Automation in the energy industry

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Transformation of the energy industry with the help of automation






Oksana Lavri Future work expert 7. June 2024 8 min read
Table of contents

The current state of automation in energy

Current trends
Case studies in oil, gas, and renewable energy industries
Key benefits of automation
Challenges and considerations


Future outlook

Energy mix
Decentralized and distributed generation
Storage technology
Hydrogen production
Nuclear energy
Large-scale interconnectors  
Sustainable automation


How HRForecast can help with automation




Automation in the energy industry has advanced significantly, developing from basic mechanization to sophisticated systems that integrate artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT). As of 2024, these technologies drive rapid developments, enhance efficiency, reduce costs, and improve system reliability across the energy sector.

How can energy companies balance automation’s advantages with its challenges, such as workforce displacement and cybersecurity concerns?

In this blog post, we’ll explore the current state of automation in the energy industry, highlight key trends and case studies, discuss the numerous benefits and challenges of implementing automation, and examine the outlook for these technologies in transforming the energy sector. Let’s get started!

The current state of automation in energy
Automation in the energy industry has developed significantly over the decades, starting from basic mechanization and the introduction of programmable logic controllers (PLCs) and supervisory control and data acquisition (SCADA) systems in the mid-20th century. These technologies enabled more sophisticated monitoring, control, and optimization of energy production and distribution processes, laying the groundwork for today’s advanced automation solutions.

Current trends
As of 2024, the energy industry is witnessing a rapid acceleration in automation, driven by advancements in artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT) . Key trends include:

AI-driven analytics . Companies are increasingly using AI to predict equipment failures and optimize maintenance schedules , which has reduced operational costs by up to 20% and improved system reliability by 15% .
Digital twins . The use of digital twins to simulate and enhance energy systems is becoming more widespread , improving operational efficiency and reducing downtime.
Smart grids . As of 2024, nearly 10,000 utility-scale solar photovoltaic (PV) projects, each over 1 MW, were in operation or development across the United States . This substantial number highlights the country’s rapid growth and adoption of utility-scale solar energy. The largest solar farm in the U.S., Solar Star, uses 1.7 million solar panels and covers 3,200 acres in California . This increase in utility-scale solar projects aligns with broader energy sector trends. The U.S. Energy Information Administration (EIA) reported that over half of the new electric-generating capacity added in 2023 was from solar energy , further emphasizing the significant role of solar power in the country’s energy mix.


Case studies in oil, gas, and renewable energy industries
Oil and gas
BP and Shell have implemented AI-powered predictive maintenance systems in the oil and gas sector . Shell’s machine learning algorithms for equipment health monitoring have reduced maintenance costs by 10% and improved production efficiency by 8%.

Renewable energy
General Electric’s Predix platform has enabled wind farms to increase energy production by 5% while reducing maintenance expenses. The platform uses IoT sensors and real-time data analytics to optimize turbine performance.


Key benefits of automation
Automation has many benefits, such as improving operational efficiency, safety, and decision-making in the energy industry. Here are some of the key benefits:

Efficiency and productivity . Automation significantly increases operational efficiency and productivity in the energy sector, giving companies greater control. Energy companies can streamline operations, reduce manual intervention, and minimize errors by automating routine tasks and processes. This results in faster and more reliable energy generation and distribution. Automated systems can optimize the operation of power plants and grids, ensuring more efficient energy generation and delivery. Companies can achieve higher productivity levels, meet energy needs more efficiently, and maintain a competitive edge in the marketplace.
Cost reduction . One of the most compelling benefits of automation is its potential to reduce costs. Companies can significantly reduce operating costs by automating various aspects of energy production and distribution. Automated systems help reduce the need for manual labor, maintenance costs, and downtime due to equipment failure. They also help increase profitability and reassure energy companies of their financial stability, contributing to a more sustainable business model.
Safety improvements . Safety is a primary concern in the energy industry, and automation is critical to improving worker safety and reducing environmental risks. Automated systems can perform hazardous tasks that would otherwise put people at risk, such as monitoring and controlling high-pressure systems, handling hazardous materials, and inspecting remote or hazardous locations. In addition, automation helps monitor and control environmental factors, reduces the likelihood of accidents, and minimizes the impact of potential incidents. It also protects workers and helps companies comply with strict safety and environmental regulations.
Data-driven decision-making. Automation makes decision-making easier with advanced data analytics. Automated systems collect vast amounts of data from various sensors and devices throughout the energy production and distribution network. This data is then analyzed in real time to provide valuable insights into job performance, equipment health, and market trends. Using this information, energy companies can make informed decisions about optimizing their operations, increasing energy efficiency, and quickly responding to market changes. Data-driven decision-making improves strategic planning, risk management, and overall business agility.


Challenges and considerations
The introduction of automation in the energy sector creates significant opportunities and challenges. Addressing technological, personnel, and regulatory issues is critical to successful implementation.

Technological barriers . Implementing automation in the energy sector comes with a series of technological challenges. One significant barrier is integrating new automated systems with existing infrastructure. Many energy companies rely on outdated systems that don’t seamlessly integrate with modern automation technologies. For example, adopting smart grid technology demands substantial upgrades to the existing grid infrastructure, which can be expensive and time-consuming. The energy sector must also prioritize robust cybersecurity measures to safeguard automated systems from potential cyber-attacks. A 2022 report by the International Energy Agency (IEA) revealed that over 50% of energy companies identified cybersecurity as a major challenge in their automation initiatives.
Workforce impact . Automation has a profound impact on the energy sector workforce. While it improves efficiency and safety, it raises concerns about job displacement. For example, automating routine maintenance tasks in oil refineries reduces the need for manual labor, potentially leading to job losses. A study by the World Economic Forum in 2021 found that 35% of the energy sector’s workforce will need reskilling by 2025. Companies like Shell and BP have launched extensive training programs in 2020 and 2021 to help employees gain new data analysis, robotics, and AI skills, ensuring they remain relevant in an automated environment.
Regulatory and ethical concerns . Implementing automation in the energy sector involves regulatory and ethical considerations. Regulatory bodies often have stringent requirements to ensure the safety and reliability of automated systems. For instance, the environmental impact of automation technologies, such as increased electronic waste and energy consumption, should be addressed. According to a 2023 report by the International Renewable Energy Agency (IRENA) , the energy sector has to adopt sustainable practices to deal with the environmental footprint of automation technologies.




Future outlook
The United Nations’ Sustainable Development Goal 7 (SDG 7) aims to ensure all access to affordable, reliable, sustainable, and modern energy by 2030, emphasizing energy efficiency and renewable energy sources.

Numerous national initiatives and strategies are underway to improve energy efficiency across various sectors. To meet global energy efficiency demands, several approaches are being employed:

Energy mix
A significant global shift toward renewable energy sources such as solar, wind, hydro, and geothermal is underway. These sources are becoming more cost-competitive and are being adopted to reduce reliance on fossil fuels and mitigate climate change. Diversifying the energy mix enhances energy security and reduces vulnerability to supply disruptions.

Decentralized and distributed generation
Distributed energy resources, including rooftop solar panels, small wind turbines, and community-based projects, are becoming more prevalent. This trend reduces reliance on centralized power plants and enhances energy resilience. For example, the U.S. government’s Puerto Rico Energy Resilience Fund (PR-ERF) aims to support Puerto Rico’s grid resilience efforts to meet 100% of its electricity needs with renewable energy by 2050. Over $450 million is allocated for rooftop solar and battery storage installations, focusing on the region’s most vulnerable residents.

Storage technology
Advancements in battery technology and other innovative storage solutions, such as hydro, compressed air energy, and thermal storage, are being explored for various applications. Energy storage is critical to integrating large amounts of wind and solar power into the grid. According to BloombergNEF, energy storage installations are expected to exceed 15 times the online capacity in 2021 by 2030, with the U.S. and China likely representing over half of global storage installations.

Hydrogen production
Clean hydrogen produced with renewable energy or fossil fuels using carbon capture can contribute to a more sustainable future and greater energy security. Hydrogen’s ability to be stored over prolonged periods supports using variable renewables in the electricity system.

Nuclear energy
Small Modular Reactors (SMRs) can be used in decentralized and distributed generation. Their smaller size and output characterize them compared to conventional reactors. Various companies and organizations worldwide are developing SMRs , with pilot projects and demonstrations underway.

Large-scale interconnectors
Different regions around the world are adopting and benefiting from automation in the energy industry in unique ways:

Europe is a leader in energy automation , with countries like Germany and Denmark at the forefront. Germany’s Energiewende (Energy Transition) initiative aims to make the country’s energy system more sustainable and efficient. Automation technologies are integral to this plan, helping to manage the intermittent nature of renewable energy sources and stabilize the grid.
In the Asia-Pacific region, countries like China and India are rapidly embracing energy automation to sustainably meet their growing energy demands. China’s investment in smart grid technology is expected to reach $77.6 billion by 2025 , driven by the need to support its massive renewable energy infrastructure.
The United States and Canada are leveraging automation to modernize their aging energy infrastructure. The U.S. Department of Energy’s Grid Modernization Initiative aims to create a more resilient and efficient grid by deploying advanced automation technologies. The initiative is projected to save consumers up to $50 billion annually by reducing power outages and improving grid reliability.


Sustainable automation
Automation is crucial in promoting sustainability and reducing carbon footprints in the energy industry. Companies can significantly reduce energy waste and optimize renewable energy sources by automating energy management processes. Key examples include:

Automated Demand Response (ADR) . ADR systems automatically adjust energy consumption based on supply conditions, helping to balance the grid and reduce reliance on fossil fuels. According to a Lawrence Berkeley National Laboratory study , ADR programs can achieve peak load reductions of up to 15%, significantly lowering carbon emissions.
Predictive maintenance . Automated systems can predict when equipment will probably fail, allowing for timely maintenance that prevents energy loss and downtime. A report by Deloitte estimates that predictive maintenance can reduce maintenance costs by 25-30% and decrease unplanned outages by 70-75%.
Renewable energy integration . Automation facilitates the seamless integration of renewable energy sources like solar and wind into the grid. By dynamically adjusting energy flows based on real-time data, automated systems ensure maximum utilization of green energy. The International Renewable Energy Agency (IRENA) reports that renewable energy could account for 90% of the world’s total electricity by 2050, driven in part by advancements in automation technology.


The future of energy automation is bright, with innovations promising to enhance efficiency, promote sustainability, and provide significant economic benefits.



How HRForecast can help with automation
Since 2022, HRForecast has automated approximately 46% of its activities, achieving significant improvements in efficiency and, most importantly, customer satisfaction. Its automation journey impacted various departments differently.


In HR, automation influenced 76% of activities, primarily through business process automation.
The finance department saw a 64% influence, driven by business process automation and AI.
AI influenced data science and engineering at 29% and 11%, respectively, while AI predominantly impacted customer success.
AI influenced marketing by 26%, and business process automation impacted sales by 16%.
Customer consulting activities were influenced by 41%, mainly through business process automation.


HRForecast’s success in automation was not a result of random technology adoption. It was a strategic process that involved identifying suitable technologies for automating processes. Key technologies included AI technologies like ChatGPT, Microsoft CoPilot, and GitHub CoPilot, as well as business process automation tools such as Figma and HubSpot.
HRForecast can help companies in the energy industry with automation by leveraging a vast database of global data, including job ads, scientific publications, and patents. It provides tools to assess automation potential, understand new skill requirements, identify emerging roles, and estimate the impact of technology. This enables companies to gain a competitive edge, develop future skills, and positively transform the impact of technologies on their workforce. HRForecast’s solutions facilitate workforce restructuring and strategic planning, ensuring businesses are prepared for technological advancements.


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