Making a metaverse

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Before diving into the potential benefits of an energy metaverse, it is worth considering that the full expanse of an inter-connected metaverse is not yet a reality.

The idea of a metaverse is most prominently proposed by Facebook owner Meta, and the company’s branded Metaverse. The Financial Times argues that chief executive Mark Zuckerberg was recently forced to say the Metaverse is “not the majority of what we’re doing”. These days, the FT notes, he talks more about efficiency than the company’s Metaverse.

The broadsheet's analysis also points out that traffic for the word “Metaverse” has collapsed by about 80% over the past year or so. Meanwhile, venture capital investment into AI jumped 425% between 2020 and 2022. While the two are not directly comparable, consider that the concept of AI has been much more widely understood for longer, and that it is still only just entering the foreground of investment.

No one knows the future, but the FT's point is that tech of any nature can be a punt. Companies and the energy industry are constantly barraged by accusations of being “behind the curve”, or missing out on tech opportunities. Then, if the tech fails to develop beyond nascency, the same commentators hail a vast waste of money.

The Guardian argues that reams of concept art, tech demos and prototype devices have given way to little meaningful progress on the Metaverse or metaverses. Many companies even struggle to define what it actually means, though Future Power Technology’s parent company GlobalData defines it as a “virtual world where users share experiences and interact in real-time within simulated scenarios”.

Then again, The Guardian also observes that in a piece of research commissioned by Meta, consultancy firm Deloitte said that the Metaverse could contribute “between £40bn ($50.7bn) and £75bn ($95.1bn) in additional GDP [gross domestic product]” to the UK alone by 2035.

Moreover, Apple has now entered the game, potentially widening the scope of the metaverse's appeal.

If the inter-connected metaverse eventually hits scale, in whatever form, how could that impact energy?

Spanish data platform Dexma Energy Intelligence floats the idea of the metaverse as a space to interpret energy data. The logic runs that energy users could interact with real-time energy consumption data in the metaverse, enhancing their comprehension of energy usage patterns. This would allow them to make informed choices regarding their energy consumption, increasing efficiency and saving energy.

The company cites a report from analysts at McKinsey forecasting that the metaverse market will expand significantly in the coming years, reaching a value of $5trn by 2030. This would make it the third-largest economy in the world. Consequently, Dexma argues, utilities ought to accelerate their digitalisation efforts and rethink their business strategy and model to keep up with the forthcoming digital and technological transformations.

Dexma’s statements point toward the industrial metaverse, already tested within the Renault group, as an example. This provides a complete visualisation of the processes and consumption of an industry helping to identify potential savings in the production circuit or measures to be taken to improve energy efficiency.

You might ask: “Isn't this already available; it's just called an energy dashboard?”. Well yes, AI-powered virtual energy data management has been around for a while. Leading-edge utilities are already providing their customers with intelligent and inventive solutions.

For some, the metaverse represents the logical progression in the evolution of such digital energy management, given its interactive and varied immersive experience. A single VR headset might enable a commercial energy customer to 'inhabit' their energy usage data, while simultaneously hosting and sharing a Zoom meeting on efficiency, with all stakeholders invited into the virtual energy suite.

For utilities, that might spark greater engagement, understanding, or energy efficiency alongside happier, better-serviced customers.

Dexma argues that utilities have a significant responsibility in this field and should lead the way in providing their customers with access to their energy data. A company statement says that: “This will not only aid them in distinguishing themselves from their competitors, but also allow them to enhance their relationship with their customers, which is imperative in today’s challenging energy climate.”

Even Dexma, a clear proponent of the possibilities, admits the widening use of such technology will also lead to higher energy consumption.

“This is something you should keep in mind, both for yourself and for your customers. Metaverse devices need servers and data centres to manage connections and create virtual environments, which makes them quite energy-intensive.

“As a result, some companies are turning to renewable energy sources to power their projects. With the metaverse expected to grow rapidly, its energy demands are likely to be considerable.”

Equally, regulations and frameworks on data safety and security remain in their nascency and there are no harmonised standards for utilities to conform with on any global or national level. Therefore, any investment into an energy metaverse services comes with an element of risk.

Assuming energy data is made more generally readable, the metaverse could help identify transmission anomalies or power surges in an immediate, “physical” form, in real time. Such estate-wide, instant reporting in a virtual world could work wonders for identification of energy trends, implementation of new tech, the role of renewables, grid intermittency, and many other factors besides.

Consultancy firm Accenture reckons that we are entering a new phase of the energy transition, from early to mass adoption.

”Utilities must prepare themselves for rapidly changing customer requirements. The metaverse will provide the foundation for the new products, services, and revenue models that will emerge over the coming decades.”

The company’s Technology Vision 2022 report paints an intriguing picture. “The energy world will change dramatically, and utilities must dramatically change or completely reimagine their solutions for entirely new business models,” it argues.

On balance, the myriad of opportunities, from a coalition between the energy world, customers, utilities and the metaverse. However, it is harder to predict are solid timescales, demand for metaverse energy models, costs, and regulations of the space. All these will impact on companies’ and customers' desire to get in the game.

Often, a glance at history can provide answers. If you look at the metaverse as simply a logical extension of the internet and information technology, there's little reason to doubt its potency. Change is a given, and it's coming. Futureproofing energy will involve smarter processes and more tech; that's certain. However, if you view the higher barriers to creation and use as making the metaverse distinct from existing technologies, you will better understand the slow pace of progress.

Will this progress be called a metaverse, or the Metaverse, though? Or in, ten years’ time, will something better and bolder be here? For now, the jury is out.

GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.

GlobalData’s Thematic Intelligence uses proprietary data, research, and analysis to provide a forward-looking perspective on the key themes that will shape the future of the world’s largest industries and the organisations within them.