Strategies for the digital transformation of fuel and energy complex companies (fuel and energy complex)

2020

TAdviser got acquainted with the current strategies of digital transformation of some large enterprises of the fuel and energy complex of Russia at the end of 2020.

Rosseti

The concept of "Digital Transformation 2030" was approved by PJSC Rosseti in December 2018. The document is designed for the period until 2030 and involves a complete transformation of the energy grid infrastructure. The total investment volume is 1.3 trillion rubles. More details - here.

As part of the digital transformation, Rosseti, in particular, will introduce technologies and solutions such as:

• automated system of operational-technological coordination;
• intelligent switching devices;
• integrated smart energy monitoring system;
• digital substations and digital electrician.

The goal of digital transformation in the company is to change the logic of processes and move the company to risk-oriented management based on the introduction of digital technologies and big data analysis. Its tasks in Rosseti denote the following opportunities and processes:

• adaptability of the company to new tasks and challenges;
• improvement of reliability characteristics of power supply to consumers.
• Improving the efficiency of the company;
• Increasing the availability of electrical network infrastructure;
• Developing human resources and new competencies.
• diversification of the company's business through additional services.

The Rosseti digital transformation also has a number of practical tasks:

• reduction of operating and investment expenses of the company;
• reduction of power losses;
• increase of reliability, availability of power supply;
• Create a set of additional services for customers.

Digital transformation, as calculated in Rosseti, will allow:

• increase reliability, quality, availability of power transmission and technological connection services for consumers;
• Provide consumers with the opportunity to participate in the regulation of their own consumption;
• provide them with additional services (personal account, load management, etc.);
• create conditions for the emergence of new consumer services;
• To contain the rate of tariff growth;
• Create a new infrastructure for the most efficient transmission of electricity between the entities of the electric power industry;
• Develop competitive markets for related services.

At the same time, for the digital transformation of Rosseti, specific values ​ ​ of the target parameters are also determined:

• increase of availability of technological connection - by 1.5 times;
• reduction of operating costs by 30%;
• reduction of capital expenditures by 15%;
• Increase in the life of assets by 10%;
• 50% reduction in SAIDI/SAIFI indicators (key indicators of power supply reliability).

Federal Network Company (FGC UES)

The digital transformation program for 2019-2030 was adopted by the company in March 2020. Until 2030, according to the document, FGC UES will invest 89.6 billion rubles in digital transformation. In the foreseeable future - 2020-2024. - 37.6 billion rubles.

The projects of the company's digital transformation program cover four main areas:

• process control and digital network;
• digital management of the company;
• additional services;
• comprehensive information security system.

As part of the implementation of the program, the company will, in particular, introduce such solutions and technologies as:

• telemechanics systems (at power facilities);
• Digital substation technology;
• digital twins of technological processes, equipment and systems;
• metering systems;
• infrastructure for data storage and processing;

In addition, the program implies:

• automation and digitalization of technological and business processes, including the introduction of legally significant electronic document flow;
• typing and standardization of technical solutions during construction and technical re-equipment in the company;
• transfer of power facilities to remote control;
• generation of a single Big Data source;
• development of commercial digital products using Big Data technologies;
• Increased use of digital engineering and robotics services;
• development of its own digital communication network;
• Creation of extensive ecosystems of digital platforms and services.

It should be noted that the program also involves the development and piloting of promising products. The implementation of "pilots" is aimed at finding the most efficient technologies. Decisions on replication will be made taking into account the results.

As stated in the FGC UES report for 2019, in general, until 2025 the company plans to implement more than 30 complex digital projects on a single national electric network, transfer more than 100 substations to telecontrol. Digital communication coverage by this time, according to plans, will have to grow to 100%, and all UES FGC energy facilities will be observed remotely from single control centers.

According to Pavel Korsunov, Deputy Chairman of the Board of FGC UES, cited in the report, the priority direction of digitalization for the company is the creation of low-maintenance digital energy facilities of a high degree of reliability.

The main effect of the program for the consumer is to reduce accidents, which means an increase in the reliability and quality of services. For the company - a decrease in operating and capital costs, an increase in labor productivity, - noted in the FGC UES.

Speaking about what difficulties the company may have in implementing the program, FGC UES drew the attention of TAdviser to the fact that digital transformation provides for a change in the logic of processes and a transition to risk-oriented management of the company.

When developing the program, the company focused on the strategy of the entire Rosseti group and relied on the best world practices. However, any new approaches require time to adapt and draw conclusions that will become the basis for further action, "the UES FGC noted.

Rosatom

The third version of the unified digital strategy (ECS) was adopted by the state corporation Rosatom in the spring of 2020. Rosatom approved the first version of the single digital strategy back in 2018. This document implies a digital transformation of all divisions and companies included in the state corporation, in particular, the Rosenergoatom concern. In the process of implementation, relevant additions are made to Rosatom's digital strategy - at the end of the year. Accordingly, according to the results of 2019, the company made regular updates to the document.

The strategy includes three key areas:

• participation in the digitalization of Russia;
• digital products of Atomenergoprom JSC;
• internal digitalization;

The strategy consists of ten fundamental blocks:

• end-to-end digital technologies and data management;
• digitalization of NPP construction processes, including nuclear power plant digital doubles;
• a single digital platform of the nuclear industry;
• digital economy;
• digital import substitution;
• digital products and marketing;
• information security;
• strategic partnerships and mergers and acquisitions;
• organizational changes;
• digital competencies and "digital" culture.

The primary goal of the strategy is to solve internal problems of the nuclear industry. We are talking about such problems as:

• difficulties with observance of time and cost of NPP construction;
• weak communication between divisions;
• Lack of data collection and analysis systems for decision-making; risk of production stoppage in case of restrictions or revocation of import software licenses;
• inefficient use of working time and human resources capacity due to the shortcomings of enterprise IT applications and the lack of digital knowledge among employees.

The document provides for the introduction of technologies and solutions such as:

• "Smart Landfill," "Smart Quarry" and "Smart Mine" systems combined on the Digital Platform for the life cycle of solid mining "Smart Mine";
• BIM modeling technologies;
• automated technical documentation management system;
• Systems of legally significant electronic document management;
• intelligent industrial television systems behind the equipment.

Gazprom

The company Gazprom"" approved a comprehensive target program for the development of a single information space (EIP) of the Gazprom group for the period 2018-2022 in November 2017.

The approved program is based on three main principles: integration, innovation, import substitution. We are talking about the use of advanced IT solutions that ensure maximum integration of information and control systems and a synergistic effect for Gazprom's business. Preference for other necessary functional capabilities is given to domestic developments.

The target guidelines for Gazprom's digitalization are the introduction of automated solutions at all levels of group management and the evolution of the capabilities of a single information space, consistent with modern trends in the transition to a digital economy.

The EIP development program contains a list of priority activities that contribute, in particular, to improving the efficiency of operational, investment and sales activities, financial management at Gazprom. The document assumes functioning in the company:

• information and control systems that automate the most significant business processes;
• production accounting and planning systems;
• Investment project management platforms;
• systems for monitoring, modelling and forecasting the technical condition of production assets;
• a platform providing vertical integration of all elements - from instrumentation and process control systems to control systems of the parent company;
• a single digital model of the Unified Gas Supply System of Russia;
• digital doubles of operating production facilities;
• robotic complexes, neurotechnologies and artificial intelligence technologies in the analysis of "big data";
• Virtual unified data warehouse, which will receive real-time information from production facilities;
• data center.

It is expected that the use of advanced digital technologies will have a significant economic effect. For example, in production activities - by optimizing the operating modes of equipment and, as a result, increasing its productivity, optimizing the inventory of material and technical resources required for repairs.

In dispatch control, digital technologies will potentially help reduce the unit costs of gas transportation and the costs of operating gas transportation system facilities by optimizing gas flows and minimizing fuel gas and electricity costs.

In the field of financial management and marketing, new digital solutions will contribute, among other things, to an increase in interest income from the management of temporarily free cash, income from the sale of energy resources.

Lukoil

Lukoil implements a strategy called Digital Lukoil 4.0. It sets out the goals, objectives of digital transformation in oil and gas production at all levels - from the well to the control apparatus. The company decided to develop a digital ecosystem, or rather to create a digitalization architecture in all business segments, within the framework of which not only the implementation and centralization of information systems, but also the decommissioning of unprofitable equipment are carried out. These decisions, according to the company, allowed it to optimize the fleet of equipment, which led to a reduction in investment and operating costs.

In 2018, the company approved another "digital" document - the information strategy of the Lukoil group. In particular, it involves the use of integrated modeling in the company, a neural network-based software complex for analyzing a large array of data, as well as predictive tools based on intelligent digital models.

The main goal that Lukoil sets itself, developing information technologies, is to completely switch to a single company information template. Lukoil expects that it will lead to work in a single integrated information field, in a single information system.

The implementation of the strategy, according to the plans, should lead to:

• improving the efficiency of field development;
• optimization of process modes;
• reduction of operating costs;
• increase of energy saving;
• Increasing productivity;
• improving the quality of management and performance of works based on reliable and up-to-date information.

TATNEFT

TATNEFT's digital development strategy covers all areas of the company's activities: oil production and processing, sale of petroleum products, tire business, energy, mechanical engineering, etc. The document, in particular, involves the functioning of digital geological models in the company, digital doubles of oil production facilities, big data analytics, as well as robotization of control.

According to TATNEFT, as a result of the digital transformation, the company should receive production that provides a minimum load on nature, a multiple reduction in the probability of various technological accidents. As a result, economic efficiency and quality of management should increase. So is the value of the company.

Only at the Romashkinskoye field, thanks to the introduction of technologies such as the "digital twin" and the "digital field," we achieved a reduction in production costs by 30%, TATNEFT notes.

As a result of the strategy, the company expects to receive up to 21 billion rubles of economic effect by 2021.

Read also

• Information technology in the fuel and energy complex. Review of TAdviser
• Russian Energy Automation Market
• IT in energy. Review of TAdviser