Digitalization: The Not-so-Secret to Success in the Energy Transition

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With the United States rejoining the Paris Agreement, the world’s eyes are back on the prize of limiting global warming. Many of the initiatives are centered around the transition to clean energy. 

To meet the international goals agreed upon in Paris, technology is going to need to play a large role. Energy companies have to continue to embrace a transition to digitalization as they transition to renewable energy. 

Technology will help energy companies, both old and new, meet the world’s increasing energy demand with more efficiency, safety, and sustainability. 

Advanced Digital Technologies

Innovations in AI, 5G, IoT, XR, and more are helping energy companies do more with the resources they have and build efficiency into new assets. 

For example, digital twins can be adopted to help owners/operators gain the full picture of their facilities. “A digital twin is the digital replica of a facility that shows owners how each unit is operating right now,” explained Waldir Pimentel Junior, industry consultant at Hexagon’s PPM division. 

Companies that manage critical assets with digital twins can monitor resource consumption and identify more ways to increase efficiency. More informed decisions can be made within shorter timelines, and when it comes to their clean energy transition, digital solutions like this will be a key tool and enabler for these companies.

Scalable Renewable Energy Production

Renewable energy production needs to continue scale to help meet growing energy demands while being mindful of emissions. Digitization can help energy producers transition to green energy sources faster.  

“The digital tools to create a refinery today can be the same to design a wind farm. For companies that have entered into this digital world, they already have the tools they need when they come to plan a new LNG facility or a biogas producing unit. The transition will be much faster,” Pimentel explains.

By transforming unstructured information into real smart digital assets, producers can better build and manage clean power facilities. They can then perform long-term health monitoring of assets, which leads to improved predictive maintenance scheduling and less downtime.

Data and Reporting

With the Paris Agreement, countries established an enhanced transparency framework (ETF). Under ETF, starting in 2024, countries will report transparently on actions taken and progress in climate change mitigation, adaptation measures, and support provided or received. 

Countries will need their producers to have clean, trustworthy, reliable data to meet these expectations, and digitalization efforts will be vital in those efforts.

Barriers to Digitalization

In its white paper on digital maturity, Hexagon points out three main barriers to digital transition:

  • Insufficient stakeholder buy-in

  • Incorrect prioritization

  • Lack of communication

Energy companies must overcome these barriers to be more efficient with resources and help in the green energy transition. 

Digital transformation itself isn’t automated—it requires human dedication.