Energy Digital - August 2018

A U G U S T 2 0 18

www.energydigital.com

and the African energy revolution

EXCLUSIVE VIDEO

Procuring value

for

innogy Energy Digital speaks to innogy CPO, Dr. Ulrich Piepel

Tenaga Nasional Berhad

A Malaysian utility powerhouse

AB Inbev

Toasting a sustainable future

Smart cities Data driving smart city development

TOP 10

SUSTAINABLE COMPANIES

FOREWORD

W

elcome to the August issue of Energy Digital magazine.

“At the highest level, you need great players… it’s important to have the right people with the intellectual capabilities to adapt to new situations.” Ulrich Piepel discusses the importance of the right staff at renewable energy giant, innogy, in an exclusive video interview this month.

As well as a motivated workforce, embracing automation and placing procurement strategy at the fore are vital to making a splash in the energy world, says the CPO. This month, we also spoke to Paul Ebert, Global Technology Director for New Energy at WorleyParsons, about the exciting new energy sector and in particular why the company is honing in on Africa for growth.

Meanwhile, we examined which companies make the cut as the most sustainable in the world for our Top 10, while as always bringing you a selection of upcoming energy sector events not to be missed.

We have also brought you the latest news and insight in our company profiles on beverage giant AB InBev and utilities company Tenaga Nasional Berhad.

We’d love to hear what you think of this month’s issue! Be part of the story on Twitter: @EnergyDigital

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CONTENTS

10 INNOGY:CREATING SUSTAINABLE VALUE THROUGH PROCUREMENT

36

Energy 4.0

WORLEYPARSONS –– THE NEW ENERGY REVOLUTION

Smart

cities the energy

and

revolution

sustainable companies

62

72

50 Smart Cities

Events

80 AB InBev

AB InBev TOASTING A SUSTAINABLE FUTURE IN AFRICA

98

Tenaga Nasional Berhad

Tenaga Nasional Berhad

116 Plains Midstream Canada

138 128 Transportadora de Gas del Norte

Schneider Electric

VISIT OUR WEBSITE

R E A D T H E L AT E S T I S S U E

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INNOGY:CREATING SUSTAINABLE VALUE THROUGH PROCUREMENT We caught up with Dr. Ulrich Piepel, CPO at European renewable energy giant innogy, to find out why procurement is such an important part of the company’s strategy WRIT TEN BY

OLIVIA MINNOCK PRODUCED BY

RICHARD DURR ANT

AUGUST 2018

EUROPE

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INNOGY

P

rocurement is all about the right players, says Ulrich Piepel, choosing a football analogy

during World Cup 2018 from his office overlooking Borussia Dortmund’s Signal Iduna Park, where he regularly attends matches.

Since drafting in Piepel in 2003, innogy has transformed procurement into an important strategic function which adds significant value and innovation to the organisation – and together with the right players and partners, the procurement function has been instrumental in transforming innogy into one of the largest providers of renewable energy in Europe.

12

A RENEWABLE FOCUS RWE is a major European energy company dating back over 100 years; in 2016 amid policy and market changes, RWE decided to split the generation part of its business from the rest of the company, making innogy (innovative energy) a separate entity. “innogy has everything besides conventional power plants,” explains Piepel, adding RWE itself still owns gas, lignite, coal and nuclear, as well as mining. “All of the rest of the company – roughly 2/3 of the people, volume and revenue – is now innogy.”

This actually makes the subsidiary bigger than RWE, and it owns retail operations across Europe, including the UK, Germany, the Netherlands, Czech Republic, Poland, Hungary, Slovakia and Austria. “Our renewables business is solar, onshore and offshore wind, as well as some biomass energy production. There’s also some new business because the energy market is changing AUGUST 2018

Click to watch: talks Renewable

: ‘Innogy CPO Ulrich Piepel e Energy’

EUROPE

13

rapidly and we’re seeing developments like electric cars and smart homes,” Piepel adds.

PROCUREMENT TO THE FORE “Let me ask you a question. If you had €50,000 to invest, would you give that to someone who isn’t capable, and lacks a degree or expertise in spending or investing money?” Of course not – but Piepel argues that’s exactly what many companies are still doing when it comes to procurement.

“Decades ago, procurement wasn’t seen as an important function. Perhaps in retail it was known that making the right price point was vital for w w w. e n e r g y d i g i t a l . c o m

Dr. Bernd Schönwälder Mercateo Executive Boardmember

»

Digitisation is definitely a cool universal technology to connect people for business.

This opens up enormous opportunities for purchasing.

That’s what we believe in at Mercateo.

«

Find out more →

INNOGY

success, but other industries didn’t pay attention, meaning a large chunk of costs weren’t managed professionally. In the 80s when I left university, procurement was the fifth wheel on the wagon.

It was just transactional work.”

Heading up a large organisation means being able to transform this process through procurement engineering. “If you don’t have the right organisation, you cannot become a successful value creator bringing lots of money to the company. You must create a larger, centralised procurement organisation including the right people. You have to engineer the right organisation and all procurement processes.”

‘Procurement engineering’ for Piepel involves bringing together processes, measurements and set-ups to go through one department.

“This helps you make sure your organisation is following the best in 16

class processes, with the same set of KPIs,” he says. Perhaps unsurprisingly, the most important KPI at Innogy is return on investment. “In the past, when procurement was transactional, people only looked at the cost involved. You have to keep that in mind, but the most important thing is to establish RoI as a key factor to ensure we’re saving a multiple of what we’re spending. This is long-term added value.”

Procurement is so vital in value creation that it’s hard to imagine how innogy functioned without this strategic department. Piepel is

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“ You have to make the organisation aware of your bottom line savings.

This helps senior management and the board understand how important procurement can be” — Ulrich Piepel CPO, Innogy

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Eberspächer transformed their supply chain payments with Tradeshift The Eberspächer Group, headquartered in Esslingen, is one of the world’s leading system developers and suppliers of exhaust technology, vehicle heaters and bus air conditioning systems. The company is active in 60 locations across 25 countries, and it processes over half a million paper invoices annually from international suppliers of all sizes. To conduct its accounting processes more efficiently, the global automotive supplier realized it needed an electronic invoicing system, and for them Tradeshift was the clear choice.

Discover how Tradeshift can transform supply chain payments for your company at Tradeshift.com

Inefficient invoice processes Until the introduction of Tradeshift, Eberspächer processed invoices semi-automatically based on a scanning technology. A key challenge was to map the e-invoicing process to all relevant global markets and, knowing the importance of adoption, motivate suppliers to participate.

Other needs were to reduce the workload for the Eberspächer team with less manual processes, allowing them to refocus resources on other areas of the company, and to standardize the interfaces that link partners within the supply network. Eberspächer required a solution that could enable automatic global processing for all incoming invoices, with an extremely high availability across the globe.

The solution needed to be compatible with the IT systems of all Eberspächer suppliers— supplier onboarding and ease of use were paramount. The company analyzed solution criteria that went beyond functionality and cost, including expandability, industry knowledge, and supplier integration.

“We chose Tradeshift’s open B2B platform as they met our requirements in full—it’s free for our suppliers and is already prepared for, and tailored to, the legal regulations of most countries,” Dr. Oliver Frille, Vice President of Procurement & Supply Chain management for Climate Controls Division within the Eberspächer Group.

“In addition, Tradeshift allows us to be flexible.

With their extensible platform, we can easily extend our business applications to best suit our requirements and business.” The implementation of the Tradeshift platform launched in March 2016 at two sites with an initial 700 invited suppliers. In June 2016, the solution was rolled out at two additional locations and to another 70 strategic suppliers.

The successful onboarding of suppliers was an important linchpin in the implementation of Tradeshift. With Eberspächer’s input and approval, Tradeshift employed email campaigns to help engage suppliers and guide them through registration.

The automated onboarding required only a few clicks to connect suppliers to Eberspächer by establishing a Tradeshift account.

Automated invoice receipt, lower costs and higher data quality With Tradeshift, suppliers can now provide electronic invoices to Eberspächer in different ways and collaborate and communicate more easily. Of the 700 selected partners of the pilot project, one third have now switched to Tradeshift, and about 40 percent of them regularly send invoices through the platform. In addition to the automatic onboarding campaigns, Tradeshift’s integration as a service helped Eberspächer quickly integrate its top suppliers. One of the key benefits according to Eberspächer are Tradeshift’s automated validation rules. A supplier, forexample, that mistypes an electronic catalog order number, will be notified and can correct it easily and resubmit. The delays and unnecessary inquiries that come with paper invoices are a thing of the past. Tradeshift CloudScan, an application that allows PDF and paper invoices to be transferred into Tradeshift, digitizes documents automatically and performs various validation tests.

Eberspächer can now ensure that only high-quality data reaches the company’s internal IT systems.

SHAPING THE FUTURE. TOGETHER. BCG provides end-to-end procurement solutions. Our focus is on delivering sustainable value and efficient operating models. With digitization becoming real, we partner with companies to develop a customized and comprehensive digital portfolio comprising ready-tomarket offerings, such as AI-based negotiation coaches, tail-spend management software, supplier collaboration and contract platforms, and robotics to push the value envelope in procurement even further.

For more information about BCG’s procurement offerings, please contact: Robert Tevelson (Global Leader, Procurement) tevelson.robert@bcg.com Daniel Weise (Procurement Leader, Europe) weise.daniel@bcg.com

bcg.com

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adamant that procurement savings must

solutions, services and products to bring

be recognised as vital to profitability. “If

them into the business.”

a salesperson made 30% more sales, they would be seen as the hero of the company,

PROCURING ACROSS EUROPE

but if procurement makes savings with the

With Innogy operating across a multitude

same effect, which will also be sustainable

of locations, it’s important to ensure

over the next year, nobody really notices.

procurement organisations are independ-

You have to make the organisation aware of

ent parts of a well-run whole. “We structure

your bottom line savings and innovations

procurement not according to countries

from suppliers as well. This helps senior

but according to categories across a global

management and the board understand

market,” Piepel explains. “We allocate

how important procurement can be. And in

experts to each category who may work in

the age of digitisation, it is our job to scan the

different countries, but the negotiation and

world market for disruptive and digitised

strategy can be done centrally. You can w w w. e n e r g y d i g i t a l . c o m

EUROPE

Click to watch: ‘Innogy CPO on the role of Procurement. Ulrich Piepel’ 23

then apply the same best-in-class process

as you can. We need these experts who

whether in the UK, Germany, the Nether-

focus on a few product groups, rather than

lands or elsewhere.”

covering many categories in a decentral-

The energy giant deals with a variety

ised organisation with little knowledge.”

of product groups, and Piepel has worked to centralise these in order to make the

WORLD-CLASS PLAYERS

most of resources, thus increasing the

Experts are indeed vital in procurement if

knowledge within each category dramati-

it is to cease being an add-on or ‘fifth wheel’.

cally. “In the past, we had maybe 15 buyers

“We just had the World Cup, for example:

for cables for example, but why not

at the highest level, you need great players.

concentrate this to a single buyer with the

If you want to have great players, you need

right knowledge of markets, suppliers and

to pay, educate and motivate them. Attract

cost points? To create a great organisation,

them, even, as a large organisation with

you must centralise procurement as much

a lot of spend and leverage. Nowadays, w w w. e n e r g y d i g i t a l . c o m

INNOGY

procurement is one of the most complex jobs you can have – you need to understand the business, processes and the latest innovations in an increasingly digital world. You need to understand the products and costs involved, compliance, purchase-to-pay processes, even health and safety and data security,” says Piepel.

Amid rapid digitisation and transformation, roles can change quickly so it’s not always about employing those with the best ‘technical’ skill or the most specific qualification. “It’s important to have the right people with the intellectual capabilities to adapt to new situations. You need 24

smart people – it’s about brains and, very importantly, passion. We then try to give the highly skilled people freedom and trust. A buyer has to have room to negotiate, find new and innovative suppliers worldwide and interact with technical departments. You also have to reward staff, recognise who is doing a great job and encourage them to be braver, even get into arguments with technical people because they may have a better and more digital solution.”

AUTOMATION – GETTING DOWN TO BUSINESS Procurement involves a number of processes in any company, and as innogy was quick to recognise, automating as much as possible means more time is freed up for staff to make the most of their talents.

AUGUST 2018

“ To create a great organisation,you must centralise procurement as much as you can.We need these experts” — Ulrich Piepel CPO, Innogy

EUROPE

“Take tendering for example,” says Piepel.

“Previously, people would mail out tonnes of paper to the suppliers, and time was wasted when files came back to do research, comparison and benchmarking. Now, we do most of our tendering electronically with software like myFUTURA, which has helped us reduce cycle time and become way more efficient.” MyFUTURA allows for automatic comparison of various quotes and price allocation, and is a fully compliant with innogy’s back end systems, as well as being faster and easier for buyers to use, according to Piepel.

More surprisingly, negotiation can also be automated through electronic auctioning tools.

“Electronic auctioning brings us way more savings because we take away the personal element between supplier and buyer, which isn’t always needed when talking about facts and figures.”

While this was a challenge to introduce to some staff who felt negotiation was their biggest strength, Piepel persevered. “Now, people love it.

We’ve done thousands of e-auctions, and have in some areas up to 80-90% of our spend going through e-auction tools. It’s been a big boost, but also one of the toughest things to introduce, as there was resistance from buyers, technical departments… and suppliers who know it’s tough.

Call-offs notoriously involve a lot of paperwork which can be a huge drain on time and resources.

“We needed tools, like catalogues, which cover w w w. e n e r g y d i g i t a l . c o m

25

INNOGY

75-80% of our orders. We implemented

a successful and powerful organisation,

catalogues around 12 years ago and then

you can’t do it alone,” Piepel continues.

found we shouldn’t do the hosting and

“We have ideas, but need strong and inno-

management ourselves, but give this to

vative partners to follow these through

someone who is even more capable than

with. You can develop things better as

us. We therefore invited Mercateo to join

part of a partnership rather than looking

our procurement transformation journey

for a specific tool. We have also been

– we were one of their first customers so

working with many consultants which

were really able to help them grow their

specialise in procurement for the last few

platform, and now Mercateo is a major

years, for example Boston Consulting

company in electronic catalogue handling.”

Group, which has helped us shape our ideas, strategy and cost savings. It is

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RELATIONSHIPS BUILT TO LAST

fundamental that we benchmark with

Mercateo is one of several partners that

each other, as they know what is going

Innogy sees as vital to success and

on in the market.”

growth. “When you want to create such

AUGUST 2018

Call-offs have also been supported

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by software giant SAP. “We now have, with

mining, which utilises big data to help us

SAP, a supplier and procurement platform

see where our processing is not accord-

to cover all countries. SAP enables us to

ing to standard. This tool made us even

create call-off orders automatically, which

better in streamlining processes and

we call ‘no touch procurement’. All

becoming leaner, faster and more agile.”

contracts with all details are entered and

Tradeshift’s platform has also filled gaps

stored within the system, so people in the

in innogy’s purchase-to-pay process,

business can now call off without even

freeing up time and skills. “We do a lot of

involving procurement. This takes most

self-billing where possible, but found out

of the transactional work out of your

that we still receive a lot of invoices which

organisation and pushes this capacity into

aren’t up to standard for us to process.

the more strategical, value-creating

Tradeshift is an effective, fast-growing tool,

procurement work. We also have a lot of

which helps us to automate complex

processes in our organisation which is

paper invoices. The software automati-

tough to subtract the data out of, so we

cally reads all invoices and reduces

have implemented Celonis process

transactional work significantly.”

“ When you want to create such a successful organisation,you can’t do it alone.We have ideas, but need partners to follow these through with” — Ulrich Piepel CPO, Innogy

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INNOGY

PA R T N E R S H I P S

A decade-long partnership

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innogy has enjoyed a 10-year partnership with Mercateo, with the procurement platform being instrumental in time and cost savings. This long-standing collaboration has enabled Mercateo not only to develop suloutions that are specifically adapted to the needs of the energy giant, but also over time to develop into one of Europe’s leading platform providers. “We’re proud of contributing to the hugely successful innogy story,” says Dr. Bernd Schönwälder, a member of Mercateo’s executive board. “innogy was an early and rapid mover in introducing process digitisation.”

The partnership has allowed this digitisation to be accepted by users despite the initial resistance recalled by Piepel. “It was a fascinating step into a new arena,” says Schönwälder, “but today many procurement managers see Mercateo’s solution as a kind of

AUGUST 2018

‘dial tone’ in e-procurement – they connect, pick up the receiver as it were, and have access to millions of items. It’s crucial to see how users find the platform useful.

This was a really strategic step for us with innogy.

“It was a co-creative process,” he recalls. “innogy has always had a clear vision and the partnership has contributed a lot to our innovation. Innogy should be proud of how they helped improve our solution and brought this value to a broader market.”

Initially, Mercateo onboarded innogy’s existing suppliers with its B2B network, and users began to accept the platform as a way to get their suppliers all on the same solution. “We had a mashup from the marketplace, an ocean of products, and the very specific products that every single user needed each day. This was groundbreaking in terms of acceptance,”

EUROPE

Click to watch: ‘Innogy and its Partners featuring Chief Procurement Officer Ulrich Piepel’

Schönwälder explains.

Will the partnership span a further 10 years? Its success so far certainly inspires confidence in both parties. “It’s always hard to tell the future,” allows Schönwälder, “but looking back at our stable partnership which has always evolved, I have no doubt we can build on this partnership where we each know what the other side can use, what their world looks like, and how to adapt.”

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innogy and Mercateo clearly share a vision of the future where digitisation can only add to the journey. “I deeply believe we will find digitisation to be a tool to bring people closer together and improve communication: enrich it, make it more efficient, more transparent.

Procurement has a lot to win, from process cost saving to free time to do more valuable things,” Schönwälder concludes.

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INNOGY

Automation has been crucial in removing

an ongoing commitment to maintaining

transactional work over the years, says

partnerships, automation and digitisation.

Piepel, especially if the procurement

“We have two main strategic directions:

department is to lead by example. “You

digitisation of procurement and digitisa-

cannot add a couple of hundred people to

tion of the business,” Piepel outlines. “In

procurement and add this to costs. You

procurement, we are investing in evolving

have to transform to ensure all costs are

tools such as data transparency with

under control – automation transforms

artificial intelligence and will also imple-

transactional work into space for strategic

ment a highly strategic digitised source to

work,” comments Piepel.

contract software solution. With these tools we will support our buyers through

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THE FUTURE

decision making, and to make the process

Innogy’s transformation looks set to

faster and more transparent. In a global

continue, with the company showing

market, it’s tough for buyers to see what’s

innogy smarthome

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EUROPE

BIO

Dr. Ulrich Piepel qualified as a mechanical engineer at the University of Dortmund, Germany. He then started his career at the Fraunhofer-Institute for Logistics and Material flow. At the age of 30, he made his dissertation at the Fraunhofer-Institute in the field of robotics. After this, he joined the headquarters of Krupp in Essen, Germany for 3 1/2 years. He then took over responsibilities for logistics and production planning as well as for distribution in a Krupp subsidiary named Widia. After Widia merged with a US-based company named Valenite, Dr. Ulrich Piepel was responsible for the global procurement & supply chain of WidiaValenite.

In 2000, Dr. Ulrich Piepel left Widia to become COO of Maxdata, a major manufacturer of servers, PCs and laptops as well as the market leader for computers monitors in Europe. In 2003, Dr. Ulrich Piepel became CPO of RWE, the main German utility group for energy, gas and water. He is responsible for an annual purchasing volume of â‚Ź 10bm.

Since October 2008, Dr. Ulrich Piepel has been promoted to managing director of RWE Shared Service Center, the RWE Service GmbH. Since Feb. 2014 Ulrich Piepel has been promoted to directly manage all procurement activities within the RWE group, now reporting directly to the RWE board and having solid lines of all buyers if RWE worldwide.

In September 2016, Dr. Piepel became CPO of the new innogy SE, which has been the created as the renewable energy company from former RWE. He reports to the CEO.

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“ We must continue to push digitisation, even if there is some resistance — we must make people understand it’s not threatening their job,just changing and maybe even supporting it.”

— Ulrich Piepel CPO, Innogy

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EUROPE

happening in Israel or China for example, so they must be supported by digital tools with AI elements.”

It is also very important to ensure buyers understand the digitisation of the business itself – and indeed, the renewable energy industry.

“Our buyers need to understand the needs, developments and innovations of the market,” says Piepel.

“They have to challenge the business sometimes, or support it with these kinds of tools and digitised, disruptive solutions.”

We can expect to see constant improvement across innogy, led by a strategic procurement department. “We want to learn from other organisations and develop an even greater network of buyers. We must continue to push digitisation, even if there is some resistance – we must make people understand it’s not threatening their job, just changing and maybe even supporting it.

Mainly, we are looking at all the latest trends and getting the best people on board.”

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ENERGY 4.0

WORLEYPARSONS –– THE NEW ENERG REVOLUTION WRITTEN BY

SARAH JACOTINE

36

Paul Ebert, Global Technology Director, New Energy, talks to Energy Digital regarding new energy, renewables and growth across Africa…

AUGUST

Click to watch: ‘Osae nobitatem volupta simagniscium aut officimusam et eni blabores cor sequi que maioresti alignit officid min’ 2018

S GY 37

Click to watch: ‘Osae nobitatem simagniscium aut officimusam et eni’ wwwww. w.beunsei rngeysdsicghi ti ea f. l.com

ENERGY 4.0

TELL US A BIT ABOUT YOUR CURRENT ROLE AT WORLEYPARSONS. IN PARTICULAR, YOU SPENT TIME WORKING FOR WORLEYPARSONS’ BUSINESS ADVISIAN DEALING WITH “NEW ENERGY” AND CHANGES IN THE SECTOR? I work very closely with WorleyParsons’ advisory and specialist consulting subsidiary Advisian, as a specialist advisor in the area of New Energy. I very much enjoy this role, as in the last two years there has been an 38

immense change going on in energy markets around the world, and as an advisor to my own clients I feel I can add real value in charting this.

Prior to this, I helped build our renewable energy capability globally, but it was obvious that the change going on was much bigger than just clean electricity generation – the rise of new options such as battery energy storage, electric vehicles, hydrocarbon replacement fuels, new retail models such as peer-to-peer trading and the internet of things – all pointed to a broader shift.

So, I helped the business articulate what new energy is as a concept, just AUGUST 2018

39 how this could impact our customers and what our role could be. There is an energy transition underway and it will have fundamental impacts on many businesses and communities. WorleyParsons is traditionally a hydrocarbon-based business, a sector which remains pivotal in meeting our energy needs, but which will itself in time transition.

WHAT FASCINATES YOU ABOUT THE NEW ENERGY SECTOR? I was initially attracted to the area of energy as I realised at a relatively young age how dependent we are on energy resources. There is immense benefit from those resources, on economies and w w w. e n e r g y d i g i t a l . c o m

ENERGY 4.0

the lives of billions of people – but there is also a cost, both socially through inequality of access, something many Africans are familiar with, and environmentally which has many aspects but the headline concern is emissions.

The question becomes how do we continue to meet our global energy demands, pull everyone out of energy poverty, and do so in way that is both commercially and environmentally sustainable? This is hard, as our energy sectors are 40

large, energy issues cross borders and involve issues of geopolitics, security and economic impact, and for some there is a lot to lose.

“WorleyParsons has had a long association with Africa, originally through roles and project offices associated with a number of hydrocarbon related projects, and company offices in Egypt and Libya” — Paul Ebert, Global Technology Director, New Energy

The new energy sector promises a solution to this and will ultimately sweep through our energy systems in what will be the third great energy transition the global community has seen; the first was coal and the industrial revolution, the second was oil and its role in transport, the third will be the decarbonisation of our energy systems.

AUGUST 2018

HOW HAS WORLEYPARSONS EXPANDED INTO AFRICA? WorleyParsons has had a long association with Africa, originally through roles and project offices associated with a number of hydrocarbon related projects, and company offices in Egypt and Libya.

The company has expanded on both the back of specific projects, but also through acquisition.

WorleyParsons physically entered the South African market in 2008 with a 50% acquisition of Pangaea, forming PangaeaWorleyParsons. Its presence grew through acquisitions including Kwezi V3 Engineers in 2013 and TWP Holdings in 2013, which particularly strengthened the company’s mining related expertise.

WorleyParsons has worked in renewable energy across a number of other countries in Africa, including wind farm feasibility studies in Mozambique, hydroelectric work in a wide range of countries, and the design of solar-thermal concepts at very large scale in countries like Morocco. Recently, WorleyParsons completed the project management and owner’s engineer role for the 310MW Lake Turkana wind farm in Kenya (for all assets other than the transmission line) – this saw the construction of the largest wind farm in Africa to date with 365 turbines.

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ENERGY 4.0

“Despite the hurdles, I see great opportunities in Africa for clean energy, particularly as the energy transition moves and cleaner options become the clear choice, essentially “leapfrogging” more traditional centralised fossil options”

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— Paul Ebert, Global Technology Director, New Energy

AUGUST 2018

WHY IS THE AFRICAN REGION (IN PARTICULAR SOUTH AFRICA) SO I MPORTANT TO WORLEYPARSONS?

palpable in Africa but dealing with energy poverty must be an overriding objective regardless of what energy source is used.

Africa is complex. It has diverse cultures,

IN TERMS OF CLEAN ENERGY, HOW and in places, both uncertain business IS THIS TAKING OFF IN THE AFRICAN practices and security, which all make for REGION COMPARED TO THE REST more complex projects and increased risk. OF THE WORLD? difficult logistics, extreme environments,

Africa is also a continent blessed with

In certain parts of Africa, the clean energy

natural resources. Oil and gas, gold,

sector is growing – in others it is not,

copper, coal, diamonds, cobalt, platinum,

despite abundant clean energy resources.

some of which are the top resource

Most countries in Africa simply need

quantities in the world. Africa has enor-

energy, particularly electricity, and this

mous resource wealth, and WorleyParsons makes the issue different to say Europe has the expertise to develop and extract

where universal access to electricity exists.

such, doing so in a manner which protects

In Europe, the debate is more around how

not only the interests of the investors, but

to decarbonise electricity and the business

the communities and societies in which

implications around this – while in Africa

the resource exists.

it is more on how to get it cheaply, how to

From a new energy resource perspective, Africa has both everything and not much at all. I can remember flying from

overcome project risk, and how to finance the capital required.

So, it is not that sensible to compare

Johannesburg to Addis Ababa in Ethiopia

and the reality is that Africa will grow with

for the first time in 2012 and watching with

a portfolio of energy options – coal and

the eye of a renewable energy engineer the

gas will likely be substantial contributors

obviously huge hydro and solar energy

well into the future, and even nuclear may

potential of that portion of the continent –

have an entry point. But, there are moves

only to arrive in a country desperate for

to drive clean options as a priority with the

electricity. The opportunity to develop

UN Sustainable Development Goal 7 for

enormous quantities of clean energy is

access to affordable, reliable, sustainable w w w. e n e r g y d i g i t a l . c o m

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ENERGY 4.0

and modern energy for all, clearly seeking such.

Certain countries have and are seeing significant clean energy investments, including recently South Africa, Kenya and Morocco with some inspiring projects – there are others, and it is becoming impossible to keep track of them all. Virtually all of these are driven by policy, some by design world leading, and are important steps for broader Africa which builds confidence in the investment community, provides experience with 44

in-country delivery and operations, and begins to satisfy the risk appetite of broader investors, lowering the cost of and attracting finance.

This will also begin to decouple investments from multi and unilateral aid, which has been a significant contributor to energy related investments throughout Africa.

Overcoming investment hurdles is a recurring theme, and several clean energy investment facilities are targeting aspects of this – with that announced by the European Investment Bank and the African Trade Insurance for sub-Saharan Africa in March 2018 an example.

AUGUST 2018

Despite the hurdles, I see great opportunities in Africa for clean energy, particularly as the energy transition moves and cleaner options become the clear choice, essentially “leapfrogging” more traditional centralised fossil options. Small low risk renewable based micro-grid systems, which are being installed in some parts of Africa, will be important steps here which could eventually be connected as a decentralised, renewable based eco-system, while minimising cost and risk – predominantly all from a local indigenous energy source.

RENEWABLE ENERGY IS ONE SECTOR EXPERIENCING HUGE GROWTH IN SOUTH AFRICA AND THE WIDER REGION – WHAT ARE THE REASONS BEHIND THIS? Growth in renewable energy in South Africa is mostly driven by the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), which provides a competitive process and a clear price for the energy contracted, which helps remove the investment risk. While some criticise this programme, in comparison to other policy in other w w w. e n e r g y d i g i t a l . c o m

45

ENERGY 4.0

countries it appears to be very well designed, an opinion I have heard from a number of sources I respect.

Many simply see the REIPPPP as a subsidy, but in any market there are cross-subsidies everywhere.

So, the core benefit of such policy is to get the renewable energy industry established and the supply channels in place. Ultimately subsidies need to be removed and renewable energy needs to compete on its own merits.

46

The most likely first mover in South Africa sans subsidy is probably self-generation behind the meter, which with batteries would give a very secure electricity supply.

WorleyParsons has assisted a number of commercial enterprises to analyse such systems, and in some parts of the world these can be very large, sometimes exceeding 100MW and designed as an integrated micro-grid.

When the price and reliability point of renewable energy meets a threshold, it will be unstoppable.

AUGUST 2018

“When the price and reliability point of renewable energy meets a threshold, it will be unstoppable” — Paul Ebert, Global Technology Director, New Energy

47

HOW WILL THE CLEAN ENERGY TRANSITION IMPACT BOTH BUSINESSES AND CONSUMERS OVER THE NEXT 5-10 YEARS?

more like the internet than traditional

It will be different depending on where

one-way systems. This will likely cause

you are in the world, but there will be

a degree of chaos.

impacts. In some markets we are going

customer value connectivity will increase. This will transform our electricity grids into two-way conduits,

For business it means a more complex

to see increasing changes to “traditional�

interaction on energy, and likely a lot of

electricity systems, as they start to

uncertainty as the transition bites and

transition from a centralised to

energy markets react. For consumers

a decentralised based generation

a new world of energy related products

portfolio. There will be regulation and

will emerge, some confusing, but in

business model changes, and as the

theory there should be better alignment

internet of things begins to provide actual

with energy needs and more choice. w w w. e n e r g y d i g i t a l . c o m

We deliver you the stories that matter…

Click to read

www.supplychaindigital.com

H O M E TO I N D U ST RY– L E AD I N G D I G ITAL B U S I N ES S P L AT FO R M S

“ We recently worked with BizClik Media on an article which characterizes and explains the total value that Kudu Supply Chain has on company growth plans.

From start to the finish, it was a pleasure working with the BizClik team. The feedback we have received from different audience groups on the article was phenomenal.

It has attracted a lot of interest and attention to our company, our growth plans and has definitely created additional value to what we are trying to achieve.”

– Murat Ungun, Senior VP Supply Chain Kudu Corp

HAVE YOU SEEN OUR OTHER TITLES?

SMART CITIES

Smart

cities the energy

and

50

revolution

Around the world smart cities are rising, driven by data, innovative technology and a desire for an improved urban environment WRITTEN BY

AUGUST 2018

M AT T HIGH

51

w w w. e n e r g y d i g i t a l . c o m

SMART CITIES

52

AUGUST 2018

B

y 2050 it is estimated that 68% of the world’s population will live in urban areas.

That equates to another 2.5bn people

living in cities – in 2018 the world’s urban population was 4.2bn. In the face of such rapid

growth, cities are using innovative technology to improve sustainability, to better manage transport and infrastructure, be more energy efficient and to offer urbanites a better – and smarter – way of living.

Welcome to the smart city. Driven by data, these urban environments use interconnected digital technology from traffic lights and energy systems through to heating or even the buildings themselves. “Smart cities are by definition, connected cities. They are cities where devices, systems, vehicles, whole environments and the people in them are communicating and collaborating,” says Martin Woolley, Developer Relations Manager, Bluetooth Special Interests Group (SIG), a standards organisation with 33,000 member companies that take the Bluetooth standard and implement Bluetooth technology in products and services.

“The pursuit of the smart city tends to be driven by general, wide-reaching concerns such as sustainability or by specific, local issues like air pollution, traffic congestion or growing energy costs,” Woolley adds. “Similarly, smart buildings

w w w. e n e r g y d i g i t a l . c o m

53

SMART CITIES

are being created as a response to the efficiency and cost reduction opportunities that a self-optimising, connected building can offer.

Increasingly, regulations are put in place stipulating tougher energy efficiency targets; smart building technology makes it possible to meet these targets.”

But cities are vast. And with each having its own specific requirements – and range of technologies – how to best implement those

“ In a recent survey1 more than two out of three people said that interoperability of systems was a key component of a smart city”

innovations is key. Martin explains 54

that collaboration and interconnectivity are vital components of any connected network. There are, he

— Martin Woolley, Developer Relations Manager, EMEA Bluetooth SIG

says, billions of devices currently on the market, each bringing a growing demand for connectivity and interoperability. The latter is essential for creating systems that can incorporate many of these devices from a range of manufacturers, and for a host of different urban applications.

“In a recent survey more than two out of three people said that interoperability of systems was a key component of a smart city,” AUGUST 2018

Woolley explains. “It’s one of the key reasons the Bluetooth SIG was created 20 years ago as, without universal standards, interoperability couldn’t be achieved. It is the foundation of Bluetooth and has remained not just a core component, but also a major contributing factor for the widespread adoption of the technology across a wide range of markets and use cases.”

The nature of the smart city concept and its inherent means that there isn’t a standard way in which such an environment works. Rather, it is imperative to assimilate technologies based on each urban area, the people living in it, its requirements and so forth. A smart city, Woolley says, “has a collection of technological systems that aim to solve all sorts of problems that modern cities face and improve the quality of life for citizens. As a result, the priorities will be different across different cities, based on their most urgent concerns.

“Often, citizens themselves are part of the solution,” he adds. “For example, frequent smartphone usage and wearable technology can be leveraged to capture all kinds of live data, including traffic and pollution levels.”

Bluetooth, with its ability to connect wireless devices and build personal area networks, can act as an underpinning technology in the smart city. “Engaging and involving citizens in smart city initiatives is essential to their success and a common strategy is to crowdsource urban data w w w. e n e r g y d i g i t a l . c o m

55

SMART CITIES

by exploiting the smartphones that

small Bluetooth devices that can be

almost everyone has in their pockets,”

used to create indoor navigation

highlights Woolley. “All smartphones

systems. These work in conjunction

support Bluetooth, which can be used

with smartphone applications, to help

to collect data, communicated over

people find their way through complex

Bluetooth by strategically deployed

environments like airports or large

sensors. From the smartphone, the

shopping centres when there is

data can be uploaded to the cloud,

no GPS signal available.

where analysis can be performed and

56

The technology can also be used for

heat maps can be created, depicting

the effective operation of smart

various aspects of the city environment.

buildings. “Bluetooth mesh network is a

In a similar way, vehicles can collect

new Bluetooth technology that allows

data wirelessly as they pass roadside

thousands of devices to communicate

sensors, allowing traffic patterns to be

with each other,” Woolley adds. “It’s

monitored and, as a result, routes and

designed for smart buildings, where a

resources more efficiently allocated.”

multitude of sensors provide data to

Alternatively, Bluetooth beacons are

AUGUST 2018

other building devices and systems in

“ smart buildings are being created as a response to the efficiency and cost reduction opportunities that a self-optimising, connected building can offer” — Martin Woolley, Developer Relations Manager, EMEA Bluetooth SIG 57 real-time, turning the building into an

to communications and connectivity will

automated, self-optimising system which

not work. Requirements regarding issues

reduces costs and improves the building

like range, bandwidth and power supply

environment. By connecting buildings

can vary enormously and so systems will

together using the internet, we gain the

typically leverage more than one

ability to discover new information about

communications technology. As a result,

the comparative performance and use of

choosing the right technologies to meet

our buildings, allowing decisions and

the full range of smart city requirements is

improvements to be made.”

the challenge. But standards-based

Importantly, Woolley notes that when it comes to challenges in implementing smart city networks the very interoper-

technologies like Bluetooth are without doubt, the wise choice.”

While smart cities undoubtedly provide

ability and connectivity that typifies them

an effective and innovative method of

can also present issues. “For typical smart

managing infrastructure, improving

city projects, a one-size-fits-all approach

building technology and operation, and w w w. e n e r g y d i g i t a l . c o m

SMART CITIES

creating a more efficient urban space, they are made for people. But are we ready for more technology? Recent stories about ‘rogue’ automated vehicles, social media data breaches and advanced AI technology make some nervous about further integration of digital technology into their lives. Woolley, however, sees this as a positive: “It’s important that people are aware of the risks and are prepared to ask questions about the security of their data, devices and networks,” he says.

“At the Bluetooth SIG, security is taken 58

extremely seriously and Bluetooth mesh devices must always implement mandatory security features such as encryption and authentication of all communication messages. This is only part of the issue though and the public have a very healthy role to play in ensuring manufacturers, social media companies and governments do their part in keeping data, and people, safe. To do that, a good smart city project should involve the citizens intended to benefit from the project. An inclusive and consultative approach is key to building trust.”

AUGUST 2018

“ At the Bluetooth SIG security is taken extremely seriously and Bluetooth mesh devices must always implement mandatory security features such as encryption a authentication of al communication messa — Martin Woolley, Developer Relations Manager, EMEA Bluetooth SIG

G,

y

s y

and all ages”

And that trust will ensure that the concept of a smart city can flourish.

Around the world there are numerous examples already of digital technology and innovative products improving cities both operationally and for those that live in their buildings. “I do not think there will be a single smart city template in the future. I think there will be a managed evolution towards a particular type of smart city across the world, with the most pressing issues and opportunities guiding that evolution. For one city, conservation and efficient distribution of water might be the priority, and underground sensor networks the solution. For another, the priority may be in regard to energy costs and smart, networked buildings, and street lighting the solution. What I do not think will be at the top of the list is the deployment of autonomous flying taxis. I saw this presented as the hallmark of the smart city recently and I couldn’t disagree more,” Woolley concludes.

w w w. e n e r g y d i g i t a l . c o m

59

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HAVE YOU SEEN OUR OTHER TITLES?

T O P 10

62

AUGUST 2018

sustainable companies Which companies stand out for their green credentials? Energy Digital finds out W RI T T E N BY

HARRY MENE AR

This article explores the world’s top 10 most sustainable companies, according to a report released in January 2018 by Canadian financial information company and magazine, Corporate Knights. The report examines over 6,000 companies worldwide, across all industries, with an annual reported revenue of over $1bn. Companies are scored based on “energy use, carbon, waste and clean air production, innovation expenditures, taxes paid, the diversity of leadership, leadership compensation, suppliers the companies work with, pension fund health, safety ratings, employee turnover and the link between sustainability targets and senior executive pay”, according to Forbes Magazine. Here are the companies that made the top 10.

w w w. e n e r g y d i g i t a l . c o m

63

T O P 10

09

Siemens

www.siemens.com

Based in Munich, Germany, energy conglomerate Siemens manufactures and distributes “systems for power genera-

10

Samsung SDI www.samsungsdi.com

64

tion, power transmission, and medical diagnosis”, according to Forbes. The company reported a net revenue of $94.47bn in 2017 and, in addition to being ranked in the top 50 most valua-

South Korean electronics manufac-

ble brands worldwide by Forbes, is also

turer Samsung SDI is headquartered in

in the top 100 best employers in the

Yongin and operates through two sub-

USA, as well as being the eighth best in

segments: Display and Energy, which

Canada. Externally, Siemens’ sustain-

manufacture PDPs for flat screen tel-

ability initiative works to align with the

evisions and batteries, respectively. At

goals of the United Nations 2030

the heart of Samsung SDI’s environ-

Agenda for Sustainable Development.

mental policy is a commitment to “the

Internally, the company strives “to bal-

goal of environmental sustainability as

ance people, environment and profit”.

eco-value creation”. This is the idea

The company received a total sustain-

that a company’s environmental

ability score of 76.7%

impact leads to positive societal impact, which further benefits the sustainability of the company. Samsung is the only Asian company in Corporate Knights’ top 10, even though the company did not appear on the list in 2017.

Samsung received a total sustainability score of 75.8%.

AUGUST 2018

07

Cisco Systems www.cisco.com

Based in San Jose, California, Cisco Systems designs, produces, and distributes internet networking

08

Autodesk Inc.

technology for the telecommunications and communication technology industry, according to Forbes. The company is ranked 16th on Forbes’ list

www.autodesk.com

of the World’s Most Valuable Brands

A Californian company, based in San

and is in the top 20 World’s Best

Rafael, Autodesk Inc. designs and dis-

Employers list. Cisco’s sustainability

tributes software and technical

model focuses on “reducing green-

manufacturing solutions for a range

house gas emissions, preserving

of clients in the architecture, engineer-

biodiversity and natural resources, and

ing and construction, manufacturing,

designing… products to minimise

digital media, and entertainment

waste”. The company received a total

fields, according to Forbes.

sustainability score of 77.0%.

Autodesk’s sustainability model is built around the forward-facing principle that “addressing climate change while meeting the needs of a growing population is the greatest design challenge we have ever faced. It’s also the business opportunity of a lifetime”.

The company reported a net revenue of $2.05bn in 2017 and received a total sustainability score of 76.9% from Corporate Knights. w w w. e n e r g y d i g i t a l . c o m

65

T O P 10

05

Outotec

www.outotec.com

Outotec, a Finnish mining, refinement, construction and engineering company is a world leader in minerals and

06

Amundi

www.amundi.co.uk

66

metals processing technology. The company also provides “innovative solutions for industrial water treatment, the utilisation of alternative energy sources and the chemical

French financial management com-

industry”. Outotec’s sustainability

pany Amundi is headquartered in Paris,

model is centred around a ground-up

and currently handles more than

approach, ensuring sustainable prac-

$1.659trn in Assets Under Manage-

tices across the entire value and

ment, primarily serving retail banking

supply chain. “We offer sustainable

networks in Europe and Asia. Manag-

mineral processing solutions, from

ing director Fannie Wurtz announced in

pre-feasibility studies to complete

2018, in response to a new US$ Corpo-

plants and life-cycle services.” It is

rate Bond scheme excluding “issuers

also the only Finnish company in the

involved in alcohol, tobacco, military

top 10. Outotec received a total sus-

weapons, gambling, adult entertain-

tainability score from Corporate

ment, GMO and nuclear power”, that

Knights of 78.3%.

“we believe the potential of socially responsible investments will continue to grow in the future, and we are committed to offering the relevant bond and equity tools adapted to these new requirements.” Amundi received a total sustainability score of 77.8%.

AUGUST 2018

03

Valeo

www.valeo.com

French technology company Valeo engages in the design, production, and sale of components, integrated systems, and modules for the automobile industry, according to Forbes. Since

04

UCB SA

www.ucb.com

2009, the company has cut CO2 emissions by 5%, spent $20.01mn on environmental protection, and in 2016 its 111,600 employees spent a combined 1.8mn hours in sponsored

Headquartered in Brussels, Belgium,

training programmes. Valeo reported

UCB SA engages in the research devel-

a 10-year high net revenue of $20.92bn

opment and commercialisation of

in 2017 and received a total sustaina-

pharmaceutical and biotechnology

bility score of 83.6%.

products, according to Forbes. The company is ranked ninth on Forbes’ list of Top Multinational Performers, reporting 10-year high points for revenue and profits ($5.11bn and $ 849.3mn respectively) in 2017. UCB released its first sustainability report in 2017, with a manifesto centered around environmental stewardship and the provision of pharmaceutical support for epilepsy patients in developing regions. The company received a total sustainability score of 79.5%. w w w. e n e r g y d i g i t a l . c o m

67

T O P 10

68

02

Neste Oil Corp. www.neste.us

Headquartered in Espoo, Finland, Neste Oil Corp engages in the production of petroleum products and renewable diesel, according to Forbes.

2017 is the 12th year Neste has featured on the Corporate Knights top 100 list of most sustainable companies, jumping from the 23rd position to second place, largely due to consistent improvement in the Clean Air Productivity segment. In response to the rankings, Neste announced: “Unlike in soccer or ice hockey, placing second on the Global 100 list is certainly considered a win, and we are very excited and humbled by the result.� The company reported a net revenue of $16.1bn in 2017, and received a net sustainability score of 85.2%.

AUGUST 2018

01

69

Dassault Systèmes SA. www.3ds.com

The 2018 Corporate Knights list of most sustainable companies featured more French companies than those of any other nation, including number one spot: Dassault Systèmes SA. Headquartered in Vélizy-Villacoublay, Dassault provides end-to-end software and programming solutions to companies, including early-stage 3D design services, virtual testing, and manufacturing operations management, with an eye to achieve waste reductions. “According to Corporate Knights, the company bested all others in the sustainability ranking by having strong female representation on its board, having a smallish gap between the pay of its CEO and its average workers, and paying more than 26% of its earnings in taxes over the past five years.” Dassault received a net sustainability score of 86.1%. w w w. e n e r g y d i g i t a l . c o m

12 & 13

SEPT 2018

NEC BIRMINGHAM

THE UK’S LEADING EVENT FOR WATER & ENERGY EFFICIENCY INNOVATIVE SOLUTIONS AND REVOLUTIONARY TECHNOLOGY FOR BUSINESS SUSTAINABILITY

80

SPEAKERS

REGISTER FOR FREE TICKETS FUTURERESOURCEEXPO.COM

3000 VISITORS

200

EXHIBITORS

FUTURE RESOURCE THE NEW RENEWABLE ENERGY EXPO On the 12th & 13th of September, Future Resource will land and set up shop at Birmingham’s NEC, and registration is now open with tickets freely available for those who register! This year, the expo will be joining forces with the largest recycling and waste management event the UK, RWM, which will in turn drive the show’s focus onto the growing need for renewable and sustainable energy sources; as well as how to become more energy efficient.

for professionals working across numerous industries to attend, and in particular local authorities, which is due to increased need for development within our urban areas. As well as the authorities, educating large businesses on how altering and changing their energy usage could benefit the larger environment is an objective Future Resource will endeavour to achieve, as the show strives to create a positive, more environmentally friendly future for all.

Energy Association will be taking a deep look into the avenues Britain could explore in its quest to achieve the 2050 emissions targets.

Future Resource will boast marketleading exhibitors like Veolia, Orsted and Northern Gas & Power, as well as partnering with hugely influential groups like The Green Organisation, Sustainable Energy Association and the Major Energy Users Council.

Partnering with bodies like this shows the need for Future Resource and how there should be more of a focus on On top of market leading exhibitors that will be here to sell there innovative these similar sectors within the events Evolving from RWM’s Supply and products and services, there will be a industry.

Demand Zone, Future Resource is full roster of pioneering professionals, the latest edition to the growing Tickets for Future Resource are environmental portfolio at Prysm Media leading seminars on topics that directly affect the industry and its free and readily available from Group, and will run alongside RWM, future. Within three dedicated seminar futureresourceexpo.com.

Flood Expo and the Contamination theatres you will find Helen Troup from Series at the NEC. The crossover of these events and the industries they Carbon Smart, who will be distilling There are still exhibitor spaces represent will ensure attendees gain advice for businesses looking to invest available, to find out more about the most detailed outlook of all these in their own renewable energy source these get in contact with Nick sectors, in one place at one time. and will also talk attendees through Woore on some pitfalls to avoid in the process. nick.woore@prysmgroup.co.uk or Our event offers a major incentive Lesley Rudd from the Sustainable 0117 929 6083.

EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences WRITTEN BY OLIVIA MINNOCK from around the world

28–30 AUGUST

72

Intersolar South America 2018 [ EXPO CENTER NORTE, BRAZIL ]

13–14 SEPTEMBER

ference attendees and 180 exhibitors,

Offshore Wind Executive Summit

Intersolar has become the most important

[ NORRIS CONFERENCE CENTERS, USA ]

platform for manufacturers, suppliers, dis-

Bringing together decision makers from

tributors, service providers, investors and

wind and offshore oil and gas, both from

partners of the solar industry. Intersolar

the US and Europe, the Offshore Wind

South America takes place at the Expo

Executive Summit provides the forum to

Center Norte in São Paulo, Brazil, and has

establish new business relationships.

a focus on the areas of photovoltaics, PV

Discussion points include project devel-

production technologies, energy storage

opment, important policy issues and

and solar thermal technologies.

supply chain.

www.intersolar.net.br

www.offshorewindsummit.com

With 11,500-plus visitors, 1,500-plus con-

AUGUST 2018

27–28 SEPTEMBER

18–20 SEPTEMBER

World Congress on Oil, Gas and Petroleum Refinery [ RADISSON BLU HOTEL, ABU DHABI, UAE ]

Asia Power Week

Conference Series LLC welcomes you

[ ICE, BSD CITY, JAKARTA, INDONESIA ]

to attend the World Congress on Oil, Gas

2016 saw Asia Power Week take place

and Petroleum Refinery in September at

outside of the ASEAN region, and also

Abu Dhabi, UAE. The event invites all the

for the first time in South Korea, at KIN-

interested participants to sharing their

TEX, Gyeonggi-do. For the second year

knowledge, research and gaining the

in succession event attendance records

information in the arena of oil, gas, petro-

were broken, with over 8,300 delegates

leum and its allied areas. Petroleum

and visitors attending the three co-

Refinery 2018 gives a platform for analyst

located events. The event attendance

scholars, researchers and academic peo-

record was then further broken in 2017 in

ple to share and globalise their research

Thailand, for the ninth staging in Bangkok.

work while the participants from industry/

This year, for the first time Asia Power

business sectors can promote their

Week will take place in Indonesia at ICE,

products thus felicitating dissemination

in BSD City, Jakarta.

of knowledge.

www.asiapowerweek.com

petroleumrefinery.conferenceseries.com

w w w. e n e r g y d i g i t a l . c o m

73

EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences from around the world 10–11 OCTOBER

HORIZON18

[ BOSTON CONVENTION CENTER, USA ] Horizon18 is a global event-driven platform that harnesses the international movement towards a clean economy. The platform is the logical next step following the Paris Agreement, 2030 Sustainability Goals, We Are Still In, and America’s

02–04 OCTOBER

74

Operational Excellence & Risk Management [ HILTON, CANARY WHARF, LONDON ]

Pledge. The momentum to act on clean energy and solutions is rapidly accelerating, and Horizon18 will be the next landmark platform to uniquely offer deployable solutions to accelerate the

The Operational Excellence & Risk Man-

clean economy and act on climate com-

agement Summit is Europe’s only event

mitments. The time to act on clean

dedicated to operational excellence in

economy solutions has never been more

hazardous industries. Taking place in Lon-

opportune, and there is no better place to

don 2-4 October, this executive level

meet than in Boston where the northeast

conference will bring together over 100

US is already one of the world’s leading

Heads of Operations, HSE, ORM and

and fastest-growing clean energy clus-

Operational Excellence from manufactur-

ters, with ideal access to Canadian and

ing, energy, chemicals, resources,

global markets. Horizon18’s platform cre-

transportation and more – all industries

ates the potential for solutions against the

facing high levels of operational risk.

backdrop of Boston, a C40 city.

opexsummiteurope.iqpc.com

horizon18.org

AUGUST 2018

75

05–07 NOVEMBER

The Operational Excellence in Oil & Gas Summit [ HOUSTON, USA ] The Operational Excellence in Oil and Gas Summit will bring over 300 heads of operations leaders from North America’s largest oil and gas companies to discuss how to balance competing priorities and bridge the information silos in your business that can significantly impede safety performance. “There is simply no better opportunity this year to meet with so many industry experts – all presenting at the event and there to answer your most pressing questions.”

www.opexinoilandgas.com

w w w. e n e r g y d i g i t a l . c o m

Light that’s always learning SylSmart Office Lighting Lighting for office environments is of paramount importance, benefiting employers and staff alike. Good lighting has the ability to improve wellbeing and increase productivity and accuracy whilst completing tasks. SylSmart enables businesses to adopt intelligent office lighting controls with ease – achieving significant energy savings through granular control of each luminaire based on presence and natural daylight control. sylvania-lighting.com

11–15 DECEMBER

13–14 DECEMBER

Intersolar India

Solar Power, New York

[ BOMBAY EXHIBITION CENTRE, MUMBAI ] With events spanning four continents, Inter-

[ NEW YORK MARRIOTT AT THE BROOKLYN BRIDGE, NY ]

solar is the world’s leading exhibition for the

Tapping into one of the top 10 solar mar-

solar industry and its partners. ‘Our objective

kets, Solar Power New York is the event

is to increase the share of solar power in the

for solar policy updates and opportuni-

energy supply. By providing first-rate ser-

ties to network with regional companies

vices, our exhibitions and international

for New York State. The 2017 event drew

conferences bring businesses, technologies

400 attendees, over 25 exhibitors, and

and people from the most important markets

featured interactive education focused

around the globe together. We have 25 years

on the changing landscape, obstacles,

of experiences in opening up markets, provid-

and policies that are impacting the indus-

ing specialist knowledge and creating links.’

try in New York.

www.intersolar.in

events.solar/newyork

w w w. e n e r g y d i g i t a l . c o m

77

80

AB InBev TOASTING A SUSTAINABLE FUTURE IN AFRICA WRITTEN BY

LAURA MULLAN PRODUCED BY

STUART IRVING

AUGUST 2018

AFRICA

81

ANHEUSER-BUSCH INBEV

Brewing the highest quality beers depends on ingredients from a healthy environment and thriving communities.

With its 2025 sustainability goals underway, AB InBev is cementing its future in Africa B InBev is undergoing what you could call a ‘sustainable renaissance’. Earlier this year, the beer giant unveiled its ambitious sustainability goals for 2025, channelling a forward-thinking vision that hopes to promote high environmental standards and help local communities thrive. As part this plan, AB InBev is championing five key principles; smart agriculture, water stewardship, circular packaging and climate action, and perhaps nowhere is this more evident than at its operations in Africa.

In 2017, AB InBev acquired rival SABMiller, which made waves in the alcohol sector and cemented its position as the largest beer company in the world.

In her previous role, Zoleka Lisa worked at South African Breweries, a subsidiary of SABMiller, but post-merger she rose through the ranks to become AB InBev’s Procurement Director of Capabilities and Sustainability. “It’s a role which I hold close to my heart, as it has the opportunity to

A

82

AUGUST 2018

AFRICA

83

Zoleka Lisa, Procurement Director of Capabilities and Sustainability

w w w. e n e r g y d i g i t a l . c o m

ANHEUSER-BUSCH INBEV

shift the needle of the socio-economic climate we find ourselves in, in Africa,” Lisa says.

As the largest beer company in the world, AB InBev’s brewing heritage spans across continents and generations. This mammoth scale can be a challenge, even more so

when the firm has pledged to uphold some of the industry’s highest sustainability standards. For Lisa, this commitment to sustainability only goes to show that AB InBev may have a robust business acumen, but it hasn’t forgotten the importance of the environment and

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“AB InBev is a company which genuinely wants to do good by uplifting communities and promoting the drive towards sustainability” — Zoleka Lisa, Procurement Director of Capabilities and Sustainability AUGUST 2018

AFRICA

community it relies upon.

“AB InBev is a company which genuinely wants to do good by uplifting communities and promoting the drive towards sustainability,” explains Lisa. “Success for AB InBev goes beyond just the bot-

tom line but resonates in building communities and ensuring the way in which we live in the world is sustainable.

For me, it is an admirable trait for a large corporate to be so determined to shift the needle in a positive way. This is what

85

community it relies upon.

“AB InBev is a company which genuinely wants to do good by uplifting communities and promoting the drive towards sustainability,” explains Lisa. “Success for AB InBev goes beyond just the bot-

tom line but resonates in building communities and ensuring the way in which we live in the world is sustainable.

For me, it is an admirable trait for a large corporate to be so determined to shift the needle in a positive way. This is what w w w. e n e r g y d i g i t a l . c o m

HEADS UP! TO MAKING THE WORLD A BETTER PLACE.

We support AB Inbev’s Sustainability Goals by promoting glass reuse and recycling in South Africa.

• • • •

By encouraging glass resuse and recycling in South Africa we have achieved a 82% diversion rate of glass from landfill Our returnable bottle system is one of the most efficient in the world All new glass packaging has a 41.5% recycled glass content Each recycled and reused glass bottle saves valuable energy, landfill space, reduces CO2 emissions and generates a source of income for thousands of South Africans

We are proud to be associated with AB Inbev and give them a “Heads Up” to making the world a better place. www.facebook.com/TheGlassRecyclingCo

@TRGC Website: www.tgrc.co.za

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makes me so proud to say I work for AB InBev.” After much deliberation, the company’s four focus areas were chosen as they were seen to present the biggest risk or opportunity for AB InBev as a company. Yet, specifically in Africa, AB InBev added a fifth additional pillar: entrepreneurship. “Given the significant emphasis across the continent on employment, job creation, and the development of SME’s to alleviate poverty, we felt this

was an import area to include under the Zones sustainability strategy,” notes Lisa.

“In the majority of locations where we operate, AB InBev is a local brewer,” she continues.

“We sell our products to the local community; our employees live in the communities we operate in and we rely on local resources to produce our products.

“To ensure we can carry on operating for the next 100+ years, we have a vested interest in ensuring that we can support w w w. e n e r g y d i g i t a l . c o m

ANHEUSER-BUSCH INBEV

AUGUST 2018

AFRICA

“ S uccess for AB InBev goes beyond just the bottom line, but resonates in building communities and ensuring the way in which we live in the world is sustainable”

thriving local economic development to support market growth.”

Zeroing in on its smart agriculture goal, AB InBev has pledged that 100% of its direct farmers will soon be skilled, connected and financially-empowered. With this in mind, technology is set to play a key role.

Malt barley is one of the — primary ingredients in beer Zoleka Lisa, Procurement Director of Capabilities and Sustainability and AB InBev places a high priority on cultivating only the best quality barley for its beer. Aiming to tended to over apply fertiliser revolutionise the agriculture sector, AB which not only increased costs InBev launched its SmartBarley programme but had a negative impact on the in 2013 and today, it plays a pivotal role in environment. This data-enabled its operations in Africa. Leveraging data platform allowed farmers to see technology and insights, SmartBarley is this trend first-hand. helping farmers improve both their produc“We are committed to being at tivity and environmental performance. the forefront of malting barley More than 5,000 farmers have participated research, helping our farmers in SmartBarley so far and the data gathered improve yields and reduce the allows AB InBev to identify and address use of resources like water and gaps through a range of agronomic, envifertilizers,” says Lisa. “Now we ronmental and management initiatives. are taking SmartBarley to the So, for instance, when used in Mexico, next level by using the data to SmartBarley showed that some farmers build sustainability metrics and w w w. e n e r g y d i g i t a l . c o m

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“ For me, it is an admirable trait for a large corporate to be so determined to shift the needle in a positive way. This is what makes me so proud to say I work for AB InBev” — Zoleka Lisa, Procurement Director of Capabilities and Sustainability

AUGUST 2018

AFRICA

S TAT I S T I C S

AB InBev’s 2025 Sustainability Goals • Smart Agriculture: 100% of its direct farmers will be skilled, connected and financially-empowered.

• Water Stewardship: 100% of its communities in high stress areas will have measurably improved water availability and quality.

• Circular Packaging: 100% of its products will be in packaging that is returnable or made from majority recycled content.

• Climate Action: 100% of its purchased electricity will be from renewable sources; and a 25% reduction in CO2 emissions across our value chain (science-based).

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AFRICA

“ U ltimately we believe that it’s only when we address water risk issues at source, in collaboration with partners, that we can achieve lasting, sustainable, solutions to water resource management”

create predictive analytics to help farmers access better insights to make decisions.”

In addition, AB InBev has tasked itself with promoting water stewardship. To achieve this, it is making improvements to its plant water use efficiency and is also supporting partners that work to protect and conserve the valuable resource it so heavily relies upon.

“To this extent, each of our breweries has mapped out — Zoleka Lisa, Procurement Director of where water use can be Capabilities and Sustainability improved,” comments Lisa.

“Globally we have set a target of achieving a water use ratio of 2.8 hl/hl by 2025.” ners to support water As part of this, the beer producer has creconservation at a catchment ated partnerships with both the cities of level,” adds Lisa. “Ultimately Tshwane and Cape Town (in South Africa) to we believe that it’s only when find new ways to conserve or augment water we address water risk issues at supplies. This has seen new pressure mansource, in collaboration with agement systems implemented as well as partners, that we can achieve the rehabilitation of natural springs and lasting, sustainable, solutions wells. In Tshwane alone, the beer firm has to water resource management. been able to add an extra 9600kl per day An example of this is the Outinto the municipal system. eniqua partnership ABInBev “We are also working actively with parthas developed with the World w w w. e n e r g y d i g i t a l . c o m

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ANHEUSER-BUSCH INBEV

“ S ustainability is not just related to our business, it is our business” — Zoleka Lisa, Procurement Director of Capabilities and Sustainability

SUN CHILLED BEER SunArc has recently joined AB InBev on a national project rollout to provide off grid solar power to Tavern fridges throughout Africa.

SunArc’s vision, whether it be for B2C, B2B or small utility scale projects, is to create an enhanced customer experience for the supply and consumption of clean and sustainable solar energy for all to enjoy.

SunArc AFRICA

Tel: +27 11 234 7343 Email: info@sunarcafrica.co.za WWW.SUNARCAFRICA.COM

AFRICA

95

Wide Fund for Nature (WWF) in George, South Africa.

“The area is strategically important to AB InBev as is the only area in the country where hops are exclusively grown,” explains Lisa. “However, the infestation of invasive alien vegetation that causes a loss of surface water flow in the river system due to the amount of water the vegetation consumes.”

The Outeniqua project has helped to clear around 700 hectares of this vegetation in the

past four years so that it can be replaced less water-hungry indigenous alternatives. The project hopes to return approximately one billion litres of water per year – water that is needed to support development in the region and create AB InBev’s wide-reaching portfolio of beers.

Like many companies in the food and beverage space, AB InBev has recognised that the tide is changing when it comes to packaging. As such, the beer giant has also pledged to use cirw w w. e n e r g y d i g i t a l . c o m

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cular packaging by 2025.

To achieve this in the Africa region, AB InBev has strived to make its packaging more sustainable and has also improved the systems that help to remove post-consumer packaging waste.

“The majority of our beer volumes on the African continent is distributed in returnable bottles,” says Lisa. “These bottles, in turn, can be reused up to 20 times before being crushed and reused to manufacture new glass bottles. The use of returnable packaging can significantly reduce the environmental impact of our packaging. At the same time, we also look for opportunities to optimise our packaging by, for example, by reducing the weight of our bottles. By doing this we reduce the amount of raw materials required to produce the bottles.”

Recognising the role it has to play in removing packaging from the market, the beer producer has also helped to invest in recycling initiatives such as Manja Pamodzi or ‘Hands Together’.

“This serves not only to reduce litter and the impact on landfills but also forms an important input into supplying recycled materials that can be reused in packaging production,” Lisa adds.

As part of its sustainability drive, AB AUGUST 2018

“ I n 2018 our South African subsidiary initiated a project to implement solar energy on its brewery roofs which, once complete, will account for approximately 10% of our annual country electricity purchases” — Zoleka Lisa, Procurement Director of Capabilities and Sustainability

AFRICA

InBev has looked at its energy resources, pledging that, by 2025, 100% of its purchased electricity will be from renewable sources. The beer giant has also vowed to reduce its CO2 emissions by 25% across its value chain.

“In 2018 our South African subsidiary initiated a project to implement solar energy on its brewery roofs which, once complete, will account for approximately 10% of our annual country electricity purchases,” highlights Zoleka. “As a zone, we are reviewing similar on-site opportunities in Ghana, Nigeria and Zambia.”

It’s easy to forget that a lot of effort, time and energy goes into making AB InBev’s renowned beers. A single bottle of Budweiser wouldn’t be possible without barley and hops or the farmers who grew those ingredients in the first place.

Recognising this, AB InBev has rejected a “tick-box” approach to sustainability and is striving to

do not what it ‘can’ do, but what it ‘should’ do.

“At the heart of it, AB InBev is a brewery which cares,” reflects Lisa.

“It is in a constant and active pursuit of making a positive impact to the world in which we live. This allows us to be strong industry leaders in the business as far as sustainability goes, as we are able to deliver that extra punch of passion, which large corporates so often lack. Sustainability is not just related to our business, it is our business.”

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Malaysia’s utility powerhouse:

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Tenaga Nasional Berhad

Embarking on its new strategic vision ‘Transforming TNB,’ Tenaga Nasional Berhad has high ambitions to become one of the world’s top utility players by 2025 WRITTEN BY

LAURA MULLAN PRODUCED BY

ALEX PAGE

AUGUST 2018

ASIA

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With a total capacity of 50MW, Large Scale Solar (LSS) farm located in Kuala Langat, Selangor is the first and the largest in Malaysia w w w. e n e r g y d i g i t a l . c o m

TENAGA NASIONAL BERHAD

W

With over 9.3mn customers in Peninsular Malaysia, Sabah and Labuan, Tenaga Nasional Berhad (TNB) is

now a household name, standing proudly as the largest electricity utility in Malaysia.

In providing electricity to the region’s businesses, homes and industries, the utility firm has truly helped to develop and empower the nation, all whilst championing an unwavering commitment to sustainability. But now, what is the next step for the utility giant?

With its meticulous 2025 vision – ‘Reimagining 100

TNB’ – the company’s CEO and President, Datuk Seri Ir. Azman Mohd, explains how the utility company wants to build on its rich legacy and become a top 10 global utility player by 2025. In doing so, TNB hopes to empower people for a better life and a better future.

“TNB is a born and bred Malaysian company, which has a rich and deep-rooted history in building the nation, even before the country received its independence,” reflects Azman. “With 67 years of experience, TNB is Malaysia’s leading utility player throughout the value chain of Generation, Transmission, Distribution and Retail.

“Guided by the ‘Reimagining TNB’ strategy, TNB is now venturing into new businesses and opportunities beyond our conventional business and territory,” he continues. “Over the past AUGUST 2018

TNB workers stringing the lines of the monopole tower, Pulau Besar, Melaka, Malaysia

ASIA

TNBs latest plant in Perak, Manjung is the most efficient coal-fired power plant in South East Asia

Click to watch: ‘Tenaga Nasional – Better. Brighter’ 101

TNB is a born and bred Malaysian company — Datuk Seri Ir. Azman Mohd, CEO

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TENAGA NASIONAL BERHAD

leader in renewable energy. “So far,

TNB believes that its value lies not only in providing access to electricity to homes and businesses throughout the country but also in adopting sustainable practices and activities in our operations to improve societal and environmental outcomes

we have secured 741 MW of renewable energy capacity globally,” comments Azman.

In keeping with this strategy, TNB has undertaken a series of acquisitions and investments in the renewable sector. In March, for instance, the firm snapped up an 80% stake in Bluemerang Capital and Temporis Capital-managed GVO wind.

102

— Roslan Ab Rahman, CCO

“This acquisition complements TNB’s solar renewable assets in the UK by ensuring a stable portfolio

few years, TNB has expanded its international

revenue generation all year round,”

footprint, having established its name in countries

explains Azman. “Wind energy

such as Pakistan, Saudi Arabia, India, Turkey and

assets, in general, generate more

the United Kingdom, making TNB one of the larg-

revenue in the winter period whilst

est electricity companies in Asia.”

solar assets generate the most rev-

Rising to the top of the ranks is no easy task

enue in the summer months.”

but TNB believes it has a meticulous plan for success. Based on four key pillars, TNB’s new strate-

NEXT-GENERATION GRID

gic vision aims to: find future generation sources,

Additionally, the Malaysian firm

create the grid of the future, win the customer

has set itself the task of creating

and futureproof regulations.

the grid of the future by promoting greater digitization and automation.

A GREENER FUTURE

As such, it is set to introduce smart

As part of its so-called future generation sources

meters and advanced metering in-

strategy, the electricity utility is shifting its focus

frastructure facilities for its custom-

towards renewables, aspiring to be the ASEAN

ers and implement data analytics,

AUGUST 2018

TNB is a customer-centric company, supplying household, industrial and business customers with a wide range of energy solutions and services beyond just the sale of kWh

103

S TAT

1949

Year founded

analysis and automation of its operations.

“As the backbone of the electricity system, the grid represents the single most impactful component of the energy industry and a country’s

35,000+

Approximate number of employees

energy needs,” notes Azman. “Therefore, we do not expect grid operations to stay the same as we progress into the future. We are looking to invest in technological advancements that will allow for greater digitisation and automation of w w w. e n e r g y d i g i t a l . c o m

TENAGA NASIONAL BERHAD

FACT

the grid. This will lead to improved performance and reliability, which will ultimately benefit our customer.”

CUSTOMER-CENTRIC The third critical pillar of TNB’s strategic vision – winning the customer – underscores its plan to create new and enhanced services and products.

After all, when stripped down to its core, the focus of any successful business is simple – to meet the demands of the customer.

104

• Tenaga Nasional Berhad is the largest electricity utility in Malaysia.

• Tenaga Nasional Berhad has a customer base of 9.3mn customers in peninsular Malaysia, Sabah, and Labuan.

• Moving up 17 spots from 39th place in 2016, TNB is now acknowledged as one of the fastest growing brands in the sector, being ranked 22nd

by Brand Finance Utilities 2018 with a brand value of USD$1.64b.

Putting its customer at the heart of its strategic plan, Azman describes how TNB intends to promote a value-centric understanding of its customers.

“This means looking at customers as more than just a meter and understanding their values and needs beyond their kWh consumption,” he explains. “We have already identified several specific projects ranging from energy management to smart city utility services with various government agencies and corporate entities.”

This customer centric-focus is also echoed

by Datuk Fazlur Rahman Zainuddin, TNB’s Chief Financial Officer, who highlights that an unwavering commitment to customer satisfaction is at the foundation of the 67-year old company’s legacy.

“Our simple business philosophy at TNB is AUGUST 2018

ASIA

A stunning view of TNB’s men at work that it’s all about serving the needs of people,” he says. “Businesses must be clear of whom they serve and understand these people well. The moment businesses lose sight of this is when the firm loses its value proposition and thus profits or worse, loses its license to operate.”

“Many words can be used to describe Tenaga Nasional Berhad, however, I prefer the simple description of ‘empowering people’,” he stresses. “If we were to go back in history and recall the development of Malaysia from a rural economy to what it is today, it is clear that by bringing electricity to homes, TNB has made a significant difference to the lives of people who, before then, didn’t have access to 24-hour electricity.

“With electricity, lives of people, families and societies have been able to change for the better

The journey to the top entails a shift towards a more performance-oriented and adaptive culture

and as TNB, we are so privileged to be able to serve people this way.”

UPHOLDING HIGH REGULATORY STANDARDS Keeping pace with the ever-evolving regulatory environment, as the fourth and final pillar of TNB’s strategic plan, involves assisting the government in the execution of regulations and policies in the energy sector.

In recent years, the government has imple-

— Datuk Wira Roslan Ab Rahman, CCO

mented Malaysian Electricity Supply Industry (MESI) reform initiatives which notably introduced Incentive Based Regulation (IBR) and w w w. e n e r g y d i g i t a l . c o m

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TENAGA NASIONAL BERHAD

TNB contributes towards unlocking the value of young Malaysians

106

Imbalance Cost Pass-Through (ICPT) mechanisms.

Meanwhile, in 2015, the government

“Regulations make up a vital enabler of our business,” notes Azman. “We must, therefore, continue to work closely with

also launched a subsidy rationalisation

the relevant stakeholders to maintain a

programme and later it established a ring-

conducive operating environment and

fenced single based buyer, amongst other

ensure we have the regulatory support

reforms. Such regulations ensure that TNB

we need to achieve both our and the

operates efficiently and charges custom-

regulator’s aspirations.

ers competitively priced electricity tariffs.

“Additionally, it is imperative that we

This also promotes transparency, robust

remain perceptive and responsive to regu-

finances, and sustainable investments.

latory developments in both domestic and

As such, TNB is keen to collaborate with

foreign markets where we operate, so we

stakeholders to keep pace with today’s

can work harmoniously with the electricity

evolving regulatory environment.

industry laws that govern our sector.”

AUGUST 2018

ASIA

Many words can be used to describe Tenaga Nasional Berhad, however, we prefer the simple description of ‘empowering people’ — Datuk Fazlur Rahman Zainuddin, CFO

A STRATEGY FOR SUCCESS

Megat Jalaluddin Megat Hassan, predicts

Optimistic about its 10-year strategic

that the firm will increase its earnings

plan, TNB says it is on track to meet these

before interest and tax by 30% in the next

concrete goals. In doing so, the Malay-

three to five years.

sian firm hopes to realise its potential and

“It is hoped that TNB can achieve or

become one of the top 10 utility compa-

even surpass the target and aspiration

nies in the world.

outlined in the strategy towards becoming

Moving up 17 spots from 39th place in

one of the top 10 utility companies in the

2016, TNB is now acknowledged as one

world,” he notes. “This includes becoming

of the fastest growing brands in the sec-

the ASEAN leader in renewables, build-

tor, being ranked 22nd by Brand Finance

ing profitable businesses in South Asia,

Global Top 50 Utilities 2018 with a brand

Southeast Asia and the Middle East, the

value of $1.64bn.

establishment of a robust smart grid that

On top of this, Chief Strategy Officer,

allows for bi-directional energy flow, and w w w. e n e r g y d i g i t a l . c o m

107 107

TENAGA NASIONAL BERHAD

It is hoped that TNB can achieve or even surpass the target and aspiration outlined in the strategy towards becoming one of the top 10 utility companies in the world 108

— Megat Jalaluddin Hassan, CSO

Kampung Kuantan Firefly Conservation Project Conservation of fireflies, fireflies research, developing physical infrastructure and generating publicity to attract more tourists to Kampung Kuantan, Selangor, Malaysia

AUGUST 2018

ASIA

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TENAGA NASIONAL BERHAD

an increasingly digitally automated grid.”

CULTURAL CHANGE

For many years, TNB has been actively planting and replenishing trees through their ‘Tree for a Tree’ programme

Undertaking a mammoth 10-year plan, Tenaga Nasional Berhad is preparing for a new chapter in its journey and it’s one which is fully supported by its team of over 35,000 people.

TNB’s Chief Corporate Officer, Datuk Wira Roslan Ab Rahman, highlights that apt communication and an innovative culture was critical to prepare the firm for such mammoth changes.

“To make the staff key drivers of our transformation journey and equip them to be brand ambassadors for TNB, we translated the aspiration 110

and educated staff on the new direction of TNB and their role in bringing the aspiration to life. For this, we conducted numerous engagement sessions with the different levels of staff and continuously monitoring our progress.

“The journey to the top entails a shift towards a more performance-oriented and adaptive culture. We are currently working towards ensuring that this culture is imbibed by the staff and ultimately adopted.”

CUTTING-EDGE CONFERENCES Beyond its four walls, TNB is also engaging with its peers to revolutionise the sector and create a brighter future for the region. As a result, the Malaysian firm is set to host the Conference of the Electric Power Supply Industry (CEPSI), AUGUST 2018

Lestari Community Project Installation of solar panels at community care centres to generate electricity under Feed-in Tariff (FiT) scheme

ASIA

111

Better Brighter Shelter Programme is our newly introduced community programme to upgrade transit homes or dormitories at Government-owned hospitals in Malaysia

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TENAGA NASIONAL BERHAD

Electricity is and remains but one way of empowerment. With developments in technology, such as renewable energy, energy storage, connectivity, data analytics, and the Internet of Things, we see even more ways of empowering people further 112

— Datuk Seri Ir. Azman Mohd, CEO PINTAR School Adoption Programme TNB adopts under-performing schools and provides the students and teachers with support to enhance academic and non-academic outcomes

AUGUST 2018

ASIA

one of the largest and most prestigious

compromised its ethics and corporate

events in the electricity supply industry in

responsibility.

the Asia Pacific.

Roslan says: “We look upon CEPSI as

ETHICAL, SUSTAINABLE GROWTH

one of the vehicles that embodies our aspi-

With a desire to create a world that is

ration by bringing the topic of ‘Reimagining

‘Better. Brighter’, Azman describes how

Utility of the Future’ to the forefront. We’re

TNB continuously strives to go beyond

inviting the world’s best utility players and

what’s expected of it, giving back to

experts to share, network and highlight our

stakeholders and playing a meaningful

goals and get the conversation going as

role in the communities it serves.

we look for like-minded partners.”

Yet, whilst outlining this ambitious ‘Reimagining TNB’ strategy, the utility firm hasn’t

As part of these efforts, the electric utility firm has implemented a Green Policy which plans to minimise the com113

w w w. e n e r g y d i g i t a l . c o m

TENAGA NASIONAL BERHAD

pany’s environmental impact by adopt-

through education. Beyond the class-

ing sustainable practices, developing its

room, TNB has also nurtured technical

green energy business and reducing its

training through the support of voca-

carbon footprint through energy-effi-

tional education programmes through its

cient operations.

subsidiary, Integrated Learning Solution

Empowering local communities, TNB has also contributed to the education

(ILSAS).

“As Malaysia’s leading utility com-

and development of Malaysian youths by

pany, TNB believes that its value lies not

advocating initiatives such as the PINTAR

only in providing access to electricity to

programme, a not-for-profit that aims to

homes and businesses throughout the

enhance the motivation and success of

country but also in adopting sustainable

students from underperforming schools

practices and activities in our operations

114

Universiti Tenaga Nasional (UNITEN) UNITEN not only prepares its graduates to be knowledgeable and competent professionals, but also develops them as well-rounded individuals with a broad intellectual outlook

AUGUST 2018

ASIA

to improve societal and environmental outcomes,” notes Roslan.

The energy sector is experiencing great change with new trends emerging

“We believe that these trends will substantially reshape our future, yet present exciting opportunities,” says Roslan.

Moving forward, TNB will continue to

like the shift in economic power to Asia,

serve society by empowering them in differ-

technology disruptions, the end of cheap

ent ways. As CEO, Azman notes, “electricity

capital and evolving regulatory develop-

is and remains but one way of empower-

ments. By capitalising on these trends,

ment. With developments in technology,

TNB aims to unlock new growth areas,

such as renewable energy, energy storage,

win a new generation of customers,

connectivity, data analytics, and the internet

realise its global ambitions and unleash

of things, we see even more ways of em-

greater productivity.

powering people further.”

115

w w w. e n e r g y d i g i t a l . c o m

INSIDE THE DIGITAL JOURNEY OF PLAINS MIDSTREAM CANADA WRITTEN BY

LEILA HAWKINS PRODUCED BY

TOM VENTURO

Plains Midstream Canada (PMC) has an extensive network of pipeline transportation, terminals, storage and gathering assets strategically located in key crude oil and NGL producing basins, transportation corridors, and at major market hubs in Canada and the United States.

PMC has embarked on a digital transformation roadmap to help them prioritise new business capabilities and achieve operational excellence

PLAINS MIDSTREAM CANADA

F

118

ormed in 2001 with just 130

strategy team can look at the

employees, Plains Mid-

business holistically instead of

stream Canada (PMC) has

just focusing on a singular aspect,

grown to over 1,400 employees and

such as implementing new tech

provides oil and gas transport and

solutions. “Rather than having

storage solutions across Canada

that quite narrow tactical discus-

and the United States. The compa-

sion with the business around

ny’s network of pipelines along with

software for instance, we engage

a fleet of truck trailers and railcars

them in business terms, better

provide oil and gas producers with

understanding their needs and

flexibility for transporting crude oil

desired outcomes before analys-

and natural gas liquids products link-

ing how to positively affect a

ing petroleum producers with

change to support them. In effect

refiners and other customers.

we’re acting as that internal tech-

The organisation is currently in the

nology broker, working with the

midst of a five-year digital transfor-

business to address their prob-

mation plan to drive improvements

lems by creating new business

to business processes, improving

capabilities. Sometimes our aim

the use of its existing technology or

is merely digitally enabling what

introducing new digital technologies.

we have, but we are absolutely

To design and enact this, the com-

planning for digital optimisation

pany brought in Chris Leonard, a

and transformation.”

Senior Business Strategist who is

“Not everything on our road-

now their Director of Strategy and

map is about introducing

Digital Transformation. In his words,

technology,” Leonard continues.

he and his team “plan the right work

“Often we’ve discovered that a

at the right time.”

review and improvement of exist-

The roadmap to digitisation is underpinned by a triad of people, process and technology improvements which means the digital AUGUST 2018

ing business process is just as valuable.”

However, he adds that they are looking at planning initiatives to

CANADA

BIO

Chris Leonard immigrated to Canada with his family in 2012 after a very successful 20 year career as a commissioned Officer in the British Army. His aim was to join Corporate Calgary where he hoped to employ his previous strategic planning and operations experience. A brief spell working at the main Syncrude site in Alberta’s oil sands was a prelude to working for Brion Energy back in Calgary.

Leonard subsequently joined Plains Midstream Canada in the Summer of 2015 to lead the Strategy and Digital Transformation team within IS, working directly with the CIO. Over the past three years he and a growing team have helped establish a comprehensive Digital Transformation Roadmap which will lead Plains Midstream Canada into the Digital era. As he openly admits, he is not a technologist by background, but is finding the challenge of matching new technologies to business problems and a fascinating area of longterm interest.

“We partnered with leading industry experts from Sapient, Microsoft and IBM and to look at how best to plan our work, to realize our strategic goals and focus on business needs” — Chris Leonard Director of Strategy and Digital Transformation add new digital assets to the business in the long term. For instance, they are looking at combining technologies such as digital twins, augmented and mixed reality, and the internet of things (IoT). “Being responsible for both OT and IT enables us to look at the whole picture, applying an IoT lens to the SCADA world for instance,” says Leonard.

Leonard has also created a strong governance structure that uses analytics to support these strategic goals, which has led to a significant rise in capital investment for Information Services (IS) led programs. “It’s great having that long-term vision and roadmap, but unless you’ve got that governance to really help you prioritise what work you’re capable of doing first, it’s very difficult to see the wood for the trees,” Leonard says. w w w. e n e r g y d i g i t a l . c o m

119

PLAINS MIDSTREAM CANADA

“There’s always more work than there are

provide assessments and analy-

means to complete it. We’ve got to ensure

sis on power consumption data at

we’re prioritising the right work at the right

PMC facilities and pump stations

time, and that’s inextricably linked to our dig-

which will reduce overall con-

ital transformation roadmap.”

sumption and improve utilities

He envisions that PMC’s digital transforma-

120

management – we’re really quite

tion and partnerships with strategic vendors

excited about that.” Through the

will result in significant cost savings. “We part-

work they have done with Sapient

nered with leading industry experts from

to introduce a comprehensive

Sapient, IBM and Microsoft to leverage global

Energy Trading and Risk Man-

expertise and capitalise on other industry

agement capability, they also

applicable use cases with a view to help

expect to pay significant divi-

accelerate the realisation of our IS strategic

dends. “Working with partners

goals to drive enduring business value. Our

such as Sapient allows us to lev-

Power Utilization adviser for instance, which

erage different industry expertise

we’re co-developing with IBM Watson, will

and apply it to our unique circum-

AUGUST 2018

CANADA

stances. It really does become a

environment in the communities where PMC

partnership where strategic ven-

operates, digitising safety plays a key role.

dors help us to address focused

Another key initial development with the IBM

business needs.”

Watson program is the production of a Safe

It is also going to be beneficial

Work advisor. PMC is now using data analyt-

for training staff on the systems

ics to assess and leverage as a tool for their

the company already uses.

safety teams to expand upon and help

“Process efficiencies go hand-in-

improve safety performance. PMC will be able

hand with introducing new digital

to move from descriptive analysis to predictive

technologies,” says Leonard.

analytics to better prevent potential incidents.

The company is also looking at future wear-

DIGITISING SAFETY

able technologies and how they could be

Safety is a core value at PMC,

used. Live information feeds could help on-

and as the organisation strives for

site workers by helping manage potential

protection, security and safety of

hazards through real time information sharing

employees, the public and the

without having to communicate via a radio.

1,400+ Approximate number of employees

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121

“ Advanced analytics might be able to provide greater business intelligence but existing business models and how people do business also need to change” 122

— Chris Leonard Director of Strategy and Digital Transformation

AUGUST 2018

CANADA

123

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PLAINS MIDSTREAM CANADA

2001

Year founded

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CANADA

Leonard explains further: “We’re looking to

PMC is now working on a capa-

exploit existing technologies that can read the

bility called “Unified Stakeholder

environment an employee is in, whether they

Management” to pass crucial

have maybe been exposed to a particular

time-sensitive safety information

chemical, or whether an individual is showing

onto all stakeholders.

signs or symptoms related to abnormal stress by measuring heart rate or even if that individ-

ROADMAP TO THE FUTURE

ual is still upright or on the ground, which

Looking ahead, one of the main

might indicate a slip, trip or fall. The technol-

challenges for the industry will be

ogy is creating better situational awareness

adapting to change. “Nobody

without encumbering the individual to manu-

really likes change,” Leonard

ally provide regular updates and reports.”

says. “Advanced analytics might

PMC is also focused on stakeholders and is

be able to provide greater busi-

committed to maintaining strong relationships.

ness intelligence but existing

With operations that span across Canada and

business models and how people

the United States, the effective management,

do business also needs to

tracking and dissemination of information to

change in order to properly real-

their many stakeholders is vitally important.

ise the untapped value w w w. e n e r g y d i g i t a l . c o m

125

PLAINS MIDSTREAM CANADA

“ It’s a great time to be part of that journey, strategising and planning the right work to effectively allow an organisation to take advantage of Industrial Revolution 4.0” 126

— Chris Leonard Director of Strategy and Digital Transformation

AUGUST 2018

CANADA

technology can provide. Just throwing smarter technology at problems does not in itself create digital transformation.”

Another challenge is the scarcity of skillsets, with a shortage of data scientists and digital security specialists in particular. However, Leonard believes this presents an opportunity for organisations to work more closely with academic institutions, helping them to tailor their programs to meet the emerging needs of businesses through the next industrial revolution.

The major disruption is yet to happen, as Leonard explains: “The big digital disruption in oil and gas will come when someone figures out how to monetise assets without actually owning them, in the same way Uber monetises the cab without owning it.”

He sees PMC as planning to take advantage of digital opportunities in the next decade. “I think our holistic digital transformation roadmap will ensure we’ve invested optimally in the right technology to effectively solve the right business problems and create new business capabilities. I also think we’ll be sufficiently mature in our digital strategy and planning to take advantage of future opportunities created by digital disruption in the midstream segment.”

On the whole it’s an exciting era for Plains Midstream Canada. “It’s a great time to be part of that journey, strategising and planning the right work to effectively allow an organisation to take advantage of Industrial Revolution 4.0. These opportunities don’t come around on a frequent basis.” w w w. e n e r g y d i g i t a l . c o m

127

INVESTING

GAS

IN SUPPLY IN

ARGENTINA Daniel Ridelener, CEO at Transportadora de Gas del Norte, outlines the recent investments made to renovate the PRODUCED BY company’s infrastructure WRIT TEN BY M ARÍA COBANO-CONDE

RICHARD DE ANE

T R A N S P O R TA D O R A D E G A S D E L N O R T E

M

ore than half of the

pressure pipelines in the centre and north of the

primary energy

country. Tracking back its history, it is a

produced in Argentina

continuation of Gas del Estado, a state-owned

comes from natural gas, a fact that

company privatised in 10 business units at the

positions the country as the largest

end of last year.

consumer in Latin America.

Today, TGN is responsible for the

The biggest company dedicated

transportation of 40% of the gas that flows

to its transportation in Argentina is

through the Argentine trunk gas pipelines.

called Transportadora de Gas del

Exclusively operating the two existing gas

Norte, founded in 1992 as a

pipeline systems in the North and Central regions,

company dedicated to the

the company represents 18% of the national

transportation of natural gas by high

energy matrix.

130

AUGUST 2018

ENERGY

and 2,300 km of third parties) and 20

RENOVATION AND CHANGES IN INFRASTRUCTURE

compressor plants with 375,620 HP. Through

Ridelener, trained as an industrial

this, it connects eight of the nine distributors,

engineer, began his work at

industries and thermal power plants located in 15

Transportadora del Gas del Norte in

Argentine provinces with the NeuquĂŠn,

1992, when the company was

Northwest and Bolivian basins.

founded. In January 2008, he

It operates and maintains more than 9,100 km of gas pipelines (more than 6,800 km of its own

Daniel Ridelener, CEO, has overseen the

started in general management and

recent infrastructure renovations carried out with

in his 25 years at TGN, he has

a high-level investment.

experienced very significant

131

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T R A N S P O R TA D O R A D E G A S D E L N O R T E

132

changes in activity at the company.

“WE OPERATE A SYSTEM OF 9,1 00 KILOMETRES AND 20 COMPRESSOR PLANTS, WHICH CLEARLY REQUIRES VERY STRONG INVESTMENTS IN TERMS OF MAINTENANCE, OPTIMISATION AND MODERNISATION” — Daniel Ridelener, CEO

AUGUST 2018

He distinguishes three very marked periods since the company began its operations. From 1992 to the end of 2001, a period of great investment and growth in the transportation system; from 2002 to 2015, a second period where this growth stopped (linked to the 2001 macroeconomic crisis in Argentina and the subsequent application of policies that undermined the operation and development of this

ENERGY

“We operate a system of 9,100

TGN

Operates and maintains more than 9,100 km of gas pipelines (more than 6,800 km of its own and 2,300 km of third-party pipelines) and 20 compressor plants with 375,620 HP

kilometres and 20 compressor plants, which clearly requires very strong investments in terms of maintenance, optimisation and modernisation.

“The plan of committed investments has to do mainly with works related to the integrity of the

Has the exclusive right to operate the two existing gas pipeline systems in the North and Central-West regions of Argentina

transportation system and the modernisation of compressor plants and control systems. Outside of the plan committed to the Government, we are in the process of studying different alternatives to expand our transportation system.”

industry) and finally, from 2016 onwards, a stage

THE VACA MUERTA GAS AND OIL FIELD

of recovery, investment and development based

Vaca Muerta, located in the

on the strategies of the new government.

Neuquén basin (150 kilometres from

Immersed in this new stage, the company is

the city of Neuquén), is one of the

working on a significant investment plan for all its

largest unconventional oil and gas

infrastructure to adapt to the changes to come.

deposits in the world, with proven

Ridelener explains this change: “The current

reserves are estimated at 22,500

government faced a comprehensive tariff review

million BEP (Equivalent Petroleum

process which took effect at the end of March

Barrel).

2017. We signed an agreement with the

In the short term, an approximate

government where we made the commitment to

investment of $2,5 bn per year is

carry out an investment plan that, in general

expected by oil companies to extract

terms, is in the order of $100mn per year.”

gas, in a 35-year investment plan. w w w. l a t a m . b u s i n e s s c h i e f. c o m

133

T R A N S P O R TA D O R A D E G A S D E L N O R T E

“WE SEE THAT VACA MUERTA GIVES ARGENTINA SOME VERY IMPORTANT POTENTIAL” — Daniel Ridelener, CEO 134

Ridelener explains these new

an example, we can mention the Fortín de

opportunities: “The potential of

Piedra deposit of Tecpetrol, which

unconventional deposits was already

expects to reach a production of around

known, although the technology to exploit

15mn cubic meters per day by the end of

them began to be available economically

the year. Considering that it started from

and effectively about 10-12 years ago. In

zero a year ago, it is a very significant effort.

the country, shale oil and shale gas

Something similar, to a lesser extent,

deposits have been exploited for about

occurs with other Vaca Muerta players.”

five years, which allowed us to go through

Ridelener offers deeper vision into the

a learning curve that will result in greater

basin: “We see that Vaca Muerta gives

productivity of equipment and labour and,

Argentina some very important potential. If

therefore, in minor production cost.”

we compare it with the path travelled by

“Currently, shale gas production in Vaca Muerta has been growing very strong. As AUGUST 2018

the shale gas in the USA, in a few years we would find ourselves with a very

ENERGY

135

CLICK TO WATCH: ‘Video Institucional’

w w w. l a t a m . b u s i n e s s c h i e f. c o m

T R A N S P O R TA D O R A D E G A S D E L N O R T E

“WE SIGNED AN AGREEMENT WITH THE GOVERNMENT WHERE WE MADE THE COMMITMENT TO CARRY OUT AN INVESTMENT PLAN THAT, IN GENERAL TERMS, IS IN THE ORDER OF US $ 100MN MILLION PER YEAR” — Daniel Ridelener, CEO

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www.rosen-group.com

AUGUST 2018

ENERGY

competitive gas resource at international

agreement signed with the Government

level, especially considering gas as an

implied, after more than a decade of

input for industry and electricity

freezing, a recompositing of the tariff

generation. In addition, the export

based on the guidelines established by

business is reborn almost immediately by

current legislation. The integral tariff

gas pipeline to neighbouring countries,

review consisted precisely of bringing the

and in the medium term through gas

tariff to its fair and reasonable value and

liquefaction.”

then maintaining the real value of it through

“In all that process we see ourselves with a very active role both in gathering activity in the basin, and expanding the transport capacity of the gas pipelines.”

semi-annual adjustments based on the evolution of local inflation rates.”

“There is a discussion going on at the political and media level regarding what the adjustment will be like in October. The

THE TARIFF SITUATION OF NATURAL GAS IN ARGENTINA

wants to moderate this increase, so that it

The recent fluctuations in natural gas tariffs

has the least possible impact on

are a hot topic in Argentina, where

consumers. In particular, I would be

Transportadora de Gas del Norte plays an

working on generating scenarios of

important role.

greater competition in the purchase of gas

Ridelener adds: “The integral

Government, within the agreed rules,

by the distributors,” concludes the CEO.

w w w. l a t a m . b u s i n e s s c h i e f. c o m

137

Energy is on

everywhere, at every time, for everyone

Cristiano dos Anjos (Vice President of Industry Business), Paulo de Tarso Gomes (Vice President of Global Supply Chain) and Flavia Goldenberg (External Communications Manager at Schneider Electric South America) offer the keys to Schneider Electric Brazil’s offer in terms of digitalisation and sustainability ESCRITO POR

M ARÍA COBANO-CONDE PRODUCIDO POR

M ANUEL NAVARRO

SCHNEIDER ELECTRIC BRAZIL

I

nnovation and emerging new technologies and services in the energy sector are offering ground for companies to reinvent themselves

at the service of the business and consumer sphere.

Schneider Electric is a global pioneer in management, automation, hardware, software and service solutions for the energy sector, with focus on renewable energy.

The company turned 70 in Brazil in 2017, a time in which it has become the leader of its type of industry in the country.

Business Chief Latin America had the pleasure to speak with two key representatives of Schneider Electric’s Brazilian operation, Cristiano dos Anjos (Vice 140

President of Industry Business) and Paulo de Tarso Gomes (Vice President of Global Supply Chain), with the contribution of Flavia Goldenberg (External Communications Manager at Schneider Electric South America) about the innovation process that drive the company and also the great impact this has on global sustainability.

SUSTAINABILITY AT THE CORE OF THE COMPANY Schneider Electric Brazil operates in four different markets: buildings (both commercial and residential), data centres, infrastructure and industries.

As Dos Anjos explains, “it is a priority for us that resources are available, that products are arriving on time and that they are well manufactured. We make sure the resources are being used in an appropriate way, in the most efficient way.”

AUGUST 2018

L AT I N A M E R I C A

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SCHNEIDER ELECTRIC BRAZIL

He continues: “Everything we do as a company is always related to sustainability. What we do in terms of technology, in terms of supply chain, in terms of what we are offering to our customers… is the way to make sure that the world will be better. Again, our theme is Life Is On”.

Flavia explains: “At Schneider Electric we are proud to help our clients rethink and reinvent their processes in a move that impacts society and secures the future of the next generations. We develop products and services that, in short, enable companies to produce more with less. This is how our partners strengthen their sustainable performance and strengthen their business.”

142

It is due to this commitment to sustainability that Schneider Electric Brazil has been working with the United Nations Global Compact since 2002, incorporating since 2015 the entity’s 17 Sustainable Development Goals (ODS) and 169 goals set for 2030.

De Tarso Gomes explains: “We are a big under-signer and supporter of the United Nations Program for Sustainability, with all the 17 goals and initiatives that they have. We are always trying to upgrade our processes, our products and our tools and the services that we provide to our customers. We really try to walk the talk regarding sustainability.”

THE ECOSTRUXURE ARCHITECTURE EcoStruxure is Schneider Electric’s IoT-enabled architecture and platform for its customers, offering connectivity, apps, analytics and services on power, IT, AUGUST 2018

L AT I N A M E R I C A

143

building, machine, plants and grids. The architecture taps into digitalisation by offering connectivity of OT solutions with the latest IT technology, using the Internet of Things as a channel. Again, with efficiency, added value and sustainability as a core principle.

Digitalisation is applied to the company’s processes, enhancing proficiency and sustainability. As De Tarso explains: “Our EcoStruxure platform provides very nice opportunities to support our plants with totally connected IoT solutions, use of augmented reality in the shop floor, intensive development and use of big data and data analytics in our w w w. e n e r g y d i g i t a l . c o m

SCHNEIDER ELECTRIC BRAZIL

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AUGUST 2018

L AT I N A M E R I C A

planning. All of that is coupled with strict control of our use of natural resources such as water and electrical energy, controlling at the same time our CO2 emissions”.

• Global presence in over 100 countries

Schneider Electric Brazil uses the products and services it sells and sells the products and services it uses, propelling innovation within and outside the company.

DIGITALISING, CONTROLLING AND CONNECTING Technology and digitalisation are the backbone on which Schneider Electric Brazil’s operates, with restless research and development strategies on innovation for products and

• Sustainability at the heart of their strategy

• Considered the 12th best

in the world by the Gartner Group (7th in Europe)

services.

“THIS IS WHAT WE ARE DOING, MAKING THE WORLD MUCH MORE SUSTAINABLE THROUGH DIGITALISATION” — Cristiano dos Anjos, Vice President of Industry Business

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The most advanced technologies The most well-trained labour Over 98% of satisďŹ ed customers

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L AT I N A M E R I C A

Dos Anjos explais: “We connect our customer’s equipment, processes and buildings with specific hardware,

reach this level and it is exactly what we are doing for our customers,” he concludes.

Following its moto, Schneider Electric

technology and software. On top of that,

Brazil implements innovation in its own

we implement a digital layer: we use

operations and supply chain processes.

augmented reality, artificial intelligence

As De Tarso points out: “Our Global Supply

and analytics to help making more with the

Chain teams are totally aligned with

assets. This helps finding new value, which

Schneider’s offers of technological

can be a new business model or a new find.

advances in the areas of process

With big data, we help our customers to

management, connectivity solutions and

extract new information that was not in

cybersecurity of all that we process.

front of their eyes.

“We make strong efforts to continuously

“Digitalisation can bring this to you.

enhance our knowledge and use of data

Without connected machines, processes,

analytics and big data and we make use of

buildings and systems, we would never

interconnecting our processes and tools

Click to watch: ‘We Are Schneider Electric | Home Automation Systems, Energy Management & Power Supply’

w w w. e n e r g y d i g i t a l . c o m

147

SCHNEIDER ELECTRIC BRAZIL

148

in the shop floor of our plants and

ahead in the market to foresee potential use of

distribution centres through IoT

emerging technologies and solutions brought by

solutions. We have been

pioneer companies, startups, as well as internal

progressing in the use of additive

solutions of our teams. We have a dedicated

technology (3D printing) too, not

team that is always looking for them, considering

only to make prototypes, but even

them, analysing them and probing them, prior to

to produce some tools of internal

any launch into production use,� he concludes.

use. And the types of products and are the ones that are part of our

EMPOWERING THE RENEWABLE ENERGY SECTOR

EcoStruxure platform.

Undoubtedly, this mindset and its outcome is

solutions we use in our shop floors

“At the same time, in the global supply chain we continue to look AUGUST 2018

impacting the renewable energy sector in a new and completely different way, transforming it.

L AT I N A M E R I C A

• Leading

the Digital Transformation of Energy Management and Automation in Homes, Buildings, Data Centres, Infrastructure and Industries

149

Dos Anjos has a clear vision on this: “Renewable energy will become cheaper. I cannot tell you when it will be cheaper than fossil but it will come for sure and soon. For many reasons, but one of them is because we need to decentralise energy generation.”

“We will need more energy as cities are growing with increased density. We are expecting more than 2.5bn people living in cities in the next 25 years with increasing energy demands and we do not have that generation power. On the other hand, pollution is not sustainable.”

“AT SCHNEIDER ELECTRIC WE ARE PROUD TO HELP OUR CLIENTS RETHINK AND REINVENT THEIR PROCESSES IN A MOVE THAT IMPACTS SOCIETY AND SECURES THE FUTURE OF THE NEXT GENERATIONS” — Flavia Goldenberg, External Communications Manager at Schneider Electric South America w w w. e n e r g y d i g i t a l . c o m

SCHNEIDER ELECTRIC BRAZIL

Quality, innovation and know-how

ASTA manufactures high-quality insulated winding material made of copper for use in electrical machinery in the high-energy sector, so-called conductors (CTC) for transformers and Roebel bars for generators.

Recognized as a technology leader at its acting market, ASTA is capable of flling individual customer requests promptly, delivering the best and most innovative products.

Built into the biggest transformers and generators worldwide.

A forward looking company. Founded more than 200 years ago, ASTA manages the company by investing in technology, innovation and services, always seeking new business opportunities, aiming to provide customers with solutions for each type of business.

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Ensuring functionality, durability and high quality.

ASTA innovates and creates special products according to the needs of each customer

L AT I N A M E R I C A

151 “Once energy is decentralised we will need a much more smarter system to connect it, to make energy safe and reliable everywhere. Digitalisation will play a really important role to make sure that energy will be everywhere for everyone. There are a lot of things that are moving on this direction, renewable energy is the future”.

He concludes with a final thought: “This is what we are doing, making the world much more sustainable through digitalisation.”

“WE ARE A BIG UNDER-SIGNER AND SUPPORTER OF THE UNITED NATIONS PROGRAM FOR SUSTAINABILITY, WITH ALL THE 17 GOALS AND INITIATIVES THAT THEY HAVE”

— Paulo de Tarso Gomes, Vice President of Global Supply Chain

w w w. e n e r g y d i g i t a l . c o m