Digital technologies seen as vital for clean energy transition

Digital technologies, including artificial intelligence and grid software, are being recognised as crucial elements in the global push for a clean energy transition by a majority of senior executives in the energy sector, according to recent research.

Technology priorities

More than 70 percent of energy sector leaders say that digital tools are central to supporting the integration of renewable energy, accelerating electrification, and optimising energy efficiency. These measures are viewed as essential to the reduction of fossil fuel usage.

The majority of surveyed executives - 59 percent - plan to make significant investments in autonomous systems for power grids. Approximately 68 percent see these systems as playing a vital role in cutting emissions. The increasing reliance on software and artificial intelligence is also expected to reshape operational strategies, with 72 percent of organisations anticipating AI will transform their business processes within the next three years.

Grid modernisation

Outdated grid infrastructure is emerging as a significant challenge to further progress in the clean energy transition. Three-quarters (74 percent) of respondents highlight that advanced smart grids and grid management software are critical for faster growth of renewables, improved energy efficiency, and further electrification. However, 73 percent indicate that insufficient grid capacity is an obstacle to electrification efforts.

"Outdated grid infrastructure poses a serious threat to the clean energy transition. By harnessing digital technologies to move towards autonomous grids, it is possible to boost grid capacity, ensuring its reliability and resilience. To that end, regulation must also keep pace with digitalisation and innovation - ensuring that our energy systems are equipped to meet the demands of a clean energy future," said Sabine Erlinghagen, CEO, Siemens Grid Software.

Operational benefits

Companies expect that increased adoption of autonomous systems for grid management will result in lower operational costs and improved system reliability. Improved energy efficiency is another anticipated benefit, as more autonomous and digital solutions are deployed across utility infrastructure.

Findings indicate progress across multiple aspects of the energy sector. The shift from fossil fuels, growth in large-scale energy storage, and an expansion of renewable energy generation are moving forward compared with trends recorded two years prior. Despite these gains, the industry acknowledges further work is required. Over half of respondents (58 percent) state that uncertainty about future energy system design is causing them to hold back on investments in newer clean energy technologies.

Industry outlook

A strong majority (65 percent) agree electrification is currently the most straightforward path to net zero energy systems. But delays concerning upgrades to grid infrastructure mean the sector's ambitions are constrained by technical limitations.

These findings are drawn from a global survey of 1,400 senior executives covering energy, industry and buildings in 19 countries.