Released March 29, 2022 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--While advanced digital technologies like artificial intelligence, drones, robotics and machine-to-machine learning are a critical part of the electric utility industry's transition to a lower-carbon future, speakers at a Reuters virtual conference this week also emphasized the important role that people--employees and customers--play as the industry evolves.
"Digital technology is the glue that holds the transition together and drives decarbonization. Digital technology will accelerate the utility industry's transition," Linda Rae, general manager of power generation and oil and gas at General Electric Company (NYSE:GE) (Boston, Massachusetts), told the Reuters virtual event March 22.
Digital tools and software can help operators more effectively monitor the health of their physical assets, she added. For example, predictive maintenance tools can help power-plant owners schedule maintenance on their units when it is actually needed, as shown by elevated heat rates and equipment wear and tear, rather than according to a calendar. For instance, predictive maintenance software can pre-order parts needed for a turnaround.
Executives from utilities, equipment suppliers and consulting firms from around the world joined Rae in noting the important role digital technologies can play in transitioning utilities to a lower-carbon future.
Dell Technologies Incorporated (NYSE:DELL) (Round Rock, Texas) is working with Intel (NYSE:INTC) (Santa Clara, California) to digitize electrical substations, which would lower costs and improve employee safety by keeping workers farther away from high-voltage electrical equipment. Russell Boyer, Dell's field director of global energy, told the Reuters event that a significant increase in spending would be required to transform the electric grid from a one-way delivery system to a more complex, dynamic, two-way system, where electricity could flow to and from homes and businesses.
In the U.S. to date, most of the reduction in carbon dioxide (CO2) emissions in the power-generation sector have come from switching power plants to gas from coal, said Diane Leopold, executive vice president and chief operating officer at Dominion (NYSE:D) (Richmond, Virginia). But her company, which is bringing on about 1,000 megawatts (MW) of renewable energy per year, will need advanced energy management and digital technologies to integrate more renewable energy into the grid.
Dominion, which aims to be the most sustainable electric company in the U.S., expects to invest $70 billion in clean energy by 2035, Leopold said. More than $30 billion of this is expected to be invested in the next five years.
Advances in renewable energy, while significant in themselves, can help to accelerate the production of "green" hydrogen, where no hydrocarbons are combusted. Paddy Padmanathan, chief executive of ACWA Power (Riyadh, Saudi Arabia), told conference attendees that his company's cost to generate electricity from solar and wind has fallen below 1.5 cents per kilowatt-hour, which is enabling it to explore the production of "green" hydrogen in Saudi Arabia. His company hopes to produce up to 240,000 tons of green hydrogen per year at one facility.
He added, "As an industry, we are making huge progress, but are we moving fast enough? I think not. The industry is only starting to use digital technology." Green hydrogen could help decarbonize electric markets, he said.
Dominion's Leopold and other speakers said that while the focus on digital technologies, and streamlining regulatory process, were critical drivers for the transition to a lower-carbon electricity industry, companies should not overlook the importance that people, namely employees and customers, must play in that strategic shift.
"The transition needs to be just," she said. That includes taking care of the employees and communities that are affected when fossil-fueled power plants shut down. "As an industry, our challenge is to not leave people behind," she added, specifically mentioning the phrases "environmental justice" and "diversity, equity and inclusion" (DEI). "We want to hire locally and train locally."
The Dominion executive also said electricity providers "need to broaden their focus to the next generation of customers," the Gen Z-ers and others who are expected to lead a surge in electric vehicle adoption, which will create new and difficult challenges for electric distribution companies.
The importance of people in the electric utility's transition was underscored by another conference speaker, Bernerd Da Santos, executive vice president and chief operating officer for AES Corporation (NYSE:AES) (Arlington, Virginia).
The company's No. 1 value is safety, he said, and the advanced technology being discussed and implemented by electric companies will reduce risks to employees. For example, drones can replace costly and dangerous transmission line inspections. Digitized substations could reduce the risk of employee accidents.
Last year, AES announced it had launched Atlas, an AI-enabled robotic technology, to design and construct new solar farms. Atlas would shorten the design and construction process, lowering costs while enhancing employee safety.
"Data and digital technologies are key to our competitive advantage," he told the Reuters event. "But digitization doesn't replace people. Digital augments peoples' ability to succeed." For example, AES is now employing more than 200 drone operators, he noted.
"Employee professional growth is critical to our ability to succeed as our industry transitions, Da Santos said. "Our people have become invested in the transition. You must put people at the center of your journey."
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
"Digital technology is the glue that holds the transition together and drives decarbonization. Digital technology will accelerate the utility industry's transition," Linda Rae, general manager of power generation and oil and gas at General Electric Company (NYSE:GE) (Boston, Massachusetts), told the Reuters virtual event March 22.
Digital tools and software can help operators more effectively monitor the health of their physical assets, she added. For example, predictive maintenance tools can help power-plant owners schedule maintenance on their units when it is actually needed, as shown by elevated heat rates and equipment wear and tear, rather than according to a calendar. For instance, predictive maintenance software can pre-order parts needed for a turnaround.
Executives from utilities, equipment suppliers and consulting firms from around the world joined Rae in noting the important role digital technologies can play in transitioning utilities to a lower-carbon future.
Dell Technologies Incorporated (NYSE:DELL) (Round Rock, Texas) is working with Intel (NYSE:INTC) (Santa Clara, California) to digitize electrical substations, which would lower costs and improve employee safety by keeping workers farther away from high-voltage electrical equipment. Russell Boyer, Dell's field director of global energy, told the Reuters event that a significant increase in spending would be required to transform the electric grid from a one-way delivery system to a more complex, dynamic, two-way system, where electricity could flow to and from homes and businesses.
In the U.S. to date, most of the reduction in carbon dioxide (CO2) emissions in the power-generation sector have come from switching power plants to gas from coal, said Diane Leopold, executive vice president and chief operating officer at Dominion (NYSE:D) (Richmond, Virginia). But her company, which is bringing on about 1,000 megawatts (MW) of renewable energy per year, will need advanced energy management and digital technologies to integrate more renewable energy into the grid.
Dominion, which aims to be the most sustainable electric company in the U.S., expects to invest $70 billion in clean energy by 2035, Leopold said. More than $30 billion of this is expected to be invested in the next five years.
Advances in renewable energy, while significant in themselves, can help to accelerate the production of "green" hydrogen, where no hydrocarbons are combusted. Paddy Padmanathan, chief executive of ACWA Power (Riyadh, Saudi Arabia), told conference attendees that his company's cost to generate electricity from solar and wind has fallen below 1.5 cents per kilowatt-hour, which is enabling it to explore the production of "green" hydrogen in Saudi Arabia. His company hopes to produce up to 240,000 tons of green hydrogen per year at one facility.
He added, "As an industry, we are making huge progress, but are we moving fast enough? I think not. The industry is only starting to use digital technology." Green hydrogen could help decarbonize electric markets, he said.
Dominion's Leopold and other speakers said that while the focus on digital technologies, and streamlining regulatory process, were critical drivers for the transition to a lower-carbon electricity industry, companies should not overlook the importance that people, namely employees and customers, must play in that strategic shift.
"The transition needs to be just," she said. That includes taking care of the employees and communities that are affected when fossil-fueled power plants shut down. "As an industry, our challenge is to not leave people behind," she added, specifically mentioning the phrases "environmental justice" and "diversity, equity and inclusion" (DEI). "We want to hire locally and train locally."
The Dominion executive also said electricity providers "need to broaden their focus to the next generation of customers," the Gen Z-ers and others who are expected to lead a surge in electric vehicle adoption, which will create new and difficult challenges for electric distribution companies.
The importance of people in the electric utility's transition was underscored by another conference speaker, Bernerd Da Santos, executive vice president and chief operating officer for AES Corporation (NYSE:AES) (Arlington, Virginia).
The company's No. 1 value is safety, he said, and the advanced technology being discussed and implemented by electric companies will reduce risks to employees. For example, drones can replace costly and dangerous transmission line inspections. Digitized substations could reduce the risk of employee accidents.
Last year, AES announced it had launched Atlas, an AI-enabled robotic technology, to design and construct new solar farms. Atlas would shorten the design and construction process, lowering costs while enhancing employee safety.
"Data and digital technologies are key to our competitive advantage," he told the Reuters event. "But digitization doesn't replace people. Digital augments peoples' ability to succeed." For example, AES is now employing more than 200 drone operators, he noted.
"Employee professional growth is critical to our ability to succeed as our industry transitions, Da Santos said. "Our people have become invested in the transition. You must put people at the center of your journey."
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
