Utilities driving grid innovation and decarbonisation globally
In an exclusive interview with Energy Connects ahead of World Utilities Congress 2025, Dietmar Siersdorfer, Managing Director of Siemens Energy, discusses balancing decarbonisation, grid modernisation, and AI-driven digitalisation for a successful energy transition.
- As utilities globally work toward decarbonisation, how can they balance emissions reductions with the need for reliable power generation?
Power generation is one of the largest sources of carbon dioxide emissions worldwide, but it is also undergoing a major transformation. Renewable energy is expanding at an unprecedented rate, including in the Middle East. Yet solar and wind alone cannot provide the growth and stability needed to meet rising electricity demand. Reliable, dispatchable capacity is essential – and this is where gas-fi red power plants play a critical role. With coal still generating a third of global electricity and oil-fi red power remaining prevalent in the region, particularly in Saudi Arabia, switching to gas offers a major opportunity for immediate emissions reductions – up to 60% in both cases.
In Saudi Arabia, Siemens Energy is driving this transition by delivering four modern combined-cycle gas-fi red power plants – Taiba 2, Qassim 2, Rumah 2, and Nairyah 2. These plants will replace aging oil-fi red stations and add 7.6 GW of capacity, enough to power over 2.5 million homes. The plants are also designed to be compatible with advanced carbon capture and storage technologies (CCUS), supporting Saudi Arabia’s long-term decarbonisation goals.
Looking ahead, work continues to decarbonise gas turbines, enabling them to run on green hydrogen – produced from renewable energy. Siemens Energy’s gas turbines can already operate on up to 75% hydrogen, with a roadmap to reach 100% by 2030.
For utilities, the way forward requires a balanced approach: maximising renewables where feasible, transitioning from coal and oil to high-effi ciency gas, and in the future by integrating hydrogen and CCUS. By investing in fl exible, future-ready infrastructure, utilities can build a resilient, low-carbon energy supply that supports growing demand while advancing national decarbonisation goals.
- As renewable energy capacity grows, grids must also evolve to ensure stability and effi ciency. How is Siemens Energy helping utilities modernise grids to support this transition?
As utilities in the Middle East and around the world integrate more renewables, grid fl exibility and stability become a critical challenge. Unlike traditional power plants, solar and wind generation are intermittent, requiring advanced, digitalised grids to balance supply and demand in real time.
Siemens Energy is supporting this transition by deploying high-voltage direct current (HVDC) transmission systems for long distances and to connect countries, fl exible AC transmission systems (FACTS), gas-insulated switchgear (GIS), and digital control systems to ensure grids remain resilient, effi cient, and future-ready. These technologies optimise real-time power fl ows, reduce energy losses, and enhance the grid’s ability to absorb intermittent renewable energy. Battery energy storage systems are an additional technology to further strengthen grid stability, providing fl exibility and ensuring a seamless integration of renewables.
Beyond technical resilience, modernising the grid is a key economic enabler. Many of the systems we have today are 30-40 years or older. A smarter, more effi cient grid facilitates regional energy trade, allowing utilities to export surplus renewable power to high-demand areas. It also supports industrial electrifi cation – from EV charging networks to green hydrogen production – driving economic diversifi cation, job creation, and long-term sustainability.
- What role does digitalisation play in helping utilities optimise operations and manage the growing complexity of modern energy systems?
As the energy landscape evolves, digitalisation is becoming essential for utilities to manage growing complexity, improve effi ciency, and enhance reliability. AI, automation, and real-time data analytics are enabling smarter operations, reducing downtime, and ensuring a more fl exible, resilient grid.
A clear example of this in action is Siemens Energy’s collaboration with the Dubai Electricity and Water Authority (DEWA) to implement the Plant Intelligent Controller (PIC). This AI-powered digital twin technology enhances the Jebel Ali M Station’s combined-cycle power block, dynamically adapting to grid fl uctuations while maintaining stable operations. The system has already delivered signifi cant benefi ts, including fuel savings of over 2% per power block—equivalent to an annual reduction of 52,000 tons of CO2 emissions.
Digitalisation is reshaping how utilities operate at every level, from power generation to transmission and distribution. By enabling real-time monitoring, predictive maintenance, and smarter energy management, it helps utilities optimise resources, improve reliability, and support the transition to a more sustainable energy system. Siemens Energy is committed to supporting utilities on this journey, helping them navigate the complexities of modern energy systems with intelligent, data-driven solutions.
