Powering a Revolution in the Digital Age
The World Economic Forum on ASEAN took place in Kuala Lumpur at the start of June, an event designed to understand the sweeping changes which face our world. At its heart were three principles:
- Driving Sustainable Growth and Social Inclusion
- Mastering the Fourth Industrial Revolution
- Strengthening Regional Relationships
As a company at the forefront of this changing world, GE was delighted to take part in this event and the discourse among captains of industry. Yet there are still those who wonder, is this truly a revolution?
The changing world we live in
You have a supercomputer in your pocket which connects you to the entire planet. Individuals are walking around with mechanical hands they can control with their mind. Our world is powered by energy in an industry where digital landscapes and robots play an increasingly vital role.
Living through a time of monumental change makes it hard to recognise that for what it is. We comprehend the impact of steam engines, the huge changes brought on by electrical power, the revolution of electronics and automated production. They were the revolutions which came before.
This fourth industrial revolution isn’t powered by one change, but defined by change itself. It is a revolution of disruptive solutions, where the physical, digital and biological meet. It is changing the way we live, work and interact. That’s equally true in the world of energy, and these innovations may be some of the most defining of them all. After all, if we’re to reap the benefits of this fourth industrial revolution, we must somehow power the changes it will deliver.
A constant thirst for energy in ASEAN
The International Energy Agency (IEA) estimates that world energy demand will grow by a third by 2040. Driving that growth will be the rapidly expanding energy needs of rising economies, many of them right here in ASEAN.
According to the ASEAN Centre for Energy, ASEAN’s primary energy demand is predicted to rise 4.7% annually to 2035. In the wider region, the IEA suggests a required US$100 billion of investment in Southeast Asia’s energy infrastructure by 2040 to meet growing energy needs. The fourth industrial revolution will be key to both catalysing that demand, and meeting it.
This revolution is not simply one of growth, but of sustainability. Energy, perhaps more than any other sector, has a key role to play in delivering that. We need to deliver smarter, more efficient solutions. The undeniable human impact on this planet makes that abundantly clear. Yet somehow we must meet the energy demands of an ASEAN population expected to reach over 700 million people by 2030. In this, innovation and integration will play a vital role.
That is what the fourth industrial revolution must deliver.
The Power of 1%
Yes, there are challenges, but in a fourth industrial revolution defined by change, the opportunities of innovation are equally staggering. Digital analytics make up a huge part of that opportunity.
Cisco estimates that only 3% of current industrial data is utilised in a meaningful fashion. GE aims to change that. The Predix platform provides the pathway towards that future, offering the first cloud solution designed entirely for industry.
Looking at what this could achieve speaks for itself:
- In the oil and gas industry, a 1% improvement on oil recovery rates would equal 3 years of global oil production.
- A 1% reduction in jet fuel use would save the aviation industry US$30 billion over 15 years
- A 1% efficiency increase on our railways would mean US$27 billion fuel savings globally.
These are the real benefits that a fourth industrial revolution can offer us. If we’re to power that world, we most innovate towards doing so more efficiently than ever before.
Efficient digital solutions for ASEAN and the world
The GE Digital Wind Farm leverages Predix’s advanced digital technology to deliver efficient renewable energy for the modern energy landscape. Utilising data analytics means providing clean, sustainable energy at 20% increased production efficiency. Industry wide adoption increase global industry value by as much as US$50 billion.
Renewables alone won’t deliver our solution. We’re powering the innovation for a region, an increasingly connected workforce, explorers and inventors in digital and physical fields. If we’re going to deliver the next bionic hand, the next supercomputer, all the amazing possibilities of a new revolution, we need to innovate with the technology in place today.
Delivering efficiency in coal-powered generation is likely to play a large part. Coal is a cheap, accessible fuel source in the region, especially for nations with huge natural reserves such as Indonesia. Increasing the average efficiency of coal-fired power plants globally to just 40%, an efficiency already exceeded at the likes of Tanjung Bin Powerplant, Malaysia, we could decrease global CO2 emissions by 2 gigatonnes. That’s greater than the entire emissions of Southeast Asia for a year.
GE’s Digital Twin technology shows how data can be used to deliver these efficiencies. Using Predix analytics, GE has the capability to model a digital twin of a physical plant, allowing predictive maintenance and diagnostics that increase efficiency for a variety of asset types. In gas-fired production, this technology could save up to US$50 million for existing combined gas-cycle power plants, and up to US$230 million for a new plant.
A digital revolution for energy
In discussing sustainable solutions, providing for a future while reducing our impact upon it, it may seem misguided to some that we speak of efficiency in dollar signs. It would be foolish to ignore the reality of the situation: financial savings are crucial, both because they highlight the direct impact of increased efficiency, and because they make producing the power generation infrastructure of the future more affordable.
This fourth industrial revolution offers a wealth of opportunity. In delivering that opportunity, we need to ensure we meet the power demands of ASEAN and the world. The World Economic Forum estimates that society could benefit as much as US$2 trillion from digital transformation of our global energy network. That’s not just bionic hands and connected people, that’s public health, social opportunity and a better world.
If we’re to enjoy the world powered by that future, advanced data analytics have a huge role to play in ensuring we deliver it in a sustainable way. At GE, we’re not just imagining that future, we’re helping deliver it today.