Power & Utilities

Key changes are occurring in the global energy and utilities sector. Shifting consumer, societal and business demands, alongside emerging technologies, are increasing investments in new power generation methods. Energy companies are under pressure to adapt and evolve to form future-ready energy projects that steadily increase capacity but also prioritize efficiency, renewable energy and lower emissions. The goal is clear, but the road ahead is not without obstacles. 

How can these organizations sufficiently change, while also protecting profit margins and adhering to evolving regulations? How can they navigate this complex landscape efficiently and effectively? The answer lies in embracing advanced digital transformation.

Enterprise Project Performance (EPP) software plays a pivotal role. By pairing business strategy with tactical project execution, companies gain total visibility and can identify opportunities for improvement - a key capability needed to drive change.  total visibility and can identify opportunities for improvement - a key capability needed to drive change. 

Read on to explore this further. 

The Imperative for Change

According to the World Economic Forum's Energy Transition Index, countries worldwide are realigning their strategies to focus on more future-forward energy solutions. In the U.S. alone, over $242 billion has been committed to building a clean energy economy, highlighting the immense scale of investment in this sector.

This shift is not just about meeting regulatory requirements or societal expectations; it's about ensuring that energy companies remain competitive in a rapidly evolving market.
Renewable energy projects and sources, such as wind and solar, have been at the heart of this transition. However, nuclear power is also gaining recognition as a critical component of global decarbonization efforts.

The International Energy Agency projected that investments in nuclear power would reach $80 billion in 2024, nearly double the amount in 2018. And in March 2025, tech giants and other major energy users such as Amazon, Google, Meta and Dow are backing the goal to triple nuclear capacity by 2050. This diversification of energy sources underscores the need for energy companies to adopt new technologies and strategies to manage these projects.

Meeting New Demands with Innovation

As energy companies face the dual challenge of increasing demand and the need for cleaner energy, the pressure to deliver projects on time and within budget has never been greater. This is where an EPP strategy and smart solutions come into play. By leveraging technology such as digital twins and Artificial Intelligence (AI), energy companies can design, construct, and operate more efficient and sustainable energy projects. But how?

EPP software provides a comprehensive toolkit for managing uncertainty and improving capital project delivery. By integrating project data and performance metrics into a single platform, the software enables companies to make informed decisions, reduce waste and increase predictability. This not only helps with aligning project selection with organizational strategy but also results in significant cost savings.

Data transparency is key here. Organizations can tap into optimized insights from multiple areas of the business. The result? A better overview of current operations, identifying where improvements can be made, where resources are best spent and ways to have more cost control.

The Role of Technology in Driving Success

Digital transformation is not just a buzzword; it's a necessity for energy companies aiming to stay ahead. A study by McKinsey and Harvard Business Review found that the energy sector is already outpacing other industries in terms of digitalization. However, challenges remain, particularly with the integration of AI and the breakdown of data silos. In part, greater maturity is still required, needing ongoing investment. Additionally, the time pressures for the industry to act swiftly at an enormous scale compounds the issue.

To overcome these hurdles, energy companies benefit from prioritizing digital skills and setting clear transformation goals. By doing so, they can innovate at an institutional level and capture efficiencies that drive long-term success. EPP solutions are designed to support these efforts, providing the capabilities needed to modernize infrastructure, enhance operational efficiency, and ultimately, accelerate the energy transition. Freely flowing, contextualized project data delivered to the stakeholders who need it in real time serves as the catalyst to performance, with solutions such as:

• A unified digital thread connecting engineering to operations:  Whether building new facilities or upgrading aging infrastructure, ensuring access to accurate, up-to-date information, that is easy to find, is just the beginning of increasing efficiency and project performance.
• Integrated design solutions: Connected design tools spanning 3D modeling, 2D engineering (such as electrical and P&ID schematics) and engineering analysis tools (such as pipe stress or structural analysis), enables faster workflows while improving safety and reducing rework.
• Seamless completions and handover:  Ensuring that the transition from project execution to operations is accurate and reliable, with all necessary documentation and digital assets, sets the stage for evergreen digital twins throughout a facility’s lifecycle.

Looking Ahead

Although the path to a future-ready energy environment is not without challenges, it also presents a host of exciting opportunities. By embracing advanced technologies and digital transformation, organizations can align strategy with the broader goal of the energy transition. Power companies can position themselves as leaders in this new era.

Within Hexagon's Asset Lifecycle Intelligence division, we are committed to supporting these efforts by offering the expertise and solutions to navigate this often tricky landscape.

To further explore how your organization can use these technologies to expedite energy transition projects, download our eBook on the topic. Discover how our specialized solutions can help you meet the demands of today and prepare for the challenges of tomorrow.