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APRIL 2020
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LEADING ASIA PACIFIC’S ENERGY TRANSITION Nuclear plants by power capacity
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FOREWORD
W
elcome to the April issue of
competing with fossil fuels as a
Energy Digital Magazine!
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T:297 mm
In this month’s cover story, we spoke
in the region,” says Turton.
with Clive Turton, President and CEO
Elsewhere, we learned from Julie
of Vestas Asia Pacific, a diverse
Gallacher, Sustainability Lead at
region which is experiencing an
Nespresso UK, how the company is
exciting energy transition. Currently
incorporating sustainability into
the largest wind turbine
every cup of its coffee. Also in this
manufacturer in the world, Vestas is
issue, SAP describes how its ‘Cloud
poised to enable the further
for Utilities’ programme is unlocking
development of sustainable energy
new market potential.
with cutting-edge technology and a
This edition’s Top 10 takes a look at
corporate strategy forged through years of industry experience.
the nuclear power stations with the highest nameplate capacity in the
“Asia Pacific is a high growth
world, from Japan to Canada,
market; the most important market
France, the Ukraine and more.
for growth in the global energy
Do you have a story to tell?
market. By 2040, the power market here will be larger than the rest of the world’s combined. As the
Please get in touch at:
william.girling@bizclikmedia.com
economics of renewables improve,
Enjoy the issue!
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Will Girling
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CONTENTS
10 THE ENERGY TRANSITION OF ASIA PACIFIC
USING TECHNOLOGY TO CREATE A MORE SUSTAINABLE SUPPLY CHAIN
22
32 Bringing sustainability to every cup
54 Nuclear plants in the world How Pernod Ricard is driving sustainability in the drinks industry
44
72 The biggest sustainability and energy events
76 Watercare Services
94 BP
112 SAP AG
128 Nordex North America
142 Stockholm Data Parks
ENERGY MANAGEMENT
10
APRIL 2020
THE ENERGY TRANSITION OF ASIA PACIFIC As Asia Pacific’s power demands and potential for energy production continue to grow, we discuss the region’s energy transition with Vestas’s regional President and CEO, Clive Turton
EDITED BY
MARCUS LAWRENCE w w w.e ne rgydi gi ta l. com
11
ENERGY MANAGEMENT
A
sia Pacific represents one of the most diverse markets on practically every level, and its energy sector is no different. With the
region set to become a technological powerhouse,
the sleeping giants of its developing economies are increasingly positioned to capitalise on the region’s own growing demands for energy and the world’s imperative to convert to renewable energy sources. We caught up with Clive Turton, President and CEO of Asia Pacific at renewable energy leader Vestas, to discuss the intricacies of the region’s shift 12
to renewables, the firm’s exciting work in Vietnam and how it relates to the wider region’s prospects, and the cutting edge technology and strategies that are making it possible.
TELL US ABOUT YOURSELF AND YOUR ROLE AS CEO OF ASIA PACIFIC AT VESTAS I grew up in Australia and have been living overseas for more than 20 years, living and working in the US and Europe before I made my home in Singapore and the Asian region. Having begun my career as a corporate lawyer in Sydney, I transitioned across to banking where I ran the Energy and Infrastructure Group for ING Bank in Hong Kong and, since then, have managed a number of energy businesses in the region before joining Vestas as Asia Pacific CEO in early 2017. APRIL 2020
13
“Asia Pacific is a high growth market; the most important market for growth in the global energy market. By 2040, the power market here will be larger than the rest of the world’s combined� Clive Turton, President and CEO, Asia Pacific, Vestas
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1:41
15 I feel extremely lucky to be a regional
energy projects across the region –
leader for the world’s largest renew-
from Australia one day to Mongolia
able energy company. We are at an
the next, Japan, Korea, Vietnam, India
immensely exciting time in the history
and so on. We are in constructing,
of energy production and to be part of
operating and developing renewable
a world-changing energy company in
energy projects across 15 countries,
an industry that changes, grows and
and the growth in activity level for our
adapts on a daily basis is very exciting.
business over the last few years has
I am also very lucky to be supported
been amazing.
by a fantastic team of smart, driven
I am extremely passionate about the
people who share my passion for the
region, and even more so about the
renewable industry and for building
regional prospects for the renewable
a clean, sustainable energy industry
energy industry. Renewables are
in Asia. As the CEO of Vestas, I get to
abundant, clean, and increasingly cost
see close up the birth of new clean
effective, and it is clear they will play a w w w.e ne rgydi gi ta l. com
ENERGY MANAGEMENT
16
vital role in the region meeting its fast-
growth in the global energy industry.
growing demand for energy.
By 2040, the power market here will
Vestas has always been a leading
be larger than the rest of the world’s
player here, and we’re now uniquely
combined. As the economics of
positioned to capitalise on this growth
renewables improve, wind and solar
and further expand our leadership as
are increasingly competing with fos-
a renewable solutions innovator.
sil fuels as a clean power source to replace coal in the region.
HOW DOES ASIA PACIFIC DIFFER FROM OTHER REGIONS WHERE VESTAS OPERATES?
time zones and more than 20 lan-
Asia Pacific is a high growth mar-
guages across the 15 markets in
ket; the most important market for
which we operate here. We also
APRIL 2020
However, it is also a highly complex and diverse market. There are 11
“ Intertidal projects are located in the shallow near-shore waters, and use onshore wind technologies to harvest wind resources from the sea”
WHAT FACTORS ARE DRIVING THE RATE OF GROWTH IN VIETNAMESE POWER CONSUMPTION OVER OTHER SOUTHEAST ASIAN COUNTRIES? Southeast Asia is primed to become the engine of global economic growth. The region’s electricity consumption has grown by nearly 6% annually since 2000, double the
Clive Turton, President and CEO, Asia Pacific, Vestas
world’s average. With a growing population of 96.7 million, Vietnam is at the forefront of power demand in the region. Its electricity consumption has increased by 13% annually since 2000. Electricity peak demand is growing at 11% annually as investments in the country
serve a diverse customer base,
continue to accelerate. Industries are
from mature markets like Australia
adjusting their supply chain to be less
to emerging markets like Vietnam
reliant on neighbouring China, and
and Thailand, and then there is the
are attracted by lower labour costs
enormous potential of India. Our
in Vietnam. Vestas is leading the pack
customers range from utilities to
in developing new wind projects in
independent power producers and
Vietnam – we closed four of the five
financial institutions, with a variety of
deals last year in this market and we
experience in the wind energy space.
are now deep into execution of new
Due to this uniqueness, we need to
projects. Vietnam has a feed in tariff
set up a very fast-paced and agile
and a government that is supportive
organisation to tailor our solutions to
of renewable energy. There is con-
customer needs.
siderable interest in this market from w w w.e ne rgydi gi ta l. com
17
ENERGY MANAGEMENT
18
“ Southeast Asia is primed to become the engine of global economic growth. The region’s electricity consumption has grown by nearly 6% annually since 2000, double the world’s average”
investors the world over and it has the opportunity to be a regional leader in the renewable energy industry.
COMPARED WITH OTHER RENEWABLE ENERGY SOURCES, WHY IS WIND THE BEST OPTION FOR VIETNAM’S ENERGY TRANSITION? Vietnam has some of the strongest wind resources in the Southeast Asian
Clive Turton, President and CEO, Asia Pacific, Vestas
region. Endowed with more than 3,000km of coastline, the country has 24GW of estimated technical potential for onshore wind. Average wind speeds in Vietnam are 7.2m/s
APRIL 2020
This would be the same story though in a lot of Vietnam’s neighbours. Wind and solar are fast becoming the cheapest forms of new energy in markets throughout the region and across the world. Countries that previously relied on imported fossil fuels, sending money overseas month after month, are now realising that they can tap their own indigenous wind and solar resources to deliver clean, cheap power to consumers without the need to fund fuel shipments. 19 at 100 metres in height in the top 10% of windy areas. In Vietnam, costs for wind and
HOW DOES AN INTERTIDAL WIND FARM DIFFER FROM TRADITIONAL OFFSHORE PROJECTS? Intertidal projects are located in
solar dropped below those of coal in
the shallow near-shore waters, and
2017, meaning renewables are now
use onshore wind technologies to
the cheapest form of new power
harvest wind resources from the sea.
generation on a Levelized Cost of
Turbines are built on top of raised
Energy (LCOE) basis. While the
foundations, using the same founda-
average LCOE of coal is projected to
tion technology as onshore wind
remain at current levels through
farms. The tower, however, is coated
2030, wind and solar LCOE are set
in a special paint to prevent corrosion
to continue to decline as the tech-
in the marine environment.
nologies mature. We project that
This technology reduces disruption
wind and solar will be cheaper than
to farming and other activities on
hydropower around 2022.
land close to the shore, but does not w w w.e ne rgydi gi ta l. com
ENERGY MANAGEMENT
require the capital investment for fullscale offshore wind development. It is popular in Vietnam where there are tidal flats surrounding a lot of the coastline in the Mekong Delta where there are good wind resources.
WHAT ARE VESTAS’S CURRENT GOALS FOR CAPACITY AND OPERATIONS GROWTH BOTH IN VIETNAM AND THE SOUTHEAST ASIAN REGION? HOW CLOSE IS THE COMPANY TO MEETING THOSE TARGETS? Currently, Vestas operates more 20
than 80MW of wind assets in Vietnam and won an additional 200MW of orders in 2019. By virtue of our mature project execution record and service set up, we are already the dominant wind solution provider in the market. It is our goal to maintain our leadership position in both Vietnam and the Asia Pacific region as a whole. As our business in the region grows, we will continue to strengthen relationships with key customers, provide innovative and advanced energy solutions, and offer market leading products suited to the Asia Pacific region. APRIL 2020
In the end though, our goal for Vietnam, Southeast Asia and every market that we operate in around the world is to reduce reliance on polluting fuels and bring abundant clean, affordable renewable to the markets for the benefit of consumers, of industry, and ultimately the whole planet.
WHAT ARE YOUR MAIN PREDICTIONS FOR THE FUTURE? Wind and other renewable energy can play a bigger role in helping Vietnam meet its increasing energy demand, and bring clean, cheap, reliable energy to industries and communities. More ambitious wind development targets, clearer future procurement framework post 2021 FiT expiry, and a fit-for-purpose PPA could help Vietnam move away from its reliance on coal, attract more foreign investment, and bring jobs and cheaper/ cleaner energy to its communities.
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21
TECHNOLOGY
USING TECHNOLOGY TO CREATE A MORE SUSTAINABLE ENERGY SUPPLY CHAIN 22
Dassault Systèmes takes a look at how businesses can combine profitability and sustainable supply chains
APRIL 2020
23
WRITTEN BY
JOHN KITCHINGMAN, MANAGING DIRECTOR, EURONORTH, DASSAULT SYSTÈMES
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TECHNOLOGY
24
S
ustainability is often seen as
consumer expectations of quality and
a cost by businesses. Many
value. This is only able to happen when
leaders believe that you must
visibility and efficiency is improved
sacrifice profitability to achieve a sus-
throughout the entire supply chain.
tainable value network, but this is not
This oversight improves collaboration
the case. On the contrary, improved
between stakeholders, from manufac-
efficiencies across the value network
turing all the way to retail. It also means,
lead to goods that are delivered faster
logistically, that you are being as effi-
and at a fraction of traditional emission
cient and ‘carbon-friendly’ as possible.
levels, which in turn, means less waste
Technological developments mean
and better resource management.
that every step of the supply chain can
A greener supply chain is one that
be created and optimised virtually, as
delivers greater environmental creden-
each party involved can be monitored
tials while fulfilling ever-increasing
and all operations can be assessed in
APRIL 2020
25
the virtual world. This reduces a company’s reliance on road testing its new processes and it also helps them to better predict and manage efficiencies.
SOLVING THE OVERSTOCK PROBLEM One big cause of supply chain emissions is overstocking, which takes up valuable space in warehouses and leads to increased waste. Retailers can minimise this problem by improving forecasting capabilities using virtual project management solutions. This
“ One big cause of supply chain emissions is overstocking, which takes up valuable space in warehouses and leads to increased waste”
enables retailers to anticipate demand w w w.e ne rgydi gi ta l. com
The Only Progress is Human CLICK TO WATCH | 8:12
27 for seasonal goods and optimise inven-
virtually to evaluate different scenar-
tory levels to avoid overstock.
ios and define the best options.
This advanced warehousing planning also provides energy-saving
USING DATA TO INCREASE EFFICIENCY
capabilities such as task prioritisation,
It is also possible to utilise data ana-
self-replenishing and travel sequenc-
lytics to increase fuel efficiency by
ing. All of this helps retailers to
determining the best ways to assign
optimise operations and react quickly
truck delivery routes. Data can be
and efficiently to real-time trends and
used to create a profile of each
returns, which again reduces over-
vehicle’s delivery route, including
stock. Integrating data with logistics
the number of stores and trips, route
and warehouse management pro-
density, traffic congestion and topog-
cesses can also improve the transport
raphy. Businesses can use this profile
and warehouse networks. Once again,
to identify the best route for the vehi-
this can be assessed and optimised
cle to take to save as much time and w w w.e ne rgydi gi ta l. com
TECHNOLOGY
“ Adoption of the circular supply chain is being driven by technologies such as IoT, advanced data analytics and realtime data capture, which break down organisational silos and increase collaboration and communication� 28 energy as possible. Fuel is usually the biggest transport cost, so managers need to start with reducing the number of trips. End-to-end supply chain transparency and optimised planning allows the combination of different goods headed for the same places in a single trailer. These initiatives need to be backed with the right technological tools – data analytics, traceability of suppliers and travel routes, and digital systems giving an overview of the supply chain are all essential. They are already becoming commonplace APRIL 2020
29
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TECHNOLOGY
for retailers and making their way into more industries by the day to help solve the carbon emission challenges of the industry, but also to optimise processes and increase transparency of all operations across the value network.
CREATING A CIRCULAR SUPPLY CHAIN The traditional linear supply chain model has three easy to define stages: make, use, and dispose. This is simply unsustainable as it leads to lots of 30
waste and, as we know, the world’s resources are finite. As a result of this, modern supply chains need to transition to a circular supply chain
“A greener supply chain is one that delivers greater environmental credentials while fulfilling ever-increasing consumer expectations of quality and value. This is only able to happen when visibility and efficiency is improved throughout the entire supply chain”
APRIL 2020
TECHNOLOGY’S ROLE IN A MORE SUSTAINABLE FUTURE New technologies are making a sustainable supply chain far more attainable for businesses. By utilising these technologies, it will be possible for businesses to reduce pollution and their carbon footprint, creating a much more sustainable supply chain and enabling them to make a positive impact on many of the world’s pressing environmental issues. Employing the advice and expertise of trusted technology partners here will help promote these efforts and spell a promising future for sustainability in the corporate world. The impact of technology on the model. This model focuses on keeping
supply chain isn’t just good for the
resources in use as long as possible,
planet, but good for business as well.
extracting the maximum value from
Modern consumers are far more con-
them whilst in use, then recovering
scious about the sustainability of the
and regenerating products and mate-
businesses they deal with and are far
rials at the end of each service life.
more likely to spend money with a
Adoption of the circular supply chain
company leading the way, while
is being driven by technologies such as
increased efficiency, transparency
IoT, advanced data analytics and real-
and speed are always welcomed by
time data capture, which break down
the consumer.
organisational silos and increase collaboration and communication. w w w.e ne rgydi gi ta l. com
31
S U S TA I N A B I L I T Y
Bringing sustainability to every cup
32
Julie Gallacher, Sustainability Lead at Nespresso UK, explains how sustainability should inform every aspect of the coffee industry – from bean to cup
APRIL 2020
WRITTEN BY
WILL GIRLING
w w w.e ne rgydi gi ta l. com
33
S U S TA I N A B I L I T Y
N
espresso’s story began in 1976 when Nestlé employee Eric Favre patented a coffee-
making system that brewed using single-use capsules of coffee grounds. Although the invention failed to capture market interest at first, eventually the Nespresso company was formed in 1986 and the system began to pick up momentum in Europe following a product trial in Japan. It has since become one the world’s premium coffee brands. Joining the company in 2012, Julie 34
Gallacher has been instrumental in Nespresso UK’s sustainability drive. Throughout her tenure at
the services themselves, often dove-
Nespresso, Gallacher has realised
tailed with infrastructure, are
that building momentum for sustaina-
enhanced and developed as a result.
bility in business consists of two
Perhaps the most significant change
things: 1) exposure and 2) engage-
that has impacted global business in
ment. “I work a lot with the marketing
recent years is consumer demand for
team to ensure the sustainability story
sustainability. As corporate strategies
is showcased externally, so our con-
across the board begin to incorporate
sumers know about our sustainability
targets and goals linked to the envi-
credentials,” she explains. “But my
ronment, often the best way to attract
work also involves engaging everyone
customers and talent to a brand is by
inside the company to understand and
having solid ‘green’ credentials. “I
be part of the initiatives.” This isn’t just
wanted to work with brands that I felt
to bolster participation rates; greater
passionate about and had a sense of
uptake and engagement means that
purpose,” said Gallacher. “Apart from
APRIL 2020
“My work also involves engaging everyone inside the company to understand and be part of the initiatives” — Julie Gallacher, Sustainability Lead, Nespresso UK
35
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The Nespresso AAA Sustainable Quality™Program CLICK TO WATCH | 3:06
37 the fact that I thought it was great-
it is also recyclable,” she explained.
tasting coffee, Nespresso really
Combining quality packaging, a
stands for something.”
great product and an eco-friendly
Indeed, the company’s recycling
strategy provided a winning formula
initiative began 30 years ago in
- one which acknowledged the com-
Switzerland with the launch of a ded-
pany’s responsibility to run a
icated scheme driven by an essential
sustainable business and maintain
manufacturing material: aluminium.
a premium product.
Each single-use capsule produced
Though Nespresso is a small
by Nespresso is made from alumin-
player when it comes to the use of
ium, which is renowned for its highly
aluminium – compared to businesses
reusable nature. “It actually protects
in other sectors such as the automo-
the quality and the freshness of the
tive industry – the company has
coffee and also works really well
adopted and promotes a sustainable
with machines, but, very importantly,
approach to sourcing it. “We are w w w.e ne rgydi gi ta l. com
S U S TA I N A B I L I T Y
founders of the Aluminum
“It actually protects the quality and the freshness of the coffee and also works really well with machines, but, very importantly, it is also recyclable”
38
— Julie Gallacher, Sustainability Lead, Nespresso UK
APRIL 2020
Stewardship Initiative,” said Gallacher. “We established a standard for sustainable sourcing that protects indigenous peoples’ rights, biodiversity, and ensures that the factory making the aluminium is powered with renewable energy and has water stewardship practices in place.” Water usage, in particular, is a crucial aspect of sustainability that can often
39
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S U S TA I N A B I L I T Y
be overlooked. Whether it is used to wash harvested coffee beans or irrigate crops, water is the fundamental raw material from which the coffee industry is built. Scarcity of it would be, therefore, a disaster, not just for the industry, but also for the communities who farm the coffee beans. A 2009 study by the UN Food and Agriculture Organisation found that for every cup of coffee it takes 140ltrs (37 gallons) of water to grow, process and transport it. Such a startling fig40
ure requires industry attention and Nespresso has already started to address it with three of its factories in Switzerland. “They’re all modern,” explains Gallacher. “They capture rainwater and then repurpose it. It’s achieved almost a 30% reduction in water use per tonne of product manufactured.” Back at the farms, Gallacher says that the company is also helping to build community mills, whereby the farm owners can wash their coffee beans using a controlled and carefully managed water supply. Sustainability best-practice can be furthered in creative and diverse ways, with a company’s choice in APRIL 2020
“It uses the exact amount of coffee grounds, water and energy required to make one cup of coffee; there’s no waste at all in that process” — Julie Gallacher, Sustainability Lead, Nespresso UK
41
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S U S TA I N A B I L I T Y
42
partnerships usually shaping the
coffee plants - which protects the
course of action taken. “No one per-
coffee trees, prevents soil erosion
son, no one company can effectively
and provides additional income for
address these issues,” stated
farmers - are solutions which
Gallacher regarding climate change.
Nespresso and its partner, Pur Projet,
“I think that multiple stakeholders
have developed.
have got to work together.”
In an industry that can sometimes
Nespresso has demonstrated this by
be maligned as not doing enough for
partnering with organisations like the
the environment, Gallacher is deter-
Rainforest Alliance and Fair Trade.
mined to reverse this trend in the
Planting trees to mitigate CO2 emis-
collective consciousness. “Coffee
sions and growing cash crops near
capsules aren’t bad for the
APRIL 2020
43
environment,” she claimed. “They are
required to make one cup of coffee;
equal to, and, in some cases, better
there’s no waste in that process.”
than other methods of making coffee.”
With a lot of innovations still to be
Attributing this to the company’s ‘pre-
introduced, the coffee industry
cision-consumption system’, she
should take note of Nespresso’s end-
emphasised that greater efficiency, in
to-end focus on mitigating waste and
combination with Nespresso’s com-
conserving resources.
mitment to recycling and ethical farming, meant that capsule coffees represented a much more sustainable option. “It uses the exact amount of coffee grounds, water and energy w w w.e ne rgydi gi ta l. com
CARBON REDUCTION
How Pernod Ricard is driving sustainability in the drinks industry 44
We speak with Pernod Ricard’s VP of Global Sustainability, Vanessa Wright, about the company’s 2030 sustainability roadmap and the initiatives driving change WRITTEN BY
APRIL 2020
M ARCUS L AWRENCE
45
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CARBON REDUCTION
O
wner and steward of many worldleading alcohol brands, including the likes of Absolut, Kahlúa, Campo Viejo,
Havana Club, Beefeater, the eponymous Pernod Anise and Ricard Pastis, and many more, Pernod Ricard is one of the largest alcohol producers in the world. Across complex global operations, the company has a history of ingraining sustainable and ethical practices across its decentralised model. In modern times, under increased pressure from both consumers and the competition, the business 46
is redoubling its sustainability and CSR programmes to ensure it is a leader in these environmentally and socially conscious times. Pernod Ricard’s Vice President of Global Sustainability, Vanessa Wright, was keen to discuss the strategies and solutions precipitating the company’s reputation for sustainable business both today and in the future. “It goes without saying that this is nothing new for Pernod Ricard,” she attests. “We’ve got a long history in sustainability even though it hasn’t always been called that. We have an oceanography institute that’s over 50 years old, for example.” The firm recently completed its 2020 environmental roadmap, with Wright hailing the success of its reduction programmes for both carbon and water (20% and 30% cuts respectively). APRIL 2020
“We’ve got a long history in sustainability even though it hasn’t always been called that”
Vanessa Wright, Vice President of Global Sustainability, Pernod Ricard Today, the company is progressing with its 2030 environmental strategy, the Good Times from a Good Place initiative, which launched in March 2019. The focuses of the new roadmap are eightfold, with each point coming under one of four pillars: nurturing terroir, valuing people, circular making, and responsible hosting. While the specific goals of each area of focus can be found here, they consist of: biodiversity, regenerative agriculture, equality and future leadership, shared knowledge and learning, packaging and waste, water balance and carbon-footprint, combating alcohol misuse, and w w w.e ne rgydi gi ta l. com
47
Meet Rob – The Power of Convivialité by Pernod Ricard – Be a Convivialist CLICK TO WATCH
|
3:22
49 responsible partying (an Erasmus
alignment with the UN’s Sustainable
Student Network partnership
Development Goals (SDGs), owing
launched 10 years ago to promote
both to their clear guidance and
healthy drinking habits among
strong links with consumer concerns.
European youth). Underpinning each
“We are a customer-centric business
of these focus points is the overarch-
and we recognise that, for custom-
ing desire to inspire joy through quality
ers, things are changing fast and
beverages without excluding consum-
they are looking for brands that are
ers who are increasingly passionate
going beyond profits,” she says. “Per-
about sustainable business opera-
sonally, I think we’re very lucky to be
tions. As Chairman and CEO Alexan-
in a position where we’re guardians
dre Ricard puts it: “We are 19,000
of these brands for a snapshot in
‘créateurs de convivialité’”.
time.” She highlights the 305-year-
Wright affirms that the roadmap has been constructed in close
old Martel and 219-year-old Chivas as examples of the historic nature of w w w.e ne rgydi gi ta l. com
CARBON REDUCTION
“To have built a strategy that involves more than 300 people, that the business has really taken ownership for, that we can be the agitators and conductors to really drive, is something I am very proud of”
opportunity. It’s about reducing waste and material use, creating greater efficiencies and strengthening our processes.” Sustainability done right is often a cost saver, such as in the reduced fuel consumption triggered by lighter bottles, and this is being extended at Pernod Ricard through a focus on circularity. Championed by the Ellen MacArthur Foundation, the circular economy concept stands to minimise packaging production and waste by
50
Vanessa Wright, Vice President of Global Sustainability, Pernod Ricard
ingraining recycling into the business-consumer relationship, and Pernod Ricard is rolling out the concept as a strategy
Pernod Ricard’s portfolio, and the sense of stewardship that Wright feels over its legacy. Speaking of the 2030 roadmap, Wright’s excitement for the future is palpable. “The strategy has changed; it’s much broader and really touches every part of our business,” she says. “That was what I set out to do with the strategy, making sure it isn’t something that sits to the side, shifting sustainability from being just about managing risk to being about APRIL 2020
for some of
its leading brands. “Absolut is one
we can make it as circular as possi-
example,” says Wright. “As a brand,
ble. The byproducts are sold on to
its mission for many years has been
feed 300,000 cows and pigs each
to become more circular and see
day, for example. We have also
things reused again and again.”
launched a limited edition bottle
Enabling this vision is simplified by
called Absolut Comeback, which is
the fact that Absolut’s bottles are all
really a campaign to celebrate
sourced from a single location, and
recycling, and those bottles are
Pernod Ricard maintains strong
made from 40% recycled glass.
relationships with its farmers which
Pernod Ricard’s efforts are not
allows it to influence their own
limited to brands where it has a direct
sustainability as well. “We have full
view of its supply chains, however.
visibility of Absolut’s supply chain,
Each supplier is compelled to commit
and at every step we look to see how
to the company’s CSR objectives through Bluesource, and the firm is working to bring the rate of its committed suppliers to 100%. “If they don’t, we won’t work with them. We’re going to have to be very clear on those commitments,” says Wright, adding that sustainability in supply chains represents one of the most significant challenges for the drinks industry’s environmental and ethical performance. This firm approach permeates through the whole corporate strategy, with its affiliates having been required to provide local action plans for fulfilling Pernod Ricard’s corporate vision by the end of last year. w w w.e ne rgydi gi ta l. com
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CARBON REDUCTION
52
APRIL 2020
This is just a small sample of some of the ways Pernod Ricard is demonstrating how major players in the drinks industry can ingrain sustainability across its internal and affiliated operations. “I think it’s still
“We have full visibility of Absolut’s supply chain, and at every step we look to see how we can make it as circular as possible”
true to say that people don’t quite understand what we mean by sustainability or the breadth of it,” says Wright. “They don’t instinctively think about human rights and other topics, so that’s part of the work we’re doing
Vanessa Wright, Vice President of Global Sustainability, Pernod Ricard
as well; building training modules around a strategy and sustainability
Pernod Ricard, Wright is proud of the
to ensure everybody understands
successes it has enjoyed thus far.
how they can contribute.”
“To have built a strategy that involves
While a lot of work remains to be
more than 300 people, that the
done and the 2030 framework
business has really taken ownership
continues to take hold across
of, that we can be the agitators and conductors to really drive, is something I am very proud of. For our operations teams around the world, the sustainability plan is their plan.”
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53
T O P 10
Nuclear plants in the world 54
Energy Digital takes a look at the history and operations of the largest nuclear power plants in the world, ranked by energy generation capacity (MW) WRITTEN BY
APRIL 2020
WILL GIRLING
55
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T O P 10
5,200MW CAPACITY
56
10
Cattenom FRANCE
Construction for the Cattenom plant began in 1979 in Cattenom, France. Consisting of four pressurised water reactors (PWRs), each with a power output of 1,300MW, the site uses water from the Moselle River in combination with four cooling towers. Additionally, an artificial lake was created in Pierre-PercÊe to provide a greater supply of coolant. Two of the plant’s units were successfully commissioned in 1986 and 1987, with the third and fourth becoming operational in 1990 and 1991 respectively. The plant employs 1,200 full-time workers and supplements a further 1,000 during outages - periods where the reactors are powered down and maintenance is performed.
APRIL 2020
5,320MW CAPACITY
57
09
Paluel FRANCE
Placed within the French town of Paluel, Normandy, the plant provides employment to almost 1,250 people. With its capacity provided by four 1,330MW reactors, Paluel provides over 32 billion KWhs of electricity per year. Construction of the plant began in 1977, with the first and second units being commissioned in 1985, the third in 1986 and the fourth in the summer of the same year. The reactors use water from the English Channel as a source of coolant.
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Microsoft: a trusted digital transformation partner Throughout SA Power Networks’ (SAPN) significant transformation of its IT team and its transition from legacy platforms, software giant Microsoft has been a key partner every step of the way. Rather than a typical vendor-buyer relationship, Microsoft has worked collaboratively to ensure SA Power Networks maximises the value of investment in its solutions. Collaboration empowered by Office 365 SAPN has adopted Office 365, utilising Teams to improve collaboration across the business with great success – the business helped SA Power implement its Future Operating Model in order to achieve operational excellence. SA employees have transformed the way they work through digital, utilised data to improve customer experience, gained smart insights into how the business can be run more efficiently, and improved communication and collaboration though open platforms. An important use case of Office365 has been promoting onsite safety. Teams is an easy to use, mobile friendly platform that improves communication between field workers to reduce the number of incidents. Questions can be asked in real-time, even through photos, to gain answers quickly. Other Office365 tools, SharePoint and Flow, have helped SAPN move from a paper-based to digital system, improving efficiency throughout the company’s procurement process. Without the need to scan paper documents, and with all information at the fingertips of staff, the business has reduced the procurement timeline from months to weeks. “We were early adopters of Office 365 and Microsoft have worked very collaboratively with us to ensure we maximise the value of the investment. We have really promoted the use of ‘Teams’ to improve col-
laboration across the organisation and it has been embraced by every group that has tried it.” – Chris Ford, General Manager Innovation and Technology, SA Power Networks More than a software vendor As a trusted partner, Microsoft brings software engineering, research and development, solutions architecture and support, which would not come from buying an off-the-shelf solution. As such, Microsoft has helped SAPN to innovate through its technologies, formulating the best ways to navigate a complex digital transformation as a true enabler. With SAPN having come on leaps and bounds implementing a modern workplace, Microsoft is also helping SAPN introduce SAP’s S4/HANA solution on Azure. This next-gen enterprise resource planning (ERP) solution is a truly mission critical application for SAPN. In addition, the partners are collaborating on a Virtual Power Plant project, which is funded by the South Australia government and aims to help South Australia ‘transition to a sustainable energy future’. Lastly, Microsoft has been instrumental in moving SAPN’s data to the cloud, with all the time and cost efficiency that goes with it. Moving to Microsoft’s cloud-based solutions has also improved collaboration with external partners through secure sharing. Explore how AI transforms industries and the society:
Learn More
5,460MW CAPACITY
59
08
Gravelines FRANCE
Using water from the North Sea as coolant, the Gravelines power plant is situated 12 miles from Dunkerque. Providing employment for over 1,600 people, it is the largest nuclear power station in Western Europe and holds the record for being the first station to generate over 1,000TWhs of electricity. Owned by Electricite de France (EDF), the plant has a 5,460MW capacity derived from six 910MW reactors. The reactors were constructed in batches of two in 1980, 1981 and 1985.
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T O P 10
5,700MW
Š Ralf1969
CAPACITY
60
07
Zaporizhia UKRAINE
Becoming the largest Eastern European nuclear power plant in 1995 following the completion of its sixth reactor, Zaporizhia is located in Enerhodar, Ukraine, on the banks of the Kakovka Reservoir. Zaporizhia is responsible for generating approximately 20% of Ukraine’s entire electricity supply, from six pressurised water reactors (PWRs). All six units were completed in a nineyear period (1984 to 1995). Following an application made by Energoatom - the nuclear power company operating the plant the first two units are currently being assessed for modernisation efforts in an effort to extend their operational lifespan.
APRIL 2020
5,875MW © Korea Yonggwang NPP
CAPACITY
61
06
Hanbit
SOUTH KOREA
Constructed in South Korea’s Jeollanam-do province, the Hanbit Nuclear Power Plant has six operational units ranging from 947MW to 997MW subdivided into three variants. Hanbit 1 and 2 use pressurised light water reactors (PWRs) built via South Korea’s ‘component approach’, which utilised domestic companies for auxiliary parts and contracted international designs for primary parts. Meanwhile, Hanbit 3 and 4 were constructed using entirely domestic sources, while Hanbit 5 and 6 were inspired by Ulchin-3 reactors - a Korean Standard Nuclear Power design.
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CREATING BUSINESS VALUE THROUGH SUSTAINABLE ENERGY Ensuring you have the best partner at your side.
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5,928MW
© Korea Ulchin NPP
CAPACITY
63
05
Hanul
SOUTH KOREA
Containing six pressurised water reactors (PWRs), Hanul Nuclear Power Plant located in Gyeongsangbuk-do is South Korea’s second-largest. The plant began construction in 1983 and became operational in 1988. After numerous developments, the latest of which was completed in 2018, the plant has a nameplate capacity of 5,928MW. The first Korean Standard Nuclear Power (KSNP) project, Hanul’s construction was part of a plan to attain a self-sufficient source of electricity. One of the sites - Hanul 3 - was the first to employ KSNP’s tech in 1998, which introduced a depressurisation system and superior chemical, volume and digital control.
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T O P 10
6,000MW CAPACITY
64
04
Yangjiang CHINA
The conception for China’s largest power station started in 1988, when the site in Yangjiang, Guangdong was selected for development. Once the project received approval from the Chinese Government in 2004, construction began in 2008, with the first ACPR-1000 reactor starting in September 2013. Employing six 1,000MW units to generate power, Yangjiang Nuclear Power Plant helped reduce the region’s coal consumption by 30,900kg and cut 80,800kg of CO2 emissions. One of the units - the fifth, called Yangjiang NPP - is also the first to adopt a Chinese control system: FirmSys.
APRIL 2020
6,430MW CAPACITY
65
03
Bruce CANADA
Located in Bruce County, Ontario, the 2,300 acre Bruce Nuclear Generation Station site has eight functional reactors with a combined capacity of 6,430 MW. Providing employment to more than 4,000 people, the plant was built modularly over a 17 year period (1970 to 1987) by Ontario Hydro. Generating approximately 20% of the province’s electricity requirements, the plant is divided into two separate stations: Bruce A and Bruce B. Both stations employ four Canada Deuterium Uranium (CANDU) nuclear reactors. Fuelled by uranium, technicians moderate the core using deuterium-oxide, which allows them to safely control the power output of the reactors.
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AMERICAS | APAC | EMEA FIND OUT MORE
T O P 10
0000 YEAR FOUNDED
7,337MW
$0.0bn
CAPACITY
REVENUE IN XXXXXXXXX DOLLARS
0,000 NUMBER OF EMPLOYEES
68
02
Kori
SOUTH KOREA
Located in a Kori, Busan, the construction of the Kori Nuclear Power Plant began in 1972. The first reactor began active operations in 1978, with six additional units added over the years, ranging from power outputs of 640MW to 1,340MW. In an effort to maintain safety and ensure that the plant continues to operate using modern technology, Kori-1 (the plant’s first reactor) was decommissioned in 2017. Meanwhile, construction of the Kori-5 and 6, which are to be third-generation reactors equipped with state-of-the-art safety features, is still under development.
APRIL 2020
Nuclear security watchdog gives green light for construction of two nuclear power plants |
0:41
69
© Korea Kori NPP
CLICK TO WATCH
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T O P 10
7,965MW CAPACITY
70
Daily Inspections at Kashiwazaki Kariwa Nuclear Power Station CLICK TO WATCH
APRIL 2020
|
2:35
01 0000
Kashiwazaki-Kariwa JAPAN
YEAR FOUNDED The largest nuclear power station in the world by output capacity, Kashiwazaki-Kariwa is based on a 4.2 square kilometre site in
$0.0bn Japan. Located close to the Sea of Japan, which the site utilises REVENUE for cooling water, construction of the plant began in 1980 by IN XXXXXXXXX the Tokyo Electric Power Company and finished five years later. DOLLARS Containing seven operational units - five at 1,067MW and two
at 1,315MW - the reactors are fuelled by low-enriched uranium. 0,000 Following a high-magnitude earthquake in 2011 - the most powerNUMBER OF EMPLOYEES ful in Japanese history - all of the plant’s units were shut down for
safety inspections, although the plant was relatively unaffected by the earthquake directly. As of 2020, however, the reactors have still not been brought back to functional use.
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71
EVENTS & A S S O C I AT I O N S
The biggest industry events and conferences EDITED BY MARCUS LAWRENCE from around the world
NEW DATE 31 AUG - 1 SEPT 2020
The Solar Show // The Wind Show [ CAIRO, EGYPT ]
The 2020 MENA Solar and Wind 72
Shows are government-affiliated, free-
NEW DATE 15-17 OCT 2020
over 150 speakers from the region’s
Electric and Hybrid Vehicle Technology Expo
renewables industry across two days.
[ STUTTGART, GERMANY ]
Speakers at the events include: Sherif
The Electric and Hybrid Vehicle Tech-
Issa, Head of Environmental Sustain-
nology Expo (EHVTE) in Stuttgart will
ability at Orange; Sonia Mezzour, Vice
offer attendees the chance to hear
Chair of the Bureau of PPP Working
from and speak with over 450 manu-
Party at the UN Economic Commission
facturers and service providers from
for Europe; Harry Boyd-Carpenter,
across the hybrid, electric vehicle (EV)
Director of Power and Energy Utilities
and battery supply chains. Offering the
for the European Bank for Reconstruc-
chance to glean insights from industry
tion and Development; Amani Al
leaders on the latest innovations and
Azzam, Secretary General for Jordan’s
solutions, EHVTE promises to be one
Ministry of Energy and Mineral
of the best destinations for industry
Resources; along with many more.
players in 2020.
to-attend events offering content from
APRIL 2020
30 APR–1 MAY 2020
Impact Investing World Forum 2020 [ LONDON, UK ]
NEW DATE: 14–15 SEPT 2020
leading investors from around the
All- Energy Exhibition Conference 2020
globe to hear about the ways that
[ GLASGOW, UK ]
investment can be levied to spur
Glasgow’s All-Energy Exhibition and
business sustainability, environmen-
Conference strives to enable the UK
tal action, ethical business,
renewable low carbon energy commu-
technological advancement and
nity “to interact, conduct business,
much more. Key speakers for the
network and learn, whether face-to-
2020 event include: Michele Gid-
face or online”, according to the
dens, Co-Founder and Partner of
organisers. Held annually in Scotland,
Impact Project Management; Sophie
the event brings together a total audi-
Eisenmann, Head of Philanthropy at
ence of around 7,000 and promises to
UBS; and Margaret Kuhlow, Final
be a must-attend conference for any
Practice Leader at WWF.
energy professional.
This global event brings together
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73
EVENTS & A S S O C I AT I O N S
26–28 MAY 2020
The Responsible Business Summit Europe 2020 [ LONDON, UK ] The leading European conference for
POSTPONED UNTIL FURTHER NOTICE
Cleantech Forum Europe
driving a sustainable future through business returns in May, with an agenda packed with discussions around the need for action, collabora-
[ LUXEMBOURG, LUXEMBOURG ]
tion, fresh models, shifts in
The 16th annual Cleantech Forum
investment, the business case for
Europe, set over three days, brings
sustainable operations and how busi-
together the biggest players in the
nesses, no matter their size, can do
clean technology space, along with
their part. Speakers at this year’s
government representatives and
event include, but are not limited to:
investors, for discussion, networking
Rebecca Marmot, CSO at Unilever;
and opportunities to strike new part-
Douglas Lamont, CEO at Innocent;
nerships. Keep an eye out for updates
Yolanda Malone, VP of Global R&D
on speakers and the event’s pro-
Snacks PKG for Pepsico; and Pia Hei-
gramme in the coming months.
denmark, CSO of IKEA.
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75
76
EXPERIENCE DESIGN, ENTERPRISE AND CULTURAL AGILITY IN AUCKLAND WATERCARE’S DIGITAL TRANSFORMATION WRITTEN BY
RACHAEL DAVIS PRODUCED BY
STUART IRVING
APRIL 2020
77
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W AT E R C A R E S E R V I C E S
Auckland’s Watercare, New Zealand’s largest water utility company, provides the city’s 1.7 million people with clean water and reliable wastewater disposal. We spoke to Rebecca Chenery, Paul du Quaasteniet, and Peter Johnston about Watercare’s innovative digital transformation
I
n 2010, Watercare consolidated seven water utility companies in Auckland to create a more consistent, better man-
aged system for the city’s residents. Watercare 78
quickly built a solid track record in infrastructure and service delivery, but Raveen Jaduram, Watercare’s Chief Executive Officer, has over the last several years focused on putting customers at the heart of the business. According to Chief Digital Officer Rebecca Chenery, “becoming customer-centric today means more than being reliable and efficient – it means being fast, flexible and responsive to the changing needs of Aucklanders”. This sentiment is the driving force behind the digital transformation and application of technology underway at Watercare. The multi-year transformation has been led by Raveen Jaduram and his Executive team, knowing that, for real change in mindsets and culture to occur, it needed to be led and modelled from the top.
APRIL 2020
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Want to follow in Watercare’s footsteps? We helped Watercare successfully deliver their digital strategy. And we can do the same for you. We’ll help transform the way you deliver quality software by combining powerful technologies with the best operational expertise to deliver software assurance in today’s digital world. Learn More
TTCGLOBAL.COM
Going digital – it’s do or die in today’s modern landscape Digital transformation is certainly a hot topic and is driving conversations at the executive table around: Digitising customer experiences Increasing speed to market Moving to Agile working environments Lowering costs Increasing quality TTC is a NZ owned software assurance provider with a focus on enabling organisations across the globe to transform the way they deliver technology. TTC teams enable robust and rapid test program delivery that helps organisations increase the speed and quality of technology deployment while reducing risk and cost. Deploying a continuous testing platform provides the fundamentals of automated testing, test data management and continuous deployment across any technology landscape in any industry and for any company size. Digital or die Digital is very simple from the customer’s perspective (let me transact whenever and from wherever I am), but often highly complex in practise – this is where automated and continuous testing becomes vital. Without it, executives do not have visibility or control of the quality of their IT program and suffer poor speed to market and increased risk. The world won’t wait Many industries use complex, cross-functional systems, which can slow down the launch of new products and services. TTC believes you can get a head start by investing in a continuous testing platform that is easily understood and implemented. This investment provides tangible value and lasting benefits including re-usable test assets for project and postproduction use, security of IP and less reliance on individuals.
The typical outcomes are: Test cycle times reduced from 10 weeks to 3 days Business risk coverage increased from 30% to 90% Improved data and enviroment management Easier engagement and visibility with development suppliers Decreased cost of testing ownership Increased and retained value of testing assets Ongoing operational monitoring Integrated test and business process automation Testing culture for today’s IT program Most organisations must deliver their IT programs via a variety of traditional or modern delivery methods. Recently, common themes include Agile, DevOps and cloud computing as key enablers of going digital. The goal is to enable cross-functional, highly co-ordinated teams to deliver a digital improvement in very short cycle times. An automated and continuous test platform is key in today’s fast-moving, risk adverse world. Remaining competitive A common goal and outcome is to reduce an organisation’s cost base by at least 10%. Manual testing (and the by-product of incomplete testing) typically consumes 29% of an IT budget. TTC delivers an automated and continuous test platform that will bring significant and repeating return on investment. With specialised testing consultants in offices around the globe, TTC assists all organisations in delivering modern, universal testing programs resulting in higher quality software, faster time to market, reduced costs and lower risk.
Learn More
W AT E R C A R E S E R V I C E S
Watercare: a day in the life of David Luke, a Waikato-based treatment plant operator CLICK TO WATCH
|
5:04
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“ THINK OPENLY, SOLVE PROBLEMS DIFFERENTLY, AND COLLABORATE” — Rebecca Chenery, Chief Digital Officer, Watercare
how data is leveraged across the business. To meet the targets set out in the programme, a collaborative attitude has been essential, together with the combination of multiple teams from across the business. For example, Watercare did not want to create an ‘innovation bubble,’ but a cooperative, communal environment where opin-
The company’s Strategic Transformation
ions are valued and voices are heard.
Programme, of which Paul de
“For an organisation like Watercare,
Quaasteniet is the Programme Director
which has had a number of long-tenure
and Peter Johnston is Enterprise
staff and legacy ways of working, the
Change Lead, represents an overhaul
culture shift has been substantial,”
of ways of working, technologies and
affirms Chenery.
APRIL 2020
A key way in which the company’s
are poised for greater success moving
management team drove this change
forward by creating an agile mindset
in working culture was through the crea-
that encourages thinking openly,
tion of a new co-working space, The
solving problems differently, and
Hub, which Chenery says “provides
greater collaboration.
a place for people to meet, eat, work
“We have seen a big shift in how
and host visitors — to use as they see
teams have removed functional barri-
fit.” The notion of a shared, multi-purpose
ers, found a common goal and pooled
space was new for Watercare. It was
efforts in the same direction – these
an initial signal that the culture was
new attitudes and skills in working
changing into more of a creative environ-
inside and across teams has been
ment, led by new ideas and collaborative
fundamental,” says Johnston.
working. Additionally, Watercare placed
“The Strategic Transformation
key leaders through a tailored leader-
Programme gave the foundation for
ship programme, and provided staff
three aspirational outcomes,” says
with Agile Fundamentals and Design
de Quaasteniet. “These are: that the
Thinking training and on-the-job learn-
customer can do everything for them-
ing. This has ensured that employees
selves wherever they are, in a single
E XE CU T I VE PRO FI LE
Rebecca Chenery As Watercare’s Chief Digital Officer, Rebecca Chenery is responsible for leading all technology aspects of the business along with Watercare’s business transformation programme. She has many years of experience in leading teams to deliver exceptional business outcomes across the financial services, telecommunications and water industries in New Zealand and overseas.
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W AT E R C A R E S E R V I C E S
84 interaction; that our people have the
financial systems; an automated market-
right tools, best processes and are
ing solution for internal and external
empowered to do their jobs; and that
communications teams; a new enter-
they are able to make insight-informed
prise asset management system for the
and fact-based decisions with confi-
operations side of the business; and a
dence.� Through streamlining processes
planning and insights solution for ana-
and improving staff skills and attitudes
lysing population and growth data to
in working with data, Watercare is now
see where Auckland’s major growth is
able to use its insights to make informed
occurring while assessing how to best
decisions that are more predictive
respond. With the help of specialist part-
than reactive and ultimately improve
ners, robotic process automation (RPA)
customer experience.
technology has been implemented
In terms of technology, the transfor-
across key business processes, helping
mation has involved the successful
Watercare’s people to use and see ben-
replacement of the customer, billing, and
efits from integrated technology.
APRIL 2020
“Our squads have also been working
management introduced by the Strategic
with our business support areas, such
Transformation Programme. For exam-
as Health, Safety and Wellbeing and
ple, the development of its platform
Human Resources. We have automated
strategy, hosted by AWS, will future-
the transactional parts of these func-
proof Watercare’s core technology
tions to free our professionals up to do
needs and allow the organisation to
what they are here to do: support our
respond to and introduce new solutions
leaders and our people to be at their
to long standing problems.
best,” says de Quaasteniet.
One essential innovation is
These new technologies have been
Watercare’s Data Hub. Established
pushed out through the new approaches
on the new, AWS-hosted platform,
towards culture, delivery and change
the Data Hub brings together data that
E XE CU T I VE PRO FI LE
85
Paul du Quaasteniet Paul is a transformation leader focusing on digital strategy, operating model transitions and organisational change implementation. He’s currently leading Watercare’s Strategic Transformation Programme (STP), a two-year design-led digital reinvention programme across people, process, data and technology domains. Paul has worked in the Middle East, Asia and New Zealand in utilities, manufacturing, consumer products, oil & gas, transportation & logistics and health organisations. Paul believes that transformation success often comes down to being human-centred, which requires strong leadership, nimble, crossfunctional teams and a ‘safe to experiment’ working culture.
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W AT E R C A R E S E R V I C E S
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“ DESIGNING FOR A GREAT EXPERIENCE — USING NEW DISCIPLINES LIKE HUMAN CENTRED DESIGN, WHICH REQUIRES STRONG TEAMING AND EVEN STRONGER LEADERSHIP — WILL KEEP WATERCARE IMPROVING INTO 2020 AND BEYOND” — Peter Johnston, Enterprise Change Lead for the Strategic Transformation Programme, Watercare
APRIL 2020
87
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“ IT WAS AN END-TO-END REPLACEMENT OF OUR CORE SOLUTIONS, WITH A VIEW TO PULLING OUT THE DATA AND USING IT TO DRIVE BETTER DECISION MAKING ACROSS THE ORGANISATION” — Paul de Quaasteniet, Strategic Transformation Programme Director, Watercare
was previously scattered across the business into one accessible visualisation layer, making it available and digestible for every employee. It also facilitates the exchange of information with external organisations and agencies, such as Auckland Council. Data Hub supports Watercare’s principles of “data availability, quality, stewardship and governance,” which de Quaasteniet says has resulted in “a shift in how people use data, come together across the Data Hub and drive insights.” “As an example, we are rolling out IoT across key parts of our network, and PRO FI LE
Peter Johnston Peter is a strategy, business design and transformation specialist who leads the organisational change management component of the transformation programme. Peter’s run business consulting teams across Europe, the UK and Australasia, having recently established and led the IBM iX consulting practice in New Zealand. Peter applies behavioural science and design research to help transform the customer experience, and to help make work more meaningful and rewarding. Establishing strong leadership and teaming to improve creativity and innovation is a big focus of his work.
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W AT E R C A R E S E R V I C E S
90
streaming data through our Data Hub.
a large and complex programme of
This enables our data science team
work. “Having clear career steps and
to uncover insights that will allow the
implementing badge systems to provide
operational teams to save money, save
an evidence-based route to profes-
water, and increase customer satisfac-
sional progression is important. We
tion,” he adds. “Having the right partners
have needed to give our talented tech-
on the journey was critical. The fresh
nical people pathways to build their
talent from Harmonics has accelerated
skills that don’t necessarily end up in
our shift towards a data-driven culture.
‘people management’. We are compet-
TTC has helped move our test automa-
ing hard in the market for these new
tion from zero to over 80%, seriously
skill sets — Data Science, Behavioural
raising our Quality game”
Science — and we need to give these
Attracting and nurturing top talent has been central to implementing APRIL 2020
people lots of room for growth and development,” says de Quaasteniet.
The change has been significant. Now, instead of new tech projects taking one to three years to complete, with the new platform and ways of working, Watercare can deliver change in substantially less time — weeks and months rather than years. Another component is the organisation’s automated testing platform, which minimises the spend on testing from 30% of the budget to under 10% while quadrupling the efficiency and speed of testing. Partnering with the right experts who can help augment its capability has been a critical aspect of the success of Watercare’s technol-
1993
Year founded
ogy quality drive. The next step for the Data Hub is the development of the Nerve Centre — Watercare’s ‘air traffic control tower’ which is both physical and technical.
1.7mn+
Aucklanders provided with lifeline services daily
1,000 Number of employees
Visualisation will be key to its operation, with large screens and interactivity bringing together different aspects of the organisation through the application of data. Ultimately, the Nerve Centre will provide a predictive layer to the maintenance of Auckland’s water supply so Watercare can preempt problems or identify them early, allowing for timely maintenance. w w w.e ne rgydi gi ta l. com
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W AT E R C A R E S E R V I C E S
“ THE CULTURE CHANGE IS THE FOUNDATION OF EVERYTHING THAT WE HAVE BEEN ABLE TO DO” — Rebecca Chenery, Chief Digital Officer, Watercare
93 Looking ahead, Watercare will
an improved, more sustainable digital
continue to focus on digital innovation.
experience than before, and implement
“Keeping ahead of technological
change more quickly and effectively.
advances, scanning the market inside
“Everything we have done, whatever
and outside of the water industry,
outcome we needed to deliver, has
and trying to raise digital literacy
been focused on our people and
across staff are core expectations
our customers,” says Chenery.
of the Digital team,” explains Chenery.
“The culture change is the foundation
The digital transformation that Watercare has experienced has ena-
of everything that we have been able to do.”
bled it to remain at the forefront of new technologies which provide the foundations for innovation. Through the implementation of innovative technology, the organisation is able to deliver w w w.e ne rgydi gi ta l. com
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Charting a course for the energy transition through procurement WRITTEN BY
MARCUS LAWRENCE PRODUCED BY
CHARLOTTE CLARKE
APRIL 2020
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As BP’s procurement transformation goes from strength to strength, we speak with Mark Smith and Alex Thomson to discuss the pivotal role that Compass is playing on its enhanced operations
P
rocurement and digital transformation have become intrinsically linked in recent years. While the former has become more
central to business operations for organisations around the globe, the latter seeks to disrupt dated strategies and technologies that have become 96
increasingly incompatible with the demands of modern business. The combination of the two delivers profound benefits for organisations that can master such fine alchemy; offering agility, flexibility, leanness, sustainability and readiness for both business and geopolitical landscapes that are evolving faster than ever before. At BP, the launch of its proprietary Compass platform forms the backbone of procurement transformation within and beyond its Global Business Services (GBS) division. The platform, developed with scalability and flexibility in mind, enables integrated, end-toend, digitalised procurement processes. Offering ease of use, visibility, artificial intelligence (AI), automated source-to-pay (S2P) functions and a portal for external stakeholders, Compass is revolutionising the way procurement operates at BP. APRIL 2020
Server room at the Center for High-Performance Computing. Photo © BP Images
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Formulating BP’s new ACTIVE fuels. Photo © BP Images
Serving as the glue of the transformation, Compass brings vital components together from across the organisation to foster collaboration and visibility like never before. “Procurement and supply chain have been thought of as linear processes in the past,” says Mark Smith, Head of Strategy and Transformation for BP’s GBS Procurement organisation. “You start with a strategy, you end with a contract, you place an order and then, at some point, you’ll go back and restart. In the modern world, you’re w w w.e ne rgydi gi ta l. com
“ You’ve got to be efficient, but you’ve got to be effective. A number of companies have gone for efficiency – and that’s very good for function – but you’ve got to balance out the effectiveness of the output”
98
— Alex Thomson, Head of Procurement Services, BP GBS
constantly in all parts of that process. “There might be new and emerging technologies that force you to rethink a strategy you devised six months ago; there might be changes to your demand patterns that come out of your ordering behaviour, necessitating a review of your supplier portfolio.” Enabling effective management of these concurrent processes, Smith says, is Compass’s raison d’etre. “The process’s execution may exist in different systems, such as SAP Ariba or some of our legacy environments, but Compass provides end-to-end digital integration of all elements of procurement in one place.” Highlighting other factors driving the firm’s procurement transformation, Smith begins with the seismic shifts in the global energy market. “The world will require significantly more energy to support population growth and the prosperity that everyone is looking to drive,” he says, “but that energy needs to come with lower carbon. To do this, BP needs access to new ways of doing things, disruptive thinking and new technologies.” In procurement, this challenge can be tackled by optimising
APRIL 2020
CLICK TO WATCH : ‘BP GBS – MARK SMITH, HEAD OF PROCUREMENT STRATEGY ON PROACTIVE OPERATIONS’
the mechanics of its supplier inter-
technologies emerge, such as new
actions – a key component of the
battery technology or alternative forms
Compass platform.
of power and energy.” Smith summa-
Another considerable factor is the
rises: “The thrust of the procurement
attraction and retention of top-tier
transformation is around three things.
talent, both internal and external to
The first is people, the second is about
the organisation; the training and
enabling the organisation with the
development of whom can drive the
with the correct tools, and the third is
sharpest innovations which will assist
about combining both people and
in future-proofing the company as
tools together in order to harness BP’s
the wider industry evolves. “As the
data to drive value.”
world changes, the requirements are
Unlocking the nascent power and
changing,” says Alex Thomson, Head
enabling qualities of BP’s data has
of Procurement Services. “We must
required innovative but pragmatic
be agile and able to adjust as new
thinking, and Compass is the result w w w.e ne rgydi gi ta l. com
99
of such an approach. “We’ve thought
a similar fashion to a sale, with the
innovatively about our entire end-to-
related work being distributed to the
end process,” says Smith. “If you think
stakeholders concerned promptly and
about it, sales is the mirror image
accurately. In sum, the sales-esque
of running a procurement exercise,
process delivers vital data to the
and so we’ve used a sales platform
right specialists as required, provid-
repurposed in reverse to run our pro-
ing both democratisation of data and
curement processes.” Opportunities
enhanced visibility.
are funnelled through Compass in
While the benefits to efficiency are
E X ECU T I VE P RO FI LE
Mark Smith Mark Smith is the current Director of Strategy and Transformation for GBS Procurement in BP (having previously held a similar position in Downstream Procurement since 2012), driving the Procurement operating model, systems and process transformation. Overall, Mark has over 17 years’ experience in functional strategy and business transformation, specialising in Procurement within oil and gas. Working with organisations such as Shell, Chevron, Babcock, Centrica, Taqa, Husky and Seadrill, Mark has experience across the Procurement lifecycle from Category Management to Source to Pay in Upstream, Downstream and Corporate and Functions supply chains.
100
Mark holds an LLB (Hons) and Masters degree in IT from the University of Nottingham. He is married to Jackie and has two children, and recently completed his fifth marathon.
APRIL 2020
clear, Thomson stresses that focus-
of the output. What you then enable
ing solely on making processes more
from the supply market to the users
efficient is tantamount to wasting
is appropriate for the output quality
opportunities. “You’ve got to be effi-
you need.” Through Compass, BP is
cient, but you’ve got to be effective,”
able to connect the end-to-end chain
he explains. “A number of companies
from strategy and category strategy
have gone for efficiency – and that’s
through to execution and the place-
very good for function – but you’ve
ment of commitment in the supply
got to balance out the effectiveness
market. “That adds efficiency to
E X E CU T I VE PRO FI LE
Alex Thomson Alex Thomson is currently the Global Head of GBS Procurement in BP. He leads a cross-regional, crossfunctional team that manages BP’s global Corporate categor y demand, covering areas such as IT and Business consulting, as well as being accountable for BP’s source-to-pay activities. Alex has over 30 years’ business experience in BP in a wide range of business roles. These include managing the performance of chemical businesses, leading strategic change in IT and Procurement and executing the delivery of major M&A projects. Immediately prior to his current role, Alex was Head of Country for BP in Malaysia and led the GBS Asia operation in Kuala Lumpur, supporting BP businesses and functions worldwide.
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Mitigate risk through robust supply channels to maintain technical integrity and timely delivery
PROCUREMENT 4.0 – ARE YOU READY? Procurement has been at the forefront of adopting cloud-based digital platforms enabling efficient transacting processing. This transition to cloud that started with indirect purchasing has accelerated to direct materials. Key purchasing functions have gone a step further by building an ecosystem of solutions offering rich automation and intelligence lowering transaction costs by an average of ~30%. Some industries like oil and gas have lagged in digitalization due to a mix of high regulations, significant variations between upstream and downstream and history of acquisitions. Figure 1. lists some of the typical challenges these industries face in their procurement value chain.
• • • •
• Under-exploited early payment discounts • Delayed payments
• Blocked invoices • Lack of invoice status visibility
• • • •
• Supply Chain Financing • P-cards
• Receipt Settlement • 2-3-4-way match
Supply chain disruption due to supplier risks Incorrect spend categorization Poor savings visibility / category Absence of fraud prevention Dashboards Categorization Spend Analysis Sourcing Strategy
Process Activity Capability
• eRFx
• Challenges
Resolve • Lack of control in text based requisitions
• e-Invoicing • PO-flip
Pay
Identify
Assess
Receive Invoice
Pay
Source
Transact
Procure
Contract
Approve
Request
Evaluation
• Tender Mgmt • Qualification
Enable
• Limited category strategy • Unstructured cost reduction initiatives • Lack of collaborative platform • Insufficient buyer productivity
• Cumbersome vendor collaboration • Vendor Managed Inventory
• Lack of decision support for approvals
In our experience, such companies can accelerate their digital transformation journey by adopting an approach based on four key principles – a clear view of applications at the core, automating and optimizing in parallel, AI as a central part of data operations and building an agile culture. Digital Core: Transitioning from a jigsaw of legacy applications to a user-friendly digital platform starts with a clear definition of process that need to be part of the core and those that need to be part of the surrounding ecosystem. User experience needs to be at the center of this decision and supported by seamless data and process flows. We recommend associating productivity and cycle time KPIs with user experience to make this a quantifiable benefit. Automation: Process variability and disjointed workflows are prevalent in most organizations. While in an ideal scenario, streamlined processes are first developed and implemented, driving automation in parallel can release investments and capacity required to drive larger transformation programs. Looking ahead, these automated KPI driven processes form the cornerstone of the new solution. AI and data: The challenge of combining meaningful data for analysis and transaction processing has long existed. A bill of material that is common across supply and demand, item master with the right attributes, and supplier masters with well-defined descriptions are examples of elusive essential building blocks. This is one area where AI is playing a significant role in both helping clean current data sets and merging information from new data sets to provide meaningful reporting with a significant positive impact across procurement KPIs. Agile mindset: Most large companies have followed a traditional waterfall approach with multi-year timelines and complex program structures. Even companies claiming to
• Automated Approval Workflow • Exception Management
• e-Requisition • Guided Procurement
• Performance Management • Classification
Negotiate
• Bidding Process • Reverse Auction
• Rudimentary quote comparison • Manual sourcing process • Poor identification of sourcing opportunities
Contract • • • • •
Onboarding Contract Lifecycle Mgmt. Digitize Contracts Clause Standardization Approval Workflow
• Low contract compliance • Cumbersome contract obligation mgmt. • Long contract lead time
Fragmented process • • • • •
Maverick buying Non-compliant spend Disparate / fragmented landscape Un-intuitive UI Ineffective knowledge-sharing
• Supplier performance not linked to procurement decisions • Poor supplier risk assessment
© Infosys Consulting
adopt agile are largely adopting the waterfall-based QA stage-gate process. Adopting agile requires the upfront allocation of the right team with end users, solution developers working in close co-operation and acceptance of imperfect product versions as a natural part of developing the solution. This fast iterative cycle and close co-operation cuts the project delivery time significantly and has been proven to enable radical simplification of end-to-end processes. In summary, a mix of clear vision, new technologies, and an agile mindset is already enabling leading purchasing functions to accelerate procurement digital transformation. The timing is right for all organizations to accelerate their journey to procurement 4.0.
Robin Goswami Senior Vice President, Global Head – Energy (Oil and Gas) Practice, Infosys Ltd.
Robin Goswami is a Senior Vice President and heads the Energy (Oil and Gas) practice in Infosys. Goswami has been instrumental in building the oil & gas practice in the organization since its inception to its current stature. He is a transformative leader with over two decades of experience in the IT industry. He is also a member of the board of directors of two companies - an IT consulting firm acquired by the Infosys Energy practice, and a global consortium that sets data exchange standards for the Upstream Oil & Gas industry.
© 2019 Infosys Limited, Bengaluru, India.
“ The world will require significantly more energy to support population growth and the prosperity that everyone is looking to drive, but that energy needs to come with lower carbon. To do this, BP needs access to new ways of doing things, disruptive thinking and new technologies coming from the supply market” — Mark Smith, Head of Procurement Strategy, Performance and Transformation, BP Downstream 104 processes and visibility of information
is to move to a world where we’re using
as to where work is progressing along
much more guided buying, with con-
that continuum, as well as improving
sumer-like technology that allows end
the output because you can see
users to self-serve,” he says, noting
the quality and whether it’s meeting
that such innovations are revolutionis-
users’ needs.”
ing procurement’s position within the
The modular aspect of Compass
wider organisation. “Like many procure-
means that this solid foundation can be
ment organisations out there, we’ve
built upon and modified to reflect trends
really struggled with the notion that,
for years to come. One such element
every time you need or want some-
to be infused into the platform’s
thing, you have to go to procurement
capabilities is automation, with Smith
and they will slow the process down.
highlighting the S2P function as one
While we still have a way to go on that
area to benefit from the emergent tech
journey, we’re starting to see more use
thus far. “The intent of automating S2P
of self-serve catalogues, quoting and
APRIL 2020
CLICK TO WATCH : ‘BP GBS – MARK SMITH, HEAD OF PROCUREMENT STRATEGY ON ACCESSING INNOVATION’ 105
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O U R PART N ERS
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“Infosys are our partners responsible for developing and maintaining two key modules of our Compass platform: opportunity and case planning. The huge advantage we get from those two modules in Compass is in our ability to workforce plan, prioritise and operate our activities at scale. From those modules, we are able to assign resources to those activities, track them to completion and check their status. One of the things we’re really excited about as a development for this year, and into next year, is our work with Infosys to improve the user experience around the way cases f low through the procurement operation.” — Mark Smith
“App Orchid, with its AI capabilities that automate parts of the contract cycle, is a great example of BP using new ideas from smaller companies to increase effectiveness and efficiency in an agile way. BP has scale while companies like App Orchid have more agility and ideas of what’s possible with emerging technologies, and co-venturing brings together the best of both worlds.” — Alex Thomson
APRIL 2020
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buying. The net effect of that is the creation of more space in the organisation to work through the innovation agenda.” While the automated S2P features have been in operation for a few years, the firm has more recently incorporated intelligent contract reading and analytics-focused AI into Compass, enabling seamless document scanning and archiving in a way that draws value from the respective data. “We’ve been working out a proof-of-concept to allow you to conduct those searches 108
with natural language processing. For example: ‘What was my caustic soda usage in the last ‘X’ months?’.
extra-organisation communications
Compass gives us a platform to inno-
with suppliers, the intricacies of pro-
vate from while adding capacity to the
curement have evolved to the extent
organisation,” adds Smith. “We’ve also
that multiple teams, with complemen-
added collaboration technology that
tary capabilities, are found along the
allows people to work on documents
operational chain. This increases the
together in real-time, along with 360
risk of silos with poor communication
degree views of all our interactions
which in turn hamper progress. “In the
with particular strategic suppliers.”
past, you would have your procurement
Collaboration at scale is an ascend-
team who were down the corridor, and
ant necessity for organisations, but
they would have conducted the entirety
Smith says that this is particularly
of the procurement process,” Smith
acute in increasingly complex pro-
explains. “In reality, much of that now
curement environments. Whether it is
is, and should be, operated at scale
internal teams liaising for a project, or
on the behalf of the entire enterprise.
APRIL 2020
Since the implementation of
“ A lot of the effort that goes into procurement is effort that most of our workforce would rather not expend” — Mark Smith, Head of Procurement Strategy, Performance and Transformation, BP Downstream
Compass, our teams have seen innumerable benefits, including: the effective distribution of work, improved management of team activity backlogs and the balance of resources. Compass has created a better experience for all those working in and around procurement. The fresh degree of visibility and comparability that BP gains between its vendors and suppliers affords it opportunities to optimise costs and quality through partner selection, while simultaneously illuminating more sustainable options. “We
have been working specifically with some of our IT suppliers on reducing their carbon impacts,” says Smith. “Some of our cloud providers, for example, are big power users, and so we can work with them to understand the source of that power and whether renewable is an option.” Thomson echoes this sentiment, adding that growing data demands from all industries will see data centre power consumption continue to rise. “It’s not a binary case of using this w w w.e ne rgydi gi ta l. com
109
visibility to decide who we will and won’t deal with,” he says. “It’s about being conscious of footprints as we buy closed requirements, and encouraging sustainable strategy.” Compass, through its document scanning functions and end-to-end digitalisation, has also seen a marked shift towards paperless operations,
“ It’s not a binary case of using this visibility to decide who we will and won’t deal with, it’s about being conscious of footprints as we buy closed requirements and encouraging sustainable strategy”
the sustainability benefits of which speak for themselves. 110
“We have been able to elimi-
— Alex Thomson, Head of Procurement Services, BP GBS
nate what amounts to around a million paper invoices from suppliers each year,” enthuses Smith. “That’s a very tangible example of
in reacting to things we would have like
how Compass is reducing our envi-
to have better foreseen, or in manually
ronmental impact.”
collecting information that allows us to
Implementing such an exhaustive overhaul of procurement functions
make better decisions.” This effort, he enthuses, is better
naturally conjures concerns around the
spent on creativity and value added
ease with which a workforce will cope
tasks. “The organisation is somewhat
with the shift, but Smith is confident
frustrated by the drains on its ability to
that BP’s procurement teams have
act in a creative capacity because of
been receptive and supportive. “A lot of
the challenges in the data landscape
the effort that goes into procurement is
and the manual activity required
effort that most of our workforce would
to keep our operations running. We
rather not expend,” he says. “Such as
want to be orchestrating rather than
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111
executing those processes. As we
communication, collaboration, sus-
enter this world, we’re extremely pas-
tainability, and vendor management.
sionate about using technology to
Thomson says that flexibility, however,
move us into that creative space while
is the chief boon of the GBS-led pro-
helping the organisation to upscale in
curement transformation. “Being able
a way that, where necessary, supports
to adjust as requirements evolve is vital,
that journey.”
especially as supply markets around the
The sum of all these factors, Smith
world change pretty fast. Being able to
and Thomson highlight, is a shift in
take advantage of that through procure-
procurement’s capacity to enable
ment is a hugely positive change.”
the energy transition. Compass has revolutionised procurement within BP in many aspects: visibility, ease of use, w w w.e ne rgydi gi ta l. com
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SAP Cloud for Utilities: an integrated industry solution WRITTEN BY
WILLIAM SMITH
APRIL 2020
PRODUCED BY
BEN MALTBY
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SAP
How SAP’s Cloud for Utilities solution portfolio can unlock new possibilities in a rapidly evolving market
S
AP Cloud for Utilities (C4U) is a pioneering new end-to-end portfolio of solutions from SAP, intended for use in the Lead-
to-Cash process employed by utilities companies. Three individuals from the wider SAP organisation are guiding its market introduction. Klaus Lohnert 114
is programme director and the overall lead of the project. Mateu Munar, Senior Director, Industry Business Unit Utilities and Stefan Engelhardt, Global VP Go-To-Market Strategy Industry Business Unit Utilities, are also part of the C4U leadership team and in charge of the solution management for SAP’s Utilities portfolio. “As part of that team,” Munar explains, “I have the role of the go-to-market lead for the new SAP Cloud for Utilities suite.” Engelhardt adds: “We are the solution owner for the complete business suite. In my role, I particularly support the C4U leadership board from a strategic perspective, as well as Mateu and the team with our go-to-market activities.” In terms of overall structure, Lohnert explains that “we have four streams. There is the
APRIL 2020
115
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SAP
“ What’s happening at the moment is a tremendous infrastructure program, going from a centralised to a decentralised system”
development stream, where we develop the solutions. Then we have the go-to-market stream, in which Mateu and Stefan are allocated. Operations, because this is a cloud solution which we are operating, and the final part is the transition service we offer to make implementing the solution easier for our customers.” The complexity of the behind the
Klaus Lohnert, Program Director SAP Cloud for Utilities, SAP 116
scenes structure reveals the ambition of the solution. Comprising a portfolio of solutions useful to the utilities industry, SAP C4U supports products from
E X ECU T I VE P RO FI LE
Klaus Lohnert Klaus Lohnert is Program Director SAP Cloud for Utilities. He has over 20 years of international experience in the utilities industry and management consulting. His passions are for empowering business leaders to optimise the value of their businesses through best-in-class, forward looking processes, organisations and solutions, as well as providing customers guided access to innovations to get ahead of competition and help them to achieve the desired business outcomes of their business transformations. APRIL 2020
SAP Analytics Cloud: Embed Your Analytical Insights Into a Web Application CLICK TO WATCH
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4:21
117 modelling through to the market, as
terms of reducing costs and adoption
well as demand prediction, monitoring
time.” Engelhardt adds that the offer-
of customer behaviour, managing bill-
ing is flexible to the specific needs
ing, customer service and adherence
of customers. “The architecture is
to regulations. “It’s a suite that covers
modular,” he says, “so we leverage the
the entire end-to-end process,” says
independent cloud components that
Munar. ”We provide a software-as-a-
SAP offers. For service, for instance,
service, cloud native solution.
for sales, for marketing, for commerce,
It’s a unique service, with no competi-
for billing and revenue management.
tor offering such a complete suite in
We’re bringing them together, extend-
the cloud. It’s important to emphasise
ing them from an industry perspective
the technological approach, because
— but you still have the option to buy and
that is what facilitates key business leads that we want to address, in
run them separately.” Motivating customers to require a solution such as SAP C4U is an w w w.e ne rgydi gi ta l. com
SMART SOLUTIONS FOR SMART CUSTOMERS
PROLOGA and PROLOGA Energy are software development and consulting companies serving utilities worldwide. Customer profit from a comprehensive consulting and system competence that prepares the ground for a big variety of modern industry-specific solution extensions.
MODERN UTILITIES: LEVERAGING NEXT LEVEL APPLICATIONS ON SAP® CLOUD PLATFORM It does not take a crystal ball to predict that the days of traditional utility companies are numbered. Both in terms of changing customer behavior and in terms of social trends such as digitalization: the industry is facing huge dynamics while being under fire from new technologies, complex IT systems and inconsistent processes. However, automation will continue to significantly change people’s lives in the years to come. Robots and artificial intelligence are already part of our everyday lives: our goods are sent by drones, chatbots support our customer service and soon our cars will drive autonomously. Ideas about what the utility company of the future can look like are already becoming outdated because the future of this industry has long since begun. More importantly, utility companies should ask themselves – do we want to play an active part in shaping these changes? Digital transformation with intelligent solutions: SAP® Cloud Applications Is there a way for utilities to be both reliable and disruptive at the same time? Part of the answer might be software solutions such as SAP® Cloud for Utilities, the nextgeneration industry business solution that supports end-to-end industry processes across all business functions, at scale, in the cloud, and in real-time. But even a solution as comprehensive as SAP® Cloud for Utilities cannot cover all the detailed areas and requirements of a modern utility company. These gaps are closed by industry-specific solution extensions, such as those offered by PROLOGA. Automated planning, execution and confirmation of services, the reading of consumptions and on-site billing are only some examples. Another one is the highly
sophisticated Capacity and Nomination Management solution that provides efficient means for gas transport management companies to monitor the execution of capacity contract bookings and validating received nominations. And last but not least, PROLOGA also provides enhancements on SAP® Cloud Platform that complement the solution portfolio. PROLOGA and SAP: 15 years of experience, competence, and reliable partnership For more than 15 years, PROLOGA is serving SAP customers worldwide, delivering high-quality industry solutions and add-ons. The close collaboration with SAP ensures that solution extensions by PROLOGA are perfectly matched to SAP’s products and follow the strategic direction set by SAP. Smart solutions for smart customers is much more than a slogan; it is our daily motivation to both rethink our established solutions and adapt them to the evolving markets. Many companies have long since started the journey to an automated era, while utilities still seem to defend the market instead of attacking it. Together let’s take a clear view on the way in which your market is likely to evolve and how modern solution extensions can pave the way to it.
SAP
120 E X ECU T I VE P RO FI LE
Stefan Engelhardt Stefan Engelhardt joined SAP in 1997 where he supported the specification and launch of SAP’s first industry solution for utilities as Global Product Management Specialist. Since then, Stefan has held various management positions within SAP’s Industry Business Unit Utilities, becoming Vice President Utilities in 2007. In that role, he is responsible for SAP’s global Go-toMarket strategy for the utilities industry and focuses in particular on the definition and execution of SAP’s bi-modal product innovation strategy based on SAP S/4HANA for Utilities and the new SAP Cloud for Utilities solution portfolio.
APRIL 2020
evolving energy market, influenced by
growth, they will have to look to new
factors such as the rise of renewables
business dimensions, which is why the
and the decentralisation of power
platform supports non-commodity and
production. “The traditional commodity
multi-service capabilities,” Engelhardt
business no longer provides the mar-
adds. “We leverage elements and
gins or the revenue that is required,”
know-how from the 26 industry solu-
Engelhardt warns. “Utilities have to
tions we have at SAP such as telco,
extend their scope. They have to go
automotive and so on, bringing them
beyond the traditional energy business
together in order to allow utilities to
in order to offer value added or even
offer new bundled business services.
completely independent service offer-
Of course we also automate the tra-
ings.” SAP C4U is uniquely equipped
ditional processes of the commodity
to enable those in the industry to
business. That is the way towards what
compete in this brave new world. “For
Klaus calls the ‘self-running enterprise’.”
E XE CU T I VE PRO FI LE
Mateu Munar Mateu is currently Senior Director in the Industry Business Unit for Utilities. He’s responsible for the Go-to-Market of the new SAP Cloud for Utilities Suite. Mateu has 20 years of experience in the utilities industry — before joining the Industry Business Unit Utilities, he played several roles in the industry, first as Consultant and Solution Architect implementing the SAP for Utilities Solutions, and afterwards leading the Utilities Consulting Team in the EMEA region. He is highly experienced at working with utilities customers in different market roles, different countries and through the full cycle of the SAP for Utilities Solution.
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How SAP S/4HANA can accelerate your energy transition By David Townshend EY Global Power & Utilities SAP Leader
In an energy market defined by uncertainty, the prospect of shifting to SAP S/4HANA may seem like yet another challenge. But the right approach to upgrading can help accelerate transformation and build a more intelligent, agile organization for the future.
The cliches about 2020 being the year of vision may generate eye rolls, but for energy and resource companies, the message hits home. The disruptive forces sweeping the industry — including decarbonization, digitization, cost pressures and empowered customers — are not new but their pace is quickening. At the same time, energy and resource companies must move
forward in migrating to the new SAP S/4HANA software release. While for some, the prospect is daunting, many are reframing the challenge as a valuable opportunity. The powerful insights and connectivity delivered through S/4HANA combined with a forward-looking business view can help them reshape into intelligent, agile organizations — if they take the right approach.
Three ways to get the best from your S/4HANA migration Moving to S/4HANA will impact every part of your business. While a poor approach will create damage throughout the organization, the right one can drive the companywide transformation that is critical to create long-term value. The right approach involves three key elements:
The migration to S/4HANA provides a valuable opportunity to not only accelerate the energy transition, but reshape energy and resource companies into intelligent, agile organizations. David Townshend EY Global Power & Utilities SAP Leader
1. Purpose-led: The migration to S/4HANA is an opportunity to reshape your business more broadly. Now is the time to identify or confirm organizational purpose and align this with the implications for individual processes, systems and people. This helps guide a purposeled transformation that achieves those end goals.
2. Value-focused: The two most common questions clients ask as they contemplate their migration are: i.) how can we build a business case that stacks-up both now and in the future? And ii.) how can we do this as cheaply as possible with the least negative impact on our business? We help answer these by realigning the process to the business strategy – identifying how much value can be derived immediately and how much more can be leveraged in the future. For example, better, faster data can improve some processes now, while building a future-proof technology platform will support the agile business model and workforce needed for growth. And, all the while, the core value of the company is protected through enhanced cybersecurity and compliance.
3. Smart automation: Intelligent automation and machine learning can accelerate S/4HANA migration, reduce costs and enable value to be realized far more quickly. Automated tools also allow resources to focus on transforming those areas of the business that can help achieve big-picture goals. Post-migration, automation and analytics facilitate ongoing monitoring of people and processes to support continuous improvement. Fast-track your agile and intelligent future EY Agile Business Transformation for energy is a proven purpose-led, value-focused approach, specifically tailored to help energy and resource companies realize the potential of their migration to S/4HANA.
Leveraging the best SAP technology for energy and enhancing it with EY SAP-certified innovations can help deliver additional benefits throughout the energy value chain: customers and billing, asset management, finance, procurement, tax, HR and risk. The highly automated EY approach and suite of tools help clients accelerate their migration to S/4HANA, realizing benefits earlier, while limiting business disruption. Will 2020 be the year you accelerate your transformation? Discover how EY and SAP can help energy and resource organizations use S/4HANA to thrive in this era of extraordinary change.
Š 2020 EYGM Limited. All Rights Reserved. ED None.
SAP
“ Utilities are at the heart of the energy revolution that is going on globally� Stefan Engelhardt, Global VP Go-to-Market Strategy, Industry Business Unit Utilities, SAP
124
APRIL 2020
Lohnert identifies three key performance indicators that SAP seeks to address with the solution, including a reduction in the cost to serve, a decrease in the time to market for both classical and new energy offerings and an increase in revenue and profitability. Leveraging the cloud is one way of achieving that, but SAP is aware that its customers will be at varying stages on the cloud journey. “A lot of our development efforts are directed towards integration,” says Munar. “We provide a cloud offering, but we have to understand and be conscious of the fact that a big part of our business is on-premise. Essentially, the scenario is evolving towards a hybrid model. Any customer can capitalise upon the investments that they have made in SAP, because we are securing that evolution with integration concepts out of the box. If they want to move into a hybrid mode, they can go there. If they want to go into a full cloud mode, they can do that as well.” It’s not just about delivering growth. C4U can also help companies achieve increased efficiency, and with efficiency comes more sustainable ways of doing business. “Utilities are at the heart of w w w.e ne rgydi gi ta l. com
125
SAP
the energy revolution that is going on globally,” says Engelhardt. “They are in the driver’s seat to optimise, manage and build value added services in order to achieve efficiency and to benefit from new business opportunities. That is a key focus for us as we shape and develop the solution portfolio.” While SAP C4U is a business suite rather than a technical system, it still has a part to play in this transition. “What’s happening at the moment is a tremendous infrastructure programme, going 126
from a centralised to a decentralised system,” says Lohnert. “The biggest challenge we have is to accelerate this process, and we offer services to access end customers that want
Having cultivated a successful rela-
to buy a solar panel or a heating sys-
tionship with professional services firm
tem or charging stations.”
Accenture, which saw SAP contribute from a product side and Accenture
“ We provide a softwareas-a-service, cloud native solution”
from a services side, C4U represents a co-development between the two organisations. “Accenture are market leaders and they know the industry well,” says Munar. “They know our solutions, having done this together in the
Mateu Munar, Senior Director, Industry Business Unit Utilities, SAP APRIL 2020
past. From a go-to-market perspective, and from a development perspective, it’s a win-win.” Engelhardt concurs,
1972
Year founded
$24.7bn+ Revenue in euros
96,000+ Number of employees
adding that “we have many equally
coming from other areas and enter-
important partners, such as rku.it,
ing the space. Maybe our customers
smartservices, Cronos, bpc, Natuvion,
of the future are not just utilities, but
E&Y, Atos or IBM.”
other service providers who start to
Going forwards, the aim for C4U
complement services with energy.
is clear, as Engelhardt articulates.
Our platform should provide both with
“There is one simple goal. We want
the necessary tools and processes
to help our customers to transform
to be successful.”
their business into the next dimension, and we’re doing the same on our side. At the same time, I think what we are seeing happening that is interesting for us is more and more players w w w.e ne rgydi gi ta l. com
127
128
NORDEX GROUP: DIGITAL TRANSFORMATION IN ENERGY WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
TOM VENTURO
APRIL 2020
129
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NORDEX GROUP
John McComas, Head of Project Management at Nordex North America, discusses the impact of digital transformation in the energy space amidst the launch of a new wind turbine platform
A
s one of the world’s largest wind turbine manufacturers, Nordex Group provides high-yield, cost-efficient wind turbines
under the Acciona Windpower and Nordex brands. Nordex has production facilities in Germany, Spain, Brazil, the US, Argentina, Mexico and India 130
and produces nacelles, hubs, rotor blades and concrete towers across its offices in 25 countries. Following its acquisition of Acciona Windpower in 2016, Nordex became a major player in the energy space. John McComas is Head of Project Management at Nordex North America. Having originally joined Acciona Windpower North America in August 2007 as a Supply Chain Analyst, McComas worked in several different positions before moving into his current role in May 2017. Having achieved considerable success over the past few years, McComas points to his company’s product line as a driving factor. “Our product line between the Nordex and Acciona turbines is flexible, cost effective, and client driven,” explains McComas. We’re not afraid of entering into markets where other organisations feel uncomfortable.” APRIL 2020
131
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NORDEX GROUP
“ WE CAN’T HAVE JUST ONE WAY OF DOING THINGS ACROSS A DIVERSE RANGE OF MARKETS. IT’S IMPORTANT THAT WE ADAPT TO WHAT THE REQUIREMENTS ARE” — John McComas, Head of Project Management, Nordex North America
A key area of priority to McComas is the company’s client approach. “We have an approach with our clients which is quite the opposite of ‘take it or leave it’,” he says. “It’s about trying to foster a relationship
132
and learn what the constraints, challenges and economic model inputs are in order for the projects to be successful.” Having worked in several different markets, McComas acknowledges that every individual sector has its own unique challenges. “What makes us successful is our approach,” he explains. “We can’t have just one way of doing things across a diverse range of markets. It’s important that we adapt to what the requirements are.” Another important area of focus to McComas is the introduction of new technology. He understands the growing impact digitalisation is APRIL 2020
Delta4000 Series Start: N149/5X & N163/5X (ENG) CLICK TO WATCH
|
3:13
133 having on the energy industry and
Since its purchase of Acciona
beyond. “Digital transformation
Windpower in 2016, there has been
is one of the biggest opportunities
a noticeable shift in operations.
facing most markets at the moment,”
“Acciona Windpower product technol-
says McComas. “We used to spend
ogy was typically deployed in large
lots of time and effort collecting,
wind farms cost of energy focused
analyzing and correcting information
markets, in comparison to the Nordex
and data that came to us from paper-
technology which was deployed at
based sources. We’re flooded by
smaller wind farms in Europe that
the onset of tools, techniques, pro-
had specific requirements,” says
cesses and data, so it’s important
McComas. “Those requirements
that we use it in the right way. With
were prevalent primarily in Germany,
increased efficiency comes the
Scandinavia and the UK and that
opportunity to be safer, more quality
technology was very successful
centered, and strategic.
in those markets. However, since the w w w.e ne rgydi gi ta l. com
NORDEX GROUP
134
“ DIGITAL TRANSFORMATION IS ONE OF THE BIGGEST OPPORTUNITIES FACING MOST MARKETS AT THE MOMENT” — John McComas, Head of Project Management, Nordex North America
to launch a turbine platform with
merge a few years ago, we have put
strategy. The Delta4000 turbine
in considerable effort to combine that
adapts to the grid operators’ individ-
technology into one platform.”
ual needs, local wind conditions as
a flexible rating as part of its core design philosophy and operation
That platform is the Delta4000. The
well as noise constraints. Through
Nordex Group was the first company
the platform, the Nordex Group relies
APRIL 2020
on tried-and-tested series production
to create a platform that best serves
technology. The primary aim is to
the needs of our clients,” explains
reduce the cost of energy by design-
McComas. “This product line is a sig-
ing turbines which provide much
nal to the marketplace that the merger
higher yields from any given site. Its
between both organisations has been
Delta 4000 portfolio demonstrates
finalised and our recent commercial
the N155/4.5, N133/4.8, N149/5.X
success with it proved that we are
and N163/5.X wind turbines.
here to stay.”
McComas believes that the new
McComas believes in the value of
platform delivers a clear message
partnerships. Nordex has established
to the marketplace. “What we set out
key, strategic relationships with Appia
to do was take the best parts from
Wind Services, DSV Air & Sea and
both the Nordex and Acciona plat-
ATS, in addition to collaborations with
forms and merge them together
global energy leaders such as Engie,
E XE CU T I VE PRO FI LE
John McComas John McComas is a results-orientated, strategic and bi-lingual manager with experience in a range of wind farm supply and construction. McComas has a verifiable track record in four different countries for the successful completion of utility scale projects ranging from 45 to 304.5MWs. He manages site teams, maintaining the site P&L and creating positive working relationships with colleagues, contractors, suppliers and clients. He has been in his current position since May 2017. w w w.e ne rgydi gi ta l. com
135
Appia Wind Services is a company dedicated to blade maintenance and repairs in the composite wind energy field. We provide rapid deployment of experienced technicians to complete tasks at hand.
Learn More
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1985
Year founded
6,800 Number of employees
137
Announcing N163/5X CLICK TO WATCH
|
0:32
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NORDEX GROUP
WIND PROJECT SERVICES
• Asset-based project management solutions
• Continental U.S., Canada, Mexico, Alaska, Hawaii & Caribbean
• Hands-on, multi-modal services
• More than 65 years of experience
• In-house route surveying and technical services team
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Enel, Duke, Acciona Energy, and others “We want to work hand in hand with our clients in order to generate collaborative solutions,” he says. “It’s important that we meet our commitments and ensure that we’re transparent and are working together in a collaborative manner to resolve issues. We understand that if we make a mistake then being open and honest is essential. We don’t try and hide; we strive to learn from our mistakes. Being open and honest with 139
NXG Service Technicians EN V1 CLICK TO WATCH
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0:28
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NORDEX GROUP
“ Being open and honest with every partnership is essential and if we want to foster long-term growth, we understand we have to work collaboratively and transparently”
140
— John McComas, Head of Project Management, Nordex North America
APRIL 2020
every partnership is essential and if we want to foster long-term growth, we understand we have to work collaboratively and transparently.” With the future in mind, McComas has a vision of where he expects Nordex to be over the next few years. “We’ve almost doubled the growth of the overall organisation in just a few years and we aim to continue in that vein,” he says. “Moving forward, our plan is to focus on the execution of our commitments and make sure we deliver on the projects that we’re undertaking.” McComas also harbours ambitions of transforming The Nordex Group to being considered a leader in wind turbine supply construction and commissioning. “It’s a pivotal year for us,” summarises McComas. “We’ve already established ourselves as a top tier supplier globally for wind turbines and we want to continue to scale.”
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141
142
APRIL 2020
Stockholm Data Parks: making the modern sustainable city WRITTEN BY
WILL GIRLING PRODUCED BY
TOM VENTURO
w w w.e ne rgydi gi ta l. com
143
S T O C K H O L M D ATA PA R K S
Erik Rylander, Head of Stockholm Data Parks and Open District Heating, explains how data centres may be the key to creating a sustainable digital city
S
tockholm Data Parks (SDP) represents an advanced infrastructure offering to the data centre industry; a partnership
between it, district heating/cooling provider Stockholm Exergi, electricity distributor Ellevio, dark fibre provider Stokab and the City of 144
Stockholm. Collectively driven by a vision of creating a sustainable, waste-free city that’s entirely free of fossil fuels by 2040, SDP’s contribution lies in the unique opportunity presented by the rapidly expanding data centre sector. Focused on making Stockholm as attractive to the industry as possible, the initiative believes that the waste heat expended by data centres may hold the key to making the city a beacon of sustainability. Erik Rylander, Head of SDP, knows the energy sector well and put his insights to good use when the idea was first launched. “My career has been a mixture of very different fields within energy and it has been mostly centred on heating and cooling, but also gas. With SDP, we really took the initiative to make the data center industry more sustainable.” Although heat recovery is now widely accepted by APRIL 2020
145
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S T O C K H O L M D ATA PA R K S
the European industry, this was
146
“At that time, the industry was very sceptical. It didn’t really see the need for it; people saw it as a problem and didn’t want to start implementing new solutions” Erik Rylander, Head of Stockholm Data Parks and Open District Heating
not always the case. Spotting the opportunity relatively early (circa 2014-15), SDP anticipated the global shift towards the widespread adoption of eco-friendly measures in business, though others were left perplexed. “At that time, the industry was very sceptical,” explains Rylander. “People didn’t really see the need for it; they saw it as a problem and didn’t want to start implementing new technology.” Adding to the opposition was a customer base that was seemingly indifferent, and a paucity of environmental initiatives on the global stage. “Now, it’s really different: many things have happened to help us move into the position we are in. For example, Greenpeace started to publish the Click Clean Report and then the Paris Agreement came around in 2016,” says Rylander. With industry heavyweights like Microsoft now edging towards carbon-negativity and Jeff Bezos of Amazon pledging US$10bn to fight climate change, SDP is truly a pioneer in promoting sustainability schemes that are taking more widespread precedence in 2020.
APRIL 2020
Stockholm Data Parks CLICK TO WATCH
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1:43
147
Also the Head of Open District
temperature). “If we can buy heat from
Heating (ODH) at Stockholm Exergi,
someone at a price lower than it would
Rylander explains that the whole
have cost to produce it, that’s the real
process actually starts with ODH,
business behind heat recovery: we
which provides the business model
are saving money and companies will
of the venture. Taking advantage of a
be paid for something that is generally
2,800km network of district heating/
regarded as waste,” Rylander states.
cooling pipes that snake underground
By establishing a market for waste heat
around Stockholm, a scheme was
in Stockholm, ODH is playing an essen-
started in 2014 wherein businesses
tial part in helping Stockholm reach
were approached and asked if they
its goal of using 100% renewable or
were willing to sell their excess/
recovered energy for its district heat-
wasted heat energy on a fluctuating
ing by 2030, as well as being totally
price scale (depending on the outside
carbon neutral by 2040. “Currently, w w w.e ne rgydi gi ta l. com
S T O C K H O L M D ATA PA R K S
148
we are 90% carbon neutral, so that
data centre investments to Stockholm
remaining 10% will need to be offset
and, by extension, a greater pool of
and one way to do that is to increase
heat recovery potential. “Our purpose
the use of heat recovery.”
remains to make this city more sustain-
After several pilot studies were
able because we, as the providers of
launched in 2016 to identify how heat
heating and cooling in the city, have a
recovery could best be utilised, it was
responsibility to furthering sustainabil-
discovered that the data centre indus-
ity,” says Rylander. “It’s really important
try provided the most effective source.
that we make the City of Stockholm
With the global data industry’s total
fit for the future.” With its focus on the
consumption of electricity estimated
rapidly growing data centre sector,
at a huge 416.2 TWh (the entire UK’s
which is also highly compatible with an
consumption is roughly 300 TWh),
urban environment, SDP provides the
SDP was established to attract more
catalyst for scaling up this vision.
APRIL 2020
Favouring an approach which
adjusted its product portfolio to fit
establishes trusting and long-lasting
the heat recovery concept, Rylander
connections with partners and sup-
affirms that Carrier put its trust in heat
pliers, the collaboration with heat
recovery and took a chance to help it
pump supplier Carrier is an example
succeed. “Without them, we wouldn’t
of co-operation morphing into endur-
have been able to get as far as we
ing synergy. “Carrier has been an
have,” he says.
important partner to the heat recovery
Success might be inevitable for
concept,” explains Rylander. “From
the SDP initiative, as it ties in with a
an early point, it showed a strong
growing global movement: the circular
commitment and belief in the idea;
economy. Seeking to eliminate ‘one
Carrier also believes that heat recovery
use’ methodologies in business, cir-
will become increasingly important.”
cular economic ideas revolve around
Stating that the company actually
the principle of minimising ‘inputs’ and
E XE CU T I VE PRO FI LE
Erik Rylander Erik Rylander, MSc. Royal Institute of Technology, Stockholm, Sweden, is the head of Stockholm Data Parks at Stockholm Exergy (former Fortum Värme). Mr. Rylander has a long career within Fortum in different managerial positions. In recent years he has played a leading role in the development and deployment of Stockholm Exergi’s business model that allow data centers to turn costs for cooling into revenue from recovered heat.
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149
S T O C K H O L M D ATA PA R K S
maximising the reusing, remaking and recycling of waste products. “It’s really about reusing whatever you can again and again so that you are not wasting anything,” Rylander explains. “Heat is generated whilst running data servers, which we can then capture and reuse as energy to heat Stockholm. Technically the included components are well established, but, for some cities, installing a decent heating system might be an issue.” This is the main benefit of Stockholm’s infrastructure
SMART HEATING PRODUCTION Carrier is a world leader in high technology HVAC solutions that includes an extensive range of data center cooling and heat recovery solutions for district heating applications. Our mission is to offer customers the benefit of our extensive experience with many projects already delivered and be their first choice.
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151 - 95% of the buildings in the city are connected to a heating system that can be utilised for heat recovery. It is a testament to SDP’s innovative concept, which, whilst not relying on cuttingedge technology, demonstrates an intelligent usage of existing infrastructure to make it work. Sweden’s low power cost (approximately €0.19 per kWh) and low national carbon footprint (20g of carbon per
“If we can buy heat from someone at a price lower than it would have cost to produce it, that’s the real business behind heat recovery: we are saving money and companies will be paid for something that is generally regarded as waste”
kWh, as opposed to the EU average of 450g) provide additional incentives to data centre companies scouting areas for investment. The country’s
Erik Rylander, Head of Stockholm Data Parks and Open District Heating
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S T O C K H O L M D ATA PA R K S
152
APRIL 2020
CO MPAN Y FACT S
• Currently, we are 90% carbon neutral, so that remaining 10% will need to be offset and one way to do that is to increase the usage of heat recovery
strong stance on combating climate change could make it very attractive to tech industry hyperscalers - such as Facebook and Google - who are looking for effective ways to simultaneously expand their business and mitigate their carbon emissions. Validation of SDP’s concept was given in 2017 when the Kista data park was established north of Stockholm. “The first milestone we had to reach was international investment coming into Sweden on this platform. That is what we achieved with the Kista site,” Rylander says. “As data centres grow, we will be able to recover approximately 40MW of heat from them, enough to heat around 80,000 modern residential flats.” This was followed in 2019 with w w w.e ne rgydi gi ta l. com
153
S T O C K H O L M D ATA PA R K S
154
the launch of the Brista site as an opportunity for data center invest-
“Our purpose remains to make this city more sustainable because we, as the providers of heating and cooling in the city, have a responsibility to furthering sustainability” Erik Rylander, Head of Stockholm Data Parks and Open District Heating APRIL 2020
ment, with plans to launch a third site in Skarpnäck, south of Stockholm, currently underway. An added benefit of Stockholm is its wide-spread optical network connecting practically all buildings in the city. Further, the city is exceptionally well connected to the rest of Europe with more than 350 million end-users reachable with 30 milliseconds of round-trip delay.
155
Looking forward to 2020, Rylander
scientists have been able to identify
is keen for SDP’s signed contracts to
which will allow us to reach the targets
materialise into construction projects.
of the Paris Agreement globally without
Now that the initiative’s concept has
carbon capture and storage,” he claims.
been proved, SDP will continue to push
“The data centre industry already
for Stockholm to be a truly modern city:
understands that this is the next phase
sustainable, low-carbon and digital.
to move into. We have a good start-
However, not satisfied with merely
ing point for applying carbon capture
achieving carbon neutrality, Rylander’s
technology that will eventually bring
company - Stockholm Exergi – will
negative emissions into the market.”
also be exploring taking sustainability to the next level with carbon capture technology. “There is no scenario that w w w.e ne rgydi gi ta l. com
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