In our previous article with Mattias Lindberg, Industry Domain Lead for Energy & Utilities at twoday, we discussed the importance of a data-driven strategy for success in renewable energy and changing consumer expectations.
In the second part of our interview, Mattias describes how the Nordic energy sector is moving towards a data-driven, sustainable future. Digitalization and electrification work together to achieve net-zero goals. Climate commitments, customer expectations, and technological advancements drive modernization, improving efficiency, creating new revenues, and increasing customer engagement despite older systems limiting innovation. Investments in digital solutions and international collaboration can pave the way for a sustainable future.
How do data and digital tools specifically help with the surge in renewable energy?
Mattias: Great question – this is really at the heart of the matter. Renewable energy like wind and solar is abundant but variable. You can’t control when the wind blows or the sun shines, so the system has to adapt around these fluctuations. Data is the key to unlocking flexibility in this scenario.
For example, digitalization lets grid operators aggregate thousands of data points – weather forecasts, turbine outputs, battery state-of-charge, etc. – and run algorithms to predict the balance of supply and demand. If the system is trending toward a surplus of solar at mid-day, a utility could preemptively signal electric heating systems or industrial processes to ramp up and soak up that excess power. Conversely, if a drop in wind output is expected tonight, they might charge up batteries or even ask consumers (via an app) to conserve energy during those hours. None of that is feasible without a data-driven approach. In fact, Svenska Kraftnät (Sweden’s TSO) noted that being “increasingly data-driven” allows them to anticipate needs and make faster, smarter decisions to keep the grid stable.
C-level leaders are also concerned with ROI and the bottom line. How does digitalization translate into business value for energy companies?
Mattias: That’s a very fair question. At the end of the day, any transformation should drive value by boosting revenue or cutting costs – ideally both, and in a sustainable way. The good news is that digitalization offers tangible value on multiple fronts:
- Operational Efficiency: Automating manual processes and improving grid and asset management can save substantial costs. Using analytics to optimize maintenance schedules, for example, avoids unnecessary truck rolls and extends asset life. We see this in practice with our clients. The Danish power distributor N1, for instance, revolutionized its field maintenance using a data-driven approach. They combined AI-based image recognition with a gamified mobile app (inspired by Pokémon GO) to inspect over 80,000 electrical cabinets and substations in just a few weeks (twoday.com). Compare that to their traditional rate of around 5,000 inspections per year – it’s a quantum leap in efficiency. This initiative not only slashed manual labor and operational costs, but also improved the accuracy and richness of N1’s asset data for better decision-making going forward. Another example: Sydvatten – a Swedish utility that provides drinking water to about one million people – digitized its project planning and forecasting using our INSIKT software platform. They manage over 100 ongoing projects and a multi-billion SEK project portfolio, so efficiency here is critical. After implementing the new system, Sydvatten’s project managers can plan resources and finances in far greater detail. The payoff has been huge: by accurately forecasting project cashflows, they can time their financing needs optimally. In fact, they found that if they can defer a borrowing requirement of SEK 150 million by just one month thanks to better planning, that saving in interest essentially covers the entire annual cost of the INSIKT system (twoday.com). These kinds of efficiency gains drop straight to the bottom line.
- Reliability and Risk Management: Downtime and blackouts are extremely costly – financially and reputationally. Digital systems help predict and prevent failures, and restore service faster when issues occur. This is where predictive maintenance and AI-based monitoring really shine. For instance, in a water utility context, VandCenter Syd (one of Denmark’s largest water utilities) worked with us on an AI model that predicts when wastewater treatment conditions are about to exceed safe thresholds (twoday.com). They can now proactively adjust operations to avoid incidents, whereas before they might only react after a problem (like high ammonia levels) had occurred. That kind of predictive insight can be life-saving for power grids too – spotting an overloaded transformer or a failing cable before it causes an outage. The result is improved reliability. Fewer unexpected failures mean avoiding regulatory penalties in some markets, and it keeps customers happy. A more stable utility is also more attractive to investors and to industrial customers (a factory considering a new site will favor regions with fewer power quality issues). So reliability enhancements directly protect revenue and brand trust.
- New Revenue Streams: Digital platforms enable entirely new business models for utilities. A company that has modernized its data might use it to offer energy advisory services to large customers – for example, analyzing a factory’s usage patterns and suggesting optimizations, potentially as a paid consulting service. Some utilities are venturing into flexibility markets, essentially monetizing their ability to adjust load or supply on short notice by selling that as a service. We also see opportunities in cross-sector partnerships. An energy company might team up with a smart home provider or an EV charging network to offer bundled, data-enabled services. For example, Wattn (the Norwegian provider I mentioned) not only gives its customers a slick digital interface, but it’s also positioned to introduce new services through that platform. With real-time consumption and pricing data at their fingertips, they could offer things like automated EV charging plans, home battery optimization, or premium energy-efficiency insights for businesses (twoday.com). None of these offerings were feasible in the old analog world, but now digitalization makes it possible to generate revenue in ways traditional utilities never could – all by leveraging the data and customer touchpoints they’re developing.
- Customer Engagement and Retention: By modernizing the customer experience – through user-friendly apps, online portals, and personalized energy insights – companies can increase customer loyalty and boost uptake of new services. When a customer can see their usage, carbon footprint, and savings from adjustments in an intuitive dashboard, they feel more in control and informed. That tends to build trust. Engaged customers are also more likely to participate in programs like demand response or to buy complementary products. One real example: a utility that provides personalized solar potential reports to high-consuming customers might inspire those customers to install rooftop panels with the utility’s help, thus generating a sale and deepening the relationship. In Finland, Fingrid’s move to a modern CRM has improved how they communicate with and serve their stakeholders (like large industrial consumers and distribution companies) – interactions are now more transparent, timely, and tailored to partner needs (twoday.com). That kind of improved engagement, even on the B2B side, strengthens long-term loyalty. The bottom line is that an engaged, satisfied customer base is less likely to churn in competitive retail markets and more likely to buy additional services. Digital tools give utilities the means to delight customers in ways that simply weren’t possible when interactions were just a paper bill and a call center.
- Regulatory Compliance and Incentives: There’s also the angle of meeting regulatory requirements at lower cost, and even unlocking incentives. Utilities face a lot of reporting and compliance demands – emissions reporting, reliability metrics, data privacy (GDPR), cybersecurity standards (like the EU NIS directive), etc. Modern digital systems can automate compliance reporting and embed security by design. For example, by using advanced data visualization tools, what used to be a manual annual report can become an automated, continuously updated dashboard. The Swedish Energy Agency’s interactive fuel report is a case in point – by moving that publication to a digital platform, they made it easier to meet transparency goals and stakeholders continue to praise the accessibility of the data (twoday.com). That kind of approach could equally apply to a power company’s sustainability reports or outage reports, saving tons of man-hours. On the incentives side, some Nordic regulators are encouraging digital innovation by offering grants or by allowing certain digital investments to count toward the regulated asset base (which guarantees a return). Tapping into these incentives can improve the ROI of digital projects. Importantly, regulators and system operators in our region have explicitly flagged that robust cybersecurity must go hand-in-hand with digitalization – it’s a prerequisite, not an afterthought (svk.se). So any digital initiative that also strengthens cyber defenses will be viewed favorably by regulators. All told, a well-planned digital transformation can streamline compliance and even secure bonus incentives, which adds to the business case.
In sum, the business case for digitalization in energy isn’t based on fluff – it’s quite tangible. We often start by targeting “low-hanging fruit” where a pilot project can demonstrate value quickly. Say, an AI tool that reduces forecasting error by 10% – that might save a few million euros in balancing costs. Once leadership sees evidence of success, it becomes much easier to scale up investment in a broader digital roadmap.
Nordic collaboration has been a theme in energy. Is there a regional aspect to this digital transition?
Mattias: Absolutely. One strength in the Nordic region is a tradition of collaboration – whether through shared power markets (Nord Pool) or joint research programs. We see a lot of knowledge-sharing on digital innovation. The regulators and TSOs of Denmark, Finland, Sweden, and Norway coordinate quite closely on future models. In fact, they jointly published a strategy not long ago emphasizing the need for common digital solutions to integrate renewables. There’s also alignment on standards – for instance, data exchange standards or cybersecurity requirements – which helps each country move faster because everyone is rowing in the same direction.
Moreover, Nordic utilities and tech firms often pilot projects together through innovation hubs. We have forums where, say, a Finnish distribution company, a Swedish tech startup, and an IT consultancy (like us) might all contribute to solving a specific challenge, such as using AI for congestion management. This culture of cooperation means that a breakthrough in one country can be quickly learned and applied in another. As an example, when we demonstrated a successful machine learning project in Denmark (the VandCenter Syd case), it sparked interest from water utilities and even power companies elsewhere in the Nordics – they wanted to apply similar predictive techniques in their own operations. That cross-pollination of ideas is a huge asset for our region.
So yes, the digital transition has a strong regional component here. We aren’t working in isolation; there’s a pan-Nordic brain trust working toward the grid of the future. That said, each company still needs to execute on its own transformation – collaboration helps, but it doesn’t replace the need for action at the individual utility level.
What pitfalls should energy executives watch out for during this digital transformation?
Mattias: Several come to mind:
- Lack of Clear Vision: A mistake one can make is diving into technology for technology’s sake. Implementing fancy AI or IoT solutions without a clear business objective can lead to wasted effort. Every digital initiative should tie back to a concrete value driver – whether it’s reducing outage minutes, improving customer satisfaction, or enabling new services. Without a clear vision, projects can drift or fail to deliver meaningful results.
- Siloed Efforts: If different departments pursue digital projects independently, you risk ending up with new digital silos. We’ve seen cases where the grid operations team and the customer service team each implement separate analytics platforms that don’t talk to each other – recreating the fragmentation of legacy systems. C-level leaders need to ensure a unified strategy and architecture. The data platform, especially, is something to build once in a way that serves multiple needs. Our work with EWII on their data platform was very much about avoiding silos – we helped them test Databricks as an enterprise-wide solution, not just a one-off tool for a single team. Because we involved both IT and business analysts in the pilot, everyone understood the capabilities and we avoided the “two platforms doing the same job” scenario (twoday.com).
- Ignoring Change Management: Technology is only half the battle. The other half is people and processes. A brilliant digital solution won’t deliver value if employees don’t adopt it or trust it. So change management is critical. Employees need to be brought along, trained on new systems, and shown the benefits. Leadership must champion the change and communicate the “why” behind it. We often include change management plans – workshops, training sessions, feedback loops, even incentives – in our projects to ensure the workforce embraces the new tools. Neglecting this can lead to resistance or low adoption. Also, not addressing skill gaps is a pitfall: expecting a traditional grid engineer to suddenly also be a data analyst won’t work without support. Smart utilities invest in upskilling their people or bringing in new talent to fill the gaps.
- Overlooking Cybersecurity: With great connectivity comes great risk. As you digitalize critical infrastructure, cybersecurity must be a top priority from day one. A cyberattack on an energy company can be devastating – worst-case scenarios include widespread blackouts or even safety incidents. Sometimes in the excitement of deploying IoT devices or migrating to cloud, organizations bolt on security later as an afterthought – that’s a big mistake. Security should be baked in from the design phase. Nordic regulators and TSOs have been very clear that cyber-secure IT infrastructure is a fundamental prerequisite alongside digitalization (svk.se). In practical terms, that means following best practices (like network segmentation, encryption, continuous monitoring) and often bringing in specialized expertise. To give a concrete example, when we deployed the AI system at VandCenter Syd, we made sure it ran entirely within the client’s own network and interfaced securely with their SCADA controls (twoday.com). That way, we improved their operations without introducing new vulnerabilities. C-level executives should insist that any digital initiative includes a thorough security and compliance review. It might require additional investment, but it’s non-negotiable for critical infrastructure.
- Not Measuring ROI: We talked about ROI earlier – another pitfall is failing to define success metrics and track them. If you implement an AI-driven scheduling tool, for instance, determine up front what success looks like (faster outage restoration? 10% labor cost reduction? higher customer satisfaction scores?) and then measure it rigorously. This seems obvious, but I’ve seen projects go live and then nobody checks whether they delivered the expected benefits. Tracking KPIs provides accountability and helps maintain momentum (and funding) for the transformation. It also allows course-correction. In our projects, we aim to demonstrate quick wins in pilot phases and measure them. For example, in the EWII data platform pilot I mentioned, we set clear benchmarks for data handling speed and user adoption. The proof-of-concept with Databricks showed a measurable boost in analysts’ ability to quickly add and analyze new data sources (far more flexibly than their old data warehouse) (twoday.com). Because we documented those gains – increased agility and collaboration – EWII’s leadership gained confidence to expand the solution to their broader portfolio management and trading operations (twoday.com). That feedback loop of setting KPIs, measuring, and learning is crucial. Digital transformation should itself be data-driven.
- “Transformation Fatigue”: In large organizations, there’s only so much change people can absorb at once. If you roll out too many digital projects simultaneously or too fast, employees (and even customers) can get overwhelmed. We advise a phased approach: prioritize initiatives, show some quick wins early, and celebrate those successes. Then build on that foundation step by step. Keep an eye on the organization’s capacity for change. Sometimes taking a brief pause to consolidate gains is wiser than pushing full throttle when everyone is exhausted. Avoid burnout and keep the narrative positive – when people see wins being celebrated, it builds morale and willingness to tackle the next challenge.
By being mindful of these pitfalls – and actively managing them – C-level leaders can greatly increase their chances of a smooth, successful transformation. It’s about being as strategic and people-focused in execution as you are visionary in planning.
Finally, if you had to give one piece of advice to an executive beginning this legacy-to-digital transition, what would it be?
Mattias: My one piece of advice would be: anchor every digital initiative in a clear value proposition for your business and your customers. In other words, know why you’re doing it – and communicate that relentlessly. If you’re deploying advanced metering, for example, is it to reduce losses? To enable time-of-use pricing? To empower customers with better data? Be crystal clear on the “why” and make sure everyone – from the board to the implementation teams – understands and buys into it.
This does two things. First, it keeps your organization aligned and prevents getting sidetracked by “tech for tech’s sake.” And second, it builds commitment. When people see, “We’re investing in this new platform because it will let us connect more renewables to the grid faster – which in turn grows our business and meets our climate goals,” they get motivated. A strong why becomes a north star for the whole transformation. It helps in making decisions, it helps in rallying the troops, and it helps in explaining the journey to external stakeholders as well.
In sum, start with the why, and the how will follow. Combine that strategic clarity with the practical steps we discussed – phased execution, quick wins, change management, security vigilance – and you’ll be well on your way from legacy systems to a future-ready, data-driven utility.
Thank you, Mattias. It sounds like Nordic utilities have a challenging road ahead, but also an exciting opportunity to reinvent themselves for a sustainable future. Your insights and the real-world cases you shared truly highlight how digital transformation is not just about technology, but about creating value and resilience in this new energy era.
Mattias: Thank you – it’s been a pleasure. The transformation is definitely challenging, but with the right vision and partnerships, I’m confident Nordic utilities will lead the way into that sustainable, data-driven future.
Closing Note: Turning Nordic Ambitions into Action
The Nordic region’s enduring commitment to renewables, coupled with its progressive digital mindset, provides a unique platform for energy companies to redefine what’s possible. Yet success isn’t just about deploying more hardware or software; it’s about integrating robust cybersecurity, harnessing data-driven insights, and evolving business models for a world where customers are also producers. As utilities grapple with market consolidation, changing regulatory demands, and the race for talent, those that invest in a holistic digital strategy today will be best positioned to lead tomorrow. By unifying data ecosystems, embracing smart grid automation, and forging collaborative partnerships, Nordic utilities can translate lofty climate goals and cross-border synergies into concrete, profitable outcomes. The journey from legacy to future-ready is challenging, but the rewards—greater efficiency, resilience, and customer satisfaction—make it not just necessary, but undeniably worthwhile.