Poland's Digital Revolution in Energy: Challenges and Opportunities for a Sustainable Future
- Poland | 6 May 2021
In Poland, there’s a prevailing belief that the nation’s greatest innovation asset lies in its young, tech-savvy generations of high-tech specialists. This notion isn’t without merit, as Poland impressively ranks 22nd globally in Bloomberg’s 2019 Innovation Index, primarily attributed to its large number of students in tertiary education and the density of engineering and technology choices available.
The high-tech sector in Poland is experiencing robust growth. According to the Ministry of Digitalization, by 2025, the IT sector will employ an additional 200,000 IT specialists, conservatively estimated. However, Poland still has ground to cover in terms of digitalization compared to its European counterparts. According to the European Commission’s Digital Economy and Society Index, Poland hasn’t made significant strides in adopting digital technologies over three consecutive years. It currently ranks 25th out of 28 EU member states, performing well below the EU average. This deficiency has thrust digital transformation into the national spotlight.
In 2019, the government established the Future Industry Platform, a national initiative aimed at fostering further digitalization of the economy. This organization’s primary role is to raise awareness among Polish companies about the myriad opportunities that emerging technologies can bring. Surprisingly, despite numerous IT solution providers operating domestically, many homegrown companies have been hesitant to embrace digitalization. A 2019 survey by Computerworld revealed that only one in three companies used Big Data analytics and Cloud technologies, highlighting financial constraints, time limitations, and skill shortages as obstacles.
Another anticipated national initiative is the establishment of a central data hub, designed to manage all metering data in a centralized manner. The plan to create the Energy Market Information Operator, a new entity governed by PSE, has already been included in the draft amendment to the Energy Law currently in legislative proceedings. The lack of centralized metering data management has been a longstanding challenge, addressed in a fragmented manner so far. Maciej Kowalski, Managing Director of Enefit, underscores the importance of this, stating, “When it comes to energy, we know what we supply only if it is measured, but this is not easy to get clarity on in Poland.” The solution lies in a centralized approach.
The adoption of digital technologies varies significantly among industries. For instance, Poland boasts an ultra-innovative and digitized banking sector, serving as the top client for IT providers nationwide. Sales of IT solutions in banking increased by over 20% in 2018 compared to 2017. In contrast, the energy sector has been somewhat conservative in embracing digital solutions, despite a wide array of tools available. However, the situation is evolving, driven by environmental regulations and consumer expectations for a low-emission future.
The COVID-19 pandemic further accelerates digital transformation across industries. Remote work and production management, facilitated by digital technologies, have become standard practices. The energy sector, like others, has faced severe challenges due to the pandemic. Still, it’s an opportunity for energy companies to adapt, prioritize clean and efficient solutions, and align with economic recovery and stimulus plans.
The pandemic’s impact on energy sources and technologies remains uncertain, but the coal market faces the highest uncertainty. While overall energy demand has dropped, renewable energy has remained resilient. COVID-19 is likely to expedite the phase-out of coal, transforming the energy landscape significantly.
Energy producers are investing in renewable energy installations and digital solutions, including IoT, advanced data analytics, and AI technologies. These innovations aim to enhance energy efficiency across the power generation value chain, irrespective of the energy source. Energy storage remains a critical goal, ensuring power quality and stability while optimizing profitability. Automation plays a pivotal role in reducing manpower, enhancing safety, and ensuring system reliability.
The challenge of reducing ecological damage in the coal industry also necessitates technological intervention. Digital mine models acquire information from various sources, formulating comprehensive geological data. IoT, automation, and big data analytics are employed to further enhance information processing and system control. While automation can reduce manpower, it’s also a source of apprehension in mining communities, highlighting the need for open-mindedness and adaptation.
Moreover, energy companies are increasingly focusing on automating processes, especially in micro-grid management and energy distribution. Solutions are being developed to facilitate data exchange between diverse energy producers, optimizing system efficiency and reliability.
Renewable energy distribution and energy saving in residential buildings offer significant potential for improvement. Outdated boilers and solid fuel use persist in many Polish homes. However, forecasts suggest a substantial increase in energy consumption, especially with the government’s push for electromobility. Energy efficiency must become a top priority for all stakeholders, including the energy sector, industry, and households.
Poland’s pursuit of green energy is closely tied to its journey toward enhanced energy efficiency. While progress has been made, considerable untapped potential remains, presenting a substantial business opportunity for digital solution providers. Smart regulation systems, IoT, automation, and data analytics are key tools in achieving energy savings.
As the digital revolution reshapes Poland’s energy landscape, it holds the promise of a more productive, innovative, and sustainable economy. Data, now more valuable than oil, is at the core of this transformation, ensuring Poland’s energy future is efficient, resilient, and environmentally responsible.