The article explores how EPCs in India’s expanding chemical and infrastructure sectors can overcome persistent efficiency challenges through digital integration. It dives deep into the issues caused by data fragmentation from siloed tools across FEED, construction and operations stages, leading to data loss, rework and cost overruns.

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The post Enhancing EPC Efficiency from FEED to O&M Stages with Digital Twins appeared first on Avalon Consulting.

The article explores how India can navigate the evolving global trade landscape following the U.S. decision to impose steep reciprocal tariffs. With India facing some of the highest tariff rates – around 50% in key export sectors such as textiles, engineering goods, chemicals, and electronics. The authors analyze the direct and indirect impact on India’s economy.

On April 2, 2025, what is marked as the Liberation Day in the USA, President Donald J. Trump unveiled a new trade policy, imposing a blanket 10% tariff on all imports and additional reciprocal tariff on 180 countries including India, which was among the hardest hit, facing retaliatory tariffs of 26–27 percent, which later raised to 50%.

The Trump administration justified the moved to impose reciprocal tariffs by arguing that the US had long been exploited by the foreign countries through unfair trade practices.

Impact of US Tariffs on India’s Economy

Break-up of India’s Exports by Country, 2024 (USD Bn)

Source: Trademap

In 2024, India exported $81 billion worth of goods to the US which accounted for 20% of the total exports, making it one of the key trading partners for India. By comparison, the UAE which is the second largest export market for India accounted for just 8%.

Engineering goods, Gems & Jewellery, Chemicals, Textiles and Electrical goods are among the key commodities exported, together they made up $53.1 billion, accounting for about 60% of the India’s total shipment to the US.

With tariffs raising the consumer prices the demand for the final goods is expected to shrink as these goods tend to be highly elastic and thus particularly sensitive to price changes.

There will also be an Indirect impact from supply chain disruptions, which will further amplify the overall impact of the tariffs.

A decline in India’s participation in the global value chains (GVC) could make it less attractive to foreign investors and is likely to deter investment in the export-oriented sectors

Sector-wise Implications

Sectoral Breakdown of India’s Exports to the US, 2024 (USD Bn)

Source: Trademap

India exported $116.5 billion worth of engineering goods in FY25, making up 27% of the total exports. The US was the largest market with a 16%, more than twice that of the second largest at just 7%.

Infact among India’s top 9 export sectors by value, the US is the largest market for 7 sectors which underscores how heavily Indian exporters are dependent on the American market.

Tariff Competitiveness Across Sectors and Alternate Suppliers
Textiles

Source: PHDCCI Research Bureau Analysis

Chemicals: India primarily exports intermediate chemicals though much of this trade is in commoditized products with limited value addition

Electrical and Electronic Equipment: The sector remains heavily dependent on imported subcomponents, while Chinese manufacturers can absorb higher tariffs others are being squeezed between rising import costs and declining export competitiveness.

Source: PHDCCI Research Bureau Analysis

Engineering Goods: The sector is strongly export-dependent on the U.S. and B2B buyers are expected to shift toward suppliers from FTA partner countries.

Source: PHDCCI Research Bureau Analysis

Article of Steel: In addition to reciprocal tariffs steel imports are also subject to Section 232 duties which can exceed 50%.

Source: PHDCCI Research Bureau Analysis

Pharmaceutical Products: They are essential goods; their demand is inelastic and hardly changes with change in prices. The U.S. still depends heavily on India for these medicines and generic drugs are exempted from trade restrictions.

Source: PHDCCI Research Bureau Analysis

Indian Exporters can mitigate the impact of tariffs by:

1. Diversifying exports market by redirecting trade volumes from the US towards the emerging markets and leveraging on the recently concluded free trade agreement (FTA) with the UK, advancing talks with the EU and the reviving negotiations with the GCC
2. Prioritizing exports of value added and intermediate goods, particularly in areas where US demand is growing. These goods are generally subject to lower duties than finished goods, due to tariff-escalation patterns, which could help cushion the blow of tariff hikes
3. Lowering the costs of raw materials especially in labour and resource intensive sectors such as apparel, chemicals and electronics. This can be achieved by sourcing raw materials locally, reducing production waste, improving energy efficiency, investing in R&D and process technology and developing shared facilities

At the policy level the Indian government can respond by:

1. Negotiating product specific exemptions, by offering targeted deals such as zero for zero tariffs on steel and auto parts to shield the most vulnerable exports sectors. At the same time expanding production linked incentive could make India a more attractive destination for US manufacturers and bolster investment
2. Strengthening India’s role as a China+1 alternative, to attract Asian importers particularly from Vietnam or Philippines, offering them a way to sidestep higher regional tariffs they currently face
3. Shielding the robust services exports could help the country weather global trade tensions and prevent disruptions from spilling over into IT, GCCs and BPOs

India faces one of the highest tariff rates around 50% across multiple sectors which is likely to reduce demand for Indian goods in the US market. These products will become less competitive compared to domestically produced goods or imports from alternate suppliers such as Mexico, Bangladesh, and Vietnam. As a result, Indian exporters with significant exposure to the US will need to diversify their markets and focus on value added exports to maintain their global competitiveness

The post How India can Navigate Geo Political Situation on Import Tariffs appeared first on Avalon Consulting.

He highlights how Battery Energy Storage Systems (BESS) are emerging as the key enabler for managing renewable intermittency, strengthening grid reliability, and supporting the global shift toward clean energy. He outlines the major BESS integration models co-located, hybrid, and virtual power plants and discusses the barriers to large-scale adoption, including high upfront costs and regulatory gaps. He emphasizes that declining battery prices, viability gap funding, and urgent grid modernization will accelerate BESS deployment, making it central to the future of sustainable and resilient energy systems.

The global energy sector is going through a rapid transition driven by increasing demand, increasing share of renewables and their inherent intermittency posing serious challenge to grid stability and reliability. Battery Energy Storage Systems (BESS) has emerged as a leading enabler during this transition providing the flexibility, responsiveness, and resilience needed to balance fluctuating supply and demand.

Surging energy demand and increasing share of renewables is creating the need for energy storage systems

The global electricity demand has grown by a CAGR of 3% over the last 10 years with 2024 witnessing the highest growth at 4% (+1172TWh) compared to 2023. The growth was witnessed due to multiple reasons such as weather conditions, emerging drivers such as electric vehicles, data centers and heat pumps. In recent years, with increasing energy consumption demand, global regulations to reduce GHG emissions and efforts to lower carbon footprint across geographies is creating a need to invest in renewable sources of energy. According to International Energy Agency (IEA), the global investment in clean energy technology and infrastructure is projected to be two times the investment in fossil fuels. In 2025, out of an estimated investment of $3.3 trillion into the energy sector, up 2% against 2024, around $2,2 trillion will go to renewable and nuclear energy, double the amount going to oil, natural gas and coal.

Source: Yearly electricity data, Ember

Energy generation by fossil fuel contributed to 87% of the total energy generation however, as per IEA, the share of renewables in energy consumption is expected to reach 20% by 2030. These developments are propelling the demand for Battery Energy Storage Systems (BESS). BESS are technologies designed to store energy for extended periods, typically over 6-8 hours, to support grid stability and decarbonization. Battery storage is an essential enabler for renewable energy generation, supporting the alternative sources of energy to make a steady contribution to global energy requirements. BESS brings flexibility in deployment from small scale to large scale options and is integral to applications such as peak load balancing, utility optimization and backup power during outages. According to the report published by the IEA, global BESS rose 40GW in 2023, nearly doubling the total increase in capacity compared to 2022. Driven by decreasing battery costs and government support, global investments in battery storage grew by 76% in 2023, to $36 billion and is expected to reach $150 billion by 2030, total battery storage capacity reaching 760GW by 2030 from 86GW in 2023.

Battery Energy Storage Systems (BESS) offer the greatest potential and impact among the Long Duration Energy Storage technologies

Battery Energy Storage Systems (BESS) are crucial for modernizing the grid, reducing dependency on fossil fuel, enhancing grid stability by peak shaving, and addressing demand during periods of energy outage. BESS application is divided into three segments: front-of-the-meter (FTM), which includes utility-scale installations with storage capacity upwards of 10MWh, behind-the-meter (BTM) commercial and industrial installations, typically ranging from 30KWh to 10MWh, and BTM residential installations with storage capacity less than 30KWh. FTM utility-scale installations dominate the market with nearly 80% share. BESS technologies such as aqueous electrolyte flow batteries, metal anode batteries, and hybrid flow batteries offer a Round-Trip Efficiency (RTE) of 40-80% proving to be competitive technology among the other Long Duration Energy Storage (LDES) systems.

Integration models of Renewables and Battery Storage

The deployment of Battery Energy Storage Systems is key to effectively utilizing the technology to its full capacity. Globally various modes of deployment is practiced depending on the application for the BESS as under:

1. Co-located Systems: The BESS is physically located at the same site as the renewable energy generation asset such as wind, solar, etc. Each such co-located BESS operates independently and has its own interconnection with the grid for distribution of energy across applications
2. Hybrid Systems: The hybrid integration of battery storage enables the charging of the battery through a combination of renewable energy sources such as solar or wind which addresses the intermittent nature of renewable energy and is integrated into the central grid for addressing demand during peak hours
3. Virtual Power Plants: Renewable energy installations at residential or commercial application utilizes BESS as a standalone power distribution unit coordinated by software and dispatches electricity during intermittent supply of power from the grid

Source: Avalon Consulting Research & Analysis

Cracking the code to global BESS adoption

The sole cost of deploying a battery storage system at a grid-scale installation comes at a very high capex due to high upfront cost for Li-ion batteries which primarily dominate the market. Absence of clear regulations and provisions on ownership of storage assets and unclear revenue streams for the technology has limited the adoption of BESS on a global scale. BESS technology also relies on critical minerals such as lithium, cobalt, and nickel which face price volatility due to dependence on few geographies for supplies of these minerals. Moreover, complexity in integrating BESS to central grid adds to further cost of making the system robust and scalable.

However, the increasing need for energy and intermittent supply of renewable energy through sources such as solar, wind, biomass, etc. necessitates the need to store energy for reducing the load on the central power grid and addressing the depleting fossil fuel. Battery Storage Systems’ high RTE and energy density makes it a more scalable storage solution compared to other Long Duration Energy Storage (LDES) systems, and the adoption is expected to rise owing to the following factors:

1. Declining battery capital costs: BESS capital costs are projected to drop by 23% by 2030 due to advances in new battery technologies such as Na-ion and hybrid (li-Na). The Na-ion battery chemistry offers a high energy density in the range of 75 to 200Wh/kg and lower dependence on critical minerals with sodium being the 6^th most abundant mineral in the Earth’s crust and is easily available from sea sites, limestone mines, etc.
2. Viability Gap Funding (VGF): Countries across the globe are introducing budgetary support for providing financial assistance to battery storage projects. As on 2024, China is leading the BESS industry at an installed capacity of 215.5 GWh which contributes to 65% of the global BESS capacity, USA is trailing China with installed capacity of 82.1 GWh. Developing countries such as India has launched a VGF scheme with an initial outlay of INR 94 billion, including INR 37.6 billion in budgetary support and provide financial assistance of up to 40% of the capital expenditure for these projects. Such VGF scheme supports in deploying overall costs of the BESS
3. Grid modernization and decentralization: Globally, the development timeline of modern grid is five to seven times slower than renewable energy installations and as per IEA, a USD 14.3 trillion shortfall in global grid expansion and modernization is expected by 2050. However, with governments realizing the need to modernize and decentralize the grid to accommodate renewable energy and respond to increasing electricity needs would accelerate the modernization efforts, in effect leading to rise in BESS adoption

Battery Storage systems, although are more reliable in terms of energy efficiency, global large-scale deployments are heavily reliant on lowering the capital expenditure through various technological advancements and government financial support.

The post “Bridging the Renewable Gap:” BESS, the backbone for tomorrow’s energy systems appeared first on Avalon Consulting.

She examines how renewable energy and battery storage systems can address deep-rooted energy inequities by improving access, reliability, and affordability for underserved communities. Treesha highlights how BESS can democratize energy systems, strengthen rural electrification, and ensure fair distribution of benefits positioning it as a critical tool for achieving true energy justice in developing regions.

1. Introduction

Over 1.37 million people live in Koraput, a district in Odisha, India. In 2011, the Census of India showed only 40% of all households with electricity access in the district . A survey in 2019 recorded a significant improvement – 90% of the total population were electrified. Even then, power outages were significant, averaging only 8-10 hours per day in the mainly rural parts of the district. For these households (83% of Koraput’s total population and economically disadvantaged) energy costs (of electricity but also fuel for cooking) could represent 10-12% of their annual household income .

Electrification and energy are often hailed as a pillar of advancement for the human civilisation. At its core, energy today can be defined as the economic activity of generating power through fossil fuels (coal, petroleum etc.) and renewables (solar, wind and hydropower) and distributing it. A necessity that transcends geopolitical boundaries, energy access and reach can sometimes be the lynchpin for national prosperity. While, therefore, issues of electricity extraction, generation and control are critical, it is equally important to probe the notion of energy justice.

The story of Koraput is one like many towns and villages across the colloquial Global South. Energy injustice manifests in several ways, for instance, energy poverty refers to the continued lack of minimal and basic access to energy – for transportation, electricity and cooking. Energy insecurity refers to the unsafe and uncertain access to electricity. Finally, energy burden refers to bearing the financial strain of energy access. All three factors disproportionately hit economically disadvantaged and socially marginalised communities.

Over the years, developing nations specially made significant strides in improving energy equity. Concerted policy efforts first targeted comprehensive household grid connections. In 2005, the Rajiv Gandhi Grameen Yojana in India electrified 400,000 rural households across the nation .

Between 1994 and 2004, South Africa expanded energy access from 36% of the population to 66%, by strengthening public funding and government bodies to regulate the system. Mexico, Chile and Brazil invested significantly in public-private partnerships to install a cumulative 31.5 GW, investing USD 21 billion between 2002 and 2012 . As supply chains strengthened and heavy industries were domesticised, energy prices fell significantly at the turn of the new century.

2. Energy Justice and Renewable Energy

Despite these initiatives, energy was still heavily reliant on fossil fuel (focusing on LPG, natural gas and coal powered energy). Connected to prices of crude oil and petroleum, therefore, energy prices were volatile and spiked frequently between 2010-2020 (Figures 1 and 2). Power generation plants were also located such that the externalities of air, land and water pollution disproportionately affected marginalised communities.

Figures 1 and 2 : Crude price and Crude Price Volatility 1960-2024

The transition to renewable energy has, in part, alleviated many of the energy insecurity and burden issues as they traditionally manifested.

Developing countries made many strides in renewable energy. Africa on a whole doubled its renewables capacity between 2012 and 2020 to 596 GW, with solar energy being the fastest growing sector (recording 60% YoY growth in off-grid instalments between 2009 and 2019). Brazil leads renewables investments in Latin America with the entire region having amassed over 15 billion in annual renewables investment . In Asia, Japan and South Korea are making significant strides in green hydrogen. India nearly tripled its renewable energy capacity between 2014 and 2025. China has been doubling its solar and wind capacity every 2 years on average over the last 2 decades.

However, as the world transitioned to solar, wind and hydro power, new challenges in energy equity and justice. As countries favour development of energy efficiency, much of the work done in energy equity reverses . For many countries, renewable energy transition and energy reach have become goals at opposing ends. A case in point is that of Malawi, that installed 300 MW of coal-powered electricity, doubling national supply and protecting the country from an over-reliance on hydropower and susceptibility to outages from droughts. This action contrasted targets set for renewable energy provision for the nation with organisations like the World Bank .

Without the benefit of scale, solar and wind power generation and distribution is expensive to power. Similarly, dependence on wind and sunshine makes availability insecure. Lack of technology adoption makes availability scarce in under-developed regions.

As renewable energy begins powering more products and services – automotives, household and commercial electricity, as well as public offerings of education and healthcare, making renewable energy equitable today is more important than ever.

3. Energy Justice and BESS

Battery storage stores excess electrical energy generated by solar and wind sources as chemical energy. It can act as a store grid-to-grid or from source of generation to grid. It normally uses lithium-ion batteries for storage, but sodium-sulphur and flow-batteries are also being developed.

Battery Energy Storage Systems (BESS) addresses the problem of energy injustice by contributing to three major pillars – procedural justice, distributional justice and recognitional justice

A. Procedural Justice: Procedural justice refers to the ability of communities to have the power to make decisions about energy access and provision

BESS has the ability to democratise electricity systems unlike ever-before. Reducing distributional costs significantly and mobilising base generation assets, BESS can be offered to residents as an off-grid or local solution. This decentralization makes energy users “prosumers” (producers and managers) of their energy. In Australia, for example, a community battery storage program allows residents to collect data, have a board of representatives and make decisions on use and pricing. These collective ownership models also allow the communities to have a share in the revenue generated.

BESS also ensures data transparency, tracking real-time usage, distribution, emissions and pricing data.

B. Distributional Justice: Distributional justice refers to the ability for individuals to fairly divide benefits and burdens of energy generation and distribution. BESS, with its ability to store energy and access remote grids, is an effective solution under this pillar.
In Africa, for example, BESS are combined with microgrids – small energy systems that operate independently from main electricity grids – to reach remote, rural regions. It also allows these communities to avoid power instability and surges, allowing these regions to avail cost savings and clean, stable supply like their urban, well-off counterparts. As of 2023, there are 3,000+ microgrids a BESS installed in the sub-Saharan region.

C. Recognitional Justice: Recognitional justice refers to acknowledging and respecting the diverse experiences of communities and their historical experiences

By ensuring that the decision-making is decentralized at community levels, BESS can ensure that cultural context is accommodated in provision. For indigenous communities historically marginalised, for example, land rights and local governance structures can be respected.
Recognitional justice can also look like reparations by way of easier access to public services like education and healthcare – uninterrupted power supplies to local schools and hospitals, as well as cost saving.
BESS can reduce the energy burden on vulnerable communities by reducing peak charges, and generation once infrastructure is in place.

4. Conclusion

Significant advances have been made in the proliferation of battery storage systems in developing countries. However, much work is still to be done in making renewable energy equitable world-wide. Ensuring this will need an examination of how BESS can be modelled to country/culture-specific advantages and constraints. It will also be important to consider other solutions that can be paired with BESS to improve energy equity. As the world readies itself for this large-scale energy transition, Technological and policy strides made for equitable distribution today will go a long way tomorrow.

The post Securing Energy Justice with Integration of Renewables and Battery Storage appeared first on Avalon Consulting.

He explains how the sector must shift from a linear model to a circular one extending asset life, improving resource efficiency, and converting waste into value. He highlights that circularity lowers costs, creates new revenue opportunities, strengthens ESG performance, and boosts resilience. He concludes that adopting circular practices is now essential for energy companies to remain sustainable and competitive.

The energy sector is growing rapidly because of the increasing energy requirements of the global economy. A worsening climate and scarcity of conventional fuel have forced government and business leaders across the world to follow stricter standards and do more things that are good for the environment. Due to this, there is a growing need to generate value from waste hence the need for a circular economy in the energy sector.

The Business Case for Circularity: Unlocking Value and Resilience

Energy systems have traditionally followed a simple, straight path: get resources, make energy, and finally throw away rubbish. But this way of doing things is becoming too expensive and bad for the environment. Circularity is a better choice because it keeps objects, resources, and energy moving around longer, raises their worth, and cuts down on waste by a huge amount over their lifetime.

Implementing circular ideas will deepen the value chain for businesses and will build strong forward-thinking business models that will take advantage of new growth opportunities. Companies that choose to embrace circularity will not experience a growth in the top-line and the bottom-line, but they will also build better relationships with customers, partners, and investors, which will make them look like responsible and forward-thinking players in their field.

Basic Building Blocks for Making the Energy Sector More Circular

Four important areas should be the attention of industry executives who want to establish successful circular energy initiatives. First is longevity, things like wind turbines, grid infrastructure, and batteries should be built to last longer and be easy to fix, recondition, or update. This plan cuts down on both upfront capital costs and costs during the life of the project. Second, resource efficiency must be prioritized, with a focus on operational innovations that reduce resource use while improving production. Using advanced analytics and new ways of doing things can help assets endure longer and work better.

Third, businesses should put in place waste-to-value processes that do more than just comply with the statutory norms. By looking into ways to make money from waste streams, such as capturing and selling industrial waste heat, recycling used solar panels, or getting valuable elements out of spent batteries, companies may make more money while having less of an effect on the environment. Finally, it’s very important to make collaborative models work across the whole value chain. When manufacturers, utilities, technology providers, and regulators work together, they can make logistics, recycling, and resource recovery more efficient. This encourages closed-loop operations and encourages innovation through cooperation. These pillars work together to create a future with circular energy that is both strong and long-lasting.

The Business Case: Value Creation and Risk Reduction

Circularity has a lot of additional value potential. Companies can save a lot of money by recycling and reusing materials, lowering landfill fees, and keeping their assets in the best shape possible. At the same time, companies can unlock additional revenue streams by selling extra materials and byproducts, or by coming up with new services in asset refurbishment, reverse logistics, and recycled material supply. Another big benefit is meeting the expectations of stakeholders: companies that show they care about environmental, social, and governance (ESG) issues are more likely to acquire funding, follow the rules, hire the best people, and keep loyal consumers. Additionally, circular methods assist firms in handling risks by reducing their exposure to volatile raw material prices, planning for future regulatory costs, and taking steps to avoid possible reputational problems that could have long-term effects.

To make circular tactics work, businesses need cultural change and adoption to happen. For cultural change and adoption to happen, there needs to be strong internal alignment and clear management commitment, from the C-suite down to operational teams. It is important to spend money on things like recycling infrastructure, digital platforms, and research and development for new circular solutions. To develop rules about producer responsibility, landfill limits, and design for recyclability, businesses also need to be active with lawmakers. Also, companies need to adopt data-driven performance management systems that keep track of key indicators like resource efficiency, waste reduction, and lifetime cost savings in order to keep improving and optimizing their circular programs.

Even though there are clear benefits, businesses face many problems. It is still very hard to make recycling operations economically viable because they need to be cost-effective and scalable in order to last. There are technological problems, especially with assets that are hard to recycle or refurbish; therefore, R&D has to keep getting money. Regulatory ambiguity can also be dangerous, although these risks can be lowered by becoming involved in policymaking and making detailed predictions about different situations. Lastly, good coordination of the supply chain is very important, and making alliances with other companies can help with logistics, sharing knowledge, and making progress toward circular goals.

Conclusion:

It is no longer an option for the energy sector to adopt a circular economy approach; it is a need. Circular techniques help businesses deal with big problems related to sustainability while also giving them new ways to be successful. Energy firms might be able to make themselves more resilient, take advantage of new opportunities, and stand out in a market that is becoming more competitive and dynamic by adding these concepts to their long-term plans.

The post Circular Economy in the Energy Sector appeared first on Avalon Consulting.

She highlighted how the energy and utilities sector is rapidly shifting from manual, risk-prone operations to intelligent, digital-first systems powered by AI, predictive maintenance, digital twins, and smart grids. She highlights how these technologies enable real-time monitoring, enhance worker safety, minimize outages, and improve asset reliability, transforming traditional utilities into proactive, data-driven enterprises.

The Future of Energy and Utilities: Developing through Digitalization and Intelligent Systems

I remember working at a chemical plant that used batch processing to create high-value goods. Operators had to physically walk to enormous valves, operate them by hand, and watch as chemicals rushed through pipelines in those days (and I am talking about the year 2018). This approach wasn’t just slow, but it was also risky; one mistake may result in dangerous leaks, wastage of money, or even a major safety disaster. Manual checks were the main method of monitoring reaction parameters, which made it prone to a lot of errors.

I soon realized that incorporating digital technologies might greatly increase operational efficiency, speed, and safety. Rather than reacting after an issue had progressed, we can identify leaks before they occur and take prompt action with real-time monitoring and predictive maintenance.

My experience there underscored the need for a sector-wide transformation, far beyond the lessons of a single facility. It is not just the chemical manufacturing sector that is facing this crisis, the energy and utilities sector is also floating in the same boat.

From Manual Operations to Digital Transformation

Paper records, manual controls, and reactive procedures were still used by utilities and energy suppliers ten years ago. Today, they face a very different set of pressures—customers demand transparency, speed, and reliability; systems have grown more complex; and environmental regulations are becoming stricter.

The use of digital twins, smart meters, connected sensors, and sophisticated control systems are some factors contributing to the change. Automating routine processes, capturing real-time data, and providing operators with unparalleled insights into system performance are all made possible by these technologies.

Smart grids can automatically reroute electricity to decrease downtime during outages. Predictive maintenance techniques could be used to catch a potential problem with the transformer or turbines long before they fail, this would avoid highly expensive malfunctions. Remote monitoring of digital substations improves worker safety by eliminating unnecessary site trips.

Beyond Gathering Data: Enabling Intelligent Decisions

Data collection is just the beginning; intelligent systems turn these data into insights which in turn can be put to effective use. Analytics driven by AI can predict electricity consumption, identify energy theft, maximize the integration of renewable energy sources, and dynamically modify prices to match supply and demand.

One such example is load forecasting. Utilities can predict demand peaks and allocate resources appropriately by examining weather patterns, past usage, and present consumption trends. Similar to this, algorithms for predictive maintenance examine data from thousands of assets, identifying irregularities that human operators may easily miss.

The ability of the Swiss energy provider – IWB to match renewable generation with grid requirements was much enhanced when it switched from static solar output projections to models which got updated every 15 minutes.

Benefits for All Stakeholders

• Utilities: Saving money, reducing outages, and making the grid better and more resilient.
• Consumer: Customized tariffs, faster service, and lower bills through optimized energy use
• Governments & Regulators – Enhanced transparency, greater compliance; increased progress against climate directives

At the same time, digitalization enables new revenues such as peer-to-peer energy trading platforms or digital applications offering home energy audits and efficiency advice.

The Game-Changer: Digital Twins

A digital twin is a virtual carbon copy of a system or asset that mirrors its operational data in real time.

Digital twins in the energy industry use data from sensors, control systems, and equipment from the field to emulate power plants, grids, or renewable installations. This allows for improved planning and better preparedness when facing extreme weather, sudden increases in demand, or potential failures.

This is why we need faster control flows — even in grids with variable sources like wind and solar, this technology can improve the allocation of resources, reduce decision times, and minimise surprises.

Enabling the Green Energy Transition

The worldwide shift towards renewable energy sources makes digitalization even more important. Solar and wind are clean but intermittent, where the output varies with the weather. Smart platforms enable generation forecasting, storing excess energy, and releasing it during peak demand periods.

Germany provides an example: Electricity usage in the country is set to double by 2050 as cars and industry transition towards electricity. Across the country, smart homes that preset their usage will be joined by big storage optimization systems. Digital options will play a key role in meeting supply and demand.

Barriers to Full-Scale Adoption

There are obstacles in the way of mainstream digital transformation:

Cybersecurity Risks: As more devices are connected, there is a greater chance of vulnerabilities.

Legacy System Integration: It’s possible that older devices weren’t made with digital connectivity in mind.

Skill Gaps: To make the switch from manual to digital operations, workers require training.

Initial Investment: Before benefits are obtained, the expense of digital infrastructure must be justified.

Committed leadership, cooperation between utilities and technology providers, and regulatory policies that are supportive are all necessary to address these problems.

Scaling Beyond Pilots

Scaling digital solutions throughout the company yields the most benefits, yet many utilities only test them in small pilot programs. Interoperable platforms, cloud and edge computing expenditures, and flexible, cross-functional activities are necessary for that.

For instance, Octopus Energy manages millions of customers with no operational cost by utilizing cloud-based systems to reduce customer support response times by 40%.

The Cost of Delay

The power utility digitization market is projected to grow from about $50 billion in 2020 to close to $240 billion in 2028. Waiting further might prove costly in missing out on the competitor advantage, particularly as customer expectations keep evolving and new digital-first players recast the landscape.

Industry champions of digital adoption won’t only provide electricity—they will provide reliability, sustainability, and value-added services.

A Smarter Energy Future

In my days in the chemical sector, relying on manual checks and reactive measures was a standard practice. However, in today’s energy and utilities landscape, that approach is no longer viable. The complexity is greater, the risks higher, and the opportunities more substantial.

Digitization and intelligent systems convert raw data into insight. They enable the prediction of failure, optimization of assets, integration of renewables, and better results for customers and the environment.

The message to decision-makers is straightforward: this isn’t about replacing expertise—human expertise—it’s about enhancing it with system capability to process more quickly, learn more quickly, and take action more quickly than we individually can.

Energy’s future isn’t determined by how much we make, but by how efficiently we make it. And that future is already underway.

The post The Intelligent Energy Ecosystem: Where Digitalization Meets Power Generation appeared first on Avalon Consulting.

He highlights how interconnectors are becoming a critical enabler for relieving grid congestion, integrating higher levels of renewable energy, and improving overall system flexibility as electricity demand rises globally. He outlines the key advantages of interconnectors—from reducing curtailment and smoothing renewable variability to enhancing market efficiency, supply security, and regional development and discusses the major risks that influence large-scale deployment, including high capital costs, geopolitical dependencies, competition from storage solutions, and regulatory complexities.

Power systems around the world are undergoing significant transformation. There is significant growth in electricity demand which is being driven by rising use in industry, greater consumption for electric cooling and heating, the deployment of electric vehicles, the expansion of data centers, etc. To service the increased demand for electricity, with decarbonization & sustainability as prime drivers, governments across the world are turning towards variable renewable sources for rapid electricity generation. These changes will necessitate a more flexible and robust system for transmission and distribution. The current electrical grids are not well equipped to accommodate the dispersed renewable energy sources and service the current demand. Interconnectors help regions worldwide in alleviating grid congestion and achieving their decarbonization targets. While many challenges affect and delay the development of transmission infrastructure, and the deployment of non-wires alternatives such as battery energy storage systems may threaten the financial viability of these investments, governments across the world will continue to invest in interconnectors projects.

Electrical Grid Congestion & its impact:

With energy transition accelerating rapidly, electrical grids play a crucial role in connecting power generators and end users, electricity transmission and distribution, and balancing supply and demand. The existing grids across the world were not built to accommodate all the distributed renewable energy that is now being generated on windy and sunny days, or to supply all the new demand from data centers and industries, and EV charging stations. Grid congestion occurs when the current grid is incapable of safely transferring electricity from a generator to an end user. This bottleneck causes long waiting times for new connections, which slows down the energy transition and affects the economy overall.

In 2023, TenneT, the Dutch transmission system operator, spent €278 million on grid congestion management, although this is partly due to higher energy prices. Similarly, Germany incurred €3 billion on managing the grid congestion issue in 2023 and a curtailment of 10.5TWh of renewable electricity. While the costs could be partly inflated due to the prevailing high energy prices, the high cost of grid congestion management in recent years indicates the scale of the problem. In addition to the direct costs for congestion measures, there are indirect costs where new connections are delayed.

In 2023, $310 billion was invested in the global power grid infrastructure to reduce the grid congestion issue. US led the pack by investing $87 billion, followed by China at $79 billion, EU at $60 billion, and India at $10 billion.

Interconnectors and their role in alleviating Grid congestion:

Interconnectors are high-voltage land, sub-sea, or overhead electricity cables that connect the electricity grids across different regions, enabling the flow of electricity. They enable the trade and sharing of electricity, particularly renewable energy, and provide a more reliable and secure energy supply during phases of high demand. Interconnectors are beneficial when countries are looking to decarbonize and increase reliance on renewable energy. Electricity generation through renewable sources like wind and solar energy is volatile in nature and an inconsistent source to meet the grid’s energy requirements.  Phases of under-supply can cause fluctuations in the grid, resulting in disruptions and power outages. Balancing the grid is a necessity.

While solutions such as industrial-scale battery sites and other storage technologies can be used to support the grid’s electricity supply, interconnectors can be a cost-effective solution.

Interconnections are expected to play a significant role in increasing resilience and making the grids cleaner. Countries worldwide are investing significant amounts of capital in developing the interconnection systems.

Few notable interconnector projects, (Non-Exhaustive)

Advantages & Benefits of interconnectors:

1. Harnessing High Renewable Energy Potential & reduction in RES-E curtailment:

Interconnectors enable the integration of regions with abundant renewable energy sources (RES-E), often located far from consumption centers

2. Smoothing Variability of Renewable Generation:

Interconnectors between regions help address the inherent variability (fluctuations) in generation of electricity from renewable sources. It reduces the overall impact of localized weather changes. Leveraging time-zone diversity aids in balancing demand and supply owing to the difference in the peak demand hours

3. Improved Cost Efficiency & Market Integration:

Intercontinental and intracontinental interconnectors facilitate the distribution of affordable generation capacity across wider regions, enhancing overall cost-effectiveness in generation

4. Supporting Growing Demand and Regional Development:

Regions with rapidly expanding electricity needs can leverage available capacity from interconnected areas. This approach can alleviate the pressure of investments and promote economic growth by attracting foreign investment in renewable energy initiatives and enhancing collaboration among regions

5. Enhancing Security of Supply and Price Stability:

Enhanced interconnectivity boosts supply variety and dependability, which may reduce price fluctuations and offer consumers more consistent electricity costs

6. Bypassing Weak Local Grids in Some Cases:

Connecting directly to renewable resource-rich regions can avoid reliance on local underdeveloped grids, but typically, strengthening the local grid is required to accommodate substantial interconnector traffic

Risks & Challenges with interconnectors:

1. High investment costs and financial risks:

Connecting regions through long-distance and subsea cables demands substantial financial investment, and the volatility associated with development, technology, and market conditions increase financial risks. The cost of the inter-continent interconnectors can cost the countries billions of dollars over extended periods of time.

The chart below represents the cost of constructing power lines across different geos:

1. Supply dependency and geopolitical risks:

Geopolitical tensions between countries could lead to supply disruptions like those associated with fossil fuel imports. They can act as a double-edged sword where the energy surplus party can politically influence energy sharing

2. Competition with decentralized renewable energy:

Growing preference for decentralized renewable systems may reduce the economic viability and political support for large interconnector projects. Societal concern that by utilizing distant RES-E for import purposes could be considered a ‘sell-out’ of local resources which could otherwise be used for the domestic market

3. Storage vs Interconnector trade-offs:

Energy storage could be a competing or complementing option to interconnectors to regulate unpredictability, although the exact role of storage in a worldwide interconnected system remains unclear and needs further investigation. Batteries have proven effective in solving transmission and stabilizing electricity prices. This poses a significant financial threat to interconnector investments

4. Regulatory and market integration challenges:

Market operations and regulatory alignment required for effective interconnector utilization are complicated by regional variations in power market architecture, insufficient information sharing, and a lack of regionally consistent carbon pricing

5. Environmental, Geographic, and Technical Implementation Barriers:

Project viability is further complicated by the physical route issues such as subsea depth, topography, and environmental effects, as well as technological limitation of existing HVDC cable

Conclusion:

Intercontinental / Cross border interconnectors will play a crucial role in catering to the growing demand for cleaner and more affordable electricity. They are integral to achieving the grid decarbonization targets and fulfilling the consumption demand across the globe. Many challenges affect and delay the development of transmission infrastructure, and the deployment of non-wires alternatives such as battery energy storage systems may threaten the financial viability of these investments. Despite the challenges, investments in interconnectors development are expected to continue with Europe expected to build a total exchange capacity of 15% by 2030.

The post Interconnectors: Feasible Solution for Grid Congestion? appeared first on Avalon Consulting.

He highlights the need to design energy systems for reuse, recovery, and minimal waste across solar, batteries, bioenergy, and industry. He points to India’s policy push through EPR, SATAT, and PAT, while noting gaps in implementation and recycling capacity. He emphasizes that stronger enforcement, incentives, and industry action can make circular models a key driver of India’s energy security and sustainability.

When we hear the term “Circular Economy,” what comes to our mind? Terms like optimal resource use, minimal or zero waste, and the classic Three Rs—Reduce, Reuse, Recycle.

Energy systems across largely rely on finite resources—most notably fossil fuels. Historical events like the OPEC oil embargo remind us of the volatility of supply and how high is our dependency on Fossil Fuel for Energy. Though, even renewable sources (solar, wind, hydro, nuclear) depend on limited materials (e.g., silicon for solar panels, rare earths for wind turbines). That is why the concept of Circular Economy is not limited to Fossil Fuels. It is important every source of Energy as when applied to energy, the concept spans over the entire lifecycle—from resource extraction to final disposal. For example, consider a solar panel: its value persists efficiently if recyclability is embedded in its design—so that silicon and other materials can be recovered and reintroduced into the production loop.

The concept of circularity has gained traction post strong sustainability efforts, especially following the 2015 Paris Agreement where the importance of mitigating climate change was identified due to rising global temperature. The energy sector faces its unique challenges: rising CO₂ emissions due to increase usage of combustible fuels, overwhelming reliance on fossil fuels, geopolitical tensions for mineral & energy, and energy security concerns which makes circular models so important globally.

Investments in the low-carbon energy transition exceeded USD 2 trillion for the first time in 2024, reaching about USD 2.1 trillion. According to the IEA in 2025, around USD 2.2 trillion is projected to flow into clean energy technologies—double the investments going into fossil fuels—with total energy investment reaching USD 3.3 trillion. Despite this progress, to stay on a net-zero trajectory, annual investment must rise significantly—to an average of USD 5.6 trillion between 2025 and 2030.

India’s Perspective:

India just reached the landmark of 50% of its installed electricity capacity from non-fossil fuel sources this year—five years ahead of the target set under its Nationally Determined Contributions (NDCs) to the Paris Agreement. Renewable Energy Sources contribute up to 38 % in the total Energy Capacity.

Policy Changes are the core of such structural changes in the economy. In India since last 3 years, Government is focusing on Extended Producer Responsibility (EPR) so that the vision of circulation drills down to every producer & consumer and adaptation of Circularity can be implemented for Optimal Usage of Finite Resources.

Battery waste Management Rules which focus on Usage of Recycled Content in New Batteries is implemented through EPR. E-Waste Management Rules for solar PV modules, panels, and cells are also added to EPR, obligating manufacturers to store, track, and ensure compliant recycling to close the waste stream. The guidelines are designed by Central Pollution Control board on PV waste is stored, handled, and transported, and push producers to set up take-back systems.

On the low-carbon fuels front, circularity is embedded in bioenergy: the Scheme on Compressed Biogas (SATAT) program catalyses compressed biogas (CBG) production from Agri residues, press-mud and sold to oil marketing companies via offtake. A complementary Biomass Aggregation Machinery scheme tackles the biggest bottleneck—feedstock logistics. Meanwhile, ethanol blending and biodiesel from used cooking oil keep waste-to-energy loops running through the transport system.

Along with the policy, Strong & standard Guidelines should be made for organizations: translating circular principles into action. We have these guidelines for OEMs focusing in Design Sensitivity (Engineer for Disassembly) to process smooth Disassembly while Reuse/ Recycling. This will reduce recovery cost & increase efficiency. Organizations are also guided to Establish Strong Take-back networks of batteries. For Fuels, Refineries/OMCs & city gas operators are advised to co-invest in Compressed Bio-gas clusters near feedstock hubs to derisk projects and integrate digestate as a bio-fertilizer revenue stream.

Just mandating these changes will not result in adaptation, therefore Incentivising/ Penalising system are important. Energy-intensive facilities should benchmark SEC (specific energy consumption), participate in Perform, Achieve & Trade (PAT) cycles, and use Monitoring, Reporting & Verification systems that stand up to Bureau of Energy Efficiency (BEE) standards which will help turning savings into tradable certificates and capex into cash flow. There are also norms where if Solar developers will include EPR compliance costs in the financial model; pre-contract with authorized recyclers; and design to minimize breakage (field repair kits, safe handling SOPs as per CPCB), it will severely increase efficiency in usage & recycling.

The Major Gap lies in Implementation. Circular policy doesn’t implement itself. Investigations in 2024–25 by The Guardian show a compliance gap in handling solar waste, with leakage to informal handlers and inadequate authorized recycling capacity. That’s precisely what the 2025 CPCB draft guidelines aim to fix, but success will depend on enforcement, producer cooperatives for take-back, and better economics for recovery of glass, aluminium, and silver.

On batteries, EPR will push formal collection and higher recovery rates, yet the ecosystem needs scalable reverse logistics, standardized testing for second-life safety. The policy already seeds the right incentives and firms that move early can lock in cost and compliance advantages.

The road ahead:

India’s clean-energy build-out is now unquestionably underway; hitting 50% non-fossil capacity ahead of time proves it. The next step is to make that system material-smart—where every panel, battery, and bulb is traced, recovered, and cycled back into production following Circular Economy to ensure Optimal Usage of Resources contributing to Climate Change targets through these Sustainable practices. With EPR for Solar (PV) and batteries, SATAT for bioenergy, PAT and UJALA for efficiency, the policy is largely in place. The opportunity (and responsibility) now shifts to companies and utilities: design products for disassembly, set up take-back and authorized recycling, buy circular fuels, and track efficiency as a balance-sheet asset. But monitoring mechanism, Incentivising/ Penalising Mechanism have to be more effective for this positive change to happen, yet along with these challenges, it provides several opportunities for the Public & Private sector.

The post Circular Economy in the Energy Sector (Focusing on Indian Energy Sector) appeared first on Avalon Consulting.

He highlights how hydrogen is becoming central to industrial decarbonization, with industries shifting from fossil-based grey hydrogen toward cleaner blue and green alternatives. He notes the strategic challenges companies face uncertain economics, emerging regulations, and incomplete supply chains and emphasizes that coordinated planning, technology assessment, and stakeholder alignment will be critical. He underscores that consultants play a key role in helping industries navigate this transition and shape the emerging hydrogen economy.

There’s something almost strange about hydrogen. The universe’s most ample element, which is colourless, odourless, lighter than air has become the centre of attraction and trillion-dollar investment strategies worldwide. Yet for all the headlines about hydrogen cars and fuel cells, the real revolution is happening in places most people never think about: the enormous industrial complexes that forge our steel, refine our chemicals, and produce our fertilizers.

This isn’t a story about clean energy’s glittery future. It’s about dirty, important industries facing an existential question: How do you decarbonize processes that have relied on fossil fuels for over a century?

Walk through any modern city and you’re encircled by hydrogen’s industrial fingerprints. The steel in skyscrapers, the ammonia-based fertilizers that grew your food, the refined petroleum products that moved your goods, all depend on industrial processes consuming roughly 90 million tons of hydrogen annually. That’s more than the entire aviation industry’s fuel consumption.

Here’s the catch: 95% of that hydrogen comes from fossil fuels, primarily natural gas through the process of steam methane reforming. Every ton of this “grey” hydrogen releases roughly 10 tons of CO2. Industrial hydrogen alone accounts for nearly 3% of global emissions which is more than the entire shipping industry.

The scale is staggering, but so is the opportunity. Industrial hydrogen isn’t just about cleaning up existing processes; it’s about reimagining how we make things.

The hydrogen economy has developed its own rainbow of possibilities. Grey hydrogen dominates today, but the future belongs to its colourful cousins: blue hydrogen (grey hydrogen with carbon capture), green hydrogen (renewable-powered electrolysis), and pink hydrogen (nuclear-powered electrolysis).

Each colour tells a different story. Green hydrogen, although environmentally ideal, costs three to five times more than grey hydrogen. Blue hydrogen offers a bridge, maintaining cost competitiveness while dramatically reducing emissions.

Industries are making different bets. Steel manufacturers descend toward green hydrogen for direct reduction processes that eliminate coking coal entirely. Chemical companies explore blue hydrogen as feedstock replacement. Refineries navigate between current hydrogen needs and post-petroleum planning.

For consultants, industrial hydrogen presents a fascinating paradox: advising clients when technology is proven but economics are volatile, policy landscapes evolve rapidly, and infrastructure doesn’t exist at scale.

Consider steel, the traditional blast furnaces operate with predictable decades-old economics. Now executives must evaluate direct reduction plants using green hydrogen technology proven in demonstrations but never deployed at modern unified mill scale. Capital requirements are enormous, hydrogen supply chains don’t exist, and “green steel” premiums remain uncertain.

Yet pressure mounts everywhere. The EU’s Carbon Border Adjustment Mechanism imposes tariffs on high-carbon imports starting 2026. In India the Perform, Achieve and Trade (PAT) scheme is tightening energy efficiency targets, the Renewable Energy Purchase Obligations (RPOs) are expanding into green hydrogen mandates, and large domestic manufacturers like Tata Motors  JSW Steel, etc are committing to low-carbon supply chains. Investors and lenders are increasingly applying ESG criteria to capital allocation, making carbon intensity a direct factor in valuation and financing costs.

Strategic consulting becomes part technology assessment, part scenario planning, part psychology. Executives aren’t buying equipment; they’re betting company futures on a hydrogen economy that’s simultaneously inevitable and uncertain.

The most intriguing aspect of industrial hydrogen transition is its circular dependency. Steel companies won’t invest in hydrogen-ready plants without assured supply. Hydrogen producers won’t build large facilities without committed off-takers. Pipeline developers won’t lay infrastructure without both.

This creates opportunities for consultants to facilitate “coordination solutions”—helping multiple stakeholders align investments simultaneously. We’re seeing this in industrial clusters from the Gulf Coast to the North Sea, where integrated hydrogen ecosystems emerge through orchestrated public-private partnerships.

Rotterdam Port exemplifies this approach. Rather than waiting for market alignment, they actively coordinate steelmakers, chemical companies, hydrogen producers, and infrastructure developers to create Europe’s largest industrial hydrogen hub. Its industrial policy meets systems thinking meets deal-making.

Industrial hydrogen is quietly reorganising global economic geography. Countries rich in renewable resources—Australia, Chile, Morocco—place themselves as green hydrogen’s “Saudi Arabias.” Traditional energy exporters like Saudi Arabia and UAE invest billions maintaining energy superpower status in a hydrogen world.

Energy-intensive industries face geographic reckoning. Will steel production migrate to regions with abundant cheap renewable power? Can chemical complexes in energy-poor regions compete by importing green ammonia?

These aren’t just commercial questions; they’re reshaping industrial strategy at the highest levels. For consultants, this means understanding technology, economics, and geopolitical implications of energy transition.

The most challenging aspect might be timing. Move too early: pay green premiums for unproven technology. Move too late: get locked out of markets demanding low-carbon products.

Steel demonstrates this perfectly. Modern blast furnaces have 30–40-year lifespans. A furnace built today using traditional technology might operate until 2065—well past most countries’ net-zero commitments. But hydrogen-based direct reduction, while proven small-scale, has never been deployed at multi-million-ton integrated production scale.

The Massive Consulting Opportunity

For consultants, industrial hydrogen represents possibly the largest technology transition since computing’s advent. Every major industrial process is reconsidered. Continental supply chains are redesigned. New international cooperation forms emerge.

This isn’t just technology consulting or strategy work. It’s helping clients navigate fundamental uncertainty while making billion-dollar bets. It requires combining deep technical knowledge with geopolitical awareness, financial modelling with risk management, strategic thinking with practical implementation.

Perhaps most fascinating is the human dimension. We’re watching industrial leaders grapple with technological and economic uncertainty reminiscent of the early internet era and the best consultants aren’t just providing analysis; they’re helping executives build confidence for unprecedented decisions. How do you value a steel plant that might operate for decades in a world where carbon pricing, hydrogen costs, and trade policies remain fundamentally random?

The hydrogen economy won’t appear overnight, but today’s choices about tech choices, partnership structures, and geographic strategies will determine which companies and countries lead this transition.

In a world where the universe’s most abundant element is becoming industrial strategy’s most critical variable, consultants who understand both technical possibilities and strategic implications will find themselves at the centre of the next industrial revolution.

The hydrogen economy is coming. The question isn’t whether, but who will shape how it unfolds. For consultants, that represents both the challenge and opportunity of a generation.

The post Hydrogen at the Helm: Consulting for the Industries of Tomorrow appeared first on Avalon Consulting.

He highlights how digitization and AI can modernize legacy power systems, improving efficiency and reducing losses. He points to simple innovations like UPI bill payments and larger initiatives like the India Energy Stack that enhance transparency and interoperability. He also notes how AI-driven tools such as smart meters, home energy automation, and predictive outage management can lower costs, improve reliability, and create a better experience for end users.

The power and utilities sector has achieved new records but not on a brighter side. Global energy supply increased by 2% in 2024 whereas we have collectively achieved a new record of 40.8 gigatons of CO2 emissions which is such an alarming figure making us take backward steps from our sustainability and emissions goals. Renewable such as wind and solar have witnessed a 16% increase but however fossil fuels still dominate the field of energy generation contributing to ~85% of power generation around the world. Electricity consumption increased by 4%, surpassing the growth rate of overall energy needs, which is a good sign that the world’s energy system continues to transition towards more electrification. For the past decade, installation of generation stations has been averaging 2.6% growth per year which is around double the rate of energy consumption in the world.

However, the demand for energy will be increasing which is a universal fact but a majority of the power plants around the globe still use legacy systems and setups which leads to huge amount of unplanned power losses, lower efficiencies and higher unaccounted contribution to global emissions. For example, legacy systems are prone to several malfunctions which may lead to incomplete combustion of fossil fuels which may lead to higher emissions of pollutants (CO2, NOx, etc.). Legacy systems also cause maintenance woes for the power plant owners bleeding into their unnecessary costs and impacting their margins.

In the recent time, the buzz of digital transformation and IOT have opened a world of opportunities for continuous monitoring, optimizing the power plant performance to fullest and leveraging advanced data science and AI in numerous key areas such as predictive maintenance, emission control, improved thermal efficiency and a lot more. Conceptually speaking there are numerous opportunities where digitization can be implemented and leveraged to their full potential in power/utilities sector. This blog however delves into specific use cases based on personal experiences and explores how some specific use cases could grown in the future which not only would help the power company but will also create a value add for the end consumers as well.

UPI Integration for utilities bill payments in India – a simple use case

The transactions scenario in India was revolutionized by UPI (Unified Payments Interface) which allows users to pay simply by scanning QR codes, setting mandates, online payments directly from their bank accounts in a highly secure way without the hassle to keeping cash or physical payment cards. The same has been implemented for energy and utilities bill payments where the customers don’t even need to go to the physical offices or create a login in the utilities website which again ironically deploys legacy systems in their backend. Just enter your consumer ID in any of your UPI apps, you will get due notifications for bill payments, you can pay bills in a few seconds and ensure a continuous power supply for your home or your small business. The reason of mentioning this use case is that we don’t need concepts resonating to rocket science to observe the impact of digitization in utilities and power, it is already taking shape around us and now I can keep paying my electricity bills from anywhere around the world.

India Energy Stack – A glimpse to the future

The India Energy Stack (IES) is an innovative form of Digital Public Infrastructure (DPI) aimed at reshaping India’s power sector akin to how Aadhaar and UPI transformed identity and finance systems. Presently, the sector is dysfunctional, as utilities in India work in silos and there is an absence of data interoperability. Additionally, there are no unique identifiers for consumers or physical assets. IES solves these problems by providing unique digital IDs, unique identifiers, open APIs and standardized data protocols to interlink all generation, transmission and distribution actors on a single platform.

The Utility Intelligence Platform (UIP) on IES further allows for system integrations, real-time analytics and stimulates innovation on renewable energy integration, dynamic tariffs, green energy certificates and peer-to-peer energy trading. Through this plug-and-play system framework, consumers will gain energy service portability across DISCOMs, transparent and customizable billing, and tailored energy plans. Utilities will gain greater operational and demand-side management efficiency, as well as more policy flexibility and agility. Through IES, new interoperable digital and energy systems will be established, enabling further innovation on energy fintech, virtual power plants and demand response. IES is currently in testing phase as the government will be running a 12-month POC before running the pilot.

Leveraging AI and advanced data analytics – Boon for end-use customers

We have numerous blogs, articles and papers online which has very beautifully covered the leveraging advantages of AI and digitization in the power industry for the energy/utility firms around the globe, it will help in minimizing maintenance costs, ensure optimal burning and reduced pollutant emissions, improve efficiency and many more. This section however intends to highlight how digitization and AI can benefit the end – users of power and utilities.

1. Smart Metering:

Overview: Users receive accurate and real-time feedback on their energy consumption with AI-powered smart meters and advanced metering infrastructure (AMI).

Benefits for Users:

• No more estimated billing. You are charged based on what you consume
• Becoming aware of consumption trends helps reduce usage by around 3 to 5 percent
• Empowers shifting usage to lower demand times to benefit from dynamic pricing

Impact: Customers save on their bills and manage their energy habits while aiding in efficient grid management.

2. AI powered energy automation:

Overview: AI incorporation into smart home devices (HVAC systems, water heaters, electric vehicle chargers) ensures their functionality is precisely tuned to real-time weather updates, room occupancy, and relevant tariff rates.

Benefits for Users:

• Minimizes Offsetting — smart systems operate appliances for the minimum power fee periods
• Sustains user comfort and satisfaction alongside lower energy costs
• Facilitates integration with home solar systems and batteries for maximum solar self-consumption

Impact: Provides advanced energy efficiency and sustainability features with no effort on the user side, maintaining user-friendliness and unobtrusiveness

3. Outage Management

Overview: The AI algorithms applied by utilities for predictive diagnosis have made it possible to foresee outages by analyzing historical patterns, health of the equipment, and weather forecasts, where failures are likely to occur

Benefits for Users:

• Improved restoration times for critical services and appliances at home and at work
• Reduced frequency and duration of outages
• Restoration of power outages becomes quicker

Impact: Factors such as reduced outages enhance the reliability of power supply and minimize disruptions to the daily life and operations.

Conclusion:

Digitization and AI are no longer distant possibilities—they are actively reshaping the power and utilities sector; from seamless bill payments to nationwide infrastructure like India Energy Stack and intelligent home energy management. By modernizing legacy systems and enabling smarter and consumer-focused solutions; we can achieve higher efficiency, reliability and sustainability ensuring that both utilities and end users benefit in this evolving energy landscape.

The post How Digitzation and AI can influence the way of working in the power and utilities sector appeared first on Avalon Consulting.

She highlighted how carbon markets are rapidly evolving from compliance-driven systems like the EU ETS to the expanding voluntary market shaped by corporate net-zero commitments. The article explains India’s emerging carbon credit ecosystem, including the Indian Carbon Market (ICM) and the Carbon Credit Trading Scheme (CCTS), and outlines challenges such as verification gaps, regulatory clarity, and technological barriers. Ridhi emphasized that stronger regulation, cost-effective sustainability measures, and technology-enabled verification can accelerate participation, unlock green investments, and position carbon credits as a viable pathway for India’s long-term decarbonization journey.

Evolution of Carbon Credit Markets

The carbon credit market has taken a shift from voluntary offsets to regulated compliance schemes. Initially dominated by the Kyoto Protocol’s Clean Development Mechanism (CDM), it was caused to later expand through regional initiatives such as the EU Emissions Trading System. In recent years, corporate net-zero commitments have driven the adoption of voluntary carbon markets.

Carbon credits are now being reshaped in how they get issued, traded, along with retired. Technological innovations together with stricter verification standards accompany improved transparency in this reshaping.

Carbon Credits Market Overview

Compliance Market

Compliance markets are established and regulated by governments or supranational bodies to help achieve emissions reduction goals

Under compliance market, it follows Cap-and-Trade Principle where companies buy or sell emission allowances to stay within regulatory limits; exchanges trade carbon credits, along with regulators distribute those credits for ensuring compliance. The EU Emissions Trading System (EU ETS) is known as the largest carbon compliance market because it caps the total emissions. The system enables trading for allowances. Market volatility and regulatory complexity involve ensuring actual emission reductions.

Voluntary Market

The Voluntary Carbon Market (VCM) enables organizations or individuals to buy carbon credits from third-party offset programs to voluntarily compensate for their carbon emissions.

It involves Acquisition and Retirement where Credits are acquired through projects like reforestation and renewable energy and then retired to compensate the carbon emissions. Few challenges involve lack of standardization, verification difficulties, and maintaining credibility of offsets

India’s Carbon Credit Market

India is one of the fastest-growing economies in the world, and home to large-scale industries and businesses. With a national commitment to achieving net-zero emissions by 2070, carbon market mechanisms in India are projected to mobilize over $100 billion in green investments by 2030. The government has started the Indian Carbon Market (ICM), aiming to facilitate both compliance and voluntary carbon credit trading, prioritizing industries and sectors where emissions are difficult to decarbonize.

Corporates are actively engaging with carbon markets; large industrial players see carbon credit as a strategic tool for decarbonization and MSMEs are exploring them to minimize costs and generate additional revenue streams.

With growing international demand for credible carbon credits, especially from emerging markets, India is well-paced to emerge as a key global supplier.

India currently operates two market-based emission reduction schemes:

1. Perform, Achieve and Trade (PAT) scheme
2. Renewable Energy Certificates (REC) system

The Carbon Credit Trading Scheme (CCTS), 2023, which was launched under the Energy Conservation Act, is a recent policy initiative introduced to structure a more formal carbon market. The scheme reflects India’s ambition to position the carbon market among the top three globally by 2030. Achieving this will require not only rapid scale-up but also sustainable practice, clean energy integration, and robust mechanisms for emissions management.

However, certain gaps within CCTS require clarification, like more research is needed for CCTS to become fully functional for use and stakeholders must better articulate how they are able to participate as well as gain some benefit. Therefore, a more marketing-oriented perspective should be included to illustrate how organizations can help navigate this complex domain without overtly promoting any brand

Key Challenges in India’s Carbon Market

• Measurement and Verification: Nature-based projects encounter difficulties during verification of storage or carbon capture (e.g., afforestation projects in Madhya Pradesh)
• Balancing Supply and Demand: Oversupply could lead to price collapse, also weakening corporate interest or engagement
• Economic and Technological Barriers: Compared to the EU ETS, India faces a gap because of a lack of reliable measurement and verification tools
• Regulatory Oversight and Transparency: Projects may easily harm the environment, or they may violate the additionality standards because regulators have not sufficiently overseen them (e.g., Himachal hydropower projects)

Making the Carbon Market Work

To drive participation, sustainability efforts must not lead to significantly higher consumer costs. Instead, sustainability should be cost-effective and supported by clear regulations. Two tools are crucial:

1. Effective Regulation
2. Cost-Effective Sustainability

One practical application is using carbon credits to bridge the viability gap in projects sustainably. For instance, in one of the cases, renewable energy ventures in Southeast Asia have leveraged carbon trading to strengthen their financial feasibility, highlighting how markets can unlock profitability for sustainable initiatives while offering scalable models of emerging economies.

This approach not only demonstrated the potential profitability of green projects when supplemented with carbon credit but also highlighted a scalable model for other emerging market players.

Further, EPC (Engineering, Procurement, and Construction) players can make green technologies more viable by making their projects obtain green certification and carbon credits by evaluating decarbonization strategies. The process requires companies to do the following:

• Audit and Certification: Projects must be independently audited by third party auditors to validate emissions reductions to claim legitimate and valid carbon credits
• Carbon Registries: Entities like the Bureau of Energy Efficiency (BEE) as well as the Indian Carbon Registry ease credit issuance with ensuring compliance with emission standards also promote transparency. They can be necessary in validating such projects and listing those who qualify matters
• Institutional Frameworks: Initiatives like the National Indian Carbon Coalition collaborate alongside stakeholders, technically guide, and consistently oversee regulations to increase investor confidence

As India’s carbon market develops, institutions/businesses will need structured direction on carbon accounting, certification, and monetization options. To foster engagement and understanding, carbon market communications must go beyond high-level narratives and clearly outline the processes, tangible benefits, and required actions.

By demystifying these steps—such as how to get audited, register credits, and leverage institutional support, more businesses will be empowered to participate.

Future of Carbon Credit Markets in India

Looking ahead, India’s carbon market needs to develop into a well-structured and transparent system supported by strong regulations and broad stakeholder engagement, hence, the focus must be on:

• Simplifying measurement and verification processes through a unified national system.
• Introducing price stability mechanisms like floor prices.
• Technology Enablement and Leveraging AI to reduce emissions:
  • Monitoring: AI tracks emissions across operations
  • Prediction: AI forecasts emissions and helps set reduction targets
  • Reduction: Prescriptive AI enhances efficiency in operations
• Enhancing regulatory capacity and fostering skilled human capital in carbon verification to ensure transparency and create employment

If these measures are implemented, India’s carbon market can evolve into a functional, well-regulated ecosystem, supported by a clear process framework and guided stakeholder participation. By enabling sustainable practices along with economically viable and systematically guided, organizations and the country can meet its emissions goals without compromising growth.

The post Carbon Credits Landscape: Turning Green Goals into Viable Solutions appeared first on Avalon Consulting.

They highlighted how AI is transforming the sector — from molecule discovery to smart manufacturing, predictive maintenance, and sustainability. While challenges around data quality and change management persist, they emphasized that strategic, phased adoption can unlock significant efficiency and innovation gains, positioning AI as a true catalyst for the industry’s next wave of growth.

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