March 29, 2024

Guest Editorial | Why the Energy Sector Needs Remote Operations Capacity Today, and How to Succeed in the Transition

by Bill Moore, Xona

For most people, 2020 has been an unforgettable year. Not only did a viral pandemic sweep the globe, bringing along financial hardship and social unrest in its wake, but people’s daily lives were transformed virtually overnight as businesses closed their doors and remote work became the default arrangement for hundreds of millions of employees.

Time Magazine described the coronavirus outbreak as “the world’s largest work-from-home experiment”. For the energy sector, this means we have entered a uniquely transformative moment. More specifically, it provides an operational imperative to play catchup on critical infrastructure that will empower long-term growth.

Power producers and energy companies can use this moment to springboard their technology into the future, making them more capable and competitive for years to come. A hybrid workforce comprised of on-site, remote, and distributed teams isn’t just the future of the power industry. It’s the present, and too many companies are falling behind.

Of course, this transition isn’t without its challenges. According to The Washington Post, as much as 90 percent of companies lacked adequate remote operations infrastructure to maintain continuity during this transition. The energy sector will have to navigate the pitfalls successfully without ignoring the operational necessity transformation.

The case for remote operations capacity

A potent collection of sociological trends and physical imperatives make remote operational capacity a critical component of any sustainable, continuity-oriented company.

Remote work as a long-term trend

Regardless of the industry, remote work is an indelible reality with far-reaching implications. According to a May 2020 Gallup poll, more than half of workers want to continue working from home, even after the pandemic eventually subsides. This number is even higher in the energy industry, where 70 percent of employees prefer a long-term remote work arrangement.

Traditionally, power plant operators and other industry professionals are restricted to working in a control room with access to Human Machine Interfaces (HMIs), and any off-site accommodations were applied using a band-aid approach that flouted cybersecurity and operational realities.

While jobless numbers are temporarily high, potentially expanding the talent pool available for energy producers, the sector has struggled to attract and retain top talent, something that will certainly persist as the overall economy eventually improves. However, according to a recent industry survey, a remote work option helps with talent acquisition and retention. Consequently, companies that develop and deploy remote operations capacity during this transformative time can provide the in-demand work arrangements that can allow them to engage with the most qualified professionals from around the world.

Operational continuity; regardless of circumstances

To be sure, remote operational capacity is about more than employee preference, and many power producers view scaling this technology as a mission-critical component of their long-term sustainability.

Most obviously, COVID-19 has illuminated the speed and scope with which unforeseen disasters can disrupt operational capacity. Similarly, natural disasters, including floods, tornados, hurricanes and earthquakes, are becoming increasingly prevalent. This year’s hurricane season is expected to be “one of the most active seasons on record,” according to scientists at the National Oceanic and Atmospheric Administration. The power supply is an essential service, and producers and distributors need better operational resilience to navigate these predictable but always surprising events.

In this environment, companies that didn’t already have remote operations capacity were at an overnight disadvantage. In an assessment of COVID-19’s impact on the energy industry, Deloitte identified “Strains on the workforce, such as a shortage of engineers or restrictions on the movement of personnel” as a key challenge for utility providers during the pandemic. What’s more, the report encourages power producers to use the current crisis as a “catalyst to usher in the future of work by rethinking how and where work is done and accelerating adoption of automation and digital capabilities.”

Comprehensive remote operations capacity ensures that energy producers, suppliers and their network of service providers can ensure reliability regardless of the on-the-ground reality.

Efficiency & effectiveness improvements

Energy producers face increasing competition as a dynamic energy environment increases the impetus for cost-savings and efficiency.

Remote operations capacity can keep valuable employees from traveling to disparate locations to diagnose problems or to collaborate with team members, something that not only saves time and money but provides a more compelling work environment that can adapt to different situations.

At the same time, these technologies can reduce redundant processes and other measures that increase efficiencies and reduce costs. For example, workers can:

  • Collaborate with remote and on-site staff and experts
  • Centrally configure plant operations
  • Diagnose and troubleshoot problems
  • Digitally operate, startup, and shutdown plant operations.

As companies embrace a long-term remote-first environment, comprehensive remote operations capacity can provide accountability and productivity metrics to ensure that, no matter where your workforce resides, overall performance remains an asset, not a vulnerability.

Taken together, today’s power producers have millions of reasons to pursue remote operations capabilities, and now is the perfect time to scale these initiatives. Of course, these efforts aren’t without challenges.

Navigating the challenges of adoption

Remote operations capacity is not anathema to the energy industry, which has sought to develop and deploy this technology for years. However, these solutions tend to be temporary, relying on workarounds that don’t address the very real challenges of adoption. This moment requires a more holistic approach to remote access and operations that accounts for the challenges and meets them with appropriate solutions.

1. Cybersecurity

Today’s threat landscape is expansive as bad actors and accidental insiders create a cadre of cybersecurity risks that could have costly (or worse) consequences for power producers. Not only does the average data breach cost companies nearly $4 million, but a cybersecurity incident for utilities can have real-world implications for people’s lives.

In an assessment of the cyber threats and vulnerabilities in the US energy sector, the Idaho National Laboratory found that “cyberattacks on the North American electric grid continue to grow in frequency and sophistication.” The wrong approach to remote access can heighten these risks, making it critical that remote operations capacity be met with robust cybersecurity protocols.

While today’s next-generation firewalls (NGFWs) offer significant protection for on-site workers, such as sandboxing, application-level inspection, and intrusion protection, this technology isn’t designed to accommodate a remote workforce. Instead, companies should turn to a zero-trust OT platform that brokers connections between remote workers and on-site operations. Also, power producers can mitigate cybersecurity risks by adopting a defensive posture that includes:

  • Multi-factor authentication
  • Protocol isolation
  • Moderated Uni-directional Secure file transfer
  • Full user access logging and recording
  • Compliance-ready standardization.

Since today’s threat landscape is continually expanding in scope and sophistication, having the right defensive capabilities in place is the first step for power producers implementing remote operations capacity.

2. Regulatory compliance

To protect consumers, lawmakers are increasingly implementing or updating security and privacy regulations that will impact utilities’ transition to a hybrid workforce. In response, companies need built-in systems and workflows for maintaining and documenting regulatory compliance. Specifically, companies need to consider:

  • NERC CIP: This security standard provides guidelines for protecting critical cyber assets related to public utilities. It includes nine standards that dictate everything from personnel and training protocols to disaster recovery planning.
     
  • NIST SP 800-53: Information security is a high priority for regulators. It needs to be top-of-mind for leaders implementing remote operations capacity, which comes with inherent risks related to data privacy and protection.
     
  • IEC 62443/ISA 99: Remote operations capacity incorporates automation as a key driver of new efficiencies. This regulatory standard ensures that automation and control systems security remain a top priority for power producers.

Regulatory compliance is more than just a nascent obligation for power producers. These guidelines help ensure that their infrastructure remains secure, regardless of circumstances.

3. Usability

Workers are clamoring for remote work opportunities, but that doesn’t mean that they are ready for new technologies to supplant existing workflows. When transitioning to a hybrid workforce, new operational capacity needs to be simple to use and deploy.

Focus on intuitive interfaces that can capitalize on existing technology. For instance, remote operations that support standard devices and connections with an accurate and real HMI experience can help translate on-site protocols to the digital realm.

Simply put, a hybrid workforce won’t be successful if the tools are overly complicated or include significant usability hurdles.

4. Affordability

Right now, power producers need affordable solutions, not elaborate next steps. Designing and deploying remote operations capacity from the ground up is expensive and time-consuming. Fortunately, a variety of off-the-shelf options are emerging, meaning companies don’t have to build this capability from scratch, which reduces transition, implementation, and development costs.

By getting the most out of their technology investments, companies can more efficiently budget for their workers’ other remote working needs, like workspace upgrades, hardware updates, and other amenities that are common for on-site employees but that often get overlooked when transitioning to off-site workspaces.

Adjusting to a hybrid workforce can bring new efficiency and cost-savings standards, but it also requires new tools and workflows that always come with a cost. An affordable transition means relying on existing tools and infrastructure. Leaders need to do their homework before throwing their weight behind any solution.

Conclusion

The COVID-19 pandemic has illuminated the already-prevalent need for remote operations capacity in the energy sector. This isn’t a bad thing. Moving forward, energy producers and distributors will depend on this technology for more than just responding to a pandemic. In this way, right now is a unique moment where the sector can turn its attention to an immediate need with long-term implications.

In a report on this shifting landscape, McKinsey & Co. describes the effect of this transition: “Many companies are not only seeking solutions to improve their performance in the short term—and increase their competitive edge in shrinking markets—but also to ensure long-term sustainability in the next normal through healthy transformation.”

People will experience pandemic as a before/after event that alters the way we live, think, and work. Leaders that meet the moment will be prepared to move their company forward, while those that ignore the challenges are at risk of being left behind. Remote operations capacity is only one part of this equation, but it’s something that the energy sector needs to continue evolving in the months and years ahead.

CEO and Founder of XONA, Bill Moore providers of a unique “zero trust” user access platform especially tailored for remote Operational Technology (OT) sites. He is currently working with global power generation and distribution customers to reduce their remote operations costs and cyber risks. Moore brings more than 20 years’ experience in security and the high-tech industry, including positions in sales, marketing, engineering and operations.