Blog

Forging a Net Zero Future: Embracing Digital Technologies to Disrupt and Drive the Energy Transition in the Middle East

When reflecting on recent years, the exacerbating climate crisis has resulted in a paradigm shift where attitudes and actions are concerned. Rather than being a subject of ongoing debate and divided opinions, global warming has instigated radical reform throughout Middle Eastern society, inspiring nations to introduce abatement imperatives, enact meaningful change, and embark on a net zero future.

The journey thus far has been progressive, each new milestone another step closer to overcoming the climate conundrum. Yet, to forge the net zero future that national leaderships and the region envisages, the wider energy sector must play a starring energy transition role by embracing digital technologies.

A Vibrant Digital Development Destination

To better understand the region’s ever-unfolding digitalization setting, one need only look to the United Arab Emirates (UAE) and Saudi Arabia—two countries championing digital transformation and consolidating the Middle East’s status as a robust jurisdiction for tech-based advancement.

In April 2022, the UAE launched the Digital Economy Strategy, which aims for double digital economy gross domestic product (GDP) contributions from 9.7% to 19.4% over the coming decade. The Digital Economy Strategy will consolidate modern technologies adoption efforts, with more than 30 initiatives, projects, and programs, as well as five new growth areas, further elevating digital progression and future preparedness in the process.

Digital transformation has also been embraced in Saudi Arabia in line with Vision 2030, with the Kingdom currently pursuing its third five-year action plan for realizing a smart government. Under the National Strategy for Digital Transformation, the Smart Government Strategy (2020–2024) is implementing innovative approaches for building world-class digital government capabilities. In turn, such strategies have solidified the foundations for an Industry 4.0-inspired, energy sector-driven energy transition.

With Technology Comes Trajectory

Across the energy sector, digital transformation is driving continuous decarbonization. New technologies are enabling national oil companies (NOCs) to reduce emissions, paving the way for a net zero future. One such technology is artificial intelligence (AI), which is proving decisive behind accurate renewable energy forecasting, optimized operations, stabilized energy grids, sustainable energy assets distribution, and shaping tomorrow’s interconnected energy systems.

AI has become fundamental for utilizing renewables including solar and wind power, and its future decarbonization importance is further emphasized as AI technologies can create value up to $5.8 trillion annually across 19 different energy industries, thus revolutionizing the energy sector.

Data-driven insights are another energy transition enabler that have become imperative for developing smart systems capable of supporting widespread decarbonization. Data utilization is ensuring digitalization impacts manifest across the entire energy sector value chain, from forecasting and efficiency to optimization and longevity. Looking ahead, NOCs can record greater decarbonization achievements with support from big data technologies. They can elevate exploration, production, shipping, and transportation efficiencies; reduce drilling times; optimize production pump performance; enhance reservoir engineering; and deliver emissions reductions.

Meanwhile, digital twins are streamlining operational improvements and increasing energy production at many clean energy developments, with the internet of things (IoT), AI, and software analytics collectively creating reliable simulations while enhancing output through efficient data-driven maintenance and management. With digital twin software, companies can monitor resource consumption, boost production efficiencies, and plan green energy production upgrades in due course, as well as make more informed emissions reduction decisions and accelerate the energy transition.

NOCs aside, key energy industry players are also behind net zero progression, as has been showcased at the prestigious ADIPEC Awards, where projects driving transformational change while building a future-proof energy industry are celebrated. Among them is Siemens Energy, the 2021 “Innovation in Decarbonization Company of the Year” category winner. Last year, the organization was recognized for developing emissions reductions solutions using Industry 4.0 technologies.

These examples belong to an extensively expanding use case portfolio that demonstrates how digital transformation is an energy transition catalyst. An essential next step must, however, be urgently pursued to continue capitalizing on energy sector digitalization opportunities.

Collaborate to Accomplish

With a net zero future now a real possibility, energy sector companies, investors, and respective leaderships alike must advance the energy transition agenda by broadening collaboration and engaging in industry-wide data sharing. Digital disruption is a trend certain to continue evolving at an unprecedented rate, and constructive, long-term digital partnerships are critical for building and developing ecosystems that understand emerging transformation drivers, successfully implement the latest technologies, and unlock new digital decarbonization opportunities and value.

By welcoming a new wave of collaboration and data-sharing, these outcomes will undoubtedly follow as the wider energy sector enables innovation, activates more sustainable operations, introduces decarbonized products, and overcomes climate challenges. We will look back at this time in history, and the embracing of digital solutions as an enabler for the energy transition, as a milestone moment in the net zero journey.

Dietmar Siersdorfer is managing director of Siemens Energy Middle East.