In late November 2024, Siemens Smart Infrastructure published a new report “Digital Transformation, Sustainable Returns: The New Pathway of Infrastructure”. Among several significant findings, the report observed that in several key industries lack of data is hindering the progress towards decarbonization. In the backdrop of this report, T&D India got in touch with Thomas Kiessling, Chief Technology Officer, Siemens Smart Infrastructure, to understand the intricacies of the decarbonization – as a philosophy – and the critical role of digitalization as a key enabler. An interview by Venugopal Pillai.
The term “decarbonization” is very widely and freely used. At a very practical level, does this mean, among other things, eliminating CO2 emissions altogether? Please discuss.
As we strive to reach net zero, we must urgently address several key areas. We need to decarbonize the power supply, become more energy efficient and electrify the remaining energy demand with renewable energy. Decarbonization, along with energy efficiency, is therefore central to our efforts.
As Siemens, we view decarbonization as a comprehensive approach to reducing CO2 emissions through technological innovation, digitalization, and collaborative efforts across industries. By scaling up technologies and combining the real and digital worlds, we are equipping our partners and customers with the resources they need to decarbonize their infrastructure and operations in a sustainable way.
The new Siemens Smart Infrastructure Tech report says that digitalization holds the key to transform energy, buildings and industrial operations with a view to accelerating decarbonization. Is there any broad estimate of how much of these three sectors, globally, are yet to digitalize?
Digitalization is undoubtedly a key enabler of decarbonization. It is driving the creation of more informed, more efficient and more responsive processes and infrastructure – all of which are essential for decarbonization.
The Siemens Smart Infrastructure Tech Report highlighted how digital technologies play a critical role in reducing carbon footprints, optimizing resource use, and integrating renewable sources with 55 per cent of respondents saying that digital technologies have a significant or massive potential to advance the decarbonization of their operations.
The report highlights significant gaps in digitalization across the energy, buildings, and industrial sectors. It notes how many industries are still reliant on legacy systems and siloed data, which restricts their ability to integrate digital solutions effectively. According to the report, the lack of well-integrated and accessible data infrastructure has directly impacted progress, with industries often leaving up to 30 per cent of potential efficiency gains untapped. This is applicable for India too, especially as it has one of the fastest growing economies in the world and with organizations across verticals increasing their focus on sustainability and energy efficiency measures.
If digitalization is the key, then what is the role of data in decarbonization?
If we think about decarbonization, we often view it in the context of renewable energy and electrification. But to achieve it we need to have data. For example, smart grids rely on real-time data to optimize energy distribution, while industries like manufacturing use advanced analytics to pinpoint inefficiencies. However, data on its own cannot drive outcomes. It is through AI that patterns emerge, inefficiencies are flagged, and optimization can occur.
From energy and utilities to manufacturing and healthcare, data serves as the starting point for identifying inefficiencies, optimizing resources, and tracking progress toward net-zero goals. Yet, as our study revealed, many organizations lack the data readiness required to make substantial progress.
The report also mentions “data gaps” as a major impediment towards accelerating decarbonization, does this mean that there isn’t enough data or is it that the data cannot be exploited or processed meaningfully?
In other situations, even when data is available, it is fragmented across multiple systems, incompatible in format, or inaccessible for meaningful analysis. However, when companies gain access to granular data – whether it’s on energy use, system performance, or environmental conditions – they can make smarter, faster decisions. It’s not just about saving energy, it’s about redesigning processes to be leaner and more effective, boosting productivity and energy efficiency at the same time.
Assuming that digitalization could primarily come through IoT devices, we also learn that non-compatibility of communication protocols can cause difficulties in data analysis. Please discuss.
It is estimated that there will be 38.8 billion IoT connections globally by 2029. That is more than twice the number today, implying an expected compound annual growth rate of 16 per cent annually. This growth is dramatically expanding the volume of data that industries have at their disposal.
However, non-compatible communication protocols create barriers by preventing seamless data exchange between devices or systems. When different IoT devices or platforms use incompatible standards, it leads to data silos where information cannot be effectively shared or integrated. This hinders the ability to conduct comprehensive real-time analysis, limiting the potential of AI-driven insights and optimization. As a result, organizations face challenges in leveraging the full power of digitalization, slowing progress toward decarbonization goals.
Industrial IoT connections are just one of the ways that organizations are developing the data sources they need to become more sustainable, either directly or by supporting the use of newer digital technologies. Siemens also offers IoT gateways and interoperability platforms that address these challenges, ensuring seamless integration of devices and systems. These solutions empower organizations to harness data from diverse sources, enhancing their ability to analyze and optimize operations.
Artificial Intelligence (AI) can play a big role towards the ultimate goal of decarbonization, the report says, adding that the energy efficiency of AI first needs to improve. What could be a layman explanation to this?
From predictive maintenance in manufacturing to optimizing energy consumption in smart grids, AI-driven solutions are transforming industries. While these positive advancements come with energy and resource costs, there are simple steps that can be taken to implement AI more sustainably. For example, to minimize the environmental impact of AI, industries need to adopt a more strategic approach to its deployment. First by prioritizing efficiency. Not all AI applications are created equal. Some require vast amounts of computational power, while others can achieve similar outcomes with much less. By prioritizing efficiency in AI deployment and choosing algorithms and models that are less resource-intensive, businesses can reduce energy consumption and environmental impact.
The key to leveraging AI, while maintaining environmental responsibility, lies in balance, requiring a nuanced approach that considers both the benefits and the costs of AI deployment. AI has the potential to revolutionize the way energy is produced, managed and consumed, but it must be deployed in a way that supports and not undermines environmental objectives.
The world definitely needs to decarbonize and move towards Net Zero. How do you see the evolving role of Siemens Smart Infrastructure in contributing towards this global imperative?
At Siemens, we combine the real and the digital worlds to drive sustainable infrastructure, putting us at the heart of this global imperative. Our technology is designed to transform infrastructure across buildings, electrification and grids, at speed and scale, enabling collaborative ecosystems that can accelerate our customers’ digital journey. This collaborative approach is helping our customers to become more competitive, more resilient, and more sustainable.
