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3 Decentralization:
In the past, large, centralized utility plants connected
by distribution and transmission lines made up most
of the electric grid. Due to aging infrastructure and
the rapid growth and change we are seeing around
electric supply and demand, distributed generation and
energy microgrids located at the point of consumption
are becoming more prominent. While we consider this
a positive trend, it drives complexity. That’s why we’re
working with our customers to simplify these distribution
models while maintaining low energy costs. We are
also helping customers better utilize traditional standby
power assets, by upgrading them to support the grid
and provide peak power when costs are high. Tom
Smith, director of energy development, will share more
about this great opportunity in a couple of weeks.

4 Digitalization:
This energy trend will have broad effects going forward.
At Caterpillar, we leverage data and advanced analytics
from more than 1.2 million connected assets to help
our customers enhance safety, minimize unplanned
downtime, maximize productivity and even monetize
assets through participation in energy markets.
Digitalization increases our ability to optimize the efficient
use of energy in ways that couldn’t be done in the past.

It’s an exciting time to be in the electric power industry.
As the energy transition continues, we’ll continue to help
customers solve increasingly complex power generation
challenges, ultimately building a better, more sustainable
world. To learn more about Caterpillar’s sustainable
power solutions visit: cat.com/sustainablepower. ■

6 Cat Magazine