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A Strategic Pathway for Energy Companies in the Platform Economy
7 June 2019
12:00—13:15
KEY CONCLUSIONS
Energy producers and consumers benefit from digitalization

Building a digital energy platform with the active use of digital infrastructure will allow to reduce transaction costs, expand the list of services and increase efficacy — Yuriy Manevich, Deputy Minister of Energy of the Russian Federation.

This [digitalization, – Ed.] will help reduce losses and increase reliability <…> These are reductions in corporate expenditure, preventive renewals, increased data accuracy and availability. <…> This is the analysis of capacities, asset performance, possibility to produce personalized offers for a specific customer — Aleksey Sokolov, Deputy Minister of Telecom and Mass Communications of the Russian Federation.

Our strategy is to reach the end consumer. And the first crucial task is to establish connection with them — Pavel Livinsky, Chairman of the Management Board, PAO Rosseti.

We have surveyed oil and gas companies, and we can see that the companies are experimenting, although these are just very early stages, with integration of digital capacities and artificial intelligence <…> Digitalization is a key factor for more efficient operations and reduced costs of hydrocarbon extraction — Daniel Yergin, Vice Chairman, IHS Markit.

In Russia, there are 140 million people, 50 million households that have refrigerators. <…> We can optimize the management of these capacities — Christoph Frei, Secretary General, Chief Executive Officer, World Energy Council .

Russia is creating conditions for digitalization of the energy sector

The roadmap <…> is designed for the development of Russian unified systems and services of smart energy and turning Russian companies into leaders on the new global high-tech energy markets — Yuriy Manevich, Deputy Minister of Energy of the Russian Federation.

We have chosen a number of priority projects: digital regional systems, reconfiguration of regional networks, wide-scale digitalization that allows to significantly decrease operational costs. <…> We have experimented with retail consumers as demand management aggregators. For this, a legal framework has been developed. I think we can go all the way from such experiments to comprehensive solutions — Alexander Povalko, Chairman of the Management Board of RVC.

ISSUES
Increasing vulnerability of energy infrastructure to cyberattacks

Digitalization of the power industry leads to a more vulnerable infrastructure. <…> This is a question of information security and protection of the critical information infrastructure. <…> A rapidly growing number of IoT devices <…> will generate steadily increasing traffic. This imposes new requirements for the sustainability of the Russian unified electrocommunication network — Aleksey Sokolov, Deputy Minister of Telecom and Mass Communications of the Russian Federation.

Lack of funds for digitalization

We need to urgently deal with the issue of rate longevity. <…> The possibility to maintain saving from the digitalization in some visible perspective, for example, 10–15 years, in such a rate that the regulator does not cut it out from the rate <…> Rate growth should not exceed inflation. <…> We cannot understand what way to go, a way of searching for investment into digitalization — Valery Seleznev, First Deputy Chairman of the Committee of the State Duma of the Federal Assembly of the Russian Federation on Energy.

Low interest of distributors in implementation of digital technologies

From outside power sector is seen as a very traditional industry. <…> Power grid is in many respects a natural monopoly. <…> The question is how aggressively power grids are going to promote digitalization — Pavel Gontarev, Director, Мail.ru. Digital Technology .

Many distributors are not aware that they have clients rather than just consumers — Starace Francesco, Chief Executive Officer, General Manager, Enel S.p.А. .

The range of problems <…> refers to the huge scale of grids and the enormous accumulated cost of this complex. It is difficult to move this behemoth with some specific solutions — Alexander Povalko, Chairman of the Management Board of RVC.

Most distributors lag behind the industries. <…> There are only 2% of really active companies, and innovations are not a priority for them. 40% do not see benefits of digitalization — Folker Trepte, Partner, PwC.

SOLUTIONS
Ensuring cybersecurity

We need to ensure the security of the critical information infrastructure. We plan to do that in cooperation with the Ministry of Energy. We will focus on priority use of Russian equipment both for smart accounting systems and telecommunications infrastructure that is going to be part of the interaction — Aleksey Sokolov, Deputy Minister of Telecom and Mass Communications of the Russian Federation.

Creation of legal framework for investment into digitalization

We need to prioritize the draft law that, by amending the industry law on electric energy in Russia, allows power companies to conclude <…> the so-called regulatory agreement with regions so that regions take on responsibility to investors about supporting long term rates. This would solve most problems with funding in digitalization — Valery Seleznev, First Deputy Chairman of the Committee of the State Duma of the Federal Assembly of the Russian Federation on Energy.

Use of cloud technologies

We need to go cloud. <…> It took us three years to completely go cloud. Now we have the largest cloud in the world. Once you go cloud, there is a whole world of advanced analytics, the use of data. <…> We were able to reduce client outflow by 30% <…> thanks to the cloud data processed by artificial intelligence — Starace Francesco, Chief Executive Officer, General Manager, Enel S.p.А. .

In EDF, we have a comprehensive programme of digital transformation. All our data are in clouds. <…> Smart technologies can reduce general costs of system exploitation and increase its stability. Our subsidiary has already set up 19 million smart sensors in France; and we plan to set up another 35 million. <...> These technologies help our consumers save money — Marianne Laigneau, Group Executive Director in Charge of International Direction, EDF; Chairwoman of the Supervisory Board, Enedis.

The material was prepared by the Russian news agency TASS