How Digitalization Will Help Companies Through the Energy Transition
The global economy faces a twin challenge—to satisfy rising demand for energy amid a population boom while staving off climate change by lowering carbon emissions. This will require a transformation in the way energy is used.
Global demand for energy will increase by 60% in the next 20 years as the world’s population expands. The rising population will increasingly converge on the world’s largest cities, placing more pressure on urban authorities to deliver domestic electricity and industrial energy more effectively and efficiently. Industry and buildings, in particular, account for over 90% of electricity demand according to the International Energy Agency, so boosting corporate energy efficiency becomes a high priority.
At the same time, decarbonizing the world’s energy supply will be vital to hedge against the threat of environmental events caused by global warming. Renewable energy sources will have to grow exponentially by 2050 in order to guarantee sustainable development. According to Bloomberg NEF, clean energy will require an investment of $64 trillion by 2050 to reduce carbon emissions and keep the global temperature increase below 2C.
“We must support the energy transition to zero-carbon through electrification, platformization and digitalization,”
Francesco Venturini, Enel X CEO
Enel X Taking on the Energy Transition Challenge
Enel X, part of the Enel Group, is taking on the challenge as it seeks to deliver on its mission of helping the world transition to a more sustainable economy. “We must support the energy transition to zero-carbon through electrification, platformization and digitalization,” explains Enel X Chief Executive Francesco Venturini.
The company offers its customers a portfolio of advanced digital platforms and solutions that can be tailored according to their specific needs in order to enable improved energy consumption management enterprise-wide. “Our goal is to build a data-driven company able to offer customized solutions geared to respond to the specific and newly developed needs of each of our clients” says Venturini. He describes the company as operating in the “phygital” realm, offering solutions to tackle both physical and digital challenges.
“The digital transformation is closely linked to the energy transformation. It is no coincidence that digitalization, along with decarbonization and electrification, are the three major development guidelines we embraced to develop the Enel Group’s 2021-23 plan,” he adds.
Enel X e-Industries Focused on Digital Solutions
Within the company’s B2B segment, e-Industries, Enel X supplies a wide range of software-based solutions as part of the Enel X Connect offering: an all-in one digital energy suite, which helps companies monitor their energy usage and consumption through a single and easy-to-use access point. By obtaining this information, organizations can reduce their spending on energy, and make more efficient use of energy. Enel X serves businesses in over 100 countries, processes 1.5 million bills each year and has assisted more than 200 customers to reach their sustainability targets so far.
As a starting point, Enel X Connect integrates the Utility Bill Management and Energy Exchange online software in one single user interface. The former is a digital solution aimed at controlling utility costs, energy consumption and various sustainability data; creating accurate performance reports, all with a single tool. The Energy Exchange software assists customers in how they buy energy. By digitizing energy sourcing transactions through competitive reverse auctions, the software helps market participants in buying and selling energy commodities faster and more efficiently. Through the software, Enel X has transacted more than 200 TWh of electricity and have helped customers in signing over 2,000 MW in power purchase agreements and 60,000 GWh of renewable energy.
“We want to help companies along their transformational paths, to discover more intelligent ways to get the most out of energy.”
Francesco Venturini, Enel X CEO
Further leveraging data collection and analysis, the company offers an additional software as part of the Enel X Connect digital suite: Energy Management. The solution allows businesses to collect, analyze and control energy consumption data in real time. As such, users can identify inefficiencies in their energy consumption and obtain updates on how best to improve energy usage.
Another digital solution included in the Enel X Connect suite is Comfort Management, which allows clients to remotely operate devices, such as heat pumps and air-conditioning systems, and monitor air quality standards within their buildings. The implementation of this solution allows companies to regulate energy consumption by reducing the related cost up to 15%; moreover, Comfort Management assists clients in guaranteeing climate comfort and good air quality levels across the buildings.
Leveraging the data drawn from Enel X Connect, the company can additionally provide an extensive range of Energy Consulting services, offering advice on sustainability goals, risk management strategies, as well as energy budgeting and forecasting plans.
“Digitalization fosters the introduction of new technologies at all levels across Enel X to drive businesses towards a sustainable energy transition” Venturini says. The company’s focus is to increase the use of renewable energy and guarantee the flexibility of the electrical grid so that clients can finally transform energy into new opportunities of growth and progress. “We want to help companies along their transformational paths, to discover more intelligent ways to get the most out of energy.”
