozhinskaia at Ringerikskraft who believes R&D projects are of great value.
We get the opportunity to work with R&D, increase the competence of the company, and work towards a more profitable operation
said Pirozhinskaia
At eSmart Systems, Research & Innovation (R&I) is a cornerstone of the company.
Our software is breaking new ground in the utility industry and we need to be at the forefront of understanding the market and all technology trends and possibilities. By cooperating with forward-leaning customer partners and reputable research institutes, eSmart Systems strives to gain the insight needed to be at the forefront of our industry
About
- Project title: AI-based risk model for vegetation near power lines
- Project goal: To develop an operational software solution for assessment of vegetation safety near power line spans, that utilities can use for prioritization and planning, based on local data on growth conditions and vegetation.
- Project Manager: eSmart Systems
- Partners: NIBIO (Norwegian Institute of Bioeconomy Research), Norgesnett AS, Valdres Energi Nett AS, Dalane Energi Nett AS, Ringerikskraft Nett AS, Gudbrandsdal Energi Nett AS
- Project period: 04-2020 to 06-2022
- Budget: 11 mill NOK
- Funding granted: 4.4 mill NOK
BKW Energie is among the speakers at the virtual conference “AI & ML for the Smart Grid 2020”, taking place on September 9th. The power production and distribution utility is one of eSmart Systems’ customers, and has its headquarters in Berne, Switzerland.
One of the speakers, Yamshid Farhat Quiñones, Data Scientist of Grid Analytics at BKW, has had a positive experience with using eSmart System’s cloud-based platform:
“In the talk, I will focus on in-house vs external artificial intelligence and machine learning solutions. With eSmart Systems Collaborative AI approach, we can shape and strengthen the AI with our expert’s classifications. We can also profit from the development done together by eSmart Systems with other utilities to streamline the development of the AI,” says Yamshid Farhat Quiñones.
“A key feature in our software solution Grid Vision™ is the collaborative approach between human and machine. Our experience shows that efficient use of the Subject Matter Experts helps the AI improve faster while managing operational risk. We are pleased that BKW wants to promote what we do together on Collaborative AI,” says Khaoula Benserhir, Customer Success Manager at eSmart Systems.
AI+ is a new international conference focusing on applied AI, with the purpose to offer Norwegian as well as international environments an arena for competence sharing and interaction within the field of artificial intelligence.
The three-day webinar on 15-17 of September 2020 is a digital prelaunch to a physical conference in the spring/summer of 2021.
The AI community will gather problem keepers and problem solvers to drive forward the potential of AI across business, science and tech. This year’s AI+ Master of Ceremonies (MC) is Dr. Silvija Seres. She is a mathematician and a technology investor and describes herself as “an academic techie with a past in corporate leadership, a present in entrepreneurial investment, and a future in large-scale digital transformation processes in public and private sector”.
About AI+
The AI+ consortium aims to contribute to the Norwegian government reaching its digitalization goals, as stated in both the digitalization strategy for the public sector and in the national strategy for artificial intelligence. Applied artificial intelligence and sustainability will be the focus areas. AI+ is intended as a yearly conference and is expected to grow to become a natural arena for industries where applied artificial intelligence can be integrated with business purposes, and for networking and innovation.
The AI+ conference is made by Smart Innovation Norway, IFE Institute for Energy Technology, Halden municipality and eSmart Systems.