Bid & Tender
TEI - Energy Outlook

Digitalization Reshapes Energy Sector
 

In the wake of the Covid-19 pandemic, the digitalization in energy is increasing and significant shifts in the intelligence of digital technologies is enhancing operations and business continuity in almost every sector.
 

While application of digital technologies like cloud computing and the Internet of Things (IoT) had been growing in the industry, the pandemic has accelerated momentum towards automation and digitalization.
 

The oil and gas companies are embracing digital technology to improve efficiency through innovation. From drones to virtual reality, the applications are many. The digital adoption is creating a more agile, efficient, integrated, and sustainable industry.
 

The oil and gas industry spend on advanced analytics looks set to almost triple in the coming decade. Meanwhile, take-up of cloud computing is forecast to increase exponentially, from $1.3 billion in 2019 to $12.5 billion by 2030, according to a recent BloombergNEF report.

 

Digital transformation in the power sector has received a further boost in these times of the pandemic.

 

The analysis indicates that digitalization has the potential to save around $80 billion per year over 2016-40, or about 5% of total annual power generation costs based on the enhanced global deployment of available digital technologies to all power plants and network infrastructure.
 

Digital data and analytics can reduce power system costs by reducing operations and maintenance costs; improving power plant and network efficiency; reducing unplanned outages and downtime; and extending the operational lifetime of assets.
 

Adopting digital technologies will help power sector to transform into a sustainable ecosystem. New digital technologies are being used for various initiatives being rolled out as part of Smart Cities plans, including efficient power distribution, virtual power plants and distributed generation. This transformation will also be contributing to the United Nations’ Sustainable Development Goals (SDGs) and the transition to a low-carbon energy system.
 

Globally, there is a growing need to digitalize every aspect of operations in all sectors, COVID-19has brought added pressure to this need.


Pallavi Agrawal

Editor