Digitalization: The Key To Answering Global Energy Demands

The energy sector of the United Arab Emirates is on the cusp of crucial and exciting changes. From the rise of renewable and nuclear power to the increased emphasis on climate protection and the demand for a larger and smarter grid, the industry is striving to position itself on the right side of global trends. 

 At the same time, consumer expectations are evolving - from increased sensitivity to environmental issues and growing concerns about climate change, to the desire for flexibility, real-time transactions and a more personalized experience.

 At Al Masaood’s Power Division, we see digitalization as the key to these demands. By leveraging emerging tech, powered by artificial intelligence, the Internet of Things and blockchain, we will be able to develop every aspect of energy, and improve the supply, demand and operations to meet growing standards all over the world.

The UAE government has displayed strong leadership for the sector with its introduction of the Energy Strategy 2050, a commitment to transition ‘the fossil fuel capital of the world’ from its heavy reliance on fossil fuels to renewable, nuclear and clean energy sources. It has also budgeted USD 160 billion to increase production capacity to meet the nation’s energy needs, while continuing its endeavor to diversify away from fossil fuels. 

 By 2050, the aim is to achieve the target energy mix of 44% clean energy, 38% gas, 12% clean coal and 6% nuclear power. It’s a big vision, but we have the right leadership and on-the-ground talent – we will achieve it.

After the growth of clean energy remained stagnant in 2017-2018, according to a global industry report, renewable energy now accounts for 0.4% of the UAE's energy consumption needs. This is a small yet significant step towards the realization of our ambitious goals. We still have a long way to go, so we need to adopt technology at scale  and at pace.

 Our Al Masaood Power Division is at the forefront of ushering in increased acceptance of new tech, and we are prepared to innovate across the entire energy system. This includes power generation plants, distribution networks and storage facilities.

So, what can we expect?

1.    In the upstream sector, digitalization will enable us to analyze data to increase worker productivity and safety, whilst cutting costs and reducing our impact on the environment.

2.    In the midstream sector, technology can facilitate preventative maintenance. With the introduction of sensors and drones, we will be able to proactively detect and eliminate problems in our pipelines as they arise, keeping them functioning smoothly and avoiding unwanted shutdowns.

3.    In the downstream sector, digital initiatives make overall functions more efficient and reliable; an example is the automation of production schedules at power plants. 

 The introduction of smart grids is another vital piece of the puzzle. Owing to machine learning and analytics, smart grids allow for real-time data collection and analysis, which in turn permits power generating companies to make nimble decisions about power supply and detect power loss.  It also enhances the transparency of meter-to-cash processes. Through this information, end consumers are empowered with a clear understanding about the impact of their daily routines on their energy consumption, allowing them to make appropriate changes to reduce their utility bills. 

Without smart grids, we will also not be able to adopt renewable energy in a significant way. The transmission of energy generated from renewables requires a grid that can withstand the volatile fluctuations in its supply, whilst providing sufficient capacity and flexibility for its distribution. Telecommunication and electronic data processing systems, which are able to relay information to and from generators, consumers, grids and storage facilities, are thus also required. The stability of this communication is reliant on a robust data security and protection system.

With these interconnected layers of digitalization, technology have a compounding role to play in our efforts to move towards a more renewable and more efficient energy mix.

I’m excited to roll in a new era of energy.