Welcome to the first in Nukon’s series, the “non-influencer’s guide” where we look at what each industry is doing in the OT digitalisation space.
Gareth Williams has spent years helping energy providers navigate digital transformation, focusing on how operational technology drives real business outcomes.
Gareth has delivered hundreds of workshops covering operational technology and organisational strategy for many in this sector, which has led to some insights into a sector rapidly going through transformation.
In part one, we’re looking at the industrial digitalisation trends and challenges in the energy sector.
What’s going on in the energy sector right now?
Scroll to the video in the post below, or keep reading for Gareth's key points.
The energy transition
Companies need to build, buy, and divest assets faster than ever.
With technologies like BESS (Battery Energy Storage Systems), solar, and electric vehicle (EV) charging coming online, markets are demanding rapid data integration and ultra-fast decision-making, which legacy platforms just can’t handle.
Outdated systems
Many providers are still relying on old SCADA platforms – think old Citect and similar legacy systems – that don’t integrate well, aren’t supported and can leave generators open to risk.
Lack of standardisation
Acquiring and divesting assets has led to inconsistent data interfaces, SCADA systems, data structures and limited ability to manage or analyse performance efficiently. It is super hard to understand if you’re leaving money on the table.
Cyber security is critical
Staying compliant with frameworks like the SOCI Act is non-negotiable now.
What are other industrial operators doing in the energy sector?
Right now, the energy sector is in overhaul mode.
Every provider is investing in new platforms and transformation strategies while racing to modernise and standardise their platforms. Here are a few things that are trending in the industry.
Centralised SCADA platforms:- Companies are shifting from siloed systems to unified platforms, meaning everything is connected and acts as one. We’re seeing systems like Ignition making big inroads here, as it makes it easier to manage alarms and control operations as there’s no need to remote in.
- Many are deploying and using technologies like MQTT, Unified Namespaces, and cloud-based solutions for seamless data collection across multiple sites to enable fast decision-making.
Enhanced cyber security frameworks:
- Developing cyber security management plans to align with SOCI Act requirements.
- Automating firmware updates and patch management to reduce risks – this is a game-changer as previously many devices went unpatched.
Does your organisation need some more information about cyber security frameworks? Read this SAGE Group post on the Australian Energy Sector Cyber Security Framework, or this one for three tips to achieve cyber security compliance.
The big focus is driving operational improvements through standardisation and data
This includes:
- Implementing uniform KPIs and reporting tools across sites to improve transparency and efficiency.
- Real-time visibility of asset performance and monitoring using standardised UIs
- Energy providers are getting better at real-time data use, reducing the time spent on wrangling or backfilling missing data and trying to figure out what has happened vs what is happening.
- The focus now is on scaling for growth—moving from just analysing what happened to having systems solve problems proactively.
Technologies making a difference in the energy sector
Several key technologies are driving this transformation:
- Cloud-based SCADA platforms hosted on AWS or Azure, SaaS industry platforms such as PowerFactors.
- Ignition SCADA is currently seen as leading the way in terms of flexibility and supportability.
- Modern messaging standards like MQTT, REST APIs, and close integrations.
- A shift towards cloud-based historians and challenger platforms as companies look to move away from platforms such as OSI Pi.
- Data analytics packages such as Seeq are being used to leverage the masses of data collected from assets in this space. Companies are asking “Now we have all the data, what are we going to do about it?”
This is where Nukon’s experience with these technologies is useful, and being technology agnostic, we can help you match your needs to the right platforms and systems.
Practical tips for energy providers who are navigating digital transformation
These challenges might feel a bit familiar, and if that’s the case, here’s what we’ve seen work.
- Start with a comprehensive needs assessment.
Bring your stakeholders together early to align the digital roadmap with your business outcomes, don’t let engineering lead the entire charge. You will be surprised by the way your business uses and relies on operational technology, so make sure you understand and agree on the needs. - Prioritise modular and scalable solutions.
Choose platforms that allow for future upgrades and avoid being locked into vendor black-box solutions that may require more investment to access your data. - Get your data right from the start.
Develop a solid data management framework to leverage historical and real-time data for insights. Split-second decisions make all the difference in this industry, and missing data can cost real money if your assets aren’t able to respond in a timely manner. - Build cyber security into your system design from day one.
This is crucial to stay compliant with the SOCI Act and it has become vital to reduce your risks by making security a part of your architecture from the outset.
This was the first part of a short content series that we’re dubbing "The Guide to What Everyone is Doing in OT digitalisation”, where we’ll be looking at key trends and the emerging challenges of digital transformation across industry sectors.
If you found this blog or Gareth’s video valuable, make sure you follow along for more insights in the next piece, where we’ll dive into another sector. You can choose to subscribe to Nukon's newsletter, or get relevant Energy Sector Updates from across the SAGE Group - just head to this page to select your preferences.
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