Brendan Scott, Head of Energy, Utilities and Commodities at BJSS, now part of CGI, explores how the energy industry is evolving as a result of new technologies and extreme weather events.
Q: Predicting the unpredictable: How can AI and emerging technologies improve weather forecasting to help energy companies mitigate risks from extreme weather?
As extreme weather events continue to increase both in frequency and severity, artificial intelligence (AI) and other emerging technologies are becoming increasingly vital resources for energy companies. AI, in particular, allows companies to better prepare for severe weather events by offering early warnings and optimising resource allocation. Another benefit of AI is that it offers a deeper level of precision and accuracy compared to traditional methods. As AI can quickly process large datasets, and recognise patterns in historical records, AI can more accurately forecast the timing and location of extreme weather events. These more accurate predictions also allow AI-powered systems to identify damaged or weak points in grid infrastructure, enabling proactive maintenance and the simulation of workarounds which ultimately minimises outages and helps maintain a reliable service for customers.
However, AI is not the only technological force shaping the future of the energy industry. To better anticipate and mitigate the impact of disruptive weather events, energy companies are implementing other emerging technologies, including digital twins, edge computing and Internet of Things (IoT) sensors. Digital twins are especially important in this context, as they can model the impact of various events on buildings, roads and power grids, allowing energy organisations to run simulations as well as pinpoint exactly where infrastructure requires upgrades or repairs. This pre-emptive maintenance creates more resilient infrastructure that can endure extreme weather events. In a similar way, IoT sensors use weather monitoring devices to detect changes in the system and provide real-time data updates on impacts or anomalies. IoT sensors can also be used to provide another layer of insight as the devices can track additional environmental data, such as air quality and pollution levels. Edge computing benefits both energy companies and communities alike by processing data closer to the source or sensors, reducing delays in severe weather alerts and ultimately giving people more time to protect their assets.
Q: Infrastructure resilience: What steps should energy suppliers take to ensure grid stability and reliability amid increasing climate volatility?
With climate volatility becoming an increasingly persistent feature of our world today, energy organisations are continually exploring how they can best achieve a reliable energy supply pipeline. One key aspect of this involves energy companies diversifying their energy sources by incorporating a mix of renewable and traditional sources into their portfolio. This reduces the likelihood of supply disruptions during severe weather events and allows for a more robust and sustainable energy system.
Once these various sources are in place, energy companies must keep a watchful eye on their grid infrastructure, ensuring they upgrade and perform maintenance measures on their network as promptly as possible. With severe weather events in mind, there is now significant investment in reinforcing transmission lines, implementing flood barriers and improving cooling systems at substations. Smart energy grids also play a major role here. The real-time monitoring of grid performance can provide rapid fault detection and more accurate demand forecasting.
Energy organisations should also consider investing in advanced energy storage systems, such as batteries. These systems store excess energy which can be used when production falters, or if another energy source fails to produce sufficient power. This is particularly useful in the context of solar and wind energy, as the systems can store excess energy generated during times of peak sunlight or strong winds, which can then be used when production falters, such as at night or during calmer weather conditions.
Finally, energy organisations must conduct regular climate risk assessments to help identify vulnerabilities in their network and develop strategies to address potential threats to grid stability. Proactively addressing these risks will allow energy companies to ensure a more reliable power supply for their customers.
Q: Customer Trust & Engagement: How are changing consumer expectations—especially with EVs, solar panels, and heat pumps—shaping the energy industry?
The relationship between consumers and their energy suppliers is evolving rapidly as customers demand more products, services and visibility, especially in a cost-competitive market. This shift has been partly driven by the adoption of new technologies, including solar energy systems, EVs, heat pumps and battery storage, as well as a need for more granular usage data. As a result of these new devices, and due to the economic uncertainty customers are facing, consumers now expect greater transparency from their energy suppliers. They want to be able to monitor their energy usage and manage their expenses in real time. Consumers ideally want to review this data through accessible online applications, making the experience more akin to that of a challenger bank.
For energy companies, this means they need to ensure that their data, technology, people and processes are set up and structured to meet these expectations. Data is the first step to master here. Accurate data not only allows AI systems to work more effectively, but it is also crucial for understanding customers’ preferences better. BJSS, for example, has enabled a major UK energy company to better identify and support its most vulnerable customers, such as those facing financial difficulties or health issues, through improving its use of data. Once companies are managing their data effectively, energy companies must continue to adopt cutting-edge technologies. This also involves empowering their workforce to use these tools through upskilling.
Q: The Role of Digital Transformation: How can accelerators like DevEXP help companies enhance service transparency, customer engagement, and operational efficiency?
DevEXP is an accelerator that allows engineering teams to assess, monitor and deliver new products and features more quickly than traditional methods. The real strength of DevEXP is that it allows organisations to rapidly develop and launch new products to meet customer and market demands. Energy organisations that implement DevEXP will benefit by increasing their market share, expanding their product offerings, enhancing their reputation and improving their pace to market. Customers will benefit from better visibility of their energy usage, a wider range of product choices and a more seamless experience with their energy provider.
Q: Future outlook: As we transition from El Niño to La Niña, what are the biggest challenges and opportunities for energy companies in 2025 and beyond?
As the start of 2025 saw a shift into La Niña conditions, a weather event that typically sees global temperatures fall and can often lead to a more severe hurricane season, energy companies have been forced to think about how they can best respond to unexpected and extreme weather events. The primary challenge for energy companies is being able to more effectively manage the variability of weather patterns and the increasing frequency of severe weather events.
However, within this lies great opportunity. Energy companies that invest in new innovations and technologies, including AI, will be able to more accurately provide weather forecasts, understand where investment is required and enhance grid reliability by reducing downtime. This approach will help companies maintain a competitive edge, strengthen customer relationships and improve their overall operational efficiency.
