Energy Digital Magazine - July 2021

July 2021 | energydigital.com

Energy Market Trends in 2021

STARTUPS REALISE DIGITAL POTENTIAL

The sky’s the limit for smart city startup revenue projections as more attention focuses on natural solutions, smart networks and digitally enabled grids

bp Optimising workflows with digital transformation Schneider Electric Leads sustainability change

Bringing the Community to LIVE Broadcast from London to the World

September

28th - 30th 2021 A BizClik Media Group Brand

Featuring:

Keynote Speakers LIVE Roundtable Q&As Networking Lunch Inspirational Presentations

Over 5 Stages:

Main Stage Procurement Stage Supply Chain Stage Sustainability Stage Tech Expo Stage

EARLY BIRD TICKETS

Creating Digital Communities

Never miss an issue!

+ Discover the latest news and insights about Global Energy...

JOIN THE COMMUNITY

The Energy Team SENIOR EDITOR

DOMINIC ELLIS EDITORIAL DIRECTOR

SCOTT BIRCH

PRODUCTION DIRECTORS

GEORGIA ALLEN DANIELA KIANICKOVÁ PRODUCTION MANAGERS

CREATIVE TEAM

OSCAR HATHAWAY SOPHIE-ANN PINNELL HECTOR PENROSE SAM HUBBARD MIMI GUNN JUSTIN SMITH REBEKAH BIRLESON DUKE WEATHERILL JORDAN WOOD

OWEN MARTIN PHILLINE VICENTE JENNIFER SMITH

VIDEO PRODUCTION MANAGER

PRODUCTION EDITOR

DIGITAL VIDEO PRODUCERS

JANET BRICE

KIERAN WAITE

SAM KEMP EVELYN HUANG

MOTION DESIGNER

EXECUTIVE ASSISTANT

TYLER LIVINGSTONE

JORDAN HUBBARD

MARKETING DIRECTOR

MEDIA SALES DIRECTORS

ROSS GARRIGAN

MARKETING MANAGER

GRETA ANDREJEVAITE PROJECT DIRECTORS

GLEN WHITE MARK CAWSTON

MANAGING DIRECTOR

LEWIS VAUGHAN

JASON WESTGATE MARK CAWSTON

CHIEF OPERATIONS OFFICER

STACY NORMAN PRESIDENT & CEO

GLEN WHITE

FOREWORD

Tackling all the major energy issues head on Governments and energy companies must be open minded on the path to net zero emissions

“Renewables won’t solve all the decarbonisation challenges.

Governments and energy companies must remain open minded when reconciling environmental responsibility, energy capability and digital transformation” ENERGY DIGITAL MAGAZINE IS PUBLISHED BY

Following the energy transition is like watching a juggler struggling to keep all the balls in the air.

No sooner is one caught, another is thrown.

World leaders meeting at the G7 Summit turned the heat up on coal-fired stations, pledging to phase them out unless they embrace CCUS technologies.

A week earlier, EDF called time on Dungeness B nuclear power station – giving the wrongful impression that there is no place for nuclear either at the future energy table, according to the Nuclear Industry Association.

Oil majors, such as Shell, have been flexing their arms over reducing emissions – only for a Netherlands court to tell them they need to move a lot faster.

Glossing over everything is the rapidly expanding renewables industry, but it won’t solve all the decarbonisation challenges.

From digital twins to AI, technology continues to change the game in a way we can’t fully comprehend. Governments and energy companies must remain open minded when reconciling environmental responsibility, energy capability and digital transformation.

DOMINIC ELLIS

dominic.ellis@bizclikmedia.com

© 2021 | ALL RIGHTS RESERVED

energydigital.com

5

CONTENTS

Our Regular Upfront Section: 8

Big Picture

10 The Brief 12 Global News 14 People Moves 16 Timeline:

Blue Hydrogen Projects Pipeline 18 Legend:

William R. 'Bill' Thomas 20 Five Mins With:

Paul Serina

34

Connected Energy

Supergrids, sustainability and future energy

24

Schneider Electric

Leads sustainability change

44 bp

Optimising workflows with digital transformation

74

Cyber Security

56

US pipeline ransomware attack highlights cyber security dangers

Smart Cities

Startups realise digital potential

66 IoT

Partnerships drive IoT efficiencies and safety

82

Top 10

Energy market trends in 2021

BIG PICTURE Ford.com

8

July 2021

Ford F-150 Lightning Truck USA

Watch out Tesla – there’s a Ford in the wing mirror. The F-150 Lightning, the carmaker’s first autonomous pick-up truck, could be the model that takes electric mainstream.

Weighing in at 6,500 pounds it contains a 1,800-pound battery, can run up to 230 miles and features a ‘phone as a key’ feature.

energydigital.com

9

THE BRIEF “I’m not saying we should sideline solar, wind and other renewables. I am highlighting that we should have as broad a mix as possible, using as many green resources as we have available” Stuart Murphy Founder, TPGen24 

READ MORE

“Technology is disrupting the entire ecosystem of cities, from the planning and design stages, through to construction, maintenance and operations” Scott Stewart CEO, IBI Group 

READ MORE

“To build the solutions needed to move the world to a digital, decentralised, decarbonised energy future, companies need to collaborate and co-innovate” Nadège Petit

Executive Vice-President, Power Products Division Schneider Electric  READ MORE

10

July 2021

BY THE NUMBERS bp pays $220 million for 7X Energy

9GW

of solar developments



12

across US states



Find out more about bp 

1.7m for homes READ MORE

Did you know?

Powering progress: Shell’s challenges in energy transition

Shell raked in $8.3 billion cash in the first quarter amid the rebound in oil prices, reported $3.2 billion in adjusted earnings and despite taking a $200 million hit from the Texas winter storm, cut net debt by more than $4 billion to $71.3 billion.

Nokia and NetNordic to deliver 5G network to Equinor

Nokia is collaborating with NetNordic in an eight-year agreement with Equinor to deliver a private 4G and 5G-ready solution for the energy giant's international operations.

EDF to close Dungeness nuclear power station EDF's decision to move Dungeness B nuclear power station into the defuelling phase with immediate effect will increase reliance on gas to stabilise the grid and result in higher emissions and prices, the head of the Nuclear Industry Association has warned.

 Trafigura and Yara International explore clean ammonia usage Independent commodity trading company Trafigura and Yara International have signed an MoU to explore developing ammonia as a clean fuel in shipping and ammonia fuel infrastructure.

Reducing shipping emissions is vital in fighting climate change.

 Tred and Nium launch first UK Green debit card FinTech Tred has selected global

EDF cited a range of "unique, significant and ongoing technical challenges" for its decision and said the plant, which was built in 1967 and whose final electricity was generated in 2018, ran for 10 years longer than its original design life.

B2B payments company Nium

Tom Greatrex, Chief Executive of the Nuclear Industry Association, said its retirement underscores the urgency of investing in new nuclear capacity to hit net zero. “If this base of firm power is not replaced, we will have to rely on gas to stabilise the grid. This fossil fuel dependence will cause higher emissions and higher prices and push our climate goals further from our grasp.”

 ‘People versus Shell’ landmark ruling implications

to be its card-issuance partner.

The Tred Green debit card allows UK cardholders to track, reduce and offset their carbon footprint.

A Netherlands court has ruled that Shell must reduce its emissions by 45% by 2030 compared to 2019 levels the first time a company has been legally obliged to align its policies with the Paris climate accords.

 IEA wans of mineral supply and climate ambitions ‘mismatch’ An accelerated energy transition could quickly see demand running ahead of supply and create a 'looming mismatch'

W I N N E R S MAR21

L O S E R S

of mineral supply and climate ambitions, according to a new International Energy Agency (IEA) report. energydigital.com

11

GLOBAL NEWS

1

UNITED STATES

Sempra Energy and NREL to grow AI and low-carbon solutions Sempra Energy has signed an MoU with the US Department of Energy's National Renewable Energy Laboratory, providing a framework to advance future net-zero energy systems. They will share objectives focused on advancing AI to scale solutions across the US and reach clean energy goals.

12

July 2021

3

UNITED KINGDOM

Cornwall receives £1m energy funding investment Up to £1 million of innovation funding, via the Energy Entrepreneurs Fund, has been earmarked for businesses in Cornwall to support their development of technologies, products and processes in energy efficiency, power generation and energy storage, coinciding with the G7 Summit.

2

UNITED STATES

Next Energy Technologies plans launch after Series C funding NEXT Energy Technologies is set to roll out its innovative energyproducing panels in commercial windows after securing $13.4 million in Series C funding. The startup, whose first two rounds raised $11 million, has also received grants from government agencies.

4

5

TAIWAN

Acer Group joins RE100 initiative The Acer Group has joined the RE100 initiative and pledged to achieve 100% renewable energy use by 2035. Acer declared its mission to help tackle environmental challenges with its Earthion platform that unites employees and supply chain partners, and expands its sustainability efforts.

SWEDEN

Total financing in Northvolt rises to $6.5 billion Northvolt has received $2.75 billion in new equity, from new shareholders such as Sweden's AP1-4 pension funds and Canada's OMERS alongside Goldman Sachs Asset Management and Volkswagen Group. It marks a key milestone in achieving European Green Deal objectives, according to EIT InnoEnergy. energydigital.com

13

PEOPLE MOVES SIMON HEALE FROM: LONDON METAL EXCHANGE TO: REBEL ENERGY WAS: CEO NOW: CHAIRMAN UK energy startup Rebel Energy has completed its Board of Directors and appointed Simon Heale as Chairman. He brings extensive experience in commodity trading and leadership roles across a wide range of industries — he was former CEO of the London Metal Exchange.

Rebel Energy’s electricity is ‘100% renewable and generated on UK wind, solar and hydro farms’.

Also joining the Board as Non-Executive Directors are Jason Sharpe (previously Managing Director OVO Energy), Victoria MacGregor (Citizens Advice), Monique Pollard (Goldman Sachs), Eskandar Sadeghi (T. Rowe Price) Dan Bates, Co-Founder & CEO at Rebel Energy, said: “We think we’ve managed to cover all bases with this Board. What was important to us was that we appointed non-executive directors who really understood and bought into our mission.”

14

July 2021

“What was important to us was that we appointed non-executive directors who really understood and bought into our mission”

PEDRO ERNESTO FERREIRA FROM: ENERGIAS DE PORTUGAL (EDP) TO: ECO WAVE POWER GLOBAL WAS: ASSET MANAGEMENT SPECIALIST NOW: HEAD OF PORTUGUESE OPERATION

MICHAEL DOLBEC FROM: GE VENTURES TO: MOMENTA

Ferreira will oversee Eco Wave Power’s activities in Portugal, including the licensing and the promotion of the APDL project, establishing contacts with additional sites and ports in Portugal, grant submission and day-to-day operations. Eco Wave is a leading onshore wave energy technology company that has patented smart and cost-efficient technology for turning ocean and sea waves into green electricity. At EDP, he managed all its hydroelectric power plants in Portugal.

WAS: EXECUTIVE MANAGING DIRECTOR NOW: MANAGING PARTNER Michael Dolbec has been appointed Managing Partner at Momenta, which is a leading venture capital firm accelerating digital innovators across energy, manufacturing, smart spaces, and the supply chain.

“The entire industrial world, from energy and manufacturing to logistics, transportation and agriculture, is being disrupted by technology and digital transformation,” said Dolbec.

“I look forward to helping startups become key players in the industrial playbook as they commercialise emerging technologies, like edge computing and machine intelligence.” energydigital.com

15

TIMELINE BLUE HYDROGEN PROJECTS PIPELINE Pillsbury Law has created The Hydrogen Map which tracks more than 200 blue and green projects globally.

Currently there are 57 projects operational and a further 58 will be in development by the end of 2021.

Here are the Blue Hydrogen projects to date:

16

2021

2023

2024

Tabangao Refinery, Batangas, Philippines

Magnum, Eemshaven, Netherlands

Acorn Aberdeenshire

July 2021

Net Zero Teesside, Stockton-on-Tees, UK

2025

2027

2030

Drax Humber Cluster Demonstrator, Selby, UK (completion scheduled for 2040)

Blue Hydrogen Plant, Den Helder, Netherlands

HESC, Morwell, Australia

H-Vision, Rotterdam, Netherlands Hynet Northwest, Cheshire West and Chester, UK

energydigital.com

17

LEGEND

TEXAS OIL LEGEND STEPS DOWN AS CEO Name: William R. ‘Bill’ Thomas Job Title: Chairman of the Board and CEO Company: EOG Resources

W

illiam R. ‘Bill’ Thomas is to retire as CEO of EOG Resources and become Non-Executive Chairman of the Board – bringing the curtain down on 42 years of service with the company (and predecessor companies), 8 of which was as CEO. From October, Ezra Y. Yacob will become EOG's Chief Executive Officer and join the Board of Directors, and Lloyd W. "Billy" Helms, Jr., EOG's Chief Operating Officer, will be appointed to the additional role of President.

"Year after year, for more than eight years, Bill has set and re-set the standard for EOG's operational and financial performance ever higher,” said Yacob. years working in “He established our ‘premium the industry well’ standard, one of the most strict investment hurdle rates in the EOG's free industry, which became an incredible cash flow in catalyst that tapped the EOG culture 2020 of creative thinking and innovation

20

1.6b

18

July 2021

that continues to propel the economics of EOG's business higher.

EOG is in the best shape of its history and I am humbled and excited to expand on Bill's legacy of leading a great team to high performance through serving leadership."

EOG generated $1.6 billion of free cash flow in 2020 which both paid the dividend and further shored up the balance sheet, all while WTI oil prices averaged less than $40 a barrel, and this year the company expects to generate $3.4 billion in free cash flow at WTI Crude price of $60 per barrel (according to Zacks Equity Research).

The company announced a new premium natural gas site in South Texas, at Dorado, which added 1,250 premium net drilling locations, and its premium inventory grew to 11,500 net locations by the end of 2020 — more than three-and-a-half times the total since introducing the premium well standard in 2016.

Previously he served as the General Manager of Texas offices, where he was instrumental in EOG’s successful exploration, development and exploitation of various key resources. He joined HNG Oil Company, a predecessor of EOG, in January 1979.

Thomas has been a Director of National Oilwell Varco, a provider of oilfield services and equipment to the upstream oil and gas industry worldwide, since 2015, serving on the Audit Committee and Compensation Committee.

He earned a Bachelor of Science degree in Geology from Texas A&M University.

energydigital.com

19

5MINS WITH...

PAUL SERNIA, CEO OF ENDUA

New Australian clean energy storage startup Endua has launched to build hydrogen-powered energy storage, aimed at delivering sustainable, reliable and affordable power at a moment’s notice.

Q. TELL US ABOUT ENDUA AND HOW IT WAS FORMED?

» Endua was founded as part of

Main Sequence’s venture science model, which starts by identifying a global challenge and then brings together science and industry to solve it. Using technology from CSIRO, an industry partner in Ampol, and capital from Main Sequence, Endua was built to create the next generation of clean energy storage solutions using breakthrough hydrogen technologies.

CSIRO has been a pioneer in hydrogen technologies over the past 15 years, developing hydrogen-based power generation and storage that is versatile, cost-effective and built for the long-term.

I was asked by Main Sequence to find a way to accelerate the development of that technology into a commercial solution that had potential to make a global impact, and I’ll work closely with Ampol to determine the different ways it can benefit their customers and other energy users that rely on fossil fuels.

20

July 2021

Q. ARE YOU CONVINCED HYDROGEN WILL DELIVER SUSTAINABLE ENERGY STORAGE FOR YEARS TO COME?

» I find hydrogen really interesting

because it shares many of the properties that we value in fossil fuels, making it an attractive alternative compared with other gases or liquids, like natural gas and diesel, but what sets it apart is that it can be truly emissions-free if generated via renewable electrolysis. I believe that green hydrogen will play an increasingly large role in the world’s energy transition and as companies like Endua continue to advance hydrogen technology for sustainable energy storage, its adoption will become widespread.

“ TO CREATE THE NEXT GENERATION OF CLEAN ENERGY STORAGE SOLUTIONS USING BREAKTHROUGH HYDROGEN TECHNOLOGIES”

Q. HOW LONG WILL IT BE BEFORE BUSINESSES AND COMMUNITIES ARE ‘SELF SUSTAINING’, OPERATING WITH ENERGY OFF THE GRID?

» We’re moving rapidly towards

renewable energy to power our homes, our transport, and our businesses.

Other renewables, like solar, hydro and wind, help us get most of the way there, but aren’t available all of the time and require backup generators that ensure constant power generation.

This is where Endua comes into play. Endua’s power banks generate electricity created from 100% renewables, stored as hydrogen, and are ready to go at a moment’s notice.

They are built to deliver sustainable, reliable and cost-effective electricity on demand.

We’re initially focusing on delivering renewable electricity so communities and remote infrastructure can access reliable, renewable energy at any time of day.

Q. WHAT DO YOU SEE AS THE MAIN CHALLENGES FOR ENERGY STORAGE AS WE STRIVE TO MEET NET ZERO TARGETS?

» The biggest challenge for Australia’s

energy sector is in finding and fast-tracking new home-grown technologies to enable Australia’s transition to a low-emissions future. Main Sequence’s venture science model has given Endua all the ingredients it needs to meet this challenge.

For Endua specifically, our biggest challenge lies in meeting the expectations of commercial markets and being cost-effective when compared to existing electricity sources. The technology we’ve developed with CSIRO enables us to make the cost more affordable compared to fossil fuel sources, more reliable and easily maintained in remote communities.

Q. WILL YOU BE CONCENTRATING ON AUSTRALASIA/ASIA REGIONS, OR TARGETING INTERNATIONAL MARKETS?

» Initially, our focus is to concentrate

on the Australian market, but Endua has been developed with a global mindset so international markets are definitely on our radar.

Given how geographically dispersed Australia is, it’s the ideal place to test and learn before we look beyond our borders. Endua presents an immense opportunity for Australia and the country’s energy sector. energydigital.com

21

Bringing the Community to LIVE Broadcast from London to the World

September

28th - 30th 2021 A BizClik Media Group Brand

Featuring:

Keynote Speakers LIVE Roundtable Q&As Networking Lunch Inspirational Presentations

Over 5 Stages:

Main Stage Procurement Stage Supply Chain Stage Sustainability Stage Tech Expo Stage

EARLY BIRD TICKETS

Creating Digital Communities

SCHNEIDER ELECTRIC

24

July 2021

SCHNEIDER ELECTRIC

SCHNEIDER ELECTRIC LEADS SUSTAINABILITY CHANGE WRITTEN BY: DOMINIC ELLIS

PRODUCED BY: LEWIS VAUGHAN

energydigital.com

25

SCHNEIDER ELECTRIC

26

July 2021

SCHNEIDER ELECTRIC

Schneider Electric is proud to be named the world’s most sustainable company – however, as Natalya Makarochkina explains, its journey to drive efficiencies and cut emissions has only just begun

Natalya Makarochkina

S

chneider Electric has been quietly but determinedly embracing sustainability for the last 20 years and its efforts were recognised when it was awarded the prestigious title of ‘The World’s Most Sustainable Company’ by Canadian media and research company Corporate Knights in January 2021.

“It was a great honour to receive the award,” reflects Natalya Makarochkina, Senior Vice President, Secure Power Division, International Operations, after it jumped from 29th place the previous year. “It proves that every time we define a target, we fulfil it and lead by example.”

Five months on, you won’t find any complacency among Makarochkina nor her peers. The French company, which came fourth in Gartner’s more recent annual ranking of corporate supply chains, is busy focusing its attention on two key strategies simultaneously – aiming to eliminate its own climate footprint by 2025 via its Sustainability Impact Program, and driving down emissions amongst its customers across more than 100 countries.

“We are still at the early stages of our transformation programme – we want to cut CO2 emissions among our top 1,000 suppliers by 50%,” she said. “Future sustainability is key to us and we want to conserve our resources and protect our planet. Schneider Electric will continue to develop new products and ideas, and continue our goal of sustainability.”

To many, Schneider Electric is the first name in power management, whether that’s medium or low voltage or secure power, and automation systems – and sustainability is now linked to “multiple customer wins,” as cited within its Q1 results statement. It now earns 70% of its revenue from, and directs 73% of its investments toward, sustainable solutions. energydigital.com

27

SCHNEIDER ELECTRIC

Its ‘Life Is On’ brand strategy, in which the benefits of connectivity and efficiency were first promoted six years ago, seems more pertinent than ever as countries now

“ We are still at the early stages of our transformation programme – we want to cut CO2 emissions among our top 1,000 suppliers by 50%” NATALYA MAKAROCHKINA

SENIOR VICE PRESIDENT, SECURE POWER DIVISION, INTERNATIONAL OPERATIONS FOR SCHNEIDER ELECTRIC

28

July 2021

place greater emphasis on sustainability and meeting net-zero targets.

For data centres, be they traditional or micro edge, Schneider’s expertise and knowhow are critical to success. At the moment, data centres consume 1% of global electricity use, but it’s forecast to increase significantly as demand for data grows.

“The more data we receive, the more energy we need to process it,” she said.

“Previously everyone thought that everything would go to cloud. Now we understand that traditional, hyperscale and colocation will continue to expand. We need more transformation at the Edge.”

During COVID, it has seen the emergence of many Edge solutions – and rise in ‘plug-and-play’ and prefab concepts. “It’s extremely important to deliver software too, enabling customers to not only observe the centre, but analytics to make sure they can foresee the potential risks and take the appropriate measures in advance,” she said,

SCHNEIDER ELECTRIC

adding that hybrid solutions have been most in-demand.

Micro Edge Data Centres are definitely growing and this will pose challenges for the industry at large. “The problem with Edge is that while individually, they consume a small amount of energy, if you look at the total amounts they consume, it’s huge amounts of power – it can be twice as much as traditional data centres.”

It recently expanded its EcoStruxure™ Micro Data Center C-Series with the new 43U, offering the greatest capacity in the company’s commercial and office line of micro data centers.

By helping customers deploy IT simply, securely, and reliably in any edge computing or commercial environment, the new solution is our largest, fully equipped model, eliminating the need for a purpose-built IT room, saving up to 48 percent on CapEx in 20 percent less time. The integration of EcoStruxture IT yielded 35% in energy savings and 30% cost savings in maintenance for the largest data centre in North Africa.

Another new addition is its Edge Software and Digital Services programme, a complete suite of benefits, support tools and certifications that enables IT solution providers to create a managed power services practice.

• Fostering equal access to digital learning for 24,000 students in India by powering 100 co-educational schools with solar energy

TITLE: SVP, SECURE POWER DIVISION, INTERNATIONAL OPERATIONS INDUSTRY: ELECTRICAL & ELECTRONIC MANUFACTURING LOCATION: MOSCOW Natalya Makarochkina is the Senior Vice President (SVP) of Secure Power at Schneider Electric, on a mission to lead more than 1000 seasoned professionals in delivering sustainable, innovative ways to support customers and partners in their digital transformation.

Natalya is a passionate executive with strong expertise in leading successful transformations within IT and Energy Management industries. Previous leadership roles include various senior management and sales positions across international technology companies comprising HPE, Philips, Oracle, 3COM and others.

Secure Power provides complete physical infrastructure solutions for data centers, distributed IT environments, and industrial applications. As SVP position Natalya constantly empowers business success within multiple geographies – Asia, Pacific, India, Middle East, South

EXECUTIVE BIO

‘Glocal’ approach and onset of Electricity 4.0 It is important for Schneider Electric to be seen as international and local, she adds. “It’s a very flexible company and adapts to the needs of the customers. It’s not just about having offices in different parts of the world, but R&D and factories too.” Examples of local projects so far include:

NATALYA MAKAROCHKINA

America and CIS. Natalya holds an Executive MBA from the University of Antwerp, and Masters degree from the Higher School of Economics.

SCHNEIDER ELECTRIC

SCHNEIDER ELECTRIC’S 6 SUSTAINABLE COMMITMENTS 1.

2.

3.

4.

5.

6.

30

Creating a climate-positive world Efficient resource consumption Credibility principles Equal opportunities Inclusion of all generations Strengthening communities

July 2021

SCHNEIDER ELECTRIC

“Previously everyone thought that everything would go to cloud. Now we understand that traditional, hyperscale and colocation will continue to expand. We need more transformation at the Edge” NATALYA MAKAROCHKINA

SENIOR VICE PRESIDENT, SECURE POWER DIVISION, INTERNATIONAL OPERATIONS FOR SCHNEIDER ELECTRIC

• Transition to a 100% electric company car fleet in Norway by 2023 • Encourage Korean employees to support the shift to electrical vehicle • Add 150 circular product references to Schneider ‘s internal shop catalogue for employees in France.

• Increase five-fold Schneider’s spend with indigenous-owned suppliers in Australia as part of the Reconciliation Action Plan • Give electrical products a second life through donations to an online marketplace for educational purposes, and to improve the electrical installations of families at risk of energy poverty in Spain Natalya explains that ‘Electricity 4.0’encompasses electric and digital to create a sustainable future. “It’s really ‘green energy’, using it in the most efficient way,” she said. “It will require a lot of enabling supply and demand efficiency and lifecycle software. It’s extremely important that customers can really integrate digital products and services, where they will require a lot of saved data, moving at high speeds. We try and ‘future proof’ our customers.” energydigital.com

31

SCHNEIDER ELECTRIC

There are four defined needs for future data centres – Sustainable, Efficient, Adaptive and Resilient. They will need to be achieved through cost optimisation and reducing the risk of downtime.

How do you see the industry evolving in 2021?

Sustainability will remain top of the agenda, and it will become increasingly important for companies to assess and target the value chain, and Scope 3 emissions. Tech trends include ‘digital first’ and ‘remote

32

July 2021

first’ models, which will offer more valueadd experiences; we also need to look at integrated and sustainable supply chains, which will allow customers to have scalable digital experiences.

How important is technology in driving sustainable practices?

It’s extremely important, for private and public sectors. We have developed a lot of software and technology never stops. I believe that sustainability is a priority because it’s key to the next generation – and that’s why it’s core to Schneider’s DNA.

DID YOU KNOW...

WHAT ARE THE TOP TRENDS WITH ELECTRICITY 4.0?

SCHNEIDER ELECTRIC

“One of the challenges is the multi-layered approach. Electricity is everywhere so we must have good software that connects the dots. Customers are not just looking at prices but partners that can reduce carbon.”

Last year was challenging, but the benefits of digitization allowed people to connect and businesses to stay operational, she adds.

More companies, especially in the industrial sector, are now entering the market at much faster speeds, as companies seek ‘quick win’ solutions. Industry 4.0 is being characterised by connectivity, data and computational power; analytics and intelligence; human-machine interaction and advanced engineering.

“We’ve also seen a big increase in e-commerce – this will require more energy, and companies will need to be more sustainable, resilient and efficient. It will be much quicker than the last 20-to-30 years,” she said. US ecommerce forecasts have been revised upwards with 18% growth expected in 2021, and growth in other regions, such as Sub-Saharan Africa, are being driven by rising mobile penetration.

“ It’s extremely important that customers can really integrate digital products and services, where they will require a lot of saved data, moving at high speeds” NATALYA MAKAROCHKINA

SENIOR VICE PRESIDENT, SECURE POWER DIVISION, INTERNATIONAL OPERATIONS FOR SCHNEIDER ELECTRIC

The trend to ‘building back better’ is seeing major changes in the Data Centre industry. Leading Edge Data Centres, for example, are bridging the divide between regional and metropolitan Australia – and were acknowledged at the Datacloud Global Awards as a winner of The Edge Award 2021 .

Another byproduct from the crisis has been the peak in online education, so learning has become more widely distributed. “That will stimulate digitization in other areas,” she said She signs off our interview on an optimistic note – confident in Schneider’s ability in delivering solutions to meet sustainability challenges. “It is not by chance that we are called the most sustainable company in the world. I’m confident we will meet the targets.”

energydigital.com

33

CONNECTED ENERGY

SUPERGRIDS, SUSTAINABILITY AND FUTURE ENERGY A global grid solution is needed to meet climate targets, and systems must be more intelligent, digital and controllable

A

s countries strive to meet global emission targets, energy’s position at the top table of sustainability becomes more integral by the day. Just as no one nation can act in isolation, the energy industry must come up with global solutions that can meet environmental protection and demand needs.

The expected transformation in the electricity sector to meet decarbonization goals will require a parallel transformation in infrastructure siting. The need for smart connected grids has never been more pressing – and time is of the essence. The Biden administration wants net-zero carbon electricity by 2035.

34

July 2021

The post-pandemic reset provides the chance to address these macro energy challenges. It’s no secret that many national grids are creaking at the seams, and new, more resilient systems are imperative for the global challenges we face. That means the notion of interconnector ‘supergrids’ should be evaluated once again.

Supergrids are high-capacity power transmission lines using either high-voltage direct current (HVDC, above 500kV) or ultrahigh-voltage direct current (UHVDC, above 800kV) power lines.

They offer increased energy reliability, higher availability of generation, decreased costs of electricity across regions and,

CONNECTED ENERGY

WRITTEN BY: DOMINIC ELLIS

particularly relevant for the integration of Variable Renewable Energy (VRE) and greater system flexibility.

Supergrids can also level out excess power or variability generated in local grids. As the deployment of VRE generators increases in the power mix, so the variability and uncertainty introduced by these resources progressively affect local grid balances.

Investment in supergrids stood at US$8.3bn in 2016, but this could rise to US$10.2bn by the end of 2025, according to Navigant Research. The Asia Pacific currently represents the largest regional market for supergrid investment – accounting for an estimated 66% through 2025.

On the flip side, their development requires international political collaboration on-grid ownership, rights and revenue allocation. They also require regulatory cohesion across multiple countries in order to clearly define the roles and responsibilities of the stakeholders in such networks across national boundaries. Balancing power at the distribution, regional, national and international level further requires close coordination between system operators across territories, which is complex.

“While regional supergrids could bring cleaner, more efficient, and more costeffective electric power systems, their development is complicated by a number of energydigital.com

35

ADVERT PAGE MEDIA SALE The Website and Magazine for Global Sustainability Executives Join now for notifications about the upcoming launch and never miss an issue...

COMING SOON JOIN THE COMMUNITY

A BizClik Media Group Brand

Creating Digital Communities in Sustainability

CONNECTED ENERGY

Supergrid projects Desertec First proposed by a German-led consortium in 2009, the Desertec project aims to harvest solar power in the Mediterranean and other deserts of the world and use HVDC to transmit the electricity to population centres.

Medgrid Similar to Desertec, the Medgrid plan calls for developing 20 gigawatts of solar power generation in North Africa, of which 5 GW would be exported to Europe. The Medgrid electricity network would become the backbone of the European supergrid.

China’s supergrid To deliver solar and wind resources from the north and hydropower from the south to cities in the southeast, China has installed the most extensive.

factors,” said Jessica Lewis, senior research analyst with Navigant Research. “These include limited political will, lack of harmonized standards, complex authorization and permitting procedures for cross-border transmission projects, and a conventional view of energy security as a national imperative, with individual countries reluctant to leave their supply security in the hands of others.”

Though complications exist, the idea that coordinated supergrids would allow high-volume electricity trade across long distances and facilitate the development of renewables where the resource potential is strongest, rather than where it is most convenient, is driving interest.

The utility sector does not operate with the same timescale as most other industries. Short to medium term can be 10-20 years, based on a history of providing stability above everything else. That stability is under threat today. We now realise the direct connection between the electricity sector and the resolution of some of our most critical planetary challenges, such as climate change and urbanisation.

“For supergrids to see the day, we will need to be making grid-related decisions energydigital.com

37

CONNECTED ENERGY

Prysmian Group - Viking Link

with this objective in mind from the beginning,” said Anja Langer Jacquin, Chief Commercial Officer at depsys, whose GridEye tool consists of intelligent data capture equipment, a centralised management system and software modules to visualise and interpret the data.

“The current issue we face is that local, uncoordinated initiatives drive most efforts aimed at accelerating our transition to clean energy. Urban neighbourhoods, startups, individuals, as well as environmentally conscious companies are launching marketplaces, putting up solar panels, buying electric vehicles and installing batteries.”

She added it would require a significant regulatory drive and coordination across countries to define the guiding principles — logistical, financial, technical — upon which we need to standardise our efforts.

“It is not that different from the early days of the Internet; both need access to 38

July 2021

reliable, real grid and usage data available to all super grid stakeholders to form the basis for a viable business model. Once the guiding principles and standards have been defined, then the execution will accelerate exponentially as it will attract additional investments.”

“ As part of a network of subsea, clean energy super-highways connecting the UK with its neighbours, Viking Link will help to reduce Britain’s carbon emissions from the power sector” MIKE ELMER

PROJECT DIRECTOR FOR NATIONAL GRID VENTURES, VIKING LINK

CONNECTED ENERGY

GEIDCO and IRENA push renewables agenda The Global Energy Interconnection Development and Cooperation Organisation (GEIDCO) is an international non-governmental organisation that works towards promoting the establishment of a global energy interconnection system (GEI) to meet the global demand for electricity in a clean and green way, as well as to implement the United Nations Sustainable Energy for All initiative.

Made up of enterprises, institutions and individuals in 80 countries, GEIDCO is a strong advocate for the construction of a global pattern of interconnected power grids across regions, countries and continents that has the potential to solve the challenge of renewable energy production, allocation and trade.

According to GEIDCO’s calculations, with the implementation of a Global Energy Interconnection (GEI) pattern with an ultra-high voltage (UHV) smart grid as the backbone, the installed capacity of global clean energy is expected to reach 2,5 times that of 2014 or about 5.3 TW in 2030.

The organisation calculates that energy interconnectivity could not only reduce carbon emissions but also enable the distribution of power to one-fifth of the world’s population who still have no access to electricity, relying on firewood, coal, and animal waste for cooking and heating.

Variable Renewable Energy (VRE) is understandably gaining attention in line with the boom in the renewables sector.

HVDC-based supergrids can help better integrate VRE from such remote locations across a wider geographic area while minimising line losses and increasing the controllability of the AC–DC network.

Tide turning for tidal?

Stuart Murphy, Founder, TPGen24, said while immediate high capital investment is required for tidal systems, costs are offset by an asset life “of over a century”.

He believes this makes tidal power stations more durable, lowermaintenance and potentially more cost-competitive than other renewables.

“I’m not saying we should sideline solar, wind and other renewables.

I am highlighting that we should have as broad a mix as possible, using as many green resources as we have available,” he said.

“Importantly, from a construction industry perspective, we are also trying to find the best ways for infrastructure developers, contractors and energy companies to earn a profit from them.

Tidal should be viewed as an attractive opportunity for a sector that stands to truly benefit. We see this not only from a financial perspective but also giving UK construction the opportunity to play a more active, direct role in the growing ‘green revolution.”

energydigital.com

39

CONNECTED ENERGY

“However, wind turbines produce AC and convertors from AC to DC would be needed to connect the wind turbines to DC transmission lines. This would also incur loses,” notes IRENA. “Assessment on a caseby-case basis would be needed to identify the optimal line technology solution.”

NGET installs SmartValve on five circuits, Vattenfall partners with Good Energy National Grid Electricity Transmission (NGET) is using innovative and transformational technology to unlock 1.5GW of network capacity — enough renewable energy to power 1 million homes and supporting the UK’s net-zero ambitions.

As more renewable generation comes onto the network, depending on the weather, power flows change and circuits become unequally loaded, meaning some circuits reach maximum capacity while others are still well below their limits.

As power grids become more intelligent, digital and controllable, National Grid Electricity Transmission (NGET) is using SmartValve, a modular power flow control technology, to drive the transition and regulate power flows.

NGET is installing SmartValve on five circuits at three of its substation sites in the North of England, which makes 500MW of new network capacity available in each region.

This technology will help to decarbonise the UK electricity gridby allowing greater volumes of renewable power to be efficiently transferred to customers.

The sites at Harker in Carlisle, Penwortham in Preston and Saltholme in Stockton-onTees near Middlesbrough were identified as needing a solution to solve bottlenecks of renewable power. The technology from US-based Smart Wires intelligently and instantly routes power through the circuits 40

July 2021

which have available capacity, maximising the use of the existing network.

Vattenfall is expanding its business inthe UK by teaming up with Good Energy, the UK supplier of ‘green electricity’ to homes and businesses.

Vattenfall will provide Good Energy with access to the long and short-term wholesale electricity market through its ‘Energy Trader’ tool, a trading platform for utilities, suppliers, industrial companies and energy traders.

The agreement will also allow Good Energy to efficiently balance their extensive renewable portfolio, as they often have excess wind and solar power to sell back to the grid.

The UK TSO National Grid is considering adding to the existing western offshore HVDC link with an eastern link. This would result in

CONNECTED ENERGY

“ It is not that different from the early days of the Internet; both need access to reliable, real grid and usage data available to all super grid stakeholders to form the basis for a viable business model” ANJA LANGER JACQUIN

CHIEF COMMERCIAL OFFICER, DEPSYS

two offshore HVDC links connecting Scotland and England.

Upgrading grids is no longer purely a question of infrastructure but one of a utility’s operational processes added depsys’ Jacquin.

“This includes embedding “smart” technologies into the grid to provide the utility with the knowledge, insights and foundation for decisions.” She said.

“The intelligence enables DSOs to continuously deliver quality electricity to endusers despite the increasing disruption from external elements, such as local production from intermittent, renewable energy sources or battery storage. Technology ensures the ability to evolve business models alongside the evolution of the market they serve.”

energydigital.com

41

CONNECTED ENERGY

“ I’m not saying we should sideline solar, wind and other renewables. I am highlighting that we should have as broad a mix as possible, using as many green resources as we have available” STUART MURPHY FOUNDER, TPGEN24

42

July 2021

CONNECTED ENERGY

Thinking big: connecting countries A glance at IEEE Spectrum’s list of mega-grid projects shows we’ve never been lacking ambition when it comes to interconnectivity, although the fact that many date back a decade, if not longer, reflect the challenges of matching concepts with financial and logistical practicalities.

When it comes to analysing the biggest energy challenges, China is a logical place to start. The International Energy Agency estimates that China will need to spend more than $4 trillion from now until 2040 to overhaul the way it transmits and distributes electricity.

China is a front-runner in the development of high-capacity UHVDC transmission. Its domestic system comprises 35,000kms of HVDC transmission lines and 500 billion kWh of annual transmission by quantity (Xu, 2016).

To deliver solar and wind resources from the north and hydropower from the south to cities in the southeast, China has installed the most extensive network of high-voltage AC and HVDC in the world. It’s now expanding its transmission grid with 13 to 20 new HVDC lines.

Four years ago, it signed an MoU for an Asian Super Grid, comprising State Grid, Korean utility KEPCO, Russia’s PJSC Rosetti and Softbank.

In Europe, Viking Link is a proposed offshore and onshore HVDC link between Great Britain and Denmark. The 770km long transmission line is expected to enable the effective use of renewable energy and increase the security of the energy supply for both countries. The project, originally targeting operations next year, is now aiming to launch at the end of 2023. energydigital.com

43

BP

Optimising bp's workflows with digital transformation WRITTEN BY: MELISSA KHAN PRODUCED BY: THOMAS LIVERMORE

44

July 2021

BP

energydigital.com

45

BP

The energy company’s transformation leaders shed light on harnessing the power of digital for business performance and meeting their sustainability goal

B

p has set out a new strategy to transform from an International Oil Company to an Integrated Energy Company focused on delivering solutions for customers. This is a major, necessary step in support of the company’s purpose to reimagine energy for people and the planet, and its ambition to become a net zero company by 2050 or sooner and help the world get to net zero. After more than a century defined by oil and gas, bp set out a strategy to become a very different energy company in the next decade.

So what does it take for an organisation with a rich heritage to remain ahead of the game today? One of the answers is digital transformation. Nick Wright, bp’s global director of digital and innovation sourcing is a strong advocate of transformation for efficiency. He says the focus for his area of the organisation is sourcing complex or innovative technology deals in support of bp’s strategy. Nick states: “Transformation isn’t just a change in process, for an organisation like bp that has years of legacy systems behind it, it becomes more of a mindset shift. There is a sense of reimagined purpose, given our ntentions to move from traditional oil and gas to clean energy, and to fulfill that purpose, it is important to transform and lead through innovation.”

46

July 2021

BP

energydigital.com

47

BP

Vipin Radhakirshnan , bp’s vice president for digital solutions & transformation, adds: “[This is] a common theme for the entire industry, but bp in particular believes digital transformation efforts are underpinned by the organisation's need and want to reinvent itself.” He further adds that the organisation functions on a ‘transformation as usual’ principle which is essential to keep pace with the everevolving technology landscape and user demands. Vipin is responsible for the full scale of work from transformation strategy to execution. In his role, Vipin oversees the adaptation of digital solutions for finance, customer and procurement processes, which includes key areas like data, insights and analytics, business process management, intelligent automation and enabling solutions.

48

July 2021

“ A common theme for the entire industry, but BP in particular is that the efforts put in towards digital transformation are underpinned by the organisation's need and want to reinvent itself” VIPIN RADHAKRISHNAN

VICE PRESIDENT GLOBAL TRANSFORMATION & DIGITAL SOLUTIONS AT BP

BP

VIPIN RADHAKRISHNAN TITLE: VICE PRESIDENT GLOBAL TRANSFORMATION & DIGITAL SOLUTIONS INDUSTRY: OIL & ENERGY LOCATION: UNITED KINGDOM

EXECUTIVE BIO

This holistic approach to transformation helps different areas of the business in understanding the full scope of the problem and building an infrastructure to solve it. Vipin adds “It is really a combination of enablers that are unique because you have everything from data, process automation and technology solutions enabling transformation strategy and delivery.”

The other key factor when it comes to transformation at bp is the approach.

According to Vipin, it is a good blend of a top-down and bottom-up approach.

“A bottom-up approach simply means tapping into the pain points of the business to get an idea of the problems faced and how they can be transformed,” explains Vipin. “On the other hand, a topdown approach would mean setting

Over the last two decades Vipin Radhakrishnan has lead global roles across the Oil & Energy, CPG and Telecom industries with companies like bp, Diageo and Vodafone focusing on Business Strategy, Digital Transformation, Data Analytics & Enterprise Operations.

In his current position as Vice President of Global Transformation and Digital Solutions at bp, he is responsible for business transformation covering transformation strategy, global process ownership and agile delivery of the transformation roadmaps. His business and technology background gives him an edge to align the right digital solutions with the business needs, maximising value to his stakeholders and customers.

bp "pushes boundaries" of procurement with Fairmarkit bp wanted to free up procurement resources to concentrate on value-added procurement activity as well as ensure they were managing their spend and budgets efficiently. To do this, the company wanted to both automate as much of their process as possible and monitor procurement data in real time to identify efficiencies.

The Challenge Procurement at bp is an incredibly large operation. The company’s supply chain spans the globe, incorporating functions as varied as drilling for oil, to constructing wind turbines, to operating retail storefronts. In this environment, the procurement team needs to manage spend ranging from billion-dollar specialist equipment to the receipt rolls in cash registers.

Competitively source every purchase.

Automation makes it simpler. Data makes it smarter. Fairmarkit is the intelligent sourcing platform that makes it possible.

Learn more

“Sourcing and contract negotiations can be quite a manual process,” says Nicholas Wright, Director, Digital and Innovation at bp who is responsible for the way in which bp approaches the market in the digital and innovation space. “It requires careful attention at every step of the process—from capturing and sending the requirements out to suppliers to have them bid on particular requirements or scope, to the selection of a final vendor and the activities required to on-board them.

It's an incredibly time- and resource-intensive process.”

bp not only wanted to free up resources to concentrate on value-added procurement activity, they also wanted to ensure they were making the best use of the digital tools avalaible within the marketplace. To do this, bp wanted to be able to both automate as much of the process as possible, as well as monitor and analyze their procurement data at a granular level.

The solution Wright says Fairmarkit is delivering “a great outcome.” He says the platform automates what used to be a manual process to help bp do things faster, with less people. But for Wright, Fairmarkit’s proposition has served another benefit.

“It has pushed the boundaries,” he says. “At bp, it was one of our first significant digital platforms, and it is disrupting the way that we work within procurement; it’s actually made people stand up and realize that we can do things differently. As a team and a company, we’re inspired to go out and look for the next Fairmarkit, whatever that may be, and be more aware and open to disrupting other manual processes.”

The result By working with Fairmarkit to automate processes, bp’s procurement team was able to deliver the same scope automatically that was previously done manually.

“We can now do more with less,” says Wright. “Automation and the capture of data makes our platform infinitely smarter than any one person. We are now using real time data to make accurate decisions—more than one single brain can comprehend.” bp procurement team members are also using data collected from previous transactions to make smarter decisions.

“For instance, if we’re paying for a certain products and services, we can now see how much other organizations pay for those products and services and evaluate whether we’re getting a competitive price,” says Wright. “To be able to do that in real time—on every single transaction—is a level of transparency that is extremely value-additive. We’re using price history to inform the future.”

BP

NICK WRIGHT TITLE: DIRECTOR, DIGITAL & INNOVATION SOURCING INDUSTRY: OIL & ENERGY LOCATION: UNITED KINGDOM I am an expert in commercialisation, super energised by finding new ways to do things, recognising that tried and tested methods are not always right as our business evolves to its low carbon future. As a leader, I seek to build real depth and breadth of knowledge within my team to support the increasingly complex commercial requirements of our stakeholders. I also strive to create a safe environment which encourages experimentation and innovation within my team and across my relationships. I bring 15 years’ experience and am recognised as an expert both internally and within the marketplace.

EXECUTIVE BIO

broader business transformation goals and outcomes and looking at processes end-toend so that teams don’t just get stuck at the problem-solving level, but instead get a head start on innovating the business of the future.”

Speaking of some of the drivers that led to transformation at bp, a need-based purpose is prevalent. The organisation strives to meet customer needs - both B2B and B2C, attune to the needs of the emerging market while serving bp’s internal ambition of reinventing themselves and finally, adapt to the needs of the customer landscape that is progressively changing. As procurement is a large and collaborationoriented business enabler at bp, their strategy has understandably been driven by transformation.

BP

“ We used to be supplyled, meaning we had a commodity and we would release that to the market and that's our bread and butter. But as we reinvented ourselves and created a more digital organisation, we became demand-led” NICK WRIGHT

DIRECTOR, DIGITAL & INNOVATION SOURCING AT BP

Procurement workflows can be quite cumbersome and require a colossal amount of historical and comparative data that is traditionally manually studied to govern processes. This explains why digital transformation has been crucial to decision-making, where both real-time analytics and historical data is available at hand, thereby reducing the need for manual synthesising of information. bp is in the process of evaluating all our existing procurement vendor engagements as part of a wider procurement transformation initiative.

A good example of an improved workflow is the contract negotiation process. Traditionally, procurement officers would spend weeks if not months reviewing documents, negotiating contracts and running tenders, however with the collaboration from digitally native vendors, bp has essentially taken work out of the system and negotiated better deals over time. “The value of working with new suppliers is that it takes work out of the system by delivering a scope that was previously resource intensive, using realtime data to make accurate decisions.

Essentially, we’re using our history to determine our future,” adds Nick.

To support bp’s customer-centric approach, bp’s procurement and sourcing teams are pivoting to reflect the company’s strategy. This can mean partnering with suppliers to co-develop products to meet new business challenges.

With sustainability as a long-term goal, within 10 years, bp aims to have increased its annual low carbon investment 10-fold to around $5 billion a year, building out an integrated portfolio of low carbon technologies, whilst over the same period, bp’s oil and gas production is expected to energydigital.com

53

BP

“ It is really a combination of processes that are quite unique because you have everything from data process automation to tech-enabling transformation strategy and delivery” VIPIN RADHAKRISHNAN

VICE PRESIDENT GLOBAL TRANSFORMATION & DIGITAL SOLUTIONS AT BP

54

July 2021

BP

reduce by at least one million barrels of oil equivalent a day, or 40%, from 2019 levels. Its remaining hydrocarbon portfolio is expected to be more cost and carbon resilient. These are ambitious goals, and to be able to achieve them while keeping everybody’s best interests at heart, the organisation needs to adopt an agile mindset.

Long-term goals aside, bp employees are working at constantly reinventing processes and focusing on incremental gains. Coupled with this agile mindset is the need to have a digital outlook – listening to the voice of the customer and improving along the way.

And lastly, having a growth mindset both internally and externally, allowing the organisation as well as its partners to grow beyond factors such as cost and time. To this, Nick adds “We used to be supplyled, meaning we had a commodity and we would release that to the market and that's our bread and butter. But as we reinvented ourselves and created a more digital organisation, we became demand-led, listening to the needs of our customers, regions, cities and the wider society.”

Nick’s leadership style is also a testament of his commitment to growth, and he nurtures a culture of incremental learning within his department. Nick’s teams are encouraged to learn from experimentation and celebrate their failures, rather than slowly applying tried and tested measures. He believes in providing continuous cycles of feedback and that a minimal viable product that's imperfect is the way to achieve growth and foster innovation.

energydigital.com

55

STARTUPS REALISE STARTUPS REALISE DIGITAL DIGITAL

POTENTIAL POTENTIAL 56

July 2021

SMART CITIES

The sky's the limit for smart city startup revenue projections as more attention focuses on natural solutions, smart networks and digitally enabled grids WRITTEN BY: DOMINIC ELLIS

S

mart city startup revenue projections could be anything up to US$110bn in the next four years, as demand for solutions covering everything from energy management to cybersecurity continues to grow dramatically.

As impressive as these figures are, they must be placed into the context of the overall smart cities market – which was valued at US$739.78bn in 2020 and is expected to reach US$2036.10bn by 2026, according to Mordor Intelligence.

The global potential is only just being realised, as the need for efficiency rises with the sustainability challenges associated with reaching net-zero emission targets.

The global breakdown is as follows: • Asian smart city startups are expected to generate $14.9bn or 38% of total revenues in 2021. By 2025, this figure is forecast to soar by 232% to $49.6bn • European smart city startups are expected to witness a 166% revenue growth in this period, rising from $8.7bn in 2021 to $23.16bn in 2025 • North American startups follow with $12.3bn in revenue in 2021. Statista data show this value is set to grow by 152% and reach $31.2bn in the next four years energydigital.com

57

You see the Windy City.

We see an imminent power outage on Michigan Avenue.

C3.ai transforms Utilities. © 2020 C3.ai, Inc. All Rights Reserved. is a mark of C3.ai, Inc.

SMART CITIES

“ Technology is disrupting the entire ecosystem of cities, from the planning and design stages, through to construction, maintenance and operations”

CEO Scott Stewart. The group completed the purchase of Alberta-based Peters Energy Solutions, a consulting firm focused on renewables, earlier this year.

In Asia, Digital Edge (Singapore) Holdings plans to expand its regional footprint to South Korea by entering into a definitive agreement to acquire Sejong Telecom’s data centre assets in an all-cash transaction.

Between the transaction and subsequent

SCOTT STEWART CEO, IBI GROUP

T:297 mm

Smart city living labs at IIIT Hyderabad, in association with the Ministry of Electronics & Information Technology and The Smart Cities Mission, have launched a smart city startup challenge that will support and scale startups that are building sustainable, inclusive and innovative solutions for smart cities.

The month-long programme gives selected startups an opportunity to pitch to smart city technology MNCs, smart city officials, and the winner will get an equity-free grant of 10 Lakhs for further development.

The focus areas for the challenge are water, waste, safety & security, health and energy.

Moves are afoot across Africa too.

Postgraduate students from universities across the continent have been called to showcase their skills and present innovations that could help develop the power and energy sector, and Johannesburg has formally adopted the provincial government’s plan to develop a smart city in Lanseria – with a proposal that an additional smart city is developed in the Deep South region.

“Technology is disrupting the entire ecosystem of cities, from the planning and design stages, through to construction, maintenance and operations,” said IBI Group

New energy storage solution from AlphaESS AlphaESS has launched its latest residential and commercial energy storage solutions and the Alpha Installer Network (AIN) Program at the Smart Energy Conference & Exhibition, Australia. The 3kW SMILE-B3 PLUS is specially designed for retrofit. Cost effective, super easy to install and capable for scale. This no-meter design with 5kWh built-in battery is available for all retrofit requirements, with capacity expandable to 30 kWh. A high-voltage battery is rolling out with 8.2kWh capacity and can be configured either for single-phase (6kW) or three-phase (10kW) applications, both on-grid & off-grid. energydigital.com

59

Five Startups to watch in 2021 • NATIX offers live camera-based people counting analytics and reporting tools for smart cities. The German startup’s crowd density mapping solution enables local governments to improve their crowd management strategies. Further, such strategies allow city officials to make the right decision in critical scenarios that concern public safety.

• Turkish startup Parkpilot creates a smart parking system that enables users to instantly view the occupancy of parking lots. Moreover, the application leverages deep learning algorithms to provide users with smart tips that save fuel costs for users. The solution is integrable with existing CCTV cameras and, thus, requires low setup costs.

• US-based startup Hayden AI develops an AI-powered data platform for smart city safety. The platform leverages artificial intelligence to identify patterns and anomalies in the streets, thereby aiming to fully eliminate traffic fatalities. Moreover,

60

July 2021

the platform receives data from transit vehicles, school buses, garbage trucks, and police vehicles, which makes the system more accurate.

• Malaysian startup Enlightyx develops the MELAKA smart city app which, integrates with smart management systems and acts as a platform that collates city information and services. Additionally, it offers cloudconnected smart CCTV and security solutions that are quick and easy to install.

• RoadSense develops IoT sensors that convert ordinary roads into smart roads without repaving. Sensors run on patented energy generation technology and are affordable to install. The sensors act as road studs and gather data on traffic patterns, type of vehicles, count of vehicles, and irregular driving behaviour while also recognising hazards such as potholes. The Israeli startup also provides an API and embeds collected data into existing road control systems to improve safety and urban planning efforts.

SMART CITIES

The UK’s Minister for Exports, Graham Stuart MP, recently co-launched the UK-Thailand Tech Export Academy, a virtual trade mission, alongside Thailand’s Minister of Digital Economy and Society, H.E. Mr Chaiwut Thanakamanusorn, that has led to over 200 business matching sessions between British and Thai businesses. In the past year, total trade between the UK and Thailand exceeded £5bn.

expansions, Digital Edge expects to invest over US$120mn and is committing US$1bn to build the Digital Edge platform in Asia.

“The acquisition of these strategic assets in South Korea will form a solid core for our maturing regional platform,” said Yongsuk Choi, Chief Infrastructure and Data Centre Operations Officer of Digital Edge. “It will position Digital Edge as a credible and reliable data centre and interconnection service provider in South Korea, with high-quality assets from Seoul to Busan and a large, diversified ecosystem of Korean and multinational businesses.”

“ The project demonstrates that this approach to AMI deployments could be scaled to both support a smart water network and provide the infrastructure needed for other LoRaWAN IoT sensors deployed for other use cases” SCOTT STEWART CEO, IBI GROUP

In focus: Smart water and energy savings Speaking at the City of London Green City Briefings, James Hitchmough, Professor of Horticultural Ecology at the University of Sheffield, presented ways to reimagine urban landscapes from a water management perspective, referencing Copenhagen’s success in separating stormwater from sewage, the UK London Olympic flood plain design, and Longquanshan, Chengdu, where stormwater is being held in catchments in a mountain landscape. He highlighted the need to think on a larger scale in city planning instead of single streets or isolated projects, using the Grey to Green Sustainable Urban Drainage Systems of Sheffield as an example, which, although the largest in the UK, is still a small-scale approach.

He proposed that in Sheffield, where there is a lot of water that runs off the top of the ridge and many green spaces dotted around, the city could think about retrofitting and connecting green spaces to capture the water, in turn creatingmany biodiversity benefits and community interest.

“Water management is talked about but is not yet part of the big picture. This radical view has to become the new normal to collectively achieve our goals. energydigital.com

61

Cities need a catchment approach to urban stormwater management; working on a project-by-project basis is not enough.”

Connexin has been nominated alongside Yorkshire Water in the 2021 Water Industry Awards, which celebrates leading UK water companies and their supply chains across 21 categories.

The final was held virtually on May 27.

Nominated for ‘Most Innovative Use of an Existing Technology’, both Connexin and Yorkshire Water have been acknowledged for their innovative application of Smart Water Networks to identify leakages using LoRaWAN connectivity.

The pilot, the largest of its kind in the UK, involved 18 partners and aimed to combine data from acoustic, flow, 62

July 2021

pressure, and water quality monitors to reduce leakage and burst levels in the pilot area in Hadfield, West Sheffield.

Rob Bullock, Chief Sales Officer at Connexin, said the economic challenge of delivering smart metering is considerable, especially for water utilities that are not classed as ‘water stressed’. “The project demonstrates that this approach to AMI deployments could be scaled to both support a smart water network and provide the infrastructure needed for other LoRaWAN IoT sensors deployed for other use cases,” he said.

The Californian city of Milpitas has begun construction on a comprehensive Smart City energy and water savings program with ENGIE North America. The city will upgrade infrastructure and install energy and water conservation measures that are expected to

SMART CITIES

reduce utility consumption by more than 4.2 million kilowatt-hours of electricity per year which is expected to save more than US$1.5mn energy and water costs per year for a net lifetime savings of over US$30mn.

The extensive program includes over 200kw of solar; an energy storage and microgrid solution for backup power at the Milpitas Senior Centre and Milpitas Community Centre; 15,600 advanced metering infrastructure (AMI) water meters with leak detection; 2,185 LED streetlight retrofits; 4,453 streetlight controls upgrades with outage detection; City-wide LED lighting upgrades in parks, sports fields, City buildings, and community facilities; water, wastewater, and stormwater management automation; touchless efficient water fixtures; and electric vehicle charging stations.

“Through this program, we will leverage guaranteed energy and water savings to pay for the program and save the city money while reducing our energy and water usage, improving community safety, and enhancing building comfort and usability," said Mayor Rich Tran from the City of Milpitas.

Depsys signs up five customers Depsys, the technology company that empowers electricity grid managers to modernise their operations through digitalisation, has partnered with four distribution system operators for full deployment in their distribution grid. depsys has also signed initial contracts with five new customers in the past few months. energydigital.com

63

64

July 2021

SMART CITIES

It reflects how utilities are accelerating their digital transition to adapt to the new realities of the electricity market. These are marked by the increased electrification and the need for the visibility and management of extensive incoming renewable energy sources, as well as unpredictable consumption peaks.

With upwards of €13bn forecast to be invested in grid monitoring in Europe by 2030, the new wins concrete depsys’ ongoing expansion in assisting the utility sector with a successful post-pandemic green recovery, transitioning to a sustainable and manageable future, where the performance of the entire grid is known at any given time. Swiss grid operators, including Romande Energieand Viteos, are leading the way in deploying smart technology solutions across their entire grid, trusting depsys’ innovativegrid solution to provide real-time actionable data and analyse their networks.

Michael De Vivo, CEO and Founder of depsys, said power grids are at a turning point. Historically, they have had little information about activity in the system and no reliable field data to plan and forecast.

“But now they’re on an exciting journey to an ecosystem where consumers and distributors have a two-way dialogue using real-time data and where energy flows must meet the requirements of safety, reliability and sustainability,” he said.

“We are proud to enable this transition to efficiency and transparency through the quality of our technological solution. The trust placed in us by more than 40 network operators worldwide is a testament to the value of our solution. It motivates us to continue developing tools useful for a stable, affordable and intelligent energy supply.” energydigital.com

65

IOT

PARTNERSHIPS DRIVE

IoT EFFICIENCIES AND SAFETY New tie-ups are designed to enhance productivity and cut risks, and prepare operators for the ‘all-electric all digital’ era WRITTEN BY: DOMINIC ELLIS

66

July 2021

T

hese are testing times for operators who must balance the need for digital transformation with enhanced security demands. IoT devices are being deployed into networks at a phenomenal rate – up to one million devices each day. While these devices are enabling new and exciting ways to improve productivity, they also bring new risks to networks.

More partnerships have been coming to the fore as a means of driving efficiencies and bolstering physical and online safety.

To address the global urgency of climate change and the 21st century’s most significant challenges of the accelerating energy transition and growing demand for energy, Schneider Electric recently launched Partnerships of the Future, following on from its MySchneider Consultants, Designers and Engineers program, which was unveiled last October.

With more than 650,000 members, 300 apps, and 100-plus communities,its open ecosystem is a robust resource for companies. It is committed to enabling a green recovery whilst supporting the megatrends

IOT

energydigital.com

67

Get reliable network coverage and security protection, fast.

A modern network must be able to respond easily, quickly and flexibly to the growing needs of today’s digital business. Must provide visibility & control of applications, users and devices on and off the network and Intelligently direct traffic across the WAN. Be scalable and automate the process to provide new innovative services.

Support IoT devices and utilize state-of-the-art technologies such as real-time analytics, ML and AI. And all these must be provided with maximum security and minimum cost.

This is the power that brings the integration of two cloud managed platforms, Cisco Meraki and Cisco Umbrella. This integration is binding together the best of breed in cloud-managed networking and Security.

cisco.com

cisco

CiscoSecure

CiscoSecure

IOT

“ With electrical networks inside facilities becoming more complex amid the explosion of the IoT, data and the number of smart devices – the reliability and availability of power is non-negotiable” NADÈGE PETIT

CHIEF INNOVATION OFFICER, SCHNEIDER ELECTRIC

of mass digitisation, greater electrification, along with the increasing role of natively connected digital products and software, in a bid to ensure sustainability and energy efficiency at scale.

Schneider calls this vision an ‘All-Electric, All-Digital New Electric World’, powered by abundant clean energy, or Electricity 4.0. As the electric and digital solutions are becoming more complex, Schneider aims to

The benefits of partners • Manufacturers, software providers and telecoms providers can unite to provide full-package solutions • Partners give customers the best of both worlds – local contacts and a wealth of IoT knowledge and resources, which leads to a sharper competitive edge • IoT providers can learn about your unique obstacles and provide tailored solutions

empower its robust network of partners with high-paced, built to demand, supportive and simplified products, complete with native connectivity and making sustainable and electrical safety.

As our world digitises, large buildings, critical facilities and infrastructure are becoming increasingly dependent on reliable, uninterrupted power, said Nadège Petit, Executive Vice President, Power Products Division, Schneider Electric – yet power-related issues are increasingly common.

“To build the solutions needed to move the world to a digital, decentralised, decarbonised energy future, companies need to collaborate and co-innovate,” she said.

With electrical networks inside facilities becoming more complex amid the explosion of the IoT, data and the number of smart devices, reliability and availability of power is non-negotiable. energydigital.com

69

IOT

Schneider Electric - How to Secure IoT-connected Power Distribution from Cyber Risks

IoT Security Risks Security can be both a reason to inhibit and develop IoT services and their adoption. To deliver IoT services and solutions securely to an organisation, mobile network operators (MNOs) must include security as part of their solutions and services in order to: • Protect the MNO’s infrastructure against threats to ensure service continuity • Deliver IoT security SLAs to encourage IoT service adoption and acceptance • Generate revenue via IoT security services

70

July 2021

“Electrical faults and unplanned downtime can be both risky and costly, leading to failures in industrial and building operations,” added Petit. “Our new electrical safety, reliability and connectivity solutions are designed to equip customers and partners with reliable smart technology not only able to anticipate but also to proactively protect critical infrastructure and equipment from the dangers of electrical failures.”

Schneider Electric has invested in more than 25 promising startups and has deep partnerships with more than 40 entrepreneurs that are building disruptive solutions in AI, IoT, e-mobility, cybersecurity, renewable energy, and buildings and industry of the future.

The company recently announced its EcoStruxure™ Micro Data Center R-Series for rugged indoor environments are now available in Europe (EcoStruxure is its open, interoperable, IoT-enabled system architecture and platform). The new IP and NEMA rated micro data centres offer a resilient and

IOT

“ Using AI, data, and domain science, we're creating an intelligent computing layer around legacy equipment on the operational site itself ” SUJIT KUMAR

DIRECTOR, AGORA VENTURE

quick-to-deploy solution to help manage edge computing infrastructure within challenging industrial and manufacturing environments.

"As Industry 4.0 and advanced automation technologies continue to drive transformation within industrial environments, IT must be deployed closer to the point of use, enabling increased productivity and efficiency," said Rob McKernan, SVP, Secure Power Division, Schneider Electric, Europe.

ZEDEDA recently announced an integration with Agora that provides customers in the oil and gas and renewable energy industries with full lifecycle management capabilities for their edge deployments as part of Agora’s overall IoT

solution portfolio. Agora positions itself as a digital innovation partner for oilfield operators ready to harness the full power of IoT and edge computing.

The ability to pull timely actionable insights from edge environments like oil rigs, wells, refineries, wind turbines and solar farms can potentially save millions of dollars by reducing equipment failure and safety issues, in addition to maintaining regulatory compliance.

However, these environments are often very remote locations and may have limited staff on site. Data-centre orchestration solutions are not applicable because of cost, footprint, security and scale requirements, plus they require IT skills not often available in the field. Addressing these challenges requires tools specifically architected to simplify managing and securing remote edge infrastructure at scale.

Zededa teams up with Agora ZEDEDA brings to the strategic partnership virtualisation, remote management and orchestration of Agora’s IoT edge stack and legacy software loads at scale while eliminating security vulnerabilities and maximising uptime, efficiency and ROI.

energydigital.com

71

IOT

“This partnership capitalises on the strengths of both companies,” said ZEDEDA founder and CEO Said Ouissal. “Agora has years of domain expertise in optimising operational efficiency and productivity in the oil and gas and renewable energy industry, while ZEDEDA’s infrastructure foundation delivers flexibility and interoperability for customers to future-proof their deployments.”

ZEDEDA’s cloud-based orchestration solution helps energy customers update their operations so they can run legacy workloads such as SCADA, DCS, HMI and Historian alongside modern containerised applications such as AI and ML. The solution leverages the open-source EVE-OS from the Linux Foundation, which prevents vendor lock-in and unifies an open ecosystem of hardware, software and services.

Security is at the forefront of every deployment, backed by ZEDEDA’s zero-trust security model spanning silicon to cloud. This gives customers the confidence to connect edge assets to Agora’s platform and any other required on-prem or cloud-based backend.

“Together, Agora and ZEDEDA are enabling oilfield operators to increase the sustainability of operations by reducing the carbon footprint and minimising health and safety risks while also improving production and lowering operating costs,” said Sujit Kumar, Director of Agora Venture. “Using AI, data,and domain science, we’re creating an intelligent computing layer around legacy equipment on the operational site itself.”

As a preferred ZEDEDA partner, Agora will sell and deliver ZEDEDA’s leading orchestration solution through its Agora Marketplace, an ecosystem of oil and gas applications enabling operators to harness the power of edge intelligence from desktop or mobile-based devices.

72

July 2021

Digital transformation drives system complexity Digital transformation is impacting the security of [Operational Technology (OT)] environments, states Fortinet. With today’s digital marketplace requiring faster response times to consumer demands than traditional OT processes can deliver, organisations are adding industrial IoT devices and real-time data collection and analysis to OT networks to automate traditionally static and manual processes, creating smart physical environments.

While this helps to create greater efficiency, digital transformation is driving system complexity brought about through the amalgamation of OT technology, says Fortinet,

“ To build the solutions needed to move the world to a digital, decentralised, decarbonised energy future, companies need to collaborate and co-innovate” NADÈGE PETIT

CHIEF INNOVATION OFFICER, SCHNEIDER ELECTRIC

which is raising the stakes, and the complexity of security integration even higher.

Providing protection for IoT devices and the networks they connect to should include Zero-Trust principles, including the tight management of access control. Whether in

enterprise medical, industrial, or other settings where IoT devices proliferate, it’s critical to ensure IT administrators can: • Understand what IoT devices are being deployed by seeing and profiling every device connecting to the network • Manage access to the network, including not only what devices are connecting to the network but also what areas of the network IoT devices can access • Monitor the IoT devices once on the network to ensure access stays consistent, and the devices don’t become compromised • Automatically take immediate action in the event of a device compromise or other security issue. energydigital.com

73

CYBER SECURITY

US PIPELINE RANSOMWARE

ATTACK HIGHLIGHTS

CYBER SECURITY DANGERS

74

July 2021

CYBER SECURITY

Corporations and strategic infrastructure companies should see the US pipeline ransomware attack as a wake-up call to bolster their cybersecurity systems

WRITTEN BY: DOMINIC ELLIS

T

he ransomware attack on the Colonial Pipeline has graphically exposed the cybersecurity dangers that exist for all energy and infrastructure companies.

The US pipeline carries 2.5 million barrels a day — 45% of the East Coast's supply of diesel, petrol and jet fuel.

Malicious cyber actors deployed Darkside ransomware against the pipeline company’s IT network, although at this time, there is no indication that the entity’s operational technology networks, according to The Cybersecurity and Information Security Agency (CISA).

Either way, the attack is a stark reminder that both the frequency and severity of catastrophic digital shocks on critical infrastructure are on the rise, according to the World Economic Forum. energydigital.com

75

CYBER SECURITY

90%

of organisations experienced at least one OT system intrusion

65%

have experienced three or more Fortinet's '2020 State of Operational Technology and Cybersecurity Report'

The increasing digitalisation of critical infrastructure sectors such as oil and gas, and the associated industrial systems, is changing the nature of cyber risks. As digitalisation drives growth and transition to net-zero emissions, the energy sector’s ecosystem has become increasingly decentralised and complex.

According to the 2021 Global Risks Report, cybersecurity failures are among the top mid-term threats facing the world.

“Cybersecurity is becoming a corporate strategic challenge requiring the highest level of oversight in the complex global industrial environment,” it notes.

Other recent cyber-attacks like those on a Florida water plant and a Solarwinds software provider further emphasised that

the success of these events will depend on the shortcomings of the measures in place to mitigate these threats.

With hackers launching a cyberattack every 39 seconds (a daily total of 2,244 attacks), the modern business landscape is seeing an increasing volume of cybersecurity threats from increasingly sophisticated cybercriminals, according to Fortinet.

Kaspersky found in the first half of 2020, the percentage of ICS computers attacked in the engineering and ICS integration sector grew by nearly eight percentage points, and by nearly seven percentage points and 6.2 percentage points in the building automation and oil & gas sectors, respectively. Overall, the energydigital.com

77

CYBER SECURITY

Kaspersky Enterprise Cybersecurity

percentage of ICS computers attacked increased in 62% of the countries examined by researchers and across all five industries studied.

“While ransomware attacks declined globally, in developed countries, such as the US and Western Europe, the number of attacks actually significantly increased — perhaps because, amidst the current economic downturn, criminals thought these places had businesses with the means to actually pay,” said Evgeny Goncharov, Head of ICS CERT at Kaspersky.

“With the pandemic still ongoing, it will be important that all industries take extra precautions; with the rest of the world in flux, it’s hard to predict what cybercriminals will do.”

78

July 2021

“ As we expand services in the cloud, more network edges are created, even at the branch level. This has expanded our potential attack surface, making security an even greater concern” GIOVANNI VISMARA

NETWORK SPECIAL PROJECTS COORDINATOR, ENGIE ITALIA

Mitigation measures • Require multi-factor authentication for remote access to OT and IT networks • Enable strong spam filters to prevent phishing emails from reaching end-users • Filter emails containing executable files from reaching end-users • Implement a user training program and simulated attacks for spearphishing to discourage users from visiting malicious websites or opening malicious attachments and reenforce the appropriate user responses to spearphishing emails • Filter network traffic to prohibit ingress and egress communications with known malicious IP addresses. Prevent users from accessing

malicious websites by implementing URL blocklists and/or allow lists • Update software, including operating systems, applications, and firmware on IT network assets, in a timely manner. Consider using a centralised patch management system; use a risk-based assessment strategy to determine which OT network assets and zones should participate in the patch management program.

• Limit access to resources over networks, especially by restricting RDP. After assessing risks, if RDP is deemed operationally necessary, restrict the originating sources and require multi-factor authentication. energydigital.com

79

CYBER SECURITY

Cybersecurity risks ENGIE Italia has securely connected 120 sites, including offices, operational and plant locations, with Fortinet Secure SD-WAN and SD-Branch.

Giovanni Vismara, Network Special Projects Coordinator, ENGIE Italia, said its growth throughout Italy, and ongoing convergence of OT and IT networks, has spurred the need for a rapid digital transformation of its various locations, which have almost doubled.

“In addition, as we expand services in the cloud, more network edges are created, even at the branch level. This has expanded our potential attack surface, making security an even greater concern. Fortinet’s security-driven networking approach with Secure SD-WAN and SD-Branch enabled us to reduce our connectivity costs and increase the level of security and visibility of bothour remote branches and industrial networks.”

Recent research from Fortinet’s ‘2020 State of Operational Technology and Cybersecurity Report’ reveals that nine out of 10 organisations experienced at least one OT system intrusion, with 65% experiencing three or more.

80

July 2021

In today’s remote-working times, the need for device protection is paramount.

Every mobile or laptop an employee uses to connect to any business system or resource carries the risk of becoming the chosen route for hacking into an organisation.

“These devices can be exploited by malware that could leak or steal sensitive data from the business. In the face of this, it is imperative for businesses to deploy solutions that can analyse, detect, then block and contain cyber attacks as they happen,” advises Fortinet.

British company Arqit has launched a new QuantumCloud cybersecurity platform designed to solve current and future security threats. It has been developed over four years of collaboration with the UK Government, BT and Virgin Orbit. BT has entered into a contract to become Arqit's exclusive reseller in the UK, incorporating their products into its wider portfolio of security solutions.

The National Cyber Security Centre has published Connected Places: Cyber Security Principles to help authorities build awareness and understanding of the security considerations needed to design, build, and manage their connected places.

CYBER SECURITY

“ With the pandemic still ongoing, it will be important that all industries take extra precautions; with the rest of the world in flux, it's hard to predict what cybercriminals will do” EVGENY GONCHAROV HEAD OF ICS CERT, KASPERSKY

Bolstering systems protection Together with the FBI, the CISA has urged critical infrastructure asset owners and operators to adopt a heightened state of awareness and implement the recommendations listed in the Mitigations section of this Joint Cybersecurity Advisory, including implementing robust network

segmentation between IT and OT networks; regularly testing manual controls; and ensuring that backups are implemented, regularly tested, and isolated from network connections.

“These mitigations will help CI owners and operators improve their entity's functional resilience by reducing their vulnerability to ransomware and the risk of severe business degradation if impacted by ransomware,” it noted.

President Joe Biden’s early days in office have been anything but dull. Infrastructure and energy are twin pillars in his growth-propelling strategy, with a huge $2 trillion earmarked for projects and green energy developments — although the American Society for Engineers believes $2.6 trillion is needed to be invested in the next 10 years.

Now a significant chunk of funds may need to be channelled into bolstering cybersecurity, as threats to interests domestically and internationally show no signs of abating.

energydigital.com

81

TOP 10

ENERGY MARKET TRENDS IN 2021 WRITTEN BY: OLIVER FREEMAN

Energy Magazine takes a look at ten of the most prevalent market trends to watch this year, including renewables, fossil fuels, and energy predictions 82

July 2021

TOP 10

A

s we pass the mid-point of 2021 and the world limps towards its eventual recovery from COVID-19, it’s hard to see an area of the energy market that wasn’t affected by the pandemic. And, at this point, with new variants of the novel Coronavirus knocking at our doors and nationwide lockdowns looking likely |to extend into 2022, the economic disruptions are only going to continue to affect both the energy providers and consumers globally.

Right now, the price of oil is rising due to supply and demand curvature being slightly lopsided, while the future of renewable energy sources is also looking a little lesser due to projects, production, and installations being put on hold.

So, although it’s almost impossible to truly predict the future, Energy Magazine has put together a shortlist of the renewable and non-renewable energy trends to keep an eye on as we make our way through 2021, supported by studies from the and the International Energy Agency (IEA).

energydigital.com

83

TOP 10

10

Electricity Demand is Unsurprisingly Surging Across 2021, electricity demand is predicted to increase by over 1,000 TWh, or 4.5% — hitting levels almost five times greater than the decline in 2020, which cements electricity’s share in final energy demand above 20%.

Emerging markets and developing economies will drive 80% of the projected increase, with China alone accounting for half of the global growth.

It’s worth noting that advanced economies in developed nations aren’t contributing to this staggering increase in demand, with usage remaining below pre-pandemic levels.

09

The Decline of Oil Production Even though there’s an expected annual increase of 6.2% in 2021, global oil demand is sitting at roughly 3% less than the pre-pandemic figure. This comes from the, generally speaking, sluggish demand for transport oil, which is happily mitigating a rebound in carbon emissions.

• The oil used for transport is not going to reach pre-pandemic levels until the end of 2021 • Aviation oil usage is predicted to remain 20% lower than 2019 levels • Annual demand is more than 30% lower than in 2019 This is excellent news as had we returned to pre-Coronavirus levels of demand, the global CO2 emissions would have risen a further 1.5%, far exceeding the levels back then.

84

July 2021

TOP 10

08

07

Apparently, natural gas demand is set to grow by 3.2% in 2021, propelled by increasing demand in Asia, the Middle East, and the Russian Federation. This increase should put global demand at more than 1% higher than 2019 levels.

By the end of 2021, IEA predicts that coal demand will have risen by approximately 4.5%, with in excess of 80% of that growth concentrated in Asia. Alone, China is expected to account for over 50% of global demand. At the same time, its use is also set for a rebound in the European Union and the United States — though, within these unions, demand will remain below pre-pandemic levels.

Natural Gas Demand Flourishes

Almost three-quarters of the global demand growth this year is set to come from industry and building sectors.

Returning to the Coal Mines

According to studies, the energy sector only accounted for roughly 50% of the drop in coal-related emissions last year but is expected to account for 80% of the rise in 2021, courtesy of the rapid increase in coal-fired generation in Eastern nations. energydigital.com

85

CREATING BUSINESS VALUE THROUGH SUSTAINABLE ENERGY Ensuring you have the best partner at your side.

Follow us

enelgreenpower.com

TOP 10

06

Biofuel Will Follow Fossil Fuel Trends The biofuels market took a big hit when COVID-19 inflicted itself on the world. Unfortunately, they’re closely linked to the use of traditional fossil fuels — courtesy of blending policies that require predetermined amounts of biofuel to be combined with fossil fuels for use in vehicles — so when lockdown measures were put in place, and the demand for transport fuels dropped, biofuel consumption fell as well — by 11.5%.

• Global gasoline demand fell by 9% • Global diesel consumption dropped by 7% • Jet fuel demand plummeted by almost 40%

05

Green Hydrogen on the Up

Green hydrogen has been in the news a lot lately. It’s being hailed as the “next best thing” and is expected to rapidly decrease global CO2 emissions — especially across the supply chain network, which contributes to the bulk of our environmental damage.

Interestingly, hydrogen is created through electrolysis powered by renewable energy sources so, when the price of electricity falls, the cost of this type of fuel will too. As a result, you can expect to see it become more prevalent in the energy sector as we move through the year.

The IEA predicts that, in our current scenario, biofuel production could return to the levels of 2019, but that still sees pre-pandemic expected growth drop by 5%. energydigital.com

87

TOP 10

04

Increasing Populations = Increasing Energy Demands In many developing nations, birth rates far exceed death rates. As a result, populations are growing, and governments are being forced to provide greater access to energy sources and improve living standards. This all culminates into far greater energy usage. The result? An anticipated increase of 20% in the global energy demand by 2040 — half of which will be driven by China and India, the world’s two largest countries by population.

03

60% Higher Electricity Demand When it comes to electricity, we see the very same story as with energy as a whole. We’re going to need a lot more of it. And, the potential saviours that will rise up to help meet the growing demand will likely be natural gas, solar, and wind energy sources — the fastest growing selection.

88

July 2021

TOP 10

02

CO2 Emissions to Drop — But Not Far Enough With leading multinational corporations and governments pushing towards sustainable norms, we can expect to see a rise in renewable energy usage and new innovative solutions to our growing global problems.

With that, we should see a drop in our greenhouse gas emissions — however, not quite enough to meet the expectations set by various environmental groups and institutions.

energydigital.com

89

Bringing the Community to LIVE Broadcast from London to the World

September

14th - 16th 2021 A BizClik Media Group Brand

Featuring:

Keynote Speakers LIVE Roundtable Q&As Networking Lunch Inspirational Presentations

Over 5 Stages:

Technology Stage Digital Transformation Stage Cloud & Cyber AI & Automation Tech Expo Stage

EARLY BIRD TICKETS

Creating Digital Communities

TOP 10

92

July 2021

TOP 10

The Rebounding Renewables As a result of new rules and regulations created in light of the pandemic, the construction of renewable energy installations — namely, onshore wind and solar PV — in key markets, were primarily put on hold, awaiting the green light for continuation.

At first, it looked like projects would continue midway through 2020, but the reintroduction of lockdowns across leading nations, courtesy of the “second wave”, put all sustainability initiatives on the back burner.

The IEA suggests that we can expect to see capacity levels in 2021 return to similar levels as 2019 before COVID-19 hit a spanner in the works. However, it’s suggested that the growth of the combined renewables of 2020 and 2021 will be approximately 10% lower than the international body has previously predicted.

energydigital.com

93

Enabling educators.

Empowering students.

Explore how we accelerate student discovery, learning and innovation with our Digital Education 3D Experience.

EXPLORE THE 3D EXPERIENCE