Research Finds Energy Sector in Midst of Major Transformation, With 76% of Utilities Implementing Digitalization Plans, and 64% Using Open Source to Accelerate Innovation

LF Energy, has released the “2023 Energy Transformation Readiness Study”, finding that 76% of energy stakeholders surveyed report their organization has a clear strategic plan for digitalization, and that they have already begun implementing it. Additionally, 64% of energy stakeholders use more open source software than closed source, however a plurality (43%) believe energy industry consensus is still key to increasing OSS adoption.

Respondents in the Asia Pacific region were found to be the furthest ahead with implementing digitalization plans at 84%, followed by North America at 78%, and Europe at 62%. Nearly all respondents who have not already begun implementation already have a plan in place and ready to be implemented, or well into development.

Other key findings from the report include:

• 51% of energy stakeholders see information technology (IT) and operational technology (OT) on the way to convergence in their organizations.
• Digitalization plays a critical role in decarbonization by enabling smart home energy management, EV charging, and improved demand response.
• Cost reduction and transition speed-up are the main benefits of OSS in the energy sector, while performance, support, and security are the main barriers to adoption.
• Open source software reduces grid complexity by enabling the integration and management of distributed energy resources (DERs) and easing application development.
• Half of the organizations surveyed believe that software and open source skills should be covered in training programs.

The results of this study are based on a survey of 441 energy industry stakeholders across North America, Europe, and Asia Pacific. The margin of error for the survey data is +/- 4.7% at a 95% confidence level.