Leveraging Digital Technologies to Disrupt and Drive It in Energy Transition
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CIOREVIEW >> Digital Transformation Middle East

Leveraging Digital Technologies to Disrupt and Drive It in Energy Transition

By CIOReview | Friday, September 16, 2022

The path has been evolutionary thus far, with each new accomplishment bringing us one step closer to solving the climate problem to create the net zero future that national leaderships and the region envision

FREMONT, CA: A paradigm shift in attitudes and behaviors has occurred as a result of the escalating climate crisis in recent times, as viewed from historical reflection. Global warming has sparked fundamental social upheaval throughout Middle Eastern civilization, motivating countries to adopt abatement imperatives, transform significantly, and begin the transition to a net zero future.

The road has been progressive thus far, with each new accomplishment bringing us one step closer to solving the climate dilemma. However, the whole energy sector must play a starring role in the energy transition by embracing digital technologies to create the net zero future that national leaderships and the region envision.

The fast-changing digitization environment in the area can be better understood by ] focusing on Saudi Arabia and the United Arab Emirates (UAE). These two nations are leading the region's digital transformation and solidifying their reputation as a thriving region for technological advancement.

The UAE unveiled its Digital Economy Strategy in April 2022 to increase the digital economy's contribution to GDP from 9.7 percent to 19.4 percent over the following ten years. With more than 30 initiatives, projects, and programs and five new growth areas, the Digital Economy Strategy will combine efforts to adopt contemporary technology, boosting digital advancement and future readiness.

Digital transformation has also been welcomed in Saudi Arabia, which is presently working on its third five-year action plan to implement a smart government. The Smart Government Strategy (2020–2024) is putting out cutting-edge strategies for creating world-class digital government capabilities as part of the National Strategy for Digital Transformation. Such tactics have subsequently strengthened the groundwork for an energy transformation led by the energy sector and inspired by Industry 4.0.

Continuous decarbonization is being driven by digital transformation across the entire energy industry. National oil corporations (NOCs) can reduce emissions to new technology, paving the road for a net zero future. Artificial intelligence (AI) is one such technology that is essential for precise forecasting of renewable energy sources, efficient operations, stable energy networks, distribution of sustainable energy assets, and the development of future interconnected energy systems.

AI has become essential for utilizing renewable energy sources, such as solar and wind power. Its future decarbonization importance is further highlighted by the fact that AI technologies have the potential to revolutionize the energy sector and generate up to USD 5.8 trillion in value annually across 19 different energy industries.