A digital-first approach, such as AI, smart grids and digital twins and intelligent computing centres, help energy companies achieve improved ROI, accelerated efficiency and competitive advantage

In a world where energy markets are in flux and decarbonisation is imperative, firms that pursue a transparent, digitally-first approach to technology implementation are reaping exceptional returns.

Market studies have shown how clear-headed tech deployment is generating superior return on investment (ROI) in the energy sector.

Firms with well-defined digital strategies are not just increasing their operational efficiency, they are unlocking exponential financial value, says Wood’s ‘Revolutionising the energy industry with a digital-first approach’ report.

Other studies have shown how integrating AI through intelligent computing centres in energy enterprises can yield ROI as dramatic as 2,568.27 per cent, especially in offshore wind power projects.

Such figures underscore the financial potency of combining high-powered computation with AI-driven optimisation across the energy value chain, from generation and transmission to predictive maintenance.

Moreover, digital twins integrating SCADA, GIS and IoT are giving operators real-time situational awareness, boosting field-crew productivity by 25-30 per cent and enabling up to 80 per cent of Capex to be allocated smarter, toward high-risk assets.

These technologies not only drive cost-efficiencies but also improve resilience and decision-making in volatile environments.

This appetite for digital precision is also reflected in the way utilities and oil majors are recalibrating their long-term strategies.

Energy companies are no longer viewing digital tools as bolt-on solutions but as central to their operating models.

Predictive analytics platforms, for instance, are now being integrated into enterprise resource planning systems to unify production data, maintenance schedules and supply-chain logistics under one dashboard.

This convergence allows leadership teams to align investment decisions with real-time operational insights, reducing downtime while unlocking millions in avoided costs.

The cultural shift is equally notable. In the past, many firms resisted digital change due to cost and disruption fears.

Today, leadership increasingly recognises that failing to implement a clear digital roadmap can leave assets stranded and render companies uncompetitive.

Boards and investors are pressing executives to demonstrate not only sustainability credentials but also evidence of digital maturity.

This has elevated chief digital officers to pivotal roles in energy firms, charged with ensuring technology strategies are tied directly to measurable ROI and shareholder value.

TRANSFORMATIONAL TRENDS & STRATEGIES

Massive capital is flowing into clean tech, with global energy investment expected to hit $3.3 trillion in 2025, and $2 trillion earmarked for clean technologies, including renewables, grids, storage and electrification.

In this context, digital tools become essential to manage complexities, regulatory demands and cost pressures.

Leading trends such as AI, IoT, energy management systems, cloud computing and cybersecurity continue to reshape the industry.

Energy executives acknowledge that their sector is resilient and risk-willing, but must ramp up investments in data capabilities and AI to deliver on digital transformation.

Equally important is the role of regulation in driving this transformation. Emerging disclosure regimes in Europe, the US and Asia are mandating detailed emissions data, energy-efficiency reporting and supply chain transparency.

Meeting these requirements without robust digital infrastructure is almost impossible. Firms that implement digital monitoring and emissions-tracking tools early find themselves ahead of compliance curves, avoiding penalties and reputational risks.

The financial community is also rewarding such foresight, with banks and investment funds increasingly directing capital towards companies that can prove digital competence in meeting sustainability targets.

Another rising priority is workforce efficiency. As skilled labour shortages intensify, digital technologies are mitigating the impact by automating repetitive tasks, documenting operational knowledge and enabling remote support for field engineers.

Cloud-based training and augmented-reality maintenance tools are allowing fewer workers to manage larger asset bases, protecting margins even as hiring costs rise.

This optimisation feeds directly into ROI, as operational bottlenecks are reduced while human capital is allocated more strategically.

REAL-WORLD EXAMPLES OF INNOVATION DRIVING ROI

AI is now central to grid modernisation and handling soaring demand from data centres. In the US, data centre electricity consumption is predicted to reach up to 12 per cent of national power usage by 2028.

Utilities and tech companies leverage digital twins and real-time data to optimise grid capacity and delay infrastructure constraints.

Additionally, AI-enabled platforms manage decentralised energy resources effectively. For example, Spain’s Ercros and Norway’s Elvia, which used digital twins to predict overloads and maintain grid stability.

Start-ups are also driving returns with novel technologies. Texas-based Terraflow Energy is building a 1 GW vanadium-flow battery storage system to buffer AI data-centre demand, potentially powering 250,000 homes for ten hours.

Their technology offers longer discharge and reduced fire risks compared to lithium-ion alternatives.

In the UK, Octopus Energy, essentially a technology company disguised as an energy supplier, has built its platform Kraken to manage smart consumption and grid balancing.

Kraken now serves 70 million customers globally, aiming for 100 million by 2027, and supports zero-bill schemes via real-time data analytics.

Oil major Eni is also shifting its strategy. It is combining carbon capture, low-emission data centres and renewables.

Eni anticipates double-digit returns on its energy transition investments over the next five years.

What is becoming clear from these examples is that digital investments are paying off fastest where implementation has been mapped carefully against business objectives.

The most successful cases involve not just technology adoption but also process redesign and cross-departmental alignment.

For instance, companies that introduced digital twins without re-engineering their maintenance workflows often saw limited benefits.

By contrast, firms that embedded digital twin insights into their scheduling, procurement and safety protocols reported transformative results.

This integration extends to financial planning. Asset investment planning software, when deployed alongside predictive maintenance tools, has enabled firms to reallocate billions in capex, extending asset lifetimes and improving net present value of projects.

Such technology is particularly impactful for capital-intensive sectors like LNG, petrochemicals and refining, where delays and overruns can devastate profitability.

Digital clarity ensures that investment risk is minimised, and capital efficiency maximised, cementing stronger ROI outcomes.

WHY CLEAR TECH IMPLEMENTATION YIELDS BETTER ROI

Wood’s report emphasises that only firms with a methodical and strategic deployment of digital tools, rather than piecemeal adoption, achieve significant ROI.

It highlights that automation, predictive maintenance, decentralisation and IoT enable real-time optimisation, cost reduction and integration of renewables.

These are the same patterns now validated by external research and recent industry developments.

Energy leaders must define a technology roadmap that prioritises clear business outcomes, such as efficiency, reliability, and growth, while avoiding the pursuit of technology for its own sake.

By leveraging intelligent computing and AI across the entire asset lifecycle, from planning and operations to decommissioning, leaders can optimise performance and decision-making.

Digital twins provide real-time visibility, enabling smarter crew deployment and more effective capital expenditure allocation.

Additionally, embracing emerging storage technologies, such as vanadium-flow batteries or iron-air systems, supports affordable demand flexibility.

To stay ahead, leaders must incentivize visionary leadership, especially as Asia-Pacific investment surges and climate policy and energy security demand digitally savvy strategic executives.

Firms combining these approaches are not merely cutting costs, they’re transforming return profiles, capturing new revenue streams and securing resilient, competitive futures.

By OGN Bureau