Download Take The Profitable Path to Renewable Energy Generation

TAKE THE PROFITABLE PATH TO
RENEWABLE ENERGY GENERATION,
DISTRIBUTION AND TRADING
Expanding the use of renewable wind and solar resources is key to meeting our increasing energy needs. But as legacy
assets remain idle and usage of renewable energy increases, utilities face reduced profitability and ROI. Energy and trading
optimization technology from the Energy Solutions Business Unit leverages digital technologies to boost energy generation,
distribution, trading efficiency and profits – and pave the way to a sustainable future.
The path to solving energy industry challenges: Rapid growth of Distributed Energy Resources. More renewables, complex
energy sources. An increasingly decentralized, modern grid. Changing regulations and policies. Rising energy price volatility.
START
HERE
1
STEP 1. Optimize
your digital
environment.
• Discover opportunities to
leverage digital technologies
like IoT, analytics and artificial
intelligence (AI).
• Improve efficiencies across the
energy value chain.
• Connect devices with remote
sensors to enable real-time
analytics.
FACTOID:
Digital optimization
can boost energy
profitability by
20-30%.1
2
STEP 2. Deploy energy and trading
optimization technology
PROCEED
TO STEP 3
• Achieve Core Connectivity (IoT): Use smart
sensors to measure, monitor and manage
asset performance.
• Enable Big Data Analytics: Improve decision
making via key insights into renewable energy
generation and energy market behavior.
• Leverage Data Science: Use advanced
algorithms to address specific issues across
the energy value chain.
• Exploit Machine Learning and AI: Uncover
complex patterns to solve issues related
to expanding use of renewable energy.
1
Booth, Adrian, Niko Mohr and Peter Peters. The Digital Utility:
New Opportunities and Challenges. McKinsey & Company. May, 2016.
2
BMU, Ministry of Environment, German Government.
FACTOID:
!
Germany achieved
30% renewable energy
use in 2015 with targets
of 50% growth by 2030,
and 80% by 2050.2
30%
50%
80%
STEP 3. Increase earnings across
the energy value chain.3
3
FACTOID:
FACTOID:
• Generation: Optimize maintenance and fuel
management to deliver earnings increase with
smart sensors and analytics.
• Trading: Enable better decisions and overall
energy balance for trading increase.
• Distribution: Deliver preventive maintenance
and improved workforce productivity for
an increase of renewable sources.
Industry-wide adoption
of IoT technology could
increase global oil and
gas GDP by $816 billion
in the next decade.4
4
STEP 4. Reap the benefits
of energy optimization.
80% of utility company
leaders believe the
electricity system can be
70% renewable by 2050.5
• Profitability: Boost profitability 8-17% with AI.
• Efficiency: Enable automatic action on events
like plant failure with machine learning.
• Sustainability: Integrate renewable sources
into energy systems to meet clean energy
goals and improve grid stabilization.
FACTOID:
Copenhagen will become
a smart, carbon-neutral
city by 2025.6
FINISH
HERE
End of the Journey.
Start of Big Benefits.
STEP 5. Pave the way
for a sustainable future
with Hitachi.
5
• Increase renewable energy use to deliver
a secure and stable supply of electricity.
• Manage risk from unstable energy
prices and supply interruptions.
• Create sustainable sources to reduce
CO2 emissions and tackle climate
change.
World energy consumption
is expected to increase 48%
by 2040.7 Now’s the time to
realize the benefits of IoT,
AI and big data analytics
from Hitachi.
Booth, Adrian, Niko Mohr and Peter Peters. The Digital Utility:
New Opportunities and Challenges. McKinsey & Company.
May, 2016.
4
Karen Boman, “Study: Low oil price gives industry chance to
pursue digital transformation,” Rigzone, May 12, 2015.
5
Grady, Barbara. GreenBiz. 70% renewables by 2050? It’s
doable with Internet of Energy. March 25, 2015.
3
FACTOIDS:
• Over three to five years, 62% of oil and gas executives worldwide
expect to invest more in digital technologies.8
• An estimated 25 billion connected “things” will be in use by 2020.9
• 91% of oil and gas executives believe digital technologies are
adding value today.10
Braw, Elizabeth. Copenhagen to be the World’s First Carbon-Neutral Capital. Newsweek. August 3, 2014.
U.S. Energy Information Administration. EIA Projects 48% Increase in World Energy Consumption by 2040.
May 12, 2016.
8
Accenture and Microsoft. 2016 Oil and Gas Digital Trends Survey.
9
Gartner Newsroom. November 11, 2014.
10
Accenture and Microsoft. 2016 Upstream Oil and Gas Digital Trends Survey.
6
7
Hitachi Energy Solutions Business Unit
HitachiInsightGroup.com
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