Decoding digitalization trends for the energy transition

CATHRINE JOHANSEN   So, Kurt, what are your thoughts on the role of technology in the energy transition? 

KURT SWAKHOVEN    The energy transition is a lot about decarbonization and lowering emissions. But it's uncharted territory. Many companies are exploring different ways of reducing their emissions and decarbonizing and looking at solar power, wind power, and alternative fuels like hydrogen and ammonia. But if we look at what is happening right now, we see a lot happening around increasing efficiency, repurposing of existing energy infrastructure and, of course, decarbonization.

All these initiatives have a common denominator: the use of digital technology. The effect of digital technologies has driven a lot of growth in the world, making it possible for us to capture, store and analyze data at a reasonable cost. Data is the key to solving some of these problems in this uncharted territory. 

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My name is Kurt Swakhoven, and I am the Director of Software Engineering in Digital Solutions at DNV. I am passionate about technology. Now, being able to use this passion to drive this energy transition that we are all working so hard for just gives me a kick. 

CATHRINE JOHANSEN    My name is Cathrine Johansen, and I work as a Lead UX Designer in Digital Solutions at DNV. I spent most of my career working with software development related to the energy industry, and I'm very passionate about bringing the customers and our users to the centre of our development of product services and experiences. 

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So, you mentioned digital technologies will help us keep up with the energy transition, but are there any technologies that you are very passionate about? 

KURT SWAKHOVEN    I'm passionate about many technologies, but I think two of them stand out within the context of the energy transition. One of them is the Cloud, cloud technology. Cloud technology is not new. It has been around for a while. But it is, in that sense, foundational and has made it possible for us to capture, store and analyze significant amounts of data. I think data here will be one of the clues in helping us along with the energy transition.

The second technology is AI, especially generative AI. AI, again, is not new. We have used it before to optimize and categorize data. But now, with generative AI, sort of AI on steroids, it's taken to the next level. Now, we can recognize patterns, relationships and generate new content based upon that. Within the context of the energy transition, you can only imagine the potential that AI has for solving problems around digital twins and also helping with modelling structures and networks, which are important in solving the problems for the energy transition. 

CATHRINE JOHANSEN    With all this talk about technology, we mustn't forget about the actual problem that we are trying to solve. It's easy to jump into the solution space and start working with the technology. If we spend more time in the problem space, we can ensure that we solve the right problem. And it's important not to apply a new system or technology. That's not enough. As humans, we need to change our behaviour if we want to succeed with the energy transition. So, if we understand the problems, I think we can make solutions that make a difference, showing value. And that's a real driver for change. 

KURT SWAKHOVEN    Yeah. And I'm happy you brought this up because we keep on doing this. Going for the solution without thinking about the problem we're trying to solve. This is, first and foremost, a human problem that we need to solve. And technology in this context can only help us. So I totally agree with you. 

CATHRINE JOHANSEN    We must look at the problem we're trying to solve. But, thankfully, we have access to more and more data now. That makes it possible to analyze user behaviour. We can validate our assumptions and make informed decisions that help us. 

KURT SWAKHOVEN   And you see there, that if you look at technology again, there're clear parallels where you see that a couple of years ago, two decades ago, when the Cloud came on the stage, a lot of companies jumped onto the cloud bandwagon, what they call the cloud-first approach, where technology was leading. 

Now, we're seeing that more and more companies are transitioning to a cloud-smart approach where they think, "This is interesting, but what problems do I want to solve with this technology?" They try to put the technology in the context of the company, the people and the problems they need to solve. 

CATHRINE JOHANSEN    Yeah, when we have access to all of this data, it helps us understand the user behaviour, validate our assumptions, and make more informed decisions. But again, it's not that straightforward to use that data. I know there are a lot of risks applied to it.  

KURT SWAKHOVEN    Yes. Traditionally, using new technology has always introduced new risks, and data will help us, and technology will help us manage that data. But it can only be done if everything is secure. 

CATHRINE JOHANSEN    Right.

KURT SWAKHOVEN    And with both Cloud and AI, specific risks pop up. With the Cloud, you immediately think about cybersecurity; the cybercrime industry is moving forward. We're talking about data privacy data sovereignty. We need to handle all these risks. When it comes to AI, it brings a new set of problems or a new set of risks into the picture when it comes to bias and hallucination, which require us to work more to explain how we use AI in terms of transparency and explainability to make sure that the data is interpreted and processed in the right way. 

But, despite these risks, when these risks are mitigated well, Cloud and AI can help us navigate this uncharted territory of the energy transition. 

Yes, there are risks associated with the introduction of technology. But there also must be a positive side to things. 

CATHRINE JOHANSEN    I think there are already some success stories out there that we can be inspired by and help us move faster forward in the energy transition. One example is how electric cars have been adopted in Norway. Last year, 79% of all new cars sold were actually electrical. And I think this has been a success because we have looked at the real-life problems of car commuters. So we have taken those into consideration. And we have, for example, allowed these electric cars to use the bus lane, which saves them a lot of time going to work and helps avoid the traffic. Not only that, they also looked at the entire experience of owning and driving a car. So, they have improved the infrastructure and looked at the experience of charging cars, apps, etc. I would say we probably have too many apps now, but my reflection is how we solved the problem. What if we put the same amount of effort and money into looking at the experience of commuting with public transport? Where would we be today, then? 

KURT SWAKHOVEN    These are success stories, and it will be very interesting to see how they can be applied to the energy transition, which is more in a business-to-business type context. How can we use the same approach when it comes to solar energy, wind, and alternative fuels? 

I think that is the challenge we are facing and need to explore. 

CATHRINE JOHANSEN    I agree, but I think if we start by looking at the problem, really understanding the problem, ensuring that we solve the right problem, then we apply the right technology, we are pretty well set on our way. But, we need to keep iterating, right? We need to experiment. We need to use data and measure and learn and continuously iterate.

I think that's the way forward.