The status quo of power plants and smelters in the Arabian Gulf faces major change as intelligent and proactive digital technologies cut costs and boost operational efficiency to meet rapidly rising consumer demand. With infrastructure expansion under way, GCC countries can be at the front of a new breed of power operators that merge industrial, software and analytical expertise.
The GCC’s power capacity needs to expand at an average annual pace of 8 per cent between last year and 2020, which will require US$85 billion to add 69 gigawatts of new capacity, according to the Saudi-based development bank Apicorp. Swelling populations and intensifying urban development across the region underpin a growing sense of urgency to get “smart” infrastructure in place.
As pressure to provide competitive energy security builds, one question drives conversations in boardrooms across the Gulf – how to profitably tread the economic tightrope between growing demand on one side and costly maintenance and increasingly strict regulations on the other. The answer is to use digital technologies to fine-tune operations and reduce waste.
A 1 per cent improvement in efficiency across the global gas-fired power plant fleet over 15 years translates into savings of $66bn in fuel consumption and $50bn in maintenance costs. A 1 per cent increase in efficiency of aluminium smelter operations can contribute to annual global savings of $970 million across the total cost of production, $936m in output increase, as well as $464m saved in operational and maintenance costs. In the GCC, the same 1 per cent increase would translate into $28m in savings on operations and maintenance – significant given that the region’s aluminium-smelting industry accounts for up to 10 per cent of the world’s total production.
Digitisation is part of the emerging industrial internet, which brings together the advances of two transformative revolutions – the machines, facilities, fleets and networks of the industrial revolution with the computing and communications of the internet revolution. This is about connecting big data, machines and the people who operate them.
Digital solutions operate in the cloud with virtual sensors facilitating immediate evaluation of the health and condition of power plants and smelter pots, which mean real-time solutions can be applied to adjust power usage and the consumption of raw materials. This ability to trim operational waste supports the green theme of Gulf countries’ national visions and their collective support for the Paris Agreement on climate change.
For example, the UAE’s Energy Plan 2050, announced in January, aims to improve energy efficiency by 40 per cent and cut carbon dioxide emissions by 70 per cent.
Innovation lies at the crux of meeting demand in the GCC and beyond. Among such innovations is one by the company where I work, GE, called digital twin technology. It creates 3D models of a physical system to provide a better understanding of equipment performance and presents options to extend an asset’s life. This can save money and improve safety.
Integrating digitisation at power plants and smelters means employees can download information at any time and location in the plant. They can send real-time pictures, video and audio to enhance their “digital dialogue” – this needs to be common practice.
The threat of cyber-attacks also looms in the background as the digital power market gains traction in the Gulf region and in countries such as Turkey and Pakistan.
As the power industry evolves, time and investment need to be funnelled into research and development to plug system gaps, detect vulnerabilities and secure critical infrastructure to establish a sturdy wall of protection that can mitigate against such threats. It is a case of change, or be changed.
Bhanu Shekhar is the chief digital officer at GE Power for the Middle East and Africa.
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