Energy Transition Talks: Recent Episodes
CGI in Energy & Utilities
The energy value chain is changing rapidly and increasingly digital in nature, requiring new competencies and acting with insight. A strong commitment to sustainability and the energy transition is essential to attracting and keeping customers and growing the business.
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How can energy and utilities move from AI pilots to measurable performance? CGI’s Peter Warren and Frédéric Miskawi explore how AI-led software acceleration, smarter data use, and the right algorithms drive rapid ROI, resilience, and business value. Tune in to learn how to turn experimentation into sustainable AI success.
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How can energy companies stay resilient today while preparing for tomorrow?
Frank Schmidt, CGI’s Vice-President for Global Energy, joins host Angelina Bakshi to discuss hybrid portfolios, digital intelligence, and hydrogen strategies that drive resilience and ROI in a volatile market.
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How can oil and gas leaders achieve net-zero while safeguarding profitability? In this episode of Energy Transition Talks, CGI’s Frank Schmidt and Angelina Bakshi explore the digital enablers—AI, cloud, digital twins, smart energy systems, and LNG innovation—reshaping the sector. Learn how these technologies reduce emissions, improve efficiency, and unlock new business value. A must-listen for executives driving transformation in the energy industry.
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In this episode of CGI’s Energy Transition Talks, host Caroline McNaught speaks with Peter Warren, CGI’s Global Industry Lead for Energy & Utilities, about the transformative role of AI in reshaping the sector. Drawing on insights from CGI’s 2025 Voice of Our Clients research, they explore how AI helps streamline compliance, modernize legacy systems, and address workforce challenges—while enhancing agility and driving sustainable outcomes. Tune in to hear how utility leaders can navigate complexity, embed strategy in innovation, and do more with less in an era of digital disruption
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In this episode of Energy Transition Talks, CGI’s Peter Warren speaks with AI experts Diane Gutiw and Lukas Krappmann about how artificial intelligence is transforming the Energy & Utilities sector. They explore key insights from Hannover Messe, how AI is closing workforce gaps, optimizing hydrogen systems, and driving efficiency through cross-industry innovation. Discover how AI is enabling faster decisions, predictive maintenance, and real-time operations in a sector under increasing pressure to adapt and evolve.
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Get ready to explore the future of energy innovation! In this episode of Energy Transition Talks, CGI experts Diane Gutiw, Lukas Krappmann, and Peter Warren dive into how digital triplets—an evolution of digital twins—are transforming the energy industry. Learn how companies are using AI-powered, interactive models to unlock insights faster, optimize systems, and deliver smarter energy solutions.
From hydrogen electrolyzers in Germany to grid optimization and predictive maintenance, discover how agentic AI and specialized data models are accelerating the shift to a more resilient and sustainable energy landscape. Perfect for tech enthusiasts, energy professionals, and innovation leaders—don’t miss this look into the next wave of digital transformation in energy.
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In this episode of Energy Transition Talks, Peter Warren and Darren Rudd explore how insurance is evolving from a reactive safety net into a proactive partner for resilience in the Energy & Utilities sector. From real-time data to IoT-enabled risk mitigation, they dive into how cross-industry collaboration—especially between insurers and energy providers—can strengthen supply chains and better protect both businesses and citizens in a rapidly changing world.
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How is the energy transition reshaping global supply chains? In this episode of Energy Transition Talks, CGI experts explore how AI, digital twins, and sustainable energy are driving real-time agility, resilience, and progress toward net-zero. From Michelin’s planning shift to industry-wide collaboration, get insights on building the supply chain of tomorrow—today.
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What happens when communities, consumers, and local innovators become key players in global supply chains? In this episode, host Peter Warren speaks with CGI Vice-Presidents Charley Wark and Helena Jochberger about the rise of the citizen supply chain—a powerful movement that’s reshaping how industries operate in a connected, digital world.
From manufacturing to energy, discover how organizations can embrace this shift to build more agile, transparent, and resilient supply networks. Learn why empowering people at every level of the value chain isn’t just a trend—it’s a competitive advantage in today’s connected economy.
Listen in for expert insights and real-world examples from global industry leaders.
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The evolving landscape of quantum computing
In a recent episode of the Energy Transition Talks podcast, Maida Zahid sat down with quantum computing expert Curtis Nybo to explore the challenges, benefits and future of this emerging technology. In this second instalment of the conversation, Curtis moves from theory to practice, focusing on energy optimization, logistics, cybersecurity and business applications for quantum computing across industries.
Overcoming challenges: The race to stable qubits
Quantum computing faces several hurdles, with coherence times being one of the biggest. Qubits, the building blocks of quantum computers, remain stable only for a limited time before randomly collapsing into a 0 or 1 state. This leads to unreliable results, making error correction and shielding from radiation critical in quantum hardware development.
Another challenge is the limited number of qubits available today. While large-scale quantum solutions require thousands of qubits, the most advanced machines currently operate with only a few hundred, restricting their problem-solving capabilities.
Optimizing supply chains with quantum computing
Quantum computing is revolutionizing supply chain logistics and optimization. Curtis highlights that quantum annealing computers are being used to optimize complex logistical processes, such as:
· Route optimization – Determining the most efficient way for delivery trucks to distribute fuel or goods while factoring in weather conditions and constraints.
· Demand forecasting – Predicting where materials need to be and at what time to prevent supply chain disruptions.
· Electricity distribution – Although not yet implemented, quantum computing could optimize energy distribution as effectively as logistics routing.
"From optimizing supply chains to predicting energy demand, quantum computing gives us the ability to solve problems we never could before." – Curtis Nybo
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This episode dives deep into the world of quantum computing and its transformative power beyond classical computing methods. Understanding quantum properties like superposition and entanglement not only excites but also invites practical applications in various fields, especially energy.
• Exploring the foundational principles of quantum computing
• Comparing classical computing to quantum computing
• Discussing real-world applications, particularly in energy sectors
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Unlock the secrets of the hydrogen revolution with us as we chat with industry visionaries Magalie Amiel and David van der Ploeg. This episode promises a deep dive into how ports are transforming into indispensable hubs for the hydrogen economy. Discover the unique market opportunities that hydrogen presents over the next decade, especially for intercontinental supply chains and sectors that are tough to electrify. We tackle the environmental implications of ramping up hydrogen production, focusing on sustainability challenges like water usage and lifecycle emissions, and the high investments required. Listening to this conversation, you'll gain valuable insights into how ports and their strategic collaborations are crucial for enabling a sustainable energy transition.
Join us as we unravel the complexities of the hydrogen supply chain and explore the pivotal role of government policies in this emerging landscape. Our discussion highlights the indispensable strategies for managing supply chain risks, drawing parallels with the well-established crude oil industry. We emphasize the importance of international collaboration and the alignment between businesses and government to make hydrogen a viable alternative in the global energy mix. Magalie Amiel and David van der Ploeg shine a light on how port authorities are poised to lead the charge in global decarbonization efforts. This episode is a must-listen for anyone interested in the future of energy and the strategic initiatives that are shaping our path toward a greener tomorrow.
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In part two of our Energy Transition Talks conversation with Helena Jochberger, CGI’s Global Industry Lead for Manufacturing, she and Peter Warren share insights from their industries, emphasizing the advantages of cross-industry collaboration, the need to integrate renewable energy sources and the evolution of ESG principles in business strategy. Organizations worldwide face sustainability challenges, but this discussion reveals that innovative thinking and networks that transcend traditional industry boundaries are driving collective progress.
The convergence of energy and manufacturing industries is increasingly evident as both sectors embrace sustainability and technology innovation to address global challenges. As these industries align their strategies toward decarbonization and efficiency, valuable opportunities emerge to identify shared learnings, goals and practices for a more sustainable future.
Material passports: The key to transparency
Helena highlights the significance of tools like material passports in tracking CO2 emissions and resource origins, which aids in achieving shared sustainability goals across industries. These passports provide transparency in emissions reporting, similar to energy certificates that track energy provenance.
Collaboration in the automotive sector
The automotive industry, particularly in Europe, exemplifies this trend through initiatives like Catena-X, which fosters collaboration among diverse stakeholders to enhance supply chain traceability and drive innovation in electric vehicle (EV) production and battery localization.
Decarbonizing steel: A renewable revolution
Looking at the steel industry's decarbonization journey, Peter and Helena highlight the importance of integrating renewable energy sources. Helena notes that steel manufacturers are not only producing metal products but are also investing in upstream energy solution, such as acquiring wind farms and hydrogen production facilities, to secure clean energy. This approach reflects a shift towards broader adoption of sustainable practices in response to global challenges.
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In the latest episode of our Energy Transition Talks series, Peter Warren and Daren Rudd discuss the critical role of the insurance industry in supporting low carbon energy projects. They explore how innovative insurance solutions can help manage risks associated with new technologies, the importance of data sharing between the energy and insurance sectors, and the potential for future collaboration to enhance risk management and reduce costs.
The transition to sustainable energy depends on major investment in innovative technologies including wind farms, solar, and hydrogen and battery storage. The success of these types of capital-intensive projects often depends on having insurance in place to help manage the inherent risk of financing large low carbon energy projects.
The insurance industry has a long history of innovation that aligns with the way the energy market is transitioning. Lloyds of London, explains Daren, was originally established to insure trade ships travelling to India. Likewise, in the late 1890’s the company that insured the Chicago World Fair—the first to be fully powered by electricity—established the standards and the analysis for energy and electricity assets going forward.
“For a couple hundred years, we've been very innovative in terms of coming up with new mechanisms and ways of working to insure and allow these big programs and these innovative new industries to grow…Insurers and the industry can work together to deliver a better result, particularly where innovative new things are working.”
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Shaping the future of the hydrogen economy: Ports, collaboration and sustainability
In the latest episode of Energy Transition Talks, Derek Marinos discusses the critical role of ports in the hydrogen economy with experts Dr. Magali Amiel and David van der Ploeg. They explore the current state of hydrogen as a low carbon energy source, the supply chain challenges in production and distribution, and the infrastructure developments being implemented by port authorities. The conversation highlights the importance of collaboration among stakeholders and the impact of market forces and geopolitical considerations on hydrogen's growth and adoption.
The promising potential of hydrogen for decarbonization
Hydrogen has long been recognized as a low-carbon energy source and now is considered crucial for decarbonizing hard-to-abate sectors, including heavy industry and transportation.
Significant investments are being made to scale hydrogen deployment in these challenging industries, plus successful proof of concept (POC) projects and trials in both sectors are leading to tangible impacts in the transition to hydrogen solutions. Sustainability remains a key driver of the global demand for hydrogen.
The key roles of ports and infrastructure in the hydrogen ecosystem
Ports are vital in the hydrogen ecosystem, addressing transportation, storage and distribution, and logistics and infrastructure challenges. From a storage perspective, ports are already well-positioned to serve as regional and international hubs for hydrogen supplies, thanks to their expert solutions developed via handling oil and other commodities.
[Wow factor: The European Union has set ambitious targets for hydrogen adoption with ports projected to account for more than 40 % of annual hydrogen demand by 2050. ]
Establishing a hydrogen supply chain is essential for transitioning to a low-carbon economy, especially for sectors difficult to electrify, like shipping and heavy transport. Key challenges include:
- Production Costs: The location of hydrogen production relative to ports affects transportation logistics.
- Storage Requirements: Hydrogen's low energy density necessitates larger storage facilities, which can be complicated by urban proximity and safety regulations.
- Distribution Infrastructure: International collaboration is needed to create effective pipelines and transport systems for hydrogen.
To build the necessary infrastructure, advancements in technology are vital, as existing pipelines for crude oil cannot be used for hydrogen. Regulatory consistency across regions is also essential to facilitate international trade. A notable initiative is the Hydrogen Alliance between Canada and Germany, aimed at establishing a robust international hydrogen supply chain by July 2024.
The need to forge alliance to shape the future
The hydrogen economy is poised for significant growth, driving the need to unite all players in the hydrogen ecosystem to share information, build trust and collaborate with industrial users for effective integration, especially in the current geopolitical climate. The quality of the hydrogen and the quality of relationship between the stakeholders will significantly shape what is possible in the future.
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Data-driven futures: Revolutionizing energy infrastructure
CGI’s annual Voice of Our Clients (VOC) global research gathers insights from both existing and potential clients, revealing key priorities for executives across industries. In the latest episode of Energy Transition Talks, Peter Warren sits down with Helena Jochberger to discuss the overlapping areas of focus revealed by data for both the Energy & Utilities and Manufacturing industries.
The Energy and Utilities framework—specifically in the upstream, midstream and downstream segments of oil and gas—often includes the chemical industry. However, Peter shares, CGI classifies it as part of Manufacturing, due to its process-driven nature.
Helena agrees, highlighting that in the chemical sector, where various recipes and ingredients are involved, effective Manufacturing Execution Systems are essential for managing complex processes that rely on numerous formulas. In the Manufacturing sector, she says, it's important to distinguish between two terms:
· Discrete Manufacturing: Involves producing physical products that require energy.
· Process Industry: Comprises energy-intensive sectors like metals, mining, and chemicals.
Focus on sustainability: Climate change impact on industries
One significant insight from the CGI 2024 Voice of Clients (VOC) report Helena highlights is that, like Energy & Utilities, industries such as metals, mining and pulp and paper are notably prioritizing energy transition, climate change and sustainability initiatives.
Specifically, the mining industry has a particularly high impact rate at 89% and the pulp and paper sector follows closely at 80%. Helena notes that the pulp and paper industry historically uses biofuels like black liquor for energy, showing a commitment to decarbonization despite ongoing climate challenges.
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Empowering energy decisions: AI meets Data Mesh
In part two of their Energy Transition Talks conversation, Doug Leal and Peter Warren dive deeper into the concept of Data Mesh and its impact on organizational structure. Specifically, they examine how Data Mesh enables business agility and AI innovation while necessitating a cultural shift, robust data governance and collaboration between IT and the business.
Data Mesh represents a significant cultural shift in how organizations manage and use data. Traditionally, data ownership has resided within IT departments, but Data Mesh advocates for decentralizing this ownership to various lines of business teams.
Doug highlights the four key principles of Data Mesh:
- Domain-Oriented Decentralized Ownership: Data is no longer solely owned by IT; instead, it allows teams closest to its creation to take ownership and responsibility for its quality and reliability.
- Data as a Product: Organizations are encouraged to treat their data sets as products, prioritizing data quality, usability, and timeliness, while focusing on how they can create value from them.
- Self-Service Data Platforms: With multiple domain-oriented data platforms emerging, automation is key, and teams need to ensure these platforms are user-friendly and efficient. The goal is to remove bottlenecks and accelerate data sharing and collaboration.
- Federated Computational Governance: This model supports governance tailored to specific domains rather than a one-size-fits-all approach, allowing for more relevant oversight.
The transition to decentralized ownership empowers business teams to take control of their data, fostering agility and responsiveness to market needs. However, it also increases their responsibility. Data governance is paramount for Data Mesh! It ensures data quality and security across decentralized domains, fosters trust and consistency in data usage, and balances autonomy.
Importance of data quality in Data Mesh
“Data quality is still a cornerstone of a Data Mesh platform,” Doug says, explaining that developing this domain-based data architecture requires a robust data quality framework. This involves ensuring data traceability and conducting rigorous quality checks for accuracy, completeness and consistency so organizations can build trust in their data.
Collaboration between technologists and business stakeholders is essential for identifying the most accurate truth as organizations integrate multiple source systems into their Data Lakehouse. This foundation is also critical for future advanced analytics, machine learning, and AI initiatives.
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In the latest episode of our Energy Transition Talks series, CGI Vice-President, Consulting – Data and Analytics Doug Leal discusses with Peter Warren the evolving landscape of data use in the energy and utilities sector, particularly in light of new AI applications. In the first instalment of this two-part conversation, they explore the challenges of scaling AI models, the move away from experimentation toward practical solutions and two key approaches to data management: the Data Lakehouse and the Data Mesh—both of which are shaping the future of data strategies’ success.
Utility organizations are facing increasing pressure to leverage data effectively for decision-making. This involves the integration of various data sources, such as Advanced Metering Infrastructure (AMI) and outage management systems, to enhance operational insights. While some organizations are already progressing in this area, Doug says, many are still in the early stages of their data journey.
Doug and Peter discuss two distinct approaches to AI: one that treats it as a novel tool to explore, and another that focuses on practical problem-solving. The latter, Doug says, is essential for developing a strategic approach to AI implementation, ensuring that solutions are not only effective for immediate challenges but also adaptable for future developments
“We need to be able to build a model or any type of AI solution in a way that will enable the organization to scale—not only scale that model for production, but also for everything that comes after that model, the innovation that comes after that model.”
The challenge of transitioning from proof of concept (POC) to production
Typically, a business unit recognizes the potential of a technology or model and decides to invest further. However, without a well-defined operational process to transition from proof of concept (POC) or proof of value to full production, this can create significant challenges and bottlenecks.
As Doug shares, only 53% of models successfully progress from POC to production, making it an expensive endeavor when roughly half fail to deliver results.
Shifting focus to Minimal Viable Products (MVPs) and practicality
Peter agrees, citing a current client’s approach that skips the POC entirely, jumping ahead to develop minimal viable products (MVPs) right away. He explains their strategy involves creating solutions that are aligned with their organizational goals and can be effectively scaled. This ensures that the IT team can support the growth of these products and that the business can derive tangible value from them.
Doug has also noticed a shift in mindset among clients. As he sees it, there’s a growing emphasis on how to effectively transition ideas into production rather than just experimenting, reflecting an increased understanding of the importance of assessing the real value and return on investment for these initiatives. Given the substantial costs associated with infrastructure, data scientists and machine learning engineers required for model development, organizations are increasingly cautious about treating these efforts as mere experiments.
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In the latest episode of our Energy Transition Talks series, CGI Global Industry Lead for Health and Life Sciences Ben Goldberg joins Peter Warren to discuss the interdependence between healthcare and energy systems, emphasizing the need for a balanced approach to ensure a healthy society. Specifically, they examine the interplay between ecosystems and supply chains, the emergence of smart, “green hospitals,” and how data innovation and digital twins are driving sustainable, resilient healthcare.
Digital twins and “triplets” in healthcare
While hospitals play a vital role in healthcare, they often contribute significantly to emissions due to aging infrastructure and inefficient buildings. For example, Ben points out that many hospitals have been around for decades, and while some modernization efforts have been made, they are still not energy friendly. This, he says, is an opportunity for new technologies to enter the mix.
Notably, digital twins—which create digital representation of physical assets—have gained traction in healthcare. Moving beyond just monitoring energy consumption, digital twins offer compelling use cases, such as providing visibility into the patient journey and help address outcomes. As Ben highlights, the ability to mirror the physical world digitally through digital twins has numerous facets and opportunities within the healthcare sector.
Sharing a term coined by Diane Gutiw, a leader in AI and digital twins at CGI, Peter raises the use cases for “digital triplets,” referring to using three interconnected digital twins:
- A twin modeling the patient’s health and wellbeing
- A twin modeling the operations of the healthcare facility itself (energy use, HVAC systems, etc.)
- A third twin analyzing the causes and effects between the first two twins.
This model allows for optimizing not just patient care, but the facility's energy efficiency and sustainability as well. For example, Ben and Peter discuss the fact that "green hospitals" are being built globally to produce their own electricity and hydrogen fuel, while using digital twins to intelligently control heating, cooling, lighting, and more based on patient occupancy levels.
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In part two of the Energy Transition Talks discussion between Eurelectric’s Head of Energy Policy, Climate and Sustainability Paul Wilczek and CGI expert Peter Warren, they turn their focus to the opportunities and challenges of localized energy production, the role AI and new technologies play in balancing decentralized power grids and the long-term benefits of decarbonizing and electrifying the energy sector.
The renewable energy surge in Europe
Localized energy production and renewable energy is increasing, as energy and security of fossil fuels coming from more volatile regions face increased disruption and costs. Referencing various studies, projections and European Commission publications, Paul indicates that the deployment of renewable energy sources—particularly solar photovoltaic (PV) and onshore/offshore wind power—is expected to experience a massive surge in Europe across all scenarios.
As Paul explains, this rapid growth in localized renewable energy production offers several advantages:
· Homegrown electricity production: Europe will have a significant portion of its electricity generated domestically, reducing dependence on imports from potentially unreliable foreign partners, thereby enhancing energy security and supply reliability.
· Decarbonization: Renewable energy sources like solar and wind are carbon-free, contributing to the decarbonization of Europe's electricity sector.
· Price predictability: Domestically produced renewable energy can provide more predictable and stable power prices, reducing volatility associated with imported energy sources.
At the same time, he points out, the projected surge in renewable energy deployment presents challenges too: such rapid growth also necessitates addressing the challenges of variability and the need for substantial investments.
The role of AI and new technologies in managing the energy system efficiently
While traditional energy generation like hydroelectric power will continue to play a role, Peter says, the major shift towards renewable but volatile sources like wind and solar impacts not just the volume of energy produced, but also the frequency and grid balancing when the sun shines or wind blows. New technologies, he suggests, will play a supporting role in transitioning to distributed energy resources (DER) production.
Paul agrees, suggesting that a decade ago, few predicted the current dominance of wind and solar energy. Technologies like biomass and geothermal were expected to have a bigger role. However, the plummeting costs of wind and solar have made them the clear winners for now.
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In this first of two episodes for our Energy Transition Talks series, Eurelectric’s Head of Energy Policy, Climate and Sustainability Paul Wilczek joins Peter Warren to examine the intrinsic link between decarbonization and electrification, plus the consequent opportunities shaping the energy landscape. They discuss the need for grid investment and modernization, how transparent information helps bridge gaps between governments and public opinion, upfront costs versus long-term benefits of electrification and how reforming energy taxation and billing can shape the future of electrified communities.
Decarbonization and electrification: A pivotal shift
By 2040, Europe aims to have a largely decarbonized power sector, paving the way for the widespread adoption of electrification across various sectors. According to Paul, this transition not only promotes energy efficiency but also offers significant environmental benefits. As he shares, electrified systems, such as heat pumps for residential heating, can use “just two-thirds of the primary energy” required by traditional gas-based heating systems, resulting in substantial energy savings. Peter indicates that a shift is happening in North America as well, citing the current U.S. government’s incentives for heat pumps.
Despite the increasing adoption of electric vehicles (EVs), heat pumps and other electrified technologies, the overall electrification rate in Europe remains stagnant at around 22-23%. This is surprising, Paul point says, as the growing number of electrified processes and users would indicate the rate would rise.
The primary focus has been on decarbonizing the power sector, with efforts to transition to renewable and clean energy sources. However, Paul reveals, the remaining 78% of energy consumption across other sectors has been largely overlooked. Electrification presents an effective solution for further decarbonization, as the electricity grid becomes increasingly green and decarbonized.
According to projections from the European Commission, electrification is expected to account for 35% of final energy demand by 2030, rising to 50% by 2040, and potentially reaching 60-70% by 2050.
The transformation of transportation
The transport sector is undergoing a profound transformation, with the phase-out of combustion engine vehicles playing a pivotal role. This transition is driven by policy initiatives, technological advancements, and a collective commitment to reducing carbon emissions and embracing sustainable energy solutions.
Within the next 20 years, Paul estimates that very few combustion engine cars will remain on the roads. This shift is driven by the European Union's ban on combustion engines in cars, paving the way for electric and hybrid vehicles to dominate the personal transportation market. While some heavy-duty vehicles may still rely on hybrid technologies, the family vehicle of the future is expected to be predominantly electric.
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In our latest episode of our Energy Transition Talks series, Marion Braams, Vice-President, Consulting Expert at CGI sits down with Peter Warren to share her expert perspective on emerging trends in IT, sustainability regulations and reporting. Specifically, they discuss different ESG initiatives across regions, the evolution to and impact of legally mandated standards and certifications, plus the role of green IT and AI for optimizing data and ESG reporting.
New laws mandating ESG reporting create fairness and accountability
Environmental, social, and governance (ESG) factors are becoming increasingly valuable for businesses beyond just sustainability objectives, as they can impact risk management, stakeholder expectations, innovation and operational efficiency.
Until now, greenhouse gas (GHG) reporting and emissions reductions have been voluntary for companies, meaning companies that invested in being "greener" faced higher costs than those that didn't. However, new laws, like the CSRD in Europe and the ISSB in the US, are making GHG reporting mandatory, creating a more level playing field and fostering more consistency and accountability across industries.
As Marion explains, without standards developed to measure GHG emissions, people were measuring things in their own ways. “You can't just look at something and know how much greenhouse gases (GHG) it contains, like a beer. You cannot just look at your beer and know its cost or energy use. It depends on how it is made, how much time it was stored, for example. It becomes really complicated to calculate things.”
Companies can apply for certifications from organizations like EcoVadis or the Carbon Disclosure Project to verify their GHG emissions. These certifications require companies to use standardized methods to estimate and report their GHG emissions.
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In this episode of our Energy Transition Talks podcast series, CGI space expert Harjit Sheera shares with Peter Warren how the volume of space data is not only ever-increasing, but also growing in impact and application across industries. Discussing how processing space data for accessibility and effective use was previously an arduous task, they explore how artificial intelligence (AI) and advanced processing platforms are helping organizations make the most of their space data. From environmental impact monitoring to emissions mapping and data layering, space data is changing the way we see and act on energy transition goals.
Improving and accelerating traditionally cumbersome space data with AI
Operating across the entire space stakeholder chain, CGI space experts work as advisors for space organizations, collaborate with regulatory agencies and support end users through application development and managed services.
In her almost 20 years of experience working in space, Harjit knows the legacy challenges space data poses, specifically in terms of harnessing and translating its vast volume. “It takes a lot of processing power, a lot of storage energy and a lot of standardization to make that data available to people who can turn it into something that the end user will see.”
Emerging processing engines (including those processing earth observation data, examining imagery or setting standardized requisite parameters) are using AI, machine learning and advanced algorithms to refine further and perform better, faster. This means greater volumes of data can be processed more efficiently and more, diverse user requirements can be addressed.
Specifically, AI helps identify key elements in satellite images and processes them faster, based on set user requirements. For example, Harjit shares the use case of farmers leveraging AI and satellite imagery data to monitor and demonstrate how they’re farming their land and what kind of crops they’re growing, to claim government subsidies.
Peter highlights the positive implications the advanced deep learning and crop recognition use case has for energy organizations who want to monitor, for example, leaks or the growth of vegetation under power lines and near utility company infrastructure. It all helps to reduce the cost of maintenance and potential damage.
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AI strategies, asset optimization and data quality: the new frontier for oil and gas
In the latest episode of our Energy Transition Talks, Maida Zahid sits down with CGI experts Mark van Engelen and Curtis Nybo to discuss the growing role of artificial intelligence (AI) in the oil and gas space. Specifically, they look at the evolution of—and need for—generative AI in the industry, the value of an iterative, domain-based approach to implementation and cross-industry AI use cases to advance the energy transition.
The new frontier for AI in oil and gas: data, demographics and domain-based approaches
The use of AI to support the asset-heavy oil and gas industry has been in effect for some time, especially for optimizing asset maintenance and predictive maintenance. However, new areas of need are driving the evolving role and growing value of AI within organizations.
First, Mark mentions, is the need for generative AI to help unlock the vast amounts of data in the oil and gas companies (e.g., on the GIS side, on their land side, upstream, downstream, etc.). This rise of ‘data GTP’ as he calls it, means gaining access to that data in a natural language format to pose questions like, ‘How many barrels did you produce last month?’ without clicking through several layers of reporting.
Second, as shifting demographics and changing workforces expose a knowledge gap between retiring experts and new professional entrants, generative AI is helping organizations bridge the gap and provide access to legacy knowledge in an efficient manner.
More crucial than vast amounts of data is the quality of the data. When working on use cases with clients, Curtis says they begin with domains that have decent data quality or supporting data management processes, to maximize ROI and time to completion.
As he explains, “we take a domain-based approach, where in parallel as you’re working on an AI project in the one domain, you can clean up the data of another domain next on your list,” so you’re not applying AI to the whole company at once; you’re starting with one area or team and expanding throughout the organization.
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In part two of our Energy Transition Talks conversation on generative artificial intelligence (AI), CGI experts Diane Gutiw and Peter Warren further explore the implications and applications of AI in the energy and utilities industry. Building upon their discussion in part one, they examine how digital twins, change management and trusted data are shaping the use and performance of AI in energy organizations, ultimately looking to the future of AI as multimodal, human-driven technology solution.
The key to realizing AI value: integrated solutions and digital twins
Increasingly, the greatest benefits of generative AI are emerging not in single solutions, but in integrated, multi-model, multimodal ways of pulling in information, producing expert advice and automating certain functions.
The energy industry, says Diane, is “a great example of a very complex environment with lots of different types of media and data that can be leveraged by these new and upcoming technologies.”
In her view, AI is headed toward digital twin models and integrated solutions. In the energy industry, this increased data-driven automation can help make both the grid and operations more efficient.
Peter Warren shares one key use case for digital twins is to help organizations understand other markets better, as they transition their current model. “You might know your existing industry well,” he says, “but as you move from traditional carbon-based energy to something less carbon-based, be it hydrogen or electricity, you may not know those markets; being able to create a digital twin of something you haven’t formally understood is a huge benefit.”
Diane agrees and suggests that the adoption of a digital twin to represent an organization’s current environment is a great use case, especially where there’s a data-intensive end-to-end workflow. Not only does this provide a robust view of the existing environment, she says, “but also it allows organizations to look at different scenarios and leverage AI to say, for example, ‘What would happen to the grid if this event happened, and how could I automatically adjust?’”
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In the latest episode of our Energy Transition Talks podcast series, Peter Warren sits down with Vice-President, CGI Global AI Research Lead Diane Gutiw to discuss generative AI and its global impact across industries. In part one of the conversation, they delve into the inevitability of AI in everyday life, the need for a structured, secure approach when using these tools and the use cases that are helping organizations improve efficiency and secure a quick return on their AI investment.
AI is inevitable (but requires guardrails)
The burgeoning conversation surrounding generative AI is one of the hottest topics for organizations globally. Questions pertaining to the inherent business opportunities and challenges are emerging at the same rate that organizations strive to define, harness and govern these new technologies.
According to CGI’s AI expert Diane Gutiw, one thing is not up for debate: “AI is inevitable.”
She sees the current AI landscape as similar to the adoption of the internet. “I think we're really going to be leveraging AI when we start to forget that it's there and are able to understand, have transparency into its processes and discern what's being delivered to us.”
However, Diane stresses that AI is not an end in itself. Especially in a business context, she explains, it is a tool developed to serve an intended purpose. “As long as we put the guardrails in place for responsible development, use and build-out of these tools, the power and the opportunities are unlimited.”
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In part two of our Energy Transition Talks conversation with Eurelectric’s Secretary General Kristian Ruby, CGI experts Peter Warren and Tom van der Leest dive deeper into key opportunities, challenges and drivers of the energy transition discussed in part one. In this second instalment, they explore the necessity and complexity of regulation, the role of central markets in a decentralized future and the growing importance of electrification, AI and cybersecurity in the evolving energy market.
Regulation and the role of central markets in a decentralized future
Ensuring fairness and equal participation in the new energy market requires robust regulations. However, as the level of regulatory complexity increases, customers and policymakers alike are struggling to keep up. For customers, compliance with one regulation may be in direct violation of another, while policymakers face challenges in keeping pace with implementation and reporting as more rules are created.
As decentralization continues to be a key trend, the question arises: What is the role of central markets and the regulator in a decentralized future?
Kristian sees this question as critical and believes the local flexibility market will become much more prevalent in the coming years. “We will simply need, for the efficiency of operations and the reliability of operations, to have local flexibility sources and call upon them more frequently with more frequent market signals in order to stabilize an increasingly complex, digitized, complex and centralized grid.”
The decade of electricity has begun
Kristian identifies another area of ongoing evolution: the veracity and reliability of clean energy. “We talked about fair, we talked about reliable, but there's also the clean dimension. With green hydrogen, we want to make sure that it is actually green. That’s where all these questions come in about geographical proximity and the timely match of the actual clean electricity production with the electrolyzers. Setting up a digital platform and defining concrete products around that is the next challenge for digital companies and energy providers to determine together how that is going to look.”
Striking the right balance between environmental integrity and manageable systems is the key challenge at hand, Kristian says, as organizations move from proving their energy is green on an annual basis to hourly or quarterly intervals.
Kristian has no doubt that a multi-vector future will be the most efficient and cost-effective way forward but stresses that electricity is moving to the center of the energy system. Calling the 2020s “the electric decade,” he shares that the electricity sector is seeing unprecedented growth, expansion and change.
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In the latest episode of our Energy Transition Talks, Peter Warren sits down with Eurelectric’s Secretary General Kristian Ruby and CGI’s Tom van der Leest for part one of a discussion on key trends and new business models in the energy market. Specifically, they examine the growing role of everyday individuals in the energy system, how distributed energy resource management systems (DERMS) are changing the way utilities view customers and operations, and why the industry needs to define and support fairness for participation in the new energy landscape.
The energy transition in the utility world has unfolded rapidly over the past decade, with most organizations following similar steps to adapt and prepare. However, as innovative technologies and new opportunities emerge, organizations now are adopting different strategies, giving rise to new trends and creating diversity within the sector.
Kristian details some of the divergent approaches of individual organizations within this new landscape:
“Some are focusing on offshore wind and hydrogen production transmission, others are going downstream, focusing on e-mobility, charging infrastructure, onshore renewables, distribution grids. Some are getting out of generation altogether, focusing on distribution and customers. So, you really have a wide variety of ways that companies position themselves within the sector.”
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In our latest episode of the Energy Transition Talks series, CGI Vice President Tom van der Leest interviews Nienke Homan, holds several board positions in energy- and industry-related organizations. Nienke and Tom have an in-depth discussion on how hydrogen enables the energy transition, how organizations need to balance the new energy system and how optimized IT systems are a critical piece of this transformation.
As the energy transition progresses, hydrogen is becoming increasingly important in reducing emissions and meeting climate neutrality targets. The production, transport and offtake of renewable electricity and green hydrogen are adding complexity to the energy system, which requires organizations to transform their internal and external operations.
Drawing on her rich expertise within the energy sector, Nienke Homan shares her thoughts on the opportunities and challenges of transitioning to green hydrogen, the need to balance the overarching energy system and the growing importance of data and IT systems in achieving a climate neutral energy system.
Through her role in EDSN, the shared IT service provider for the Dutch energy system, Nienke sees several shifts developing in energy IT and infrastructure. Specifically, she points to flexibility means, the optimization of IT systems and using real-time data.
‘’If accelerating the energy transition is the goal, then real-time data and flexible, efficient IT systems are critical’’, says Nienke, suggesting the creation of “an agile system that can find the optimal balance between molecules and electrons, so we can use our energy and its infrastructure in the most efficient way.”
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Following the release of CGI’s 2023 Voice of Our Clients global research, Peter Warren sits down with Patrik Mardell to discuss macrotrends and industry insights for the latest episode in our Energy Transition Talks podcast series. Focusing on the data from the 173 energy and utilities executives interviewed, they reveal top business priorities globally and explore the growing importance of quality, timely data and automation in advancing the energy transition.
This year’s Voice of Our Clients global research revealed that top macrotrends facing organizations include the fight against climate change, investing in technology to accelerate digital transformation and addressing changing social demographics and shifts in the world economic order. Underpinning most executives’ strategies and solutions to address these challenges? Data.
However, Patrik Mardell highlights, data isn’t new; data has been a key focus in energy and utilities for decades. “You could say that the energy sector has been almost early adopters with data,” he says, “because you could not run energy production without good data. You cannot distribute power in cable and wires without good data.”
In Patrik’s view, what’s changing is the quality, timeliness and intelligent application of the data.
Peter Warren agrees: “When we asked where people were going to be investing over the next three years, not surprisingly, data management and governance and data quality were very high.”
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In our latest Energy Transition Talks podcast, Andrea Grad of CGI’s Unicorn Academy speaks with energy transition experts Karl Schmalz and Martin Tauer. Looking at Europe, and within Germany in particular, they discuss net-zero targets, reporting challenges and the role of innovation and data in accelerating progress.
Approaches vary by region and infrastructure
While the global target for net-zero greenhouse gas (GHG) emissions is 2050, some countries have more ambitious goals. For example, Germany’s target is 2045, and some of its regions and cities have even earlier dates.
Sustainable energy is already a hot topic. However, not all regions or organizations are equipped with the same tools or environment to transition as quickly or seamlessly as others. As Martin shares, this contributes to varying targets, approaches, and success factors.
The City of Bremen, for example, aims to achieve net-zero by 2038, 7 years earlier than the German national goal. Bremen benefits from climate-relevant infrastructure such as seaports, logistics, handling, and cruise terminals. As a leading industrial hub, the City’s focus for the energy transition is on their prominent metal industry.
Specifically, they plan to produce green steel by incorporating hydrogen into the production process. As Martin explains, “This is a very urgent topic and a very high priority project, because the failure in this one goal would completely compromise the ambitions for the City’s climate neutrality by 2038.”
Karl agrees that green hydrogen, in particular, is increasingly vital to achieving net-zero. However, the approach and policy are integral to a successful transition. Something he sees working well in the “active” transition in Germany is the integration and adaptation of photovoltaic production. “I personally see it as a good way to stabilize the grid with large numbers of installations in private households, whereas the wind energy will serve to stabilize the larger consumers in the industry,” he comments.
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In our latest Energy Transition Talks podcast, Peter Warren continues the discussion in part two of our series with energy transition and decarbonization expert Pedro Carmo. Building on the previous episode, they discuss the state of the energy market, the role consolidation is playing in accelerating the race to net-zero and how a gradual, step-by-step approach is key to achieving decarbonization targets.
As Peter Warren and Pedro Carmo discussed in part one of this series, a net-zero future will involve divergent paths and speeds. However, opportunities to accelerate decarbonization activities exist across the industry, regardless of where organizations are on their respective journeys.
Emerging market trends such as consolidation and asset rotation are helping organizations to speed up their energy transformation, while also creating new opportunities for cross-industry innovation. What do these trends mean for the industry and net-zero targets? How do organizations address business and IT challenges that come with consolidation? And what does the future of the grid look like?
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In our latest Energy Transition Talks podcast, Peter Warren kicks off the first of two episodes with energy transition and decarbonization expert Pedro Carmo, exploring challenges, strategies and solutions for the journey to net-zero. Focusing on hard-to-abate industries, they discuss approaches to decarbonization, success stories and the vital role real-time data plays in driving returns on investments.
Ambitious net-zero targets and sociopolitical context are driving momentum for the energy transition across all sectors. However, not all industries are readily adaptable to these targets, and a net-zero future will involve divergent paths and speeds. Hard-to-abate industries, like mining, fertilizers, steel, aluminum, industrial transportation and aviation, present complex decarbonization challenges. But, as Pedro Carmo points out, net-zero will only be possible if we also decarbonize industries like mining, steel and fertilizers, which are heavy producers of CO2.
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Net-zero and green economy goals increasingly require organizations to disclose transparently the financial risks posed by climate change. In this episode of our Energy Transition Talks podcast series, CGI experts Rich Hampshire, Matthew Ayearst and Peter Warren discuss the future of the energy market and the role of Taskforce on Climate-related Financial Disclosures (TCFD), data and collaboration in advancing sustainable finance and the energy transition.
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For decades, energy and utilities companies have invested in infrastructure to collect, store, analyze and use data. Today, savvy digital consumers and advanced cloud technologies are driving demand for timely, cost-effective data that stakeholders can access and act on. As a result, data governance is moving away from IT-centric conversations, toward business-ownership models. In this climate, what role does data governance play, who is responsible for it and how is it helping energy and utilities operations? In our latest Energy Transition Talks podcast, Peter Warren explores these questions with data and analytics experts Diane Gutiw and Paul Kulpas .
There is no lack of data in energy and utilities. The challenge is knowing where the data is, getting it quickly, making sure it's accurate and using it to drive decisions.
Several factors are driving greater demand for data in the industry, including consumer expectations, cost-effective technology and decades of investment in data collection. According to Diane Gutiw, this creates a “perfect storm for data and analytics to be the future” of the industry.
Digital consumers expect their power providers to personalize their services and offer options for smarter, greener and lower-cost energy. The cloud is another data accelerator, because it makes it easier and quicker to pull information together and present it to different stakeholders. These drivers shape and normalize stakeholders’ expectations for data that they can easily access, quickly understand and readily trust to inform their decisions and actions.
Data ownership moves from IT to business
Traditionally, data and the tools used to extract it belonged to IT. Now, business analysts and leaders are taking more ownership of data because of its business value. Energy and utility organizations are making several changes as a result. For example, they are spinning off new departments, branches and expertise (e.g., power users) focused on digitization and analytics, whereas IT now provides more of a stabilization platform and support.
Energy companies and utilities also are creating more interactive dashboards to allow executives to follow the data story and see cause-and-effect. “That's the real shift that all the technology platforms are moving towards,” notes Gutiw, “and cloud is making it faster and faster to do that.” She adds that the key is self-service, regardless of role (e.g., data scientist, business analyst, executive, etc.).
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Our latest Energy Transition Talks podcast explores the future scenarios that Fingrid (Finland’s state-owned transmission network operator) develops to improve their strategic planning and keep them on course to meet Finland’s net-zero targets. Fingrid executives Mikko Heikkilä, head of strategic grid planning, and Risto Kuusi, senior expert in strategic planning, speak with Karina Terekhova of CGI about the goals and benefits of their scenario planning approach.
Future scenarios all meet carbon neutrality targets
Fingrid’s future scenarios are a novel, efficient way to project the future using a probabilistic approach of what might happen and how to prepare. The scenarios have implications for Finnish energy markets as well as in the Nordics and more broadly in Europe.
As part of their every-second-year planning cycle for their main grid, Fingrid drafted four scenarios for the future to ensure the grid will serve its purpose. A common driver for all scenarios is meeting Finland’s target to become carbon neutral by 2035.
The four scenarios are:
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Power to products, which assumes that Finland becomes a major industrial hub for power to products like fuels, materials and chemicals.
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Hydrogen from wind, which assumes that Finland becomes a major exporter of green hydrogen.
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Windy Seas, whichlooks at large-scale expansion of offshore wind compared to onshore wind in the other scenarios.
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Local power, which looks at distributed solar, distributed batteries and even small modular nuclear power in Finland in 2035.
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Effectively managing growing distributed energy resources (DERs) is at the heart of successfully navigating the energy transition and supporting decarbonization. In this episode of our Energy Transition Talks podcast series, CGI experts Matt Marrow and Vincent Dufresne discuss the importance of being prepared for the impending uptake of DERs and electrification, and the role of enterprise-caliber distributed energy resource management systems (DERMs) to enable a stable, resilient and decarbonized future grid.
The high penetration of variable new renewables such as large solar and wind farms calls for transforming traditional distribution systems operating models. Distributed energy resources, including building-integrated solar photovoltaic (PV) panels, back-up generators and energy storage devices (often located behind the meter), as well as demand response resources. "All of these DERs support the increasing penetration of clean variable renewables, which have become very affordable," states Vincent.
However, with potentially millions of DER endpoints connecting to the grid, gaining visibility and control over them is an increasingly complex task. Vincent says DERMS can play a pivotal role in monitoring, controlling and operating all types of DERs. "What a DERMS does, ultimately, is that it enables utilities to control all of those resources and make them more valuable to everyone, and to contribute to the energy transition."
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In this episode of our Energy Transition Talks podcast series, Frederic Lesieur and Peter Warren discuss insights from CGI Voice of Our Clients (VOC) interviews with 167 energy and utilities executives this year. They explore a variety of topics, including the energy transition and the impact of macro trends such as climate change, as well as the importance of cybersecurity, change management and innovation.
Climate change is evident, and energy and utilities organizations are key actors in achieving net-zero objectives. Embracing a culture of sustainability is critical to their own success and to their ability to serve customers who are demanding greener energy. According to Frederic Lesieur, this is the first element of the energy transition.
The second element he says is how we consume energy. Today, customers increasingly want to be part of the solution and are looking for ways to be more energy efficient . "I think it needs to be top of mind for C-level executives in the industry that they may engage their customers in this journey," suggests Lesieur.
This year in our VOC interviews, the highest number of executives who view sustainability as highly core to creating future value are in oil and gas (77%), followed by transportation (75%), utilities (63%) and manufacturing (74%).
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Développement durable et tendances futures en matière d’efficacité énergétique
Avec Sébastien Fournier, Président et directeur général d'Hilo
Dans la province du Québec, au Canada, Hilo est une filiale d’Hydro-Québec qui offre des services clés en main de gestion énergétique aux clients résidentiels et commerciaux afin de soutenir la transition énergétique. Dans l’épisode 11 de notre série de balados Parlons transition énergétique, l’expert de CGI Frédéric Lesieur discute de développement durable et des tendances futures en matière d’efficacité énergétique avec Sébastien Fournier, chef de la direction d’Hilo.
Hilo a pour mission de développer des services de gestion de l’énergie novateurs et à valeur ajoutée, qu’il s’agisse de mettre en œuvre des solutions résidentielles intelligentes ou d’aider les entreprises à réduire leur empreinte carbone et leurs coûts énergétiques. Les offres futures appuieront la mobilité électrique, le stockage intelligent de l’énergie et la production autonome d’énergie solaire.
Concrètement, Hilo propose une solution à demande-réponse fiable, automatisée, fondée sur le nuage et intelligente pour optimiser la demande en électricité pendant les périodes de pointe de consommation hivernales. L’objectif de l’entreprise est d’agir comme une centrale électrique virtuelle en équilibrant la production d’électricité et la demande en énergie des ménages et des bâtiments commerciaux.
Selon le chef de la direction d’Hilo, Sébastien Fournier, l’entreprise « invite ses clients à éviter de consommer de l’énergie pendant les périodes de pointe en échange de récompenses en argent. Nous les payons pour leurs efforts. » Les clients sont récompensés lorsqu’ils réussissent à accomplir certains « défis » qui consistent à diminuer de quelques degrés la température de leur maison ou de leurs bâtiments commerciaux pendant les heures de forte consommation.
Aider les consommateurs, les entreprises et les services publics à réduire leur consommation énergétique
Le modèle d’affaires d’Hilo est unique parce qu’il sert trois différentes parties sous un même toit pour aider à réduire la consommation d’énergie.
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Pour les clients résidentiels, l’entreprise offre un service de maison intelligente clés en main, c’est-à-dire une solution comprenant l’installation et tout l’équipement nécessaire.
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Pour les clients d’affaires, Hilo fournit un système de surveillance énergétique, y compris un tableau de bord pour la gestion de la mobilité électrique, le stockage de l’énergie et les panneaux solaires.
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Pour les services publics comme Hydro-Québec, Hilo joue un rôle de « centrale électrique virtuelle » pour faciliter la gestion des périodes de pointe hivernales. L’entreprise envisage aussi de nouveaux services pour doter le marché de mégawatts pendant la période estivale afin que la société de services publics puisse exporter plus d’électricité ou d’énergie vers une autre région, ou pour l’aider à gérer la fréquence du réseau en temps réel.
compenses.
In the province of Québec, Canada,Hilo, is a subsidiary of Hydro-Québec that offers turnkey energy management services to both residential and business customers to support the energy transition. In episode 11 of our Energy Transition Talks podcast series, CGI expert Frédéric Lesieur speaks with the CEO of Hilo, Sébastien Fournier, about sustainability and future trends in energy efficiency.
Hilo’s mission is to develop innovative, value-added energy management services, from smart home offerings to helping companies reduce their carbon footprints and energy costs. Future offerings will support electric mobility, smart energy storage, and solar self-generation.
In practical terms, Hilo provides a reliable, automated, cloud-based, smart demand-response solution to optimize electricity demand in peak winter periods. The company’s goal is to act as a virtual power plant, balancing power generation and the energy demands of households and commercial buildings.
According to Hilo CEO Sébastien Fournier, “Hilo invites its customers to shift their energy consumption away from peak periods and enjoy cash rewards. We pay them for their efforts.” Customers are rewarded for meeting “challenges” to lower the temperature of homes or buildings by a few degrees during peak hours.
Helping consumers, businesses and utilities reduce consumption
Hilo’s business model is unique because it serves three different parties under one roof to help reduce energy consumption:
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For residential customers, they offer a smart home service. It's a turnkey solution where they install and subsidize the equipment.
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For business customers, they subsidize an energy monitoring system, including a dashboard to manage electric mobility, energy storage, and solar panels.
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For utilities, like Hydro-Québec, Hilo serves as a “virtual power plant” to help manage peak winter periods. They also plan to introduce services to provide the market with summer megawatts so the utility can export more energy or power to another region, or to help the utility manage the frequency of the network in real time.
Hilo’s performance to date has exceeded expectations. “The power and energy that we were able to shave or shift are about twice the volume we initially expected,” says Fournier. “Last winter, on average, our customers accumulated more than $166 in rewards. But, also, we were able to achieve more than 15% of energy efficiency on their electricity bill. So, on average, if we're talking in kilowatt hours, that's more than 316 kilowatt hours per house. We expect in 2028 to be able to manage more than 600 megawatts for the network.”
Sustainability is very important for both consumers and business, and more and more companies have set targets for decarbonization. Fournier sees great enthusiasm in Hilo’s customer base for their services—both residential and commercial.
Additionally, Québec’s climate plan for 2030 offers important benefits for building owners. It will reduce a building's energy cost by improving energy consumption, and enable building owners to be leaders in the energy transition. This is a major competitive advantage in the real estate sector that will attract and retain tenants concerned about their energy bills and the environment. Fournier adds, “So, companies are … interested in the rewards, but are also very interested in making a difference and participating in this greatly needed new way of managing energy.”
As Europe advances its vision of a hydrogen economy, what are some lessons learned for North America? In episode 10 of our Energy Transition Talks podcast series, CGI experts Frank Sent and Mark van Engelen discuss the foundational aspects of unlocking the potential of hydrogen, from regulations and funding to collaboration and innovation.
Europe is making significant strides in exploring hydrogen's potential to meet ambitious net-zero emissions targets, through a mix of funding, innovation, ecosystem collaboration and strategies.
For instance, there are about 35 hydrogen valleys worldwide, of which 24 are in Europe, says Frank. These projects simulate a hydrogen ecosystem, from production and storage to transportation and consumption, to learn about the technology needed and how the value chain could work. "I think this could also be applied in North America as well,” says Frank.
Another example is the European Hydrogen Backbone (EHB) initiative focused on a dedicated hydrogen transport infrastructure across Europe. "There are 31 transport service operators (TSOs) in Europe working on how to transport hydrogen from different suppliers to the industries, which have the biggest need for hydrogen," says Frank. He adds that the war in Ukraine ~~war~~ has accelerated efforts to expand the hydrogen pipeline infrastructure from previously set targets.
Driving forward data-driven decision-making
As data becomes increasingly important, Mark notes North America has invested in data lakes to understand asset performance and build automation on top of those data sets. "These technology and data advances can help make hydrogen technology even more efficient than a couple of years ago," he says.
In this regard, sector coupling will become relevant to understanding what is happening across electricity, gas and hydrogen grids. Frank says data is essential to decide when to produce hydrogen or inject electricity or hydrogen into the grid.
Moreover, Frank foresees data lakes becoming more popular. "You have to consider many attributes like the weather forecast, market price, stock market price, demand and supply of hydrogen and other energy sources. You need to work with the data in real-time, and the energy and utilities sector will see a drastic increase in machine learning and data scientists in this area," he says.
In North America, Mark shares that some organizations have been focused on automation for several years to leverage AI and machine learning on their data sets and provide streaming data to operations. "We're also seeing an increase in satellite information to ensure the safety and integrity of pipelines," adding that he expects to see the same trajectory for hydrogen, which will be treated as a new asset.
Industry 5.0 objectives of human awareness and sustainability require a complete rethink of manufacturing operations. In part 9 of our Energy Transition Talks podcast series, CGI expert Helena Jochberger shares with Peter Warren how the energy transition is fueling this transformation and the role of digital technologies, data and ecosystem collaboration in supporting a green future in manufacturing.
"Manufacturing is at a turning point," says Helena. In the last decade, the industry has focused on Industry 4.0 objectives of digitizing processes, achieving operational excellence and making the business more agile. Due to the accelerating climate crisis, sustainability has become a key factor that manufacturers need to consider, which complements the European Commission's definition of Industry 5.0 and its focus on human awareness and sustainability.
Technology as an enabler to drive sustainability
Governments and legislation are pushing organizations to meet 2050 net-zero greenhouse gas emission reduction goals. At the same time, the long-term effects of the pandemic continue to plague the industry. "We live in such a volatile or VUCA (volatility, uncertainty, complexity and ambiguity) world" says Helena. The energy life cycle has become very complex. "There are multiple benchmarks, including technical, social, economic, and environmental aspects," she adds. Technology can be an enabler and accelerator of environmental sustainability within manufacturing. "Especially data analytics can support multi-criteria decision-making in real-time for energy planning, optimization and consumption."
On the one hand, digital factories or smart factories are poised to realize Industry 4.0 objectives while striving for true sustainability and human-centricity. On the other hand, technologies like digital twins that offer granularity at the machine level can help achieve energy-saving targets. "A digital twin of the value chain is a good example of how manufacturers can get a clear picture of actual performance and improve their situational awareness and operational flexibility," Helena comments.
Investing in clean energy infrastructure
She also notes that players in the European aviation industry have been looking at alternative propulsion technologies for a few years now. These explorations are around electric options for short-haul flights, with hydrogen likely winning out for long-haul journeys. "There's really a revolution going on, though not immediately, because you have long development cycles, especially in aerospace," she says, adding that this transformation will include huge process and system design changes.
However, this shift will also require supporting infrastructure. With many companies committing to 2050 as their climate-neutral targets, Helena says it will be interesting to see how fast the industry evolves to meet them: "I think infrastructural changes need to be accompanied by governmental policies and structures to speed up the process."
Investments in clean energy and supporting infrastructure are crucial to realizing a low-carbon future. In Part 7 of our Energy Transition Talks podcast series, CGI experts Andy Schmidt and Peter Warren discuss how the financial services industry is influencing the energy transition and its role beyond that of a "gatekeeper" in driving sustainability and mitigating climate change.
For years, the financial services industry has supported energy and utilities customers with traditional products like loans, lines of credit, insurance policies, and investment portfolio management. Of late, the industry is taking a more discerning look at sustainable investment opportunities within energy and utilities to help all of its customers become more sustainable.
This interest, says Andy, is fueled primarily by regulatory, customer, and board-level sentiment about the energy and utilities industry's impact on climate change. It also is driven by the opportunity to move beyond the role of "gatekeeper" to that of an effective industry partner.
There's a realization, he says, that the financial services industry has a specific role to play in helping businesses of all types drive sustainability and mitigate the effects of climate change. "At Sibos last fall, banking leaders were very clear that their goal is to incent, partner, and find a common path forward to become greener, more sustainable, and more climate-friendly in terms of how business is delivered."
In the second part of our Energy Transition Talks podcast series on environmental sustainability, CGI experts Nicole Zethelius, Rich Hampshire and Peter Warren discuss energy and utility companies’ need to invest in collecting relevant environmental, social and governance (ESG) data to ensure accountability, transparency and auditability and deliver business growth. This article provides a summary of the discussion.
Data is a key enabler to trace and measure environmental sustainability-related factors across Scopes 1 through 3 as defined by the Greenhouse Gas (GHG) Protocol, from energy and resource use to GHG to supply chain performance. However, while energy companies and utilities are rich in data, they aren't necessarily tracking the relevant ESG data throughout their digital value chains to take measurable, transparent and traceable actions.
The imperative to reduce Scope 3 emissions
The three scopes defined by the GHG Protocol are:
· Scope 1: Direct emissions from company-owned and controlled resources, which include a company's headquarters and purchased vehicles used to get to and from office premises.
· Scope 2: Indirect emissions from the generation of purchased energy, including heating, ventilation and air conditioning.
· Scope 3: All other indirect emissions from activities not owned or controlled.
The importance of Scope 3 emissions is growing. Nicole explains that such emissions account for anywhere between 70-90% of a business's operations. "It's their supply chain, lease assets, investments and logistics. It's everything that is relevant to what's driving ESG and what's driving negative environmental impact," she says.
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Energy and utilities companies increasingly recognize that environmental sustainability is both a business imperative and competitive differentiator. In this two-part episode of our Energy Transition Talks podcast series, CGI experts Nicole Zethelius, Rich Hampshire and Peter Warren discuss the need for relevant and actionable data to advance the energy transition.
With a long-term focus on improving operational efficiency, energy companies and utilities often reduced environmental impacts as well. But today, there is a pressing demand for them to push forward their environmental, social and governance (ESG) agendas. In the 2021 CGI Voice of Our Clients findings, 70% of oil, gas and utilities executives feel strongly that sustainability is core to their ability to create value for customers.
Making informed energy choices with relevant data
The energy and utilities sector is an essential piece of a highly complex sustainability puzzle. One challenge is that definitions and terms differ significantly across cultures and geographies. Nicole notes that overcoming this challenge requires a "clear common denominator of information for consumers and businesses on the best practices and best solutions around energy." Measurable, quantifiable, qualitative and quantitative information is needed to assess the entire life cycle of energy sources to make informed decisions about sustainability.
Rather than viewing an energy source simply as "green" or "not green," Nicole suggests the focus be on gauging how mature and prepared the energy type is to meet future fundamental shifts in society or the environment. "We need newer and different types of data to assess [an energy source] and look at it from a much longer-term perspective," she says.
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The energy and utilities industry is increasingly using space data to support the energy transition and deliver faster and better services at lower costs. In Part 5 of our Energy Transition Talks podcast series, CGI experts Harjit Sheera, Martin Hunt, and Peter Barnes explore the benefits and challenges of harnessing space data.
Satellites generate enormous volumes of data that energy and utilities companies are looking to transform into actionable insights to support the energy transition and decarbonization initiatives. Examples range from combining satellite data with other sources, such as LIDAR, to enable accurate rooftop solar power generation calculations, and proactive and targeted management of infrastructure.
Using space data to advance micro-generation initiatives
In Northern Europe, says Martin, there is growing interest in microgeneration, especially from private households and apartment buildings. CGI's operations in Estonia support this transition by using open space data, provided either by satellites or light detection and ranging (LIDAR), to enable accurate rooftop solar power generation calculations. "Based on this data, we can make quite precise calculations on what the solar energy production potential for each and every household would be," he says.
He explains that evaluating a specific building's potential to generate electricity from solar panels requires analysis of the building's roof, angle, azimuth, and geographical location. Using Earth observation (EO) data, it becomes possible to create a three-dimensional model of the roof to detect such characteristics as well as any obstacles that may prevent mounting the panels. "Basically, you can calculate the total area suitable for the solar panels," says Martin.
It's also possible to calculate the amount of annual solar radiation and average temperatures in that specific region or location to predict potential production, and assess if micro-generation is feasible. More
Energy storage is a key enabler of a low-carbon future. In Part 4 of our Energy Transition Talks podcast series, CGI experts Alain Sayegh and Venk Gopal discuss energy storage as a new distributed energy resource and the role of data, digitization and legislation in unlocking its transformative value.
Renewable energy demand is growing, driven by the urgent need to meet climate and decarbonization goals. Due to the intermittent nature of renewable energy, however, advancing energy storage is critical to effectively manage demand and supply, implement microgrids and assure greater resilience, flexibility and energy security.
Potential benefits of energy storage
The benefits and return on investment (ROI) of energy storage, explains Venk, can be categorized into three broad categories based on the business and use cases:
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For consumers and society, it offers increased decarbonization and reliability.
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For transmission and distribution utilities, it leads to deferred or avoided costs and, importantly, improved power quality.
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For energy markets and their operating entities, it drives flexibility, demand response, ancillary services and other grid and market functions at the wholesale and retail level.
"What's interesting is that the underlying technology is becoming more affordable and easily accessible, leading to the challenges on how we integrate this into our overall ecosystem," says Venk.
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The energy market is evolving, driven by climate goals and related demand for renewable energy and growing interest in hydrogen as an energy carrier. Part 3 of our Energy Transition Talks podcast series features CGI experts Martijn Frints and Tom van der Leest on the promising role of hydrogen in the new energy market, including the challenges and opportunities of moving toward an integrated, green hydrogen economy. This article provides a summary of the discussion.
It is a highly challenging period for the energy market. Fluctuating energy costs and net-zero greenhouse gas ambitions are accelerating the move to greener energy. However, growth in renewable energy and distributed energy sources, predicting consumption and productions patterns is becoming increasingly difficult.
Pivotal role of hydrogen
The seasonal and unpredictable nature of solar and wind energy has heightened the focus on energy storage, and at the same time, is bringing market flexibility into sharp focus. Here's where hydrogen can play a potentially pivotal role.
Hydrogen is an energy carrier. This means it provides the opportunity to store and transport energy from where it is produced to where it is needed, adding a new dimension to energy market management. Currently, the bulk of hydrogen produced is mainly from fossil fuels such as natural gas, which is used as feedstock in chemical processes. This type of hydrogen (called grey hydrogen) releases carbon dioxide into the air and has a significant carbon footprint. The focus for the future, is on a more sustainable form of hydrogen called green hydrogen. Green hydrogen uses electricity from renewable energies to split water into hydrogen and oxygen through electrolysis. No CO2 is produced in this method, making it the "cleanest" form of hydrogen fuel. Read more on Hydrogen | CGI.com
In Part 2 of our Energy Transition Talks podcast series, CGI experts Rita Burnay and Peter Warren explore the trends in renewables management, including the growing importance of data, green hydrogen and cloud to support the evolving energy economy. This article provides a summary of the discussion.
From a niche market, the renewables sector is evolving into a global industry with a pivotal role in the energy transition and the quest for a more responsible and sustainable future. Today, the major renewable energy sources are hydro, wind and solar. Wind and solar currently account for 700,000 gigawatts of installed capacity; yet, they represent only 50% of the hydro energy produced. "There is a lot of space to grow. As portfolios become larger and wider, and the footprint of renewables gets bigger, it's [becoming] a totally different world from the niche market a few years ago," says Rita Burnay.
Importance of interconnectivity
Accelerating digitization and enhanced interconnectivity are key driving forces of the evolving energy value chain. The focus is on owners, owner-operators, and grid operators in renewables management. "For these three market players, there is a lot more of a need to build effective management systems that require digitizing operations and more interconnectivity between all systems," says Rita.
The benefits of interconnected systems are manifold. Grid operators gain complete visibility of the portfolio and production, while operators and owner-operators can forecast production and conversely align production based on forecasts. In addition, better connectivity supports workforce management for asset maintenance and insight-led market decisions, including what and how to produce, how much to store and sell, etc.
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In our Energy Transition Talks podcast series, CGI experts explore key challenges and opportunities in the evolving energy value chain. In our first episode, Kristy Ortiz and Steve Ridley discuss the impact of grid modernization on the energy distribution system — from policy and market changes to technology advances. This article provides a summary of the discussion.Not long ago, traditional utilities focused on generating electricity and transmitting and distributing it to end customers. Now, with increasing distributed energy generation such as renewables, the role of traditional transmission and distribution utilities is changing. Additionally, energy consumers, who now are producers of their own electricity (or prosumers), are interacting directly with the grid.
“I’ve never seen change at this velocity before within the utilities industry,” says Steve Ridley. He likens the shift to what happened in the movie and television industry when its distribution channels evolved from theatres and cable TV channels to today’s plethora of streaming services. “Look at platforms like YouTube or Tik Tok where consumers are now pushing their own content out on the Internet,” he says, drawing a parallel to consumers generating their own power from solar panels and feeding it back to the grid. More on CGI Energy & utilities