Achieving AI and Machine Learning to accelerate the energy transition

Achieving AI and Machine Learning to accelerate the energy transition

A successful and timely energy transition needs Artificial Intelligence and Machine Learning (AI\ML ) to accelerate change. 
The transition to sustainable construction could well be at the forefront of such a transition.  

Achieving AI and Machine Learning to accelerate the energy transition

Reducing costs, enabling more performant (new) energy businesses and the complex coordination of multiple energy players are crucial in this transformation. However we’re still in the early stages of AI\ML, how can we achieve AI\ML rapid adoption at scale?

Why there is no energy transition without Intelligence Intensity

For the green deal to succeed, we need to start moving towards a whole system approach, interconnecting sectors from diverse energy carriers to industries, transport, and buildings, driving Power-to-X, industrial clusters, industrial smart steering, 24 by 7 green energy matching, hybrid energy parks, and new low-carbon energy value chains leading to billions of networked “things”. Flexible yet complex coordination is required that is close to real-time and optimised for multiple, varying stakeholder interests – impossible to be done by humans.

The key role AI/ML plays in reducing the gigantic investments required for the energy transition can lower the levelised costs of energy, accelerate the issuing of permits and grid connections, and optimise yield, thus speeding up the deployment of the massive renewable generation required. Grid capacity can be expanded digitally, avoiding traditional grid reinforcements that are expensive and time-consuming to build. AI\ML also enables flexibility services coordination for maximum DERs value and infrastructure usage.

Microsoft is fully committed to a rapid AI\ML adoption at scale which is already evolving into a technical reality with higher use than anticipated. Partnerships and co-innovation with clients and partners and the wider ecosystem accelerate the creation of missing digital solutions and the development of digital accelerators for wider, faster, and simpler adoption of digital.

Accelerating AI\ML innovation through open data platforms, open ecosystems, open-source

AI\ML needs a lot of data! Strengthened open energy data platforms give innovators in the ecosystem access in a safe, scalable and performant way to vast volumes of quality data essential to train AI models. Microsoft joined OSDU (Open Subsurface Data Universe) to create an open-source, cloud-agnostic platform to collect subsurface data from O&G operations valuable to O&G but also to renewable offshore players.

Energy Datahubs in Europe also play a vital role in driving innovation. This is why Microsoft and Energinet partnered to co-create the open-source Green Energy Hub blueprints on GitHub for experts to contribute and for others to develop their own data hubs, creating an accelerator for the future smart green solutions.

With AI still in its early stages, it is key to inspire energy players of its successful, tangible impact and to facilitate access to solutions. Microsoft launched the Open AI Energy Initiative (OAI), an open ecosystem for operators, independent software vendors, and equipment providers to offer additional solutions, and the global AI Centre of Excellence for Energy called Microsoft Energy Core features over 40 partner solutions.

The driving co-innovation force of strategic partnerships with energy leaders

Strategic partnerships with market makers enables the acceleration of transformation but also to co-invest deeper and wider in the creation of leading-edge digital solutions for current operations and for the complex chain orchestration needed for a successful energy transition. Foundational research for AI in energy and energy-specific platform-based capabilities are not only developed faster.

These intelligence-intense, leading-edge lighthouse use cases inform the industry for fast followers and create digital optimism for speed. Together we become a driving force for the formation of new value chains, ecosystems, and business models that accelerate meeting the goals of the green agenda.

Utilities specific digital accelerators for wider, faster, and simpler adoption

Energy players want more pre-built capabilities specific to utilities for faster time to market AI\ML models. The 15 years of enhanced utilities-specific industry data models acquired from ADRM exemplify the current enrichment with automation of data ingestion from multiple sources, addressing a major hurdle on data.

Another example is the common domain-specific ontologies that are fundamental to accelerating the development of digital twin solutions. Microsoft, together with Agder Energi, launched the open-source Energy Grid Ontology to be added by others for smart cities and smart buildings.

More broadly, the road ahead is for industry clouds. Energy players can focus much higher in the technology stack at the business applications layer, thus shortening innovation cycles, getting faster into the predictive era, and simplifying adoption.

Through co-investment, Microsoft is accelerating the development of energy-specific platform-based capabilities allowing energy players to focus their AI efforts at the business applications level such as for portfolio optimisation, risk management, and also trading.

WATCH: Why AI is key in solving complex energy transition challenges

Learn more about Microsoft

The above-featured image is of Shell on the very subject of Energy Transition through AI, etc.

Bahrain deploys e-paper displays to increase sustainability

Bahrain deploys e-paper displays to increase sustainability

Opportunities arising from Middle East’s Asian pivot

Opportunities arising from Middle East’s Asian pivot

The Middle East has always been considered an energy exporter to Asean, but this relationship has become more nuanced in recent years, especially as the former has shifted its focus to boosting non-oil exports.

Notably, countries such as Indonesia and Singapore have benefited.

Late last year, the Indonesian government announced they had secured US$32.7 billion worth of investment commitments from United Arab Emirates (UAE) businesses in various sectors, such as vaccine manufacturing and distribution.

“Indonesia is a very typical case of how I think Asean is becoming a magnet for foreign direct investment (FDI) from the Gulf countries,” said Gyorgy Busztin, a visiting research professor at the Middle East Institute, National University of Singapore.

Dr Busztin cited Asean’s political stability (outside of Myanmar) as well as a general lack of labour unrest as key factors that draw these Gulf countries to the region, even as he qualified that these countries have to be looked on a case-by-case basis.

“Compatibility, stability, and predictability, which are, of course, combined with the presence of a large, young, and highly trained workforce – it all comes together very nicely.”

Singapore too has benefited from the relationship.

A spokesperson from the Singapore Business Council, Qatar, noted that with Qatar is diversifying its economy away from oil and gas as part of its National Vision 2030, some of the key sectors they are looking at include sustainability and technology.

These are sectors in which Singapore has strong capabilities, he said.

“This makes businesses that wish to expand outside of the Middle East region look to Singapore as one of the key destinations to explore opportunities and use it as a base to springboard into the wider region due to its strategic location and easy access from the Middle East,” he said.

Alessandro Arduino, principal research fellow at the Middle East Institute at the National University of Singapore, added: “Expertise from Singapore will be beneficial to development in the Gulf and at the same time, can increase profitable cooperation between the Gulf and South-east Asia in areas ranging from artificial intelligence to Internet of Things, and smart cities.”

Leveraging Asean’s strengths

Economic ties between the Middle East and Asean have strengthened significantly since the first Asean-GCC Joint Vision was adopted in 2009.

In 2019, the two blocs further agreed to finalise the Asean-GCC Framework of Cooperation for 2020-2024 to advance collaboration in multiple sectors including smart cities, energy, connectivity, agriculture and halal products. Bilateral partnerships between individual countries have also risen.

The Singapore-UAE Comprehensive Partnership (2019) and the Malaysian Investment Development Authority’s (MIDA) MoU with the Investment Promotion Agency of Qatar (2019) are notable examples.

Opportunities arising from Middle East’s Asian pivot

Heidi Toribio, Regional Co-head, Client Coverage, Asia, Corporate, Commercial and Institutional Banking at Standard Chartered

Heidi Toribio, regional co-head, client coverage, Asia, corporate, commercial and institutional banking at Standard Chartered, said: “As countries across the Middle East diversify into new non-oil sectors, Asean is emerging as an important trade and investment destination.”

In 2020, investments from the Middle East into Asean reached US$700 million, a three-fold growth from 2017. In the first three quarters in 2021 alone, merchandise imports to Asean from the Middle East grew more than 30 percent year-on-year, reaching US$52 billion in value, she noted.

According to a survey of Middle Eastern companies commissioned by Standard Chartered and prepared by PricewaterhouseCoopers, 82 per cent of Middle East respondents expect more than 10 per cent growth in their Asean business revenues this year.

They identified access to the large and growing Asean consumer market (60 per cent); access to a global market (from Asean) enabled by a network of Free Trade Agreements (58 per cent); and diversification of production footprint (51 per cent) as key reasons why they are interested in the region.

The Regional Comprehensive Economic Partnership (RCEP) is also expected to attract more investments; all of the respondents agreed that the ratification of the agreement will lead to more investments from their company. Close to 70 per cent said they expect their company to increase investments by more than 50 per cent over the next 3-5 years.

In terms of geographical preference, respondents chose Malaysia (78 per cent), followed by Singapore (69 per cent) and Indonesia (67 per cent).

Of those who picked Singapore, 94 per cent of the senior executives from the 45 companies based in the Middle East said they consider the city-state a major regional R&D/innovation centre.

A further 87 per cent said Singapore is a desirable hub for regional procurement and that Singapore is an ideal place to set up their regional sales and marketing headquarters.

Finding new growth opportunities

The report identified 5 growth sectors which it expects to drive the future of the Middle East-Asean corridor. They are namely refining and petrochemicals; infrastructure and real estate; renewable energy; retail and consumer goods; and digital infrastructure and services.

Perhaps unsurprisingly, consumption of fuels and petrochemicals continues to grow strongly in Asean, driven by rising consumer and industrial demand. To address energy security concerns, the region is also now focusing on boosting local production capacity by building integrated refining and petrochemical facilities.

Similarly, rapid economic and social progress have accentuated Asean’s infrastructure needs.

“The infrastructure segment will continue to dominate the construction industry, maintaining a 46 per cent share in sector GVA (gross value added) by 2025, followed by commercial real estate (32 per cent) and residential real estate (22 per cent),” said the report.

“In particular, demand for healthcare and transport infrastructure as well as logistics and industrial real estate are expected to drive growth, which is creating new investment and business opportunities for Middle East companies.”

Separately, demand for digital solutions and enabling digital infrastructure is expected to see significant growth. Indeed, the region’s flourishing digital start-ups are increasingly attracting capital from leading investment firms globally, including many from the Middle East.

In terms of more nascent sectors, Asean nations are increasingly prioritising solar and wind solutions to meet their future energy requirements. Retail and consumer goods sector in Asean is also expected to regain momentum in the years ahead, led by an expected surge in consumer spending.

 

 

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Sustainability actions speak louder, says Oracle study

Sustainability actions speak louder, says Oracle study

TECHWIRE ASIA looks like yet another media to confirm that Sustainability actions speak louder, all per an Oracle study.

When it comes to sustainability, how much action is actually taken, given the efforts announced today? While organizations continue to make sustainability announcements and find ways to reduce their carbon emissions, the reality is, that people are fed up with the lack of progress society is making toward sustainability and social initiatives.

According to the No Planet B study by Oracle and Pamela Rucker, CIO Advisor and Instructor for Harvard Professional Development, people want businesses to turn talk into action, and believe technology can help businesses succeed where people have failed. The study involved more than 11,000 consumers and business leaders across 15 countries, including  500 from Singapore.  

The statistics from Singapore show an increasing demand for businesses to step up sustainability and social efforts. In fact, 97% believe sustainability and social factors are more important than ever with 95% also believing that society has not made enough progress.

About half of the respondents attribute the lack of progress to people being too busy with other priorities with 39% believing people are just too lazy or selfish to help save the planet. 53% also believe businesses can make more meaningful changes on sustainability and social factors than individuals or governments alone.

Interestingly, 92% believe businesses would make more progress towards sustainability and social goals with the help of AI, and 62% even believe bots will succeed where humans have failed. For business leaders, they are aware that sustainability efforts are critical to corporate success and even trust bots over humans alone to drive sustainability and social efforts.

As such, 97% of business leaders would trust a bot over a human to make sustainability and social decisions. They believe bots are better at predicting future outcomes based on metrics/past performance, collecting different types of data without error, and making rational, unbiased decisions.

At the same time, business leaders also believe people are still essential to the success of sustainability and social initiatives and believe people are better at educating others on the information needed to make decisions, implementing changes based on feedback from stakeholders, and making context-informed strategic decisions.

Sustainability actions lauded

Another interesting highlight from the survey showed that people will cut ties with businesses that don’t take action on sustainability and social initiatives. Simply put, businesses need to prioritize sustainability and social issues and rethink how they use technology to make an impact, or risk facing major consequences.

The report also showed that if organizations can clearly demonstrate the progress they are making on environmental and social issues, people would be more willing to pay a premium for their products and services, work for them, and invest in their companies. Business leaders understand the importance and urgency with 95% believing sustainability and societal metrics should be used to inform traditional business metrics. 93% also want to increase their investment in sustainability.

For Pamela Rucker, CIO Advisor and Instructor for Harvard Professional Development, the events of the past two years have put sustainability and social initiatives under the microscope and people are demanding material change. While there are challenges to tackling these issues, Rucker pointed out that businesses have an immense opportunity to change the world for the better.

“The results show that people are more likely to do business with and work for organizations that act responsibly toward our society and the environment. This is an opportune moment. While thinking has evolved, technology has as well, and it can play a key role in overcoming many of the obstacles that have held progress back,” added Rucker.

Juergen Lindner, senior vice president, and CMO, Global Marketing SaaS at Oracle also commented that while business leaders understand the importance, they often have the erroneous assumption that they need to prioritize either profits or sustainability.

“The truth is this is not a zero-sum game. The technology that can eliminate all the obstacles to ESG efforts is now available, and organizations that get this right can not only support their communities and the environment, but also realize significant revenue gains, cost savings, and other benefits that impact the bottom line,” said Linder.