Eneco CEO on balancing profit and planet with digital solutions

Embracing data and digital solutions for sustainability

Eneco's 2035 climate-neutral target aligns with the scientific goals of the Paris Agreement. Transitioning to a sustainable energy system is a complex challenge, especially considering that currently, 90% of Eneco's energy mix is fossil-based. Eneco's approach centres on harnessing data and digital solutions to optimize energy production, distribution, and consumption.

"In the old days when we really didn't produce any sustainable energy, we produced enough to satisfy the demand," Tempelman noted. However, the energy landscape has dramatically shifted. Today, energy generation is increasingly influenced by natural factors like wind and sun, making supply more variable. This calls for a new approach to balancing energy supply and demand.

Eneco employs advanced digital tools to forecast renewable energy production from its wind and solar farms and to optimize energy trading through the capacity market. "Say we have 60,000 charging points with a third in use. We can make those 20,000 cars charge a bit faster or slower. This means I can reduce demand or increase demand," explained Tempelman. This flexibility is crucial for aligning energy consumption with the fluctuating availability of renewable energy.

By leveraging smart meters and real-time data analysis, Eneco gains valuable insights into customer consumption patterns. This enables the company to offer tailored energy solutions and empower customers to make informed decisions. Eneco's digital transformation is not just about optimizing operations; it's about building a more sustainable and resilient energy system.

Investing in a digital-first culture

To achieve these ambitious goals, Eneco has heavily invested in building a robust digital organization. With a dedicated team of 600 employees - 300 focused on digital products and 300 on IT infrastructure - the company fosters innovation and rapid development. Multidisciplinary teams are set up per value stream called digital product families (DPF) to tackle complex energy market challenges with digital solutions, ensuring Eneco can swiftly adapt to changes and introduce new features on a quarterly basis.

Eneco demonstrates their agility in the dynamic solar panel market by balancing detailed project plans with rapid, iterative improvements. While major projects, like building new solar parks, still require comprehensive planning, Eneco emphasizes agility where feasible, particularly in deploying new features for its consumer app. This approach encourages experimentation, learning from setbacks, and swiftly implementing solutions that enhance efficiency and customer satisfaction. “A learning organisation means you need to be brave. It's a different way of working. People will make mistakes. Celebrate those learning experiences. It's a transformative way of working.” Tempelman said.

Moreover, Eneco was among the first established energy companies to adapt its pricing model in response to competition from smaller challengers. This strategic shift highlights a tangible business result stemming from their agile methodology, reinforcing Eneco's commitment to innovation and responsiveness in a fast-evolving industry.

Tempelman emphasizes the importance of a data-driven culture within the organization, stating, "Not everyone needs to code. We don't all need to be digital product managers. But we all need to work data driven." Eneco fosters this cultural shift by empowering teams to achieve goals autonomously, fostering a spirit of initiative and results-oriented work.

Leading the charge in digital transformation

Eneco's digital transformation is driven by strong leadership and a relentless commitment to continuous improvement. Previously, there had been underinvestment in IT infrastructure and data analysis, but this has now significantly changed as Eneco has recognized the crucial role of data and digital solutions in future energy systems. The company has adopted a two-pronged approach: upskilling the management team and attracting top digital talent. Workshops on digital entrepreneurship, digitalization, modern IT stacks, agile working, and digital product management have equipped the leadership team to navigate this complex transformation.

Tempelman underscores the importance of leadership in this journey, stressing that the top management must be deeply involved. Setting clear goals, investing in education, and maintaining a united front are essential for guiding the organization through ongoing transformation. Integrating digital natives with new-to-digital employees requires a delicate balance, and strong leadership is key to harmonizing different working styles and expectations.

A continuous journey towards a sustainable future

Eneco's journey to becoming a net-zero company is ongoing, with digital solutions playing a central role in creating a smarter, more efficient energy system. Today's customers expect faster, more informative, and digital interactions. Eneco is committed to meeting these expectations by continuously investing in innovative digital tools and solutions.

As Tempelman himself put it: “My expectation is that making our system smarter and more efficient will remain a key issue and will become even more important. I also expect that clients will interact with us in different ways. I think we will keep moving towards a more digital world.”

“There is so much potential. Every time we find new, cool solutions, I get really excited. I would tell any doubting CEO's to really go for it. It won't help to stay behind. You need to familiarise yourself with it. Or pass on the job to the next generation.”

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