In our blog series, we have previously discussed the transition from a traditional Distribution Network Operator (DNO) to the new role of Distribution System Operator (DSO): a shift that requires not only technology, but also new ways of working, decision-making structures, and a data-driven mindset.
In this transition, it becomes essential to monitor and manage operations based on facts. This is especially true in electricity network operations, where KPIs are used to track availability, quality of supply, outage frequency, maintenance efficiency, and investment outcomes. However, KPIs themselves are not a guarantee of good control, they are indicators. And just like dashboards and data warehouse solutions, KPIs become useful when you understand why you measure, what you measure, and how you act on the results.
Customer value – when KPIs are used correctly
The key to real value lies in the interplay between the measurement points and how they are interpreted and applied in practice. When used correctly, KPIs can create significant business and societal value:
- Provide early warning signals: Identify negative trends in, for example, outage frequency or condition indices.
- Support prioritization: Decide where resources create the most value, e.g., preventive maintenance or reinvestment.
- Communication: Explain to management, regulators, and customers how the grid is performing, based on facts.
- Evaluation: Compare efforts over time or across geographical areas.
- Goal-oriented management: Clarify what is most important to improve and why.
KPIs are valuable – if they have a purpose
Organizations often start using KPIs to create structure in follow-ups, and their value increases when they are clearly linked to business objectives and have a defined purpose. Misinterpreted KPIs can be misleading. A low number of outages may be due to luck rather than good planning. A high condition index may hide a lack of validated data. Therefore, every KPI-based solution must have a well-thought-out plan behind it.
When KPIs are combined with analysis and clear accountability, they provide a more comprehensive view of operations. Without analysis or ownership, they risk:
- Oversimplifying reality: A single number says little about complex cause-and-effect relationships.
- Creating false security: A “green” value may hide issues in data quality or measurement methods.
- Driving the wrong behavior: The organization adapts to improving KPIs, not reality.
- Being misused in discussions: KPIs used in place of reasoning, not alongside it.
What is required to unlock real value?
To gain real value from KPIs, they must be used as a support that interacts with the organization’s expertise, ways of working, and overall goals. The KPI model becomes most valuable when each indicator has a clear purpose and contributes to better decision-making, rather than simply acting as a metric.
The selection of KPIs should always be based on the organization’s goals. In the journey from DNO to DSO, it is particularly important that KPIs reflect a DSO perspective and support that development. From a technical perspective, Digpro suggests the following KPIs:
- Quality of supply – SAIDI & SAIFI
- Capacity utilization (%)
- Instantaneous voltage levels in the grid (V)
- Instantaneous transformer temperature (°C)
- Power factor (%)
- Integration of locally produced energy (%)
Where does NIS come in?
A Network Information System (NIS) is fundamental for making your KPIs relevant and reliable. Many valuable KPIs depend on an accurate and up-to-date network model – a digital twin – to be interpreted correctly in context. NIS serves as the hub where data from multiple sources is integrated to provide a clear overview.
For KPIs to be useful as decision support, there must be the ability to drill down into the data, understand where problems exist, and identify the most effective actions. This connection is enabled through NIS, which often also includes dedicated functionality for KPI monitoring, such as Digpro’s Data Warehouse and Investment KPI modules.
Summary: From indicator to insight
KPIs are powerful tools that can provide clear direction when used thoughtfully. They help identify patterns and understand development over time, and become especially valuable when linked to a clear plan and shared accountability. With the right conditions in place, KPIs contribute to strengthening both governance and quality in the grid.
In our article series The data-driven power grid, we take a closer look at five critical tools on the journey towards DSO:
- Data warehouse – Building the foundation with a Data Warehouse
- Dashboards – Visualizing information with a clear purpose
- KPIs – Managing by facts, not gut feeling
- Capacity planning (upcoming) – Planning for both operations and development
- Forecasts (upcoming) – Making decisions with the future in mind
We share practical advice, highlight common pitfalls and show how you can move forward – no matter where you are today.
Welcome to join the journey.
Meet the expert
Erling Gustafsson has a solid background in the electricity industry and has supported many companies on their digitalization journeys. He is also the author of the Swedish book “Innovation och utmaningar i ett nytt energisystem: En guide för en proaktiv elnätverksamhet” (Eng.: “Innovation and Challenges in a New Energy System: A Guide for Proactive Grid Operations.”)