Digital consumption is a growing part of the global economy. But even non-digital trade in goods and services increasingly depends on data to function effectively. Just as early economic progress was determined by a steady supply of hydrocarbons, the fourth industrial revolution will stand or fall on its ability to exchange and manage data. Our sustainable future depends on it.

The compliance challenges

Businesses and communities have recognised the urgent need to reduce carbon emissions, and environmental regulations are increasingly exacting. This requires collective measures to quantify and mitigate environmental impacts. But the burden of compliance on organisations is potentially onerous.

Practical digital tools

For a start, it involves recording your company’s environmental footprint over time and reporting to stakeholders. Recycling, input substitution and the use of carbon offsets all need to be monitored to optimise resource management. Without practical digital tools, most businesses struggle to meet these challenges, or act on them effectively.

Sustainability insights in the cloud

Collaboration with our partners and customers confirmed that automation and data connectors are essential for turning good intentions into action on carbon emissions. We therefore developed a suite of industry-specific cloud offerings that could marshal the capabilities of the entire Microsoft cloud. We wanted to give customers the benefit of accurate real-time data insights to help drive agility and innovation, as well as more sustainable operations.

Accelerate progress on emissions

The Microsoft Cloud for Sustainability helps organisations accelerate their progress in recording, reporting, reducing and replacing their emissions. It provides integrated and automated data insights drawn from across the business to guide more effective actions.

For example, scattered emissions data can be presented in a unified view to enable better reporting. Companies can offer sustainability scorecards to customers who’d like to track progress against their own emission reduction targets. Microsoft Azure also enables you to pinpoint emission areas that require special attention.

Flexible systems to manage intermittent supply

Actions at a company or individual level drive progress towards net zero. But sharing data at an industry-wide or even global level adds greater value still. This is particularly true of clean energy, which needs high quality, shared data to balance supply and demand for the grid.

Energy from renewable sources such as wind tends to be intermittent, which legacy energy systems weren’t designed to handle. High levels of data integration and automation can make these systems more flexible, however. For example, by enabling intelligent demand management in the cloud, it becomes easier to balance the grid.

“Today we still have a 20th century grid, contorting itself to meet the interdependent demands of clean but intermittent renewables, growing demand, accessible and affordable energy for all, and energy security. We need a new 21st century grid that can seamlessly link demand and production, and this will only be possible with real-time, robust data.”

Mike Barry, Sustainable Business Expert

Shared data enables collective action

Market stakeholders need to share data freely to make this approach work in practice. But is the market ready or able to deliver this unprecedented level of data-sharing and cooperation, in what is supposed to be a competitive environment? Until regulators decide to step in with legislation that actively requires companies to share data, businesses need to accelerate their own transition to a more sustainable future. Fortunately, the cloud offers a highly flexible means of doing this.

Sustainable solutions in the cloud

At Microsoft, we’re committed to delivering trusted, integrated, data-driven solutions to accelerate the energy transition. Microsoft Azure and Microsoft Energy Data Services enable you to deploy cloud, data, and AI for improved KPIs that guide more effective operational decision-making and provide best-in-class sustainability metrics. With useful and reliable data insights available in the cloud as a single source of truth, your company’s culture can get aligned around sustainable growth.

Foundations for a lower-carbon future

By embracing the potential of Microsoft Cloud, you put in place the digital foundations for a lower-carbon future in which shared data and industry-wide collaboration can flourish. Learn more about Microsoft’s Cloud for Sustainability and other initiatives to accelerate your journey to net zero, such as the use of quantum computing to solve problems around the shift to renewable energy sources.

Find out more

5 steps to decarbonise the energy sector and reach net zero – Microsoft Industry Blogs – United Kingdom

Increasing transparency for carbon credits with Environmental Credit Service – Microsoft Industry Blogs

What’s new with Microsoft Cloud for Sustainability – Microsoft Industry Blogs

About the author

Kevin is responsible for developing the UK strategy in energy and utilities, supporting the enterprise commercial team to help clients achieve more. Working as part of the leadership team in Manufacturing and Resources for Microsoft UK, he supports the development of new digitally enabled markets, helping Microsoft continue its transformation from a technology vendor to a trusted partner.

Kevin is an Honorary Research Fellow with Warwick Manufacturing Group, supporting leading academic work to help solve infrastructures challenges in cyber security. He also works across government, academia and industry within the Construction Leadership Council, helping to accelerate digital transformation within the built environment.

The post Empowering the sustainable economy with data-driven clean energy appeared first on Microsoft Industry Blogs - United Kingdom.

New infrastructure, new business models, new partnerships, new energy markets, unknown costs – this complex terrain is uncharted. So, given the industry’s net zero aspirations and goals to decarbonise, how can business decision-makers make the most of today’s unique opportunities, while mitigating the accompanying risks?

Together with Avanade and Accenture, we’ve created a five-pillar approach to decarbonise the energy sector. It incorporates targets for reducing system costs and goals for boosting and balancing the national energy supply. It also advocates that stakeholders adopt open data principles, new skill sets and a shift in organisational culture. This will support innovation and new business models.  

1.      Decarbonise energy supply

A 25 percent reduction in the levelised* cost per megawatt-hour of grid-scale renewable revenue streams, maximise renewables and optimise nuclear energy value.

*Lifetime costs divided by energy produced.

Core to the government’s aims to reach net zero by 2050 is the goal to decarbonise the energy sector. The government expects emissions need to be reduced by at least two-thirds by 2035 and by at least 90 percent by 2050.

The sector has already significantly cut the levelised cost of wind. However, we believe more can be done with the help of data analytics. For example, Danish renewable energy supplier Ørsted constantly streams data from thousands of turbines. Using Microsoft-powered analytics and AI, it can maximise capacity and drive down operational costs by predicting and pre-empting usage. As a result, they’ve been able to reduce coal consumption by 82 percent in the last decade. They’re planning to fully phase it out by 2025.

2.      Balance the system

Operate a zero carbon electricity system by 2025 and cut the cost of connecting generation, storage and load by 20 percent.

By balancing hydrogen storage through the production of green hydrogen when there is excess wind power and flexible thermal generation with carbon capture and storage, organisations can build more cost-effective systems.

Along with Accenture, we’ve proposed an industry target to cut the cost of connecting energy generation, storage and load by 20 percent in three to five years.

To achieve this, the energy sector needs to take new approaches to system planning and operations. They can achieve this by using smart technology, such as digital twins. With smart grid solutions to increase visibility and control, the network could also work at higher levels of utilisation. As a result, they can more effectively balance power flows as demand rises.

For example, bp uses Azure digital twins to help their sustainability goals and make the transition to net zero carbon by 2050 or sooner. By looking at past and real time data, they can predict future data and improve the efficiency of their facilities.

3.      Electrify demand

Enable 50 percent of new electrification load (transportation and heating) to contribute to system balancing.

If an integrated digital approach is adopted across the energy system, it will help optimise generation and supply. It will also create a grid in which system balancing can be fine-tuned. In the future, this will enable at least half of new electrification load growth to flexibly contribute to system balancing and/or the overcoming of network constraints.

Additionally, hydrogen has a key role to play. Both to store energy and to help balance the system and decarbonise high-temperature industrial processes where electrification is not viable.

Centrica Storage is working with Net Zero Technology Centre and mixed reality specialist VISR Dynamics with support from Microsoft to grow new ways of working. They use HoloLens 2 to support frontline workers and streamline processes on the way to net zero.

4.      Trusted data

Make industry data trusted, open, secure, consistent, accessible and usable to drive efficiency and innovation.

When an organisation creates or adopts an open data standard, it can ensure consistency and predictability for data users. The data also becomes easier to compare and link up, which encourages interoperability between systems and ways of working. This is a powerful asset in business partnerships. In addition, as data becomes easier to access, open innovation often follows. New ways of working help accelerate development processes, enabling smarter solutions and reducing costs

For example, stakeholders can better assess the feasibility, location and operation of projects, as well as practical questions, such as where to connect to the system.

We already have direct examples of sharing trusted information, with Centrica Storage building cross-industry partners and even tech partners in Microsoft. Our partnership with Accenture, Avanade is also helping UK’s transition to net-zero carbon emissions by empowering energy companies with the tech to reach their goals.

5.      Enable the digital workforce

“A technology-powered workforce which is diverse, inclusive and effective.

Net zero will be enabled by new business models centred on digital ecosystems and the cloud. To realise this vision, organisations will need new skills in communications, data infrastructure, analytics and data science. Radical innovation and systemic transformation are best supported by highly agile, dynamic teams that specialise in digital and sustainability solutions.

Leaders need to build a growth mindset culture and focus on re- and upskilling their workforce to be digital-ready. Our Digital Skills Hub has lots of resources to help organisations build the skills they need now and in the future.

Decarbonise and deliver a net zero future

We believe that if the energy sector can implement these pillars in the next three-to-five years, it will be in a strong position to drive the government’s 2050 net zero target and help create a sustainable future for all.

Find out more

About the author

Kevin is responsible for developing the UK strategy in energy and utilities, supporting the enterprise commercial team to help clients achieve more. Working as part of the leadership team in Manufacturing and Resources for Microsoft UK, he supports the development of new digitally enabled markets, helping Microsoft continue its transformation from a technology vendor to a trusted partner.

Kevin is an Honorary Research Fellow with Warwick Manufacturing Group, supporting leading academic work to help solve infrastructures challenges in cyber security. He also works across government, academia and industry within the Construction Leadership Council, helping to accelerate digital transformation within the built environment.

The post 5 steps to decarbonise the energy sector and reach net zero appeared first on Microsoft Industry Blogs - United Kingdom.