Renewable energy and IT—a two-way grid

The transformation of the energy industry is one of the biggest IT projects ever, says Barbara Gregor Chief Finance Officer - SMA Solar Technology AG while also unravelling how renewable energy plugs in with IT supply chain security and sustainability.

Recently, Gregor was in India when SMA Solar Technology AG, a German multinational inverter company with 40 years of legacy in this space (and maker of Solar PV Inverters, Energy Storage, and Power Electronics) switched on a Global Competence Center in Bengaluru, Karnataka. Here are some sparks from an interview with her.

Why is SMA investing in a new office in Bangalore now?

The inauguration of the Competence Centre marks a significant milestone in SMA’s history in India which started 13 years ago with the opening of the SMA India subsidiary in Mumbai 2010. Bangalore, known as the Silicon Valley of India, provides an innovative and diverse environment, making it an ideal location for SMA’s Competence Centre. This Centre is strategically aligned to serve as a global hub of knowledge, enabling cross-functional communication and collaboration. SMA aims to contribute to the global expansion of renewable energies, particularly in grid stability, from this Centre. This service is an important part of SMA’s large portfolio.

Has the ‘Make-in-India’ focus been reflected in any of your products or components?

SMA manufactures solar and battery inverters in Germany, as well as the PCBs required for the devices. In addition, magnetic components are manufactured in our own factories in Europe. Under the current import conditions, we are not currently planning to relocate production or parts of it.

What areas would the India-based Centre of Excellence take care of—how important are these hubs to global strategy and innovation?

The Centre of Excellence in Bangalore creates new perspectives for SMA in India and worldwide. It opens up attractive market potential for SMA and is also intended to drive the expansion of renewable energies worldwide. From this centre, SMA wants to contribute to the global expansion of renewable energies, especially in the area of grid stability. This service is an important part of SMA’s extensive portfolio.

Would the digitalisation of the energy industry be a good development? What challenges and opportunities would it bring?

The transformation of the energy industry is one of the biggest IT projects ever. The digital transformation of the energy industry is an integral part of the energy transition and will make a decisive contribution to realising the potential for energy efficiency. This also raises the question of which companies will succeed and profit from the energy supply of the future, how and with which business models.

Do you see renewable energy becoming more prominent in the manufacturing of IT hardware, in data centres or in the carbon accounting of IT companies?

This is, indeed, the case and can be seen around the world. More and more companies are turning to clean solar energy. Security of supply also plays a role in the IT sector. An independent supply of solar energy contributes to the security of IT companies. Increasing demand and requirements for sustainable management, production and use of renewable energy for businesses also play a role.

If India’s renewable energy sector is expected to reach US$250 billion in investment (according to a report by EY and CII)—how much of this opportunity do you plan to capture, and with what offerings? And how much of this pie could come from IT or related industries?

India is on its way to becoming one of the largest solar markets in the world and many companies can benefit from this. In this environment, SMA will expand its premium service offering in grid modelling. We hope to find a place for our high-quality products and solutions in an attractive and growing solar market and, thus, contribute to India’s future energy supply.

Is there anything exciting on your roadmap for the future?

Grid stability plays a crucial role in the transition to a climate-friendly energy supply. The more renewable energies such as wind and solar power are used, the higher the demands on the electricity grids. Grid-connected photovoltaic and especially battery storage systems represent a competitive alternative to current grid stabilisation solutions. With technologies from SMA, plant operators will be able to participate in such markets in the future and help accelerate the integration of renewable energies—especially photovoltaics.

Barbara Gregor

Chief Finance Officer - SMA Solar Technology AG

Pratima H

pratimah@cybermedia.co.in