Digital transformation in the energy sector: keys to optimize efficiency and reduce costs

Did you know that Spain ranks seventh in the world in solar and wind energy generation and is also the tenth country with the highest percentage of electricity generation from these sources?

Energy is fundamental to the functioning of our society. In addition, traditional energy sources have been joined in recent years by a transformation towards renewables aimed at combating climate change and reducing greenhouse gas emissions.

But what is the energy sector?

The energy sector encompasses all initiatives and people focused on activities that involve the production, distribution and consumption of energy in a specific country or territory. These activities are related to different resources such as oil, natural gas, coal or renewable energies such as solar, wind or hydroelectric, among others.

In Spain, a strong commitment is being made to these renewable energies, which will be one of the keys to reducing the environmental impact caused by the use of traditional energies. In fact, according to a study, 42.2% of the energy used to produce electricity comes from renewable sources.

Therefore, digital transformation plays a key role in optimizing the entire energy process from its production until it is used by the customer.

What does process optimization consist of?

Process optimization is a technique or strategy that focuses on improving and adjusting each part of the production process of a good or service in order to get the most out of it in terms of efficiency, quality and productivity.

It involves analysing each step-in order to carry out an evaluation that allows, firstly, to identify possible inefficiencies or areas for improvement and, secondly, to implement changes that allow better results to be achieved.

In the specific case of the energy sector, process optimization allows reducing or eliminating the waste of resources with the objective of making profitable both the time and the investment established, as well as the material and human resources used.

At this point, digitization has become a fundamental tool to achieve it, since it allows:

• Store documents in digital formats and avoid the time, space and risk of loss or damage involved in storing a file in a physical way.

• Quickly access to information and speed up decision making.

• Automate repetitive tasks that can be replaced by a digital tool.

• Analyse results to evaluate the performance of established decisions.

What are the benefits of process optimization in the energy sector?

Now that you know the importance of process optimization and how digitization can help in this regard, take note of the benefits it can bring to the energy sector!

• Improving sustainability: digitalization plays a key role in the energy sector in terms of decarbonizing the environment. This means that optimizing processes allows companies to be more efficient during their activity and avoid high levels of greenhouse gas emissions and waste of surplus quantities.

• Unify information: having digital tools makes it possible to gather in the same database all the corresponding information about customers, thus avoiding duplication and misunderstandings and, in addition, to customize the service according to the needs of each consumer.

• Reduces costs: digitizing the process in the energy sector can save both time and material and economic resources, thus helping to reduce costs and increase company profits. According to a report by the International Energy Agency, this could lead to savings of 1.6 trillion euros worldwide by 2050.

• Customer-centric: and, as in any industry, everything has to be geared to the consumer and their satisfaction throughout the process. Digitizing and optimizing energy supply processes makes it possible to identify the needs of each person or company in order to make an offer that is close to their interests. It also gives the customer the ability to consult the information whenever and wherever he wants to make the analysis and take the decisions he deems appropriate.

Because digitalization and sustainability go hand in hand, they are the tools of the future... and of the present. Bet on them in your SME!