Report shows challenges in digitalization of the transmission, distribution industry

In a new report, DNV GL, a Europe-based risk management company, found that barriers in implementing digitalization measures in the transmission and distribution industry could curtail the success of the global energy transition.

The report – Digitalization and the future of power grids – revealed that only 52 percent of Distribution Network Operators (DNOs) have digitalization as a core part of their publicly stated strategy. Further, just 39 percent of Transmission System Operators (TSOs) have it as part of their core strategy. Also, roughly one-third of the T&D industry considers itself less advanced than the wider energy industry in its current application of digitalization.

However, survey respondents acknowledge the benefits of digitalization, specifically with regard to cybersecurity, data visualization, and automation and digital workflow. Also, 67 percent acknowledged the need for employees with combined data and domain expertise. The top required skills are understanding and application of IoT systems, data science, and big data analytics.

“Our survey also shows that 40 percent of T&D stakeholders believe that a lack of digital mindset is a barrier within their organization, which is defined as lack of staff engagement with digitalization. This reveals that although the technology and ambition might be there unless organizations can concentrate the efforts of their entire workforce towards the adoption of new technologies and harvesting the opportunities provided by big data and enhanced connectivity, the impact of digitalization will be limited,” Lucy Craig, vice president of technology and innovation at DNV GL–Energy, said. “The role that the T&D industry needs to play in making the energy transition a success cannot be overestimated, which is why we call on organizations to invest in digital skills training to equip their employees with the necessary competences to tackle the challenges the T&D industry is facing.”