In the energy sector, power and utilities companies are under increasing pressure to reduce carbon emissions and meet ambitious net-zero goals. These emissions goals are set by government mandates, industry-wide initiatives and investors. Companies that fail to meet these goals are at a competitive disadvantage, risking reputation harm, legal consequences and missed business opportunities.
There are several strategies companies can use to reduce emissions and meet net-zero goals:
- Incorporating clean energy sources, like nuclear and natural gas, and renewables, like wind, solar and hydrogen
- Decreasing the use of coal and other fossil fuels
- Reducing carbon emissions across their operations
Making such extensive changes to operations, while continuing to provide reliable power generation, is challenging. Each change is significant and involves innovation, investment and a new set of standards and regulations to maintain.
Advanced software technology can offer a critical advantage for power & utilities companies diversifying their energy portfolios to reduce greenhouse gas emissions. These tools can help streamline the R&D process and provide real-time updates on power and utilities regulatory changes, enabling engineers to make faster, more informed decisions.
The Urgency of Achieving Net-Zero Goals in the Energy Sector
The urgency for power and utilities companies to reduce carbon emissions and meet net-zero goals stems from the industry’s significant impact on global greenhouse gas emissions. As one of the largest contributors to emissions, the energy sector faces mounting pressure from governments, investors and society to curb its carbon footprint and limit global warming. These reductions are vital to mitigating the effects of climate change and promoting environmental sustainability.
Achieving net-zero goals not only aligns with regulatory mandates but also enhances companies’ long-term viability by reducing their exposure to climate-related risks. For companies in this sector, meeting emissions reductions goals isn’t just about regulatory compliance – it’s about future-proofing their operations, staying competitive in a changing market and contributing to a sustainable future.
Harnessing Intelligent Research Tools for Accelerated Decarbonization in the Energy Sector
Engineers in the energy industry can explore several new technologies to incorporate renewable energy and achieving net zero emissions. Carbon capture, carbon dioxide and methane emissions monitoring, renewable sources of energy are just a few of the options available.
However, introducing a new energy source or process requires research and testing. Intelligent software is redefining engineering R&D and significantly speeding up the process of gathering critical information for new projects. Many engineers typically start their research process online, using Google to find the latest innovations and standards related to their project. Intelligent research tools streamline this process by offering more advanced data retrieval capabilities. These tools can quickly sift through vast amounts of data, including patents, journal articles, and industry standards, using natural language processing to understand context and relevance.
Advanced software technology can identify best practices and make intelligent connections between disparate data points with increasing depth and accuracy. This helps companies reduce the time and effort spent on research by quickly retrieving the information engineers need.
For example, an engineering team tasked with adding carbon neutral energy, like nuclear power, to their company’s energy mix needs to know all the relevant regulations and standards – a body of information defined by documents from multiple governmental institutions and industry organizations. In just a few minutes, intelligent research tools can find the right documents and the pertinent information within those documents, compared to hours of manual research time. And, these digital technologies can continue learning and refining their insights, making them valuable assets in staying up-to-date as industry standards and best practices change.
Ensuring Compliance with Power and Utilities Regulations and Standards
In the U.S., the power & utilities sector is regulated by several governmental entities, including the Federal Energy Regulatory Commission (FERC) and state Public Utility Commissions/Public Service Commissions (PUCs/PSCs). The cost of noncompliance is high: fines, loss of operating license, increased scrutiny and even criminal prosecution. Organizations can use AI tools to help gather regulatory information and remain in compliance. Investing in AI tools not only helps mitigate the significant costs of non-compliance, but also positions organizations to operate more efficiently and resiliently in a regulatory environment.
In addition to governmental regulators, several industry organizations publish standards for the power & utilities sector:
- IEEE: Institute of Electrical and Electronics Engineers
- ASME: American Society of Mechanical Engineers
- API: American Petroleum Institute
- NFPA: National Fire Protection Association
- NERC: North American Electric Reliability Corporation
- IEC: International Electrotechnical Commission
As electricity companies change their energy supply and increase energy efficiency to achieve decarbonization, it is critical for them to understand regulatory policies related to any new energy system they may add, like natural gas, nuclear, wind, solar or hydrogen. They also must follow regulations and standards for phasing out energy sources like coal.
Engineering standards in the energy industry are constantly evolving to keep pace with technological advancements and industry needs for energy efficiency and a lower carbon footprint. New standards are developed to accommodate emerging technologies, ensuring that practices remain up-to-date and effective. Standards are also subject to periodic review and updates by Standards Development Organizations (SDOs), although these revisions do not always follow a regular schedule. Additionally, feedback from industry professionals plays a key role in prompting changes to standards, ensuring they address practical challenges and innovations. Changes in regulatory policies further drive the need for standard updates, as compliance requirements shift to reflect new energy goals or safety protocols.
Keeping up with changes to regulations and industry standards requires constant vigilance – and advanced software technology can help. Rather than waiting for announcements from SDOs or regulators, smart automation tools can notify engineers as soon as sections of a standard are updated or when a new version becomes available . Intelligent software can also compare two editions of a standard side-by-side, showing engineers exactly what has changed. These tools remove the manual effort involved in tracking updates across multiple standards, allowing engineers to quickly grasp the implications of a change and ensuring compliance with relevant regulations.
Overcoming Challenges with Digital Engineering and Next-Gen Software Intelligence in the Energy Sector
Electricity companies are navigating complex challenges, from integrating renewable energy sources and reducing carbon dioxide emissions to staying compliant with evolving regulations and standards. Intelligent software tools offer a significant advantage by streamlining research and providing real-time updates when standards change. Incorporating data-driven solutions into engineering workflows can help companies ensure they remain on track to meet their sustainability objectives, while continuing to serve their customers.
Interested in learning more about how intelligent tools can guide you through the energy transition? Learn more about our engineering workflows and advanced software technology.