Leading power companies in the cloud computing theme

The future of the power industry will be shaped by a range of disruptive themes, with cloud computing one of the themes that will have a significant impact on power companies. 

Cloud computing is a vital Industry 4.0 technology. With volatile geopolitical events, a prevailing energy crisis, an aging workforce and pressure to speed up the energy transition and meet the demand for a decentralized power grid, continued digitalisation is the only option for the power sector. Power companies are already benefiting from the inherent advantages of the cloud, such as its flexibility, scalability and cost-effectiveness.  

However, they must also embrace more innovative uses of the cloud and its capacity to enable other emerging technologies. For example, cloud enables the masses of data collected from internet of things (IoT) networks at power plants to be gathered and analysed on shared and real-time online platforms. Power companies can use the insights from these cloud-hosted platforms to monitor key assets remotely, spot any machinery faults early and extend the life of costly infrastructure.  

Cloud computing can also support the analysis of electric consumption patterns and the subsequent design of products and services aligned with consumer demand. Both examples show how power companies can use cloud computing and its advanced data analytics capabilities to make the best business decisions. 

However, not all companies are equal when it comes to their capabilities and investments in the key themes that matter most to their industry. Understanding how companies are positioned and ranked in the most important themes can be a key leading indicator of their future earnings potential and relative competitive position.  

According to GlobalData’s report Cloud Computing in Power, leading adopters of cloud computing include AES, Dominion Energy, Duke Energy, E.ON, EDF, Enel, Engie, Fortum, Iberdrola, Rosatom, Vattenfall.

Duke Energy

Duke Energy is working to future-proof its grid, for example, through work with Amazon Web Services to develop a host of smart grid solutions hosted on the cloud – its Intelligent Grid Services. This enables the company to capture energy demand and capacity in different areas and recommend how best to balance the grid to meet these needs through actionable data-backed insights. This benefits users by readily meeting their energy demands, improving efficiency and identifying where more renewable energy sources can be integrated to advance the energy transition. 

E.ON

E.ON uses several cloud-based solutions. For example, its Optimum platform provides its business customers with analytics to better manage their energy use, cost and emissions. In 2021, E.ON agreed a multi-year deal to move all its IT applications from its private data centers to Microsoft Azure, with Wipro responsible for all migration processes. This has allowed E.ON to access flexible IT resources, increase its operational efficiency and pilot new digitalization projects. 

AES

AES, a global energy company focused on developing renewable energy projects, sees digitalization, including cloud computing, as critical in creating reliable, energy-efficient, cost-effective power grids. One example of the company bringing together cloud computing and its energy transition mission was its 2021 agreement with Google Cloud to supply all its Virginia-based data centers with 24/7 carbon-free energy for ten years.  

This is the first deal of its kind and draws on AES’ wind, solar, hydro and battery storage resources to power Google’s data centers. This deal followed a strategic partnership in 2019 between Google and AES in which the public cloud vendor supported AES’ adoption of cloud technology. AES uses Google Cloud to advance its smart grid solutions, improve customer experience through cloud-hosted platforms and manage clean energy projects in the US and South America.

To further understand the key themes and technologies disrupting the power industry, access GlobalData’s latest thematic research report on Cloud Computing in Power. The power companies featured in our thematic scorecard are listed below.

• Iberdrola 
• AES 
• Xcel Energy 
• Enel 
• E.ON 
• China Huaneng Group 
• Electricite de France 
• Dominion Energy 
• EGAT 
• Engie 
• Hydro-Quebec 
• Fortum 
• NextEra Energy 
• Exelon 
• Taipower 
• Vattenfall 
• CLP Holdings 
• RWE 
• Duke Energy 
• American Electric Power 
• Southern 
• Korea Electric Power 
• China Datang 
• NTPC 
• NRG Energy 
• Entergy 
• Saudi Electricity 
• China Huadian 
• Eskom 
• TVA 
• JERA 
• RusHydro 
• PT PLN 
• Gazprom 
• Rosatom 
• Inter RAO 
• Fortis