Digital technologies can generate both operational and economic value by reshaping power system transformation

Digital technologies are becoming a defining force in reshaping power system transformation, not only supporting China’s transition toward a new energy system but also offering valuable insights for the global energy transition.

China is accelerating the development of a new energy system, with the digital and intelligent transformation of the power sector serving as a critical pillar for advancing the country’s carbon peaking and carbon neutrality goals, as well as its broader energy revolution. Guided by the 15th Five-Year Plan (2026-30), this shift is reflected not only in top-level policy design but also in concrete practices across the industrial front line. This underscores a broader trend in which technological innovation is increasingly embedded in real-economy applications.

For years, the power engineering sector has faced persistent challenges, including poor management practices, data security risks, low operation and maintenance efficiency, and inefficient energy use. Today, the integrated application of digital technologies such as artificial intelligence, the internet of things and big data is providing new pathways to address these issues. More importantly, it signals a transition from experience-based operations to data-driven system governance.

Technological innovation in this field must begin with solving the most pressing challenges in real-world engineering practice. Targeted solutions are now emerging to tackle key industry bottlenecks. Refined management systems help strengthen control over project timelines and costs. The integration of IoT with homomorphic encryption technologies establishes full-process data security protection. Machine vision-based systems enable automated equipment condition monitoring and early warning. Intelligent algorithms further enhance the efficiency of power dispatching. Together, these applications are forming the technological backbone of a more intelligent and resilient power system.

These integrated technologies have been tested and are now operating steadily in real-world projects, supporting a transition from labor-intensive operational models to data-driven and intelligent decision-making. In practical applications, they have delivered measurable results, including improved management efficiency, reduced operation and maintenance costs, lower energy consumption and decreased reliance on manual labor. This demonstrates that digital transformation can generate both operational and economic value when effectively integrated into engineering practice.

In large commercial complexes in particular, intelligent dispatching systems optimize energy allocation, smoothen electricity load curves and enhance the utilization of clean energy. This not only improves energy efficiency but also contributes to a more flexible and adaptive energy system capable of accommodating higher shares of renewable energy.

The value of digital technologies ultimately lies in their ability to empower end users. For example, quality monitoring systems do more than replace part of manual inspection. More importantly, they shift operation and maintenance models from reactive, post-failure repairs to proactive, preventive approaches. This transformation significantly reduces the risk of unexpected power outages and the associated operational losses, while fundamentally enhancing system safety and reliability. It also reflects a broader trend toward predictive and preventive governance in critical infrastructure.

Digital transformation is not merely about introducing new technologies. It also requires the restructuring of business processes and management models. A key challenge for many traditional enterprises lies in effectively integrating digital tools with existing systems. Practical experience shows that the systematic application of technology can deliver tangible cost reductions, efficiency gains and service upgrades, providing a viable pathway for industry transformation. This highlights the importance of aligning technological innovation with institutional and managerial change.

At the strategic level, developing a new-type power system — a more flexible, intelligent and low-carbon energy network — depends on mature and implementable technological frameworks. While national strategies outline the overall blueprint, industry must translate requirements such as source-grid-load-storage coordination, intelligent operation and maintenance, and data security into workable engineering solutions. This process illustrates how macro-level policy goals are translated into micro-level implementation.

In the face of the inherent intermittency of renewable energy generation, digital technologies play a crucial role in enhancing system stability and regulation capacity. Through precise forecasting and intelligent dispatching, the impact of such intermittency can be effectively mitigated, improving the overall resilience and economic efficiency of the power system. This suggests that digitalization will be indispensable in enabling large-scale integration of renewable energy.

Looking ahead, the broader application of advanced technologies, including large-scale artificial intelligence models, is expected to further drive the evolution of power systems toward predictive maintenance and intelligent decision-making. Such developments point to a future in which power systems are increasingly autonomous, adaptive and efficient.

Practices show that in the digital transformation of power engineering, technologies focused on engineering management, data security, equipment maintenance and energy dispatch can deliver real value. By tackling concrete engineering challenges and developing systematic solutions, such innovations are generating positive industry impact and supporting the construction of a new-type power system.

China’s experience in leveraging digital technologies to transform its power system also provides useful references for other economies, particularly developing countries seeking to balance energy security, efficiency and sustainability. In this sense, the ongoing transformation is not only a domestic transition but also part of a broader global effort to build more resilient and low-carbon energy systems.

The author is the deputy general manager of Beijing AnnoChuangda Power Engineering Co Ltd, a Beijing-based power engineering company. 

The views do not necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn.