Embracing digital allows organisations to reduce costs, make faster and better decisions and increase workforce productivity. Second, we create new value from existing business. In the UK where I’m from, over 80% of people now own or have access to a smartphone or a mobile phone. Sean Robinson describes the new generation of digitalisation in the energy sector. Software and semiconductors go hand in hand. It promises a lot for every segment of the energy ecosystem: households, prosumers, distribution, The way the world generates, distributes and consumes power is being reshaped by rapid growth in distributed renewable energy; decentralised gas and oil production; innovation in efficiency; and progress in software and analytics. That same module now sells for around €80 today! As lubricants manufacturers, all of us here in this room play a role in keeping the world moving and machinery operating. The answer is store that energy but the issue is that until recently energy storage was just too expensive. In recent years, the digitalisation of energy has become a major priority in the evolution of the energy sector. Digitalisation offers opportunities for high-skilled employment and innovation, integration of renewable energy, and cuts in operating costs. Digital technologies are transforming our lives in ways that were unimaginable even one decade ago. We invest in a pipeline of digital ventures, managed as standalone businesses with a culture of customer focus and fast development. Digitalization •Regardless of spelling, it's everywhere •Digitalisation is a rapidly expanding topic in the energy sector •Digitalisation of the energy sector has arrived in corporate reality - But not yet fully in the energy sector's legal departments By simply using their smartphones, our customers gain easy, real-time access to product support, technical services and lubricants data. By August last year the digital venture was venture capital funded and last month we launched a service offering in the UK focused on the construction and mining sectors. Across our lubricants supply chain, from manufacturing through to distribution and sales, we are investing more in digital technologies such as data analytics, artificial intelligence and machine learning. We have to achieve the greatest efficiencies today, while preparing for tomorrow. We take the best of a start-up culture and approach, and marry it with the power of a global leader with deep and extensive industry knowledge. The energy sector is a relatively early adopter of digitalisation, with real-time monitoring equipment, automation and data analytics. Digitalisation can facilitate the development of distributed energy resources, such as household solar PV panels and storage, by creating better incentives and making it easier for producers to store and sell surplus electricity to the grid. Digitalisation. In China, we have developed LubeMaster, our first digital, integrated platform for intelligent lubricant services and which connects us directly with end customers through our network of distributors. The energy sector is used to thinking in terms of decades and the energy world is a slow-moving entity. By Sanjeev Arora and Anurag Johri The utilities sector has always been at the forefront of preparedness to deal with changes such as natural disasters and economic impacts. Digitalisation of the energy sector as an endeavour will bring change in several dimensions The transition to widespread use of digital tools changes companies/organisations as well as the tasks of individ - ual employees. These decisions could make the difference between thriving and just surviving. It optimises industrial operations and planning, connects energy producers and users, and facilitates new business models … This revolution has already wiped tens of billions of dollars off the value of old-world electric utility companies that have been slow to embrace change. Solar’s steep cost curve has fuelled its viral expansion. energyandcarbon.com is an informal forum for providing strategic, timely insight on the technologies and business models shaping the future of the energy and mobility sector, with the goal of aiding business and political leaders navigate the choppy transition ahead. We are at a tipping point … Digitalisation in the energy sector involves the creation and use of computerised information and processing of the vast amounts of data which is generated at all stages of the energy supply chain. This is the business model of the Berlin based Mobisol which offers its clients a pay as you go model under which customers use their mobile phones to pay for their own PV&S systems on a monthly basis. We benefit too as we can ensure we have the right products in the right locations without holding excess inventory. A critical success factor that we’ve done is to standardise many of our processes in countries across the globe. But digitalisation is about more than technology. We are also using digital platforms to grow our business with workshops. One of the huge trends currently transforming the energy sector is digitalisation. Digitalisation will change the energy system in ways that we weren’t even able to imagine a couple of years ago – and we may not even fully be able to imagine today. 1m Tesla S 100D’s would deliver 100GWh of backup power which would be enough to power the whole of Germany for over two hours. “Energy & Digitalisation: Artificial Intelligence (AI) ... AI and energy sector are a perfect match to each other. At the Global Leadership Summit for the Asian Lubricant Manufacturers Union, Richard Jory, Shell’s Vice President, Lubricants Supply Chain, spoke on how Shell is extracting value from digital solutions while staying focused on delivering to customers. Energy Digital Magazine is the ‘Digital Community’ for the oil & gas, utilities and renewable energy industry. Digitisation. As Shell, I’m proud to say we have the largest lubricants business in the world and have been market leaders for the past 12 years. Putting a solar panel on a domestic roof with a battery is the quickest, cheapest and sometimes only way to get power to people who don’t have it. It found that industry offered the largest potential to use digital technologies in the fight against climate change, because it could lower sector emissions by up to 61 million tonnes in an "accelerated rollout" scenario and by 35 million tonnes if the speed of digitalisation is "moderate”. And one of the results of this revolution is that people will move to the centre of the energy system, as this power consumption and generation, becomes digitalised, decentralised and data-driven. It enables frontline users to make the right choices in real-time to drive cost savings and adapt to changing customers and market needs. That trend is now extending to the oil and gas and mobility sectors. In 2000, the global market for solar was a mere 277 MW. First, building a strong digital backbone through our existing business. Digitization. The World Economic Forum estimates that digitalisation could provide around $1.6 trillion of value for the oil and gas industry, its customers and wider society by 2025. The batteries enable the customer to avoid feeding solar into the grid at 10 cents and buying from the power retailer at 30 cents. Today, in China alone, more than 200,000 garages and maintenance workshops for cars and trucks have signed up to this platform. Energy Digital. And then we have the Munich based Sonnen which is offering its customers a “flat rate” electricity tariff based around domestically installed solar and batteries. Already a combination of PV&S (solar PV and storage) makes economic sense in places as far abreast as Italy and Tanzania. Take mail, which, starting in the 1980s, was transformed into email. Be the disruptor, and not the disrupted. Digitalisation is also transforming the energy industry, by improving efficiency and safety, and by facilitating the use of renewable energy. Some clever software and power electronics allows Sonnen to manage everything seamless for the customer and to aggregate all the solar energy not needed by the community of homes so that it can be moved to those within the community that need it. By Prince Osuagwu Key industry experts in the energy sector have called for digitalisation of Nigeria’s energy sector, saying it would further boost the economy. Coupled with the rapid evolution of electric car and battery storage technologies, the scene is set for a digital energy revolution. In 2004, a typical 200 watt solar module sold for about €1,000. To put that into perspective, just 50 petabytes is enough to store all the books that’s ever been written in the world. Energy Digital Magazine covers Energy 4.0, Global Energy investments, innovation, automation & AI, smart technologies and sustainability - connecting the world’s largest community of renewable energy executives. LubeChat is now being used by 6,000 users across the world in our key established and growth countries including the US, UK, China, India, Germany and Russia, and right here in Singapore. The energy sector is already using data in sophisticated ways to meet a wide range of challenges, from fault prediction in grid networks to the delivery of personalised energy to households. What should one do at night or when the sun is behind the clouds? Most major transformations fail, and strong leadership and effective change management is a crucial part of the adaptation process. Our approach to digitalisation is the same as in our R&D function. Digitalisation brings a completely different dynamic. We sell about five billion litres of lubricant every year, about one third of which goes into passenger cars, and two-thirds into industrial and heavy-duty use. Eventually, this will enable us improve sustainability across our wider value chain, quality assurance and communication to customers. But this is only the start; it is the combination of the five S’s: software, semiconductors, sensors, solar and storage that really is creating an energy revolution. Consumers will increasingly be able to monitor their power usage via a mobile application; they will save money by using energy apps and consoles which show how they can capture lower tariffs; and will exploit time-of-use-pricing to charge home batteries with the cheapest grid power, and integrate their solar panels. In 2017, we launched Shell LubeChat, a user-friendly and AI-enabled online chat robot, a world-first for B2B lubricants customers. We need to be adaptive, or we’ll be disrupted. Needless to say, this access to big data has benefited us enormously on our digitalisation journey and simplifying everyday activities. Digitalisation of Energy Digital technology has the potential to radically reshape the way we generate, trade and consume energy. and services. Dialogues will focus on African energy sector innovations investigating near and long-term prospects for technological advancements where decentralisation and digitalisation play a more pronounced role within the continent and how these technological progressions will, undoubtedly, impact Africa’s energy sector in a post COVID world. The global energy sector is undergoing a dramatic transformation, led by trends in digitalisation and centralisation. Digitalisation stimulates each value creation stage in a variety of forms and revolutionises the system and process boundaries of the energy sector by means of an absolutely dynamic interlinking of the value creation stages. The next key technology is solar PV which is the most flexible power generation source available. What is driving industry change? Here, we explore the latest technological development for the utility and energy sector. We are creating services that enable them to do that. But this is fast changing thanks to costs and technology improvements around lithium-ion batteries which is being driven by the automobile industry which has decided to use lithium-ion as the core technology to power electric vehicles. You might have very different expectations of a company like Shell that has thousands of employees around the world when it comes to speed of innovation. We believe this is the right strategy to take and we expect the return and customer satisfaction on our digital investments to be substantial over time. The combination of sensors, semiconductors and software will enable in the future the Smart Home and the Smart City as well as autonomous motor vehicles. The World Economic Forum estimates that digitalisation could provide around $1.6 trillion of value for the oil and gas industry, its customers and wider society by 2025. They held that technology plays a significant role in increasing the access to clean and sustainable energy resources thereby building Nigerian economy. The coal-heavy strategy at Poland’s biggest utility, PGE, was hit this week by a provisional European Union agreement to end coal power capacity payments from 2025, adding to the utility’s existin, Batteries have become an incredibly important and largely ignored part of our lives;  until of course your phone runs out of batteries! These ever faster and cheaper semiconductors are the reason why any smart phone today is more powerful than the best computer from ten years ago. It is also about embracing the culture and approaches that have made many start-ups the key success stories of the business world in the last 10 years. What are the energy efficiency opportunities of digitalisation? Plus, installation is simple and quick. The aggregation and real-time action of energy assets and industrial loads could provide accurate frequency regulation and demand response, providing new revenue streams for struggling fossil-fuel assets. And the numbers and the repercussions of an EV rollout are truly enormous. By tapping into the enormous potential offered by cutting-edge technologies, now is the time to make deeper customer engagement a reality in the global energy industry at MEE 2021. •Smart homes and buildings could reduce global buildings sector demand by 10% (home level reductions up to 30%, building reductions over 30%) And the good news is that the core material used for manufacturing solar panels, silicon is cheap to produce and there are lots of it due to the abundance of sand it is produced from. The breadth and scale of our business, combined with the voice of our customsers, means there is enormous potential and urgency to use digital to make our operations more efficient. The Digitalisation Zone at Middle East Energy highlights these new technologies to an audience that is looking for ways to digitally transform their operations and business models. What does it mean to think differently? At Shell, we are in the process of accelerating our digital transformation in our organisation. In addition, we have energy efficiency technologies working in the background to control our use of energy. February 7, 2019 by Matt Brown and Ravi Mahendra. Digitalisation in the Energy Sector - Questionnaire CONTEXT Within the Energy Union, three key targets and policy objectives have been established in light of the 2030 climate and energy framework of the EC: 40% cut in greenhouse gas emissions, 32% share for renewable energy and 32.5% improvement in energy efficiency. However, the COVID-19 pandemic caught the sector off guard and disrupted the conventional means of generation, transmission and distribution of public utilities. The energy sector began integrating digital technologies in the 1970s and rightly so, because of its high resource levels, costs of failure and outages. Our digital lives would be impossible without batteries which, UK local government pension schemes responsible for more than 5 million public sector workers saw asset values nudge up last year, trailing bumper stock market growth the year before, while some said, enegry storage, flow batteries, liquid metal, lithium-air. Digitalisation enables “smart” buildings, vehicles and industrial facilities to provide new sources of flexible load to the energy system, which can help to reduce renewables curtailment on the supply side and support communities to consume energy produced themselves, "behind the meter". And solar is already cheap and getting cheaper. As a result, the amount of data is growing at an astounding pace. These insights help them make faster and better informed lubricant decisions. However, it has not yet driven real transformation. We estimate that 80-90% of the benefit of digital and digital work is simplifying complex data to better know and serve our customers. This helps us optimise deliveries as our customers save time and money and simplifies processes. In Singapore, the mobile penetration rate is an astounding 147%, which means many people have more than one mobile phone subscriptions. This product optimisation tool integrates digital technologies into our supply chain. It is the same with renewables. We have committed to radical simplification, and progress only on activities that generate real value for us and our customers. It is not the latest gadget or tool, but what’s the customer pain point and how can technology enable us to solve it best. Renewable energy and CO2 reduction have triggered a profound need for digital transformation of the energy sector. Digitalisation has been referred to as one of the three main drivers for change in the energy sector – the ‘three D’s’ – along with decarbonisation and decentralisation (Di Silvestre et al., 2018). Since moving to Singapore last year, I no longer go to the supermarket for groceries – I order mine via an app. In the energy world, low cost computing power has enabled energy companies to more cost effectively extract, produce and transport energy while at the consumer level it has allowed much more efficient use of energy. Add to the equation low cost sensors for measuring heat, movement and a whole range of other variables and suddenly we have the possibilities around the internet of things, millions of devices all connected together measuring, controlling, communicating and working with each other. The energy sector is now embracing the major change linked with the transition to a low-emission future, and is faced with a wide range of major issues. Digitalisation is the flavour of the month when it comes to energy companies. In a world driven by digitalisation, it is all about speed to innovate. But let us be clear these technologies  have already forever changed the oil and gas industry. The deal aims to … Digitalisation of the energy sector can boost the EU competitiveness and innovation and open new global markets for components (ICT, electronics, etc.) The electricity sector is at the heart of this transformation, where digitalisation is blurring the distinction between generation and consumption, and enabling four inter-related opportunities: 1) smart demand response; 2) the integration of variable renewable energy sources; 3) the implementation of smart charging for EVs; and 4) the emergence of small-scale distributed electricity resources such as … Solar can be used to power calculators, solar panels can be mounted onto our roofs or facades, or they can be configured for use in large-scale power production plants. Another example is in shipping. And always with a deep focus on the customer. In 2015 the market was over 57 GW. And this new digital energy order is coming faster than most people think and it will rip apart old world businesses that are unwilling to change. In particular, the industry considers improving operational efficiency (identified by 52% of respondents), decision making (42%) and cost efficiency (40%) as the top priorities for further digitalisation. It’s about upgrading jobs so that they become more interesting and enjoyable and at the same time allows us to automate and have better reliability and consistency in our core processes. The digitalization of energy systems can provide various benefits, allowing utilities to: Maintain grid stability and reliability. A method that promotes an integrated approach to people, technology and organisation is … A click of a button and my groceries get delivered to my door. Five months later we had the business, MachineMax. Digital Single Market and the Energy Unionobjectives; -increase the digital capacity of the energy sector for the benefit of the system that is able to integrate higher shares of renewable energy and to optimise energy use by improving overall energy efficiency •Digitising the energy sector: an opportunity for Europe Digitalisation is certainly transforming the energy industry. Increasingly, the customer experience will be one of exploiting software, sensors and semiconductors to analyse their energy use and save money. Today, I want to share three areas Shell is extracting value from digital solutions while staying focused on delivering to our customers. And energy executives across the world are all using the buzzwords such as Big Data, the Cloud, Digital Wind to Digital Oil Fields and Internet of Energy as they talk about their future strategies but all of them seem to me to trivialise the changes going on in global energy. For example, we are building a “track and trace” system that we envision will improve visibility of our lubricants supply chain end-to-end and increase transparency. None of this would have been possible without sensors and massive computing power which have enabled the game changing drilling technologies such as seismic imaging, horizontal drilling, digital oil fields and measurement while drilling. Over the past decade, the incorporation of information and communications technology into the energy system has emerged as a significant driver of change in the sector but the pace and scale of that change is likely to increase dramatically over the decades to come. Digitalisation is changing the energy landscape. The data collected by this central IT backbone over many years has helped embed a data-driven decision-making culture throughout the organisation. The decisions we make today could make the difference between thriving and just surviving. In our personal lives, we expect greater convenience and connectivity with our mobile devices. Massive technological improvements have caused the costs of solar and wind to plummet and as they have installations have soared. But there are 40m cars in Germany so if they all were to go electric there would be theoretically enough storage capacity for the whole of Europe! 0. The world creates 2,500 petabytes of data every day, and around 90% of that data was generated in the last two years alone. At the same time it will create billions of dollars for those embracing the new energy world. And there are further cost reductions to come as technology improvements push conversion efficiencies above the 18% level found in today’s standard solar modules towards the rates of a modern satellite (40%). In fact, global investment in digital electricity infrastructure and software has grown by over 20% annually since 2014. Within this shaping framework, Europe can act as a potential market leader and become a role model, conquering new markets and propagating the European approach’ ‘ The report reveals that digitalisation will also be vital in achieving the wind energy industry’s ambitious future growth targets. This involves the application of new digital technology, such as low-cost cloud computing, the internet of things, big data analytics and blockchain to energy. And not too far into the future cars may not need a driver. Digitalisation is certainly transforming the energy industry. At the same time, billions of dollars of value will be created for companies that embrace change. 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Our customers want to reduce their total cost of ownership, running their machines for longer with less downtime. The global energy sector is undergoing a dramatic transformation, led by trends in digitalisation and centralisation. While many energy companies are implementing newer technologies to facilitate grid management, oil and gas companies are turning to digitalisation to improve the decisions behind exploration and production assets. My team uses data-driven insights to automatically determine for any given lubricant product the right formulation that optimises both costs and quality for the customer. The French Development Agency AFD has agreed to provide 100 million euros in loan to Bangladesh for the digitalisation of the country’s power and energy sector. While people are still figuring out whether to call or spell this phenomenon energy digitalisation, digitalization, digitisation or digitization, energy 4.0 or energy digital transformation, it is a disruptor, both on the commercial and the legal side. This is the new order of doing business in a digital world. But we don’t have to wait for EVs to come. What is Shell's Net Carbon Footprint ambition? AI thrives on data and the energy resources are flooded with huge chunk of data coming from power grids, wind-farm operations and even oil-companies. This new digital energy order is based around five key technologies software, semiconductors, sensors, solar and storage and the new business models they enable. It was operating as a Shell majority-owned non-operated venture. 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But we are only at the start of this digital energy revolution which will rip apart any business that is too slow to embrace the new digital energy order. The digitalization of energy is no exception. Wholesale digital transformations in the energy sector are extremely rare, and digital start-ups remain bit-part players in the wider industry. Today, the U.S. postal system processes about 500 million pieces of mail per day, while about 205 billion email messages are exchanged in the US every day. Why shouldn’t this apply to how we work and interact with customers? Finally, our third focus area is to create new business models. However, solar has one big disadvantage and that is that it is intermittent. The pace of digitalisation in energy is increasing rapidly. To be clear the low oil and gas prices across the world are the result of new drilling technologies which have created the shale gas and oil revolution in the United States. Let me give you an example of how we have embraced a new approach to support our speed to innovate. The way the world generates, distributes and consumes power is being reshaped by rapid growth in distributed renewable energy; decentralised gas and oil production; innovation in efficiency; and progress in software and analytics. We need to be on our toes and we need to make decisions based on these changes. It is also about people and creating more agile ways of working. In October 2017 we had an idea to maximise the profitability of our customers’ off-highway fleets by using smart sensors and next generation analytics. Digitalisation will continue advancing and there will always be new technology or ways that will be integrated into our lives. At the same time, it will also create exciting businesses like Sonnen and Mobisol but also new automobile companies such as Tesla and BYD, all of who are willing to not only embrace but to champion this change. Among the stakeholders who made this summation were… Having a strong digital backbone also means connecting and integrating applications, and knowing what to stop doing. These enable us to gain deeper insights into our customers, and improve how we deliver products and services to our customers. Having just one global ERP, the same in every country, means we can strengthen data management and makes it easier for our customers to do business with us. We are piloting Shell Accuport, a computer software programme used by ship owners and fleet managers to track how much lubricant is used by the vessel, and real-time locations to optimise delivery. Software are the brains used to control and operate different types of semiconductor such as microchips, power controllers and LEDs. We need to be adaptive, or we’ll be disrupted. 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