In a world where energy demand is projected to surge by nearly 50 percent by 2050, the conversation around sustainable energy has never been more urgent. Anthony Allard, the Executive Vice President and Head of North America at Hitachi Energy, and Roger Lvin, CEO of Hitachi Digital Services, recently delved into how AI and digital innovation could be the game-changers we need to tackle this monumental challenge. As climate change looms over us, the energy sector stands at the forefront of the global transition to sustainability.
Allard emphasizes the pressing need to pivot towards electricity as our primary energy source. This transition is no small feat; it hinges on ramping up power generation from renewable sources like wind and solar while ensuring our grid infrastructure can handle this shift. “Investing in grid infrastructure is crucial,” Allard highlights, pointing out that we must modernize our energy systems to accommodate renewables and manage their inherent intermittency. In the U.S., renewable energy sources are often situated far from the coastal demand centers, complicating the logistics of energy delivery. The investment required for this transformation is significant, but it’s a necessary step toward a sustainable future.
However, the road to sustainability is littered with challenges, particularly when it comes to digital infrastructure. Organizations are grappling with the need to cut carbon emissions while simultaneously revamping their operational systems to embrace sustainability. “Our customers are focused on building systems that deliver transparency,” Lvin explains, stressing the importance of accurate data for tracking sustainability metrics. Outdated systems and fragmented data can stymie progress, making it imperative for organizations to prioritize data maturity and access.
AI emerges as a beacon of hope in this landscape. While its adoption may still be in its early stages, the shift from theory to practical application is underway. For instance, in manufacturing, AI has been instrumental in reducing material usage by 60 percent for a packaging company, directly impacting the carbon footprint of industries. In the energy sector, AI is enhancing the stability and resilience of power grids, allowing utilities to manage resources more effectively. Hitachi Energy’s vegetation management solution is a prime example, employing satellite imagery and AI to help utilities manage tree maintenance near electrical infrastructure, thereby preventing wildfires and reducing outages.
The energy transition is not a sprint; it’s a marathon that demands substantial investment in infrastructure, technology, and human resources. Hitachi Energy has pledged $6 billion over the next three years to expand manufacturing capacity and invest in research and development. This commitment is rooted in a long-term vision, recognizing that the next 10 to 15 years are critical for reshaping the energy landscape.
As Allard puts it, “I am optimistic about the future. As an industry, we are starting to take the right steps.” The expansion of transmission grids and the integration of digital technologies will be pivotal in constructing a resilient and secure energy system. The convergence of the physical and digital realms is unlocking new avenues for optimization and efficiency. Digital twin technology, for instance, allows organizations to simulate projects before implementation, showcasing the advanced tools now available compared to just a decade ago.
Looking ahead to 2030, AI and digital innovation will be at the heart of the transition to a sustainable future. Both the energy and digital sectors are poised for transformative changes. Expanding carbon-free energy generation and modernizing the power grid will be essential in meeting global sustainability goals. Hitachi is dedicated to ensuring that the necessary infrastructure, tools, and partnerships are in place to pave the way toward a sustainable, net-zero future. The stakes are high, but with collaboration and innovative thinking, the energy sector can rise to the challenge.
