How can we build an energy-secure future and prevent blackouts?

Customer Example

AEMO

In the new energy reality, the ability to make data-driven decisions at speed is often the difference between 'always on' and a pervasive threat of outages.

The fragility of modern power systems

The global transition to cleaner energy sources is necessary, but it’s also a significant challenge. As nations move to control and reduce carbon emissions, integrating renewable energy into existing grids introduces complexities that can compromise stability. Recent events have underscored the vulnerabilities inherent in our modern power systems.
On 28 April 2025, a massive blackout swept across the Iberian Peninsula, affecting mainland Portugal, Spain, Andorra and parts of southwest France. The outage, which lasted up to ten hours in some areas, disrupted telecommunications, transportation and essential services, including hospitals and emergency response systems. Taken together with similar incidents worldwide, the lesson is clear: small deviations can cascade quickly, so resilience now depends on faster, data‑driven situational awareness. That imperative is shaping how grid and market operators modernize their digital core—leading directly to the Australian Energy Market Operator’s transformation with Fujitsu.

Strengthening energy resilience through digital transformation

As Australia transitions to a cleaner energy mix, the Australian Energy Market Operator (AEMO) has undertaken a significant digital transformation to enhance grid stability and operational efficiency in a bid to foster consistent, dependable energy supply.

For AEMO, strengthening service resilience was a core driver behind its digital transformation. As the organization responsible for keeping Australia’s energy systems secure and reliable, AEMO needed clearer visibility into operational risk and faster response to service issues that could impact critical market operations.

Partnering with Fujitsu, AEMO reconfigured its legacy systems into a modern, integrated enterprise platform using ServiceNow. Before the transformation, AEMO was hamstrung by outdated IT service management tools, manual processes and fragmented risk management, making it difficult to track service activity, manage compliance and make fast, informed decisions. Its operational visibility was limited, and the organization relied on spreadsheets for critical processes such as onboarding, offboarding and risk management.
Fujitsu worked closely with AEMO to overhaul its digital infrastructure. The solution focused on automation, scalability and integrated risk management. One of the key objectives was to move away from fragmented and manual processes to a system that supported predictive decision‑making across departments. More than 100 workflows were automated, and services from IT to procurement to facilities management were brought into a unified interface. The implementation of ServiceNow IT Service Management—integrated with AEMO’s identity management solutions and Microsoft Active Directory—meant that service requests and approvals became faster and more consistent. The team also built a centralized configuration management database, laying the foundation for robust risk assessments and service dependencies across the organization.

A key breakthrough came with the introduction of ServiceNow Integrated Risk Management, which provided a single pane of glass for risk visibility. Teams were no longer working across disparate spreadsheets and instead had a clear, actionable overview of compliance and risk exposure. “Integrated risk management has really helped AEMO with compliance and has got us out of spreadsheets with a single source of truth for risk,” said Janet Holling, Group Manager of Customer and Digital Services at AEMO. Customer feedback further affirmed the transformation’s success: “We are getting feedback from our customer base that everything is just easier to use, particularly the front‑end portal. There’s no technical jargon, and it’s in their language,” Holling added.

The operational impact has been significant. AEMO saw up to a 50% improvement in average time to deliver customer services, a 20% increase in self‑service usage and a 30% reduction in time to issue resolution. These are not just efficiency gains but improvements to resiliency. Faster problem resolution, better user interaction and unified risk visibility all contribute to a more agile and robust organization—one capable of supporting Australia’s transition to renewables without compromising reliability. “Our responsibility is to keep the lights on and the water hot,” noted Gordon Dunsford, AEMO’s Executive General Manager Digital. “Everything we do, every dollar we spend on change, it’s important we do that efficiently because if we don’t get that right, ultimately our way of life will fall away.” In short, a stronger digital core is a practical lever for grid resilience.

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Energy resilience with digital foundations

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To mitigate system‑level risks such as frequency instability and cascading outages, the energy sector must embrace digital transformation. The International Energy Agency (IEA) estimates that digitalization could reduce electricity system costs by up to $80 billion annually through 2040. These savings stem from improved operational efficiency, reduced downtime and optimized maintenance schedules. Digital tools enable real‑time monitoring of grid conditions, allowing operators to detect anomalies promptly and respond effectively. Predictive maintenance algorithms can identify potential equipment failures before they occur, reducing the likelihood of unexpected outages. Moreover, integrating distributed energy resources, such as rooftop solar panels and electric vehicles, requires sophisticated management systems to balance supply and demand dynamically. Digital platforms facilitate this integration, ensuring that renewable energy sources contribute to grid stability rather than undermine it. As McKinsey notes in its research on AI and utilities, leading operators are now deploying machine‑learning models to forecast supply fluctuations and consumption patterns more accurately. This enables more precise load balancing and the prevention of frequency instability. The architectural point is simple: unified platforms and automated controls shorten response times when conditions shift.

Lessons from the blackouts

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The blackouts in Spain, Portugal and the UK offer valuable lessons. In the Iberian case, the rapid loss of generation capacity and subsequent frequency drop highlight the need for systems that can adapt swiftly to changing conditions. Implementing automated load‑shedding protocols and enhancing interconnections with neighbouring grids can provide additional buffers against such events. These systems must be underpinned by real‑time analytics that can initiate fail‑safes before system‑wide failure becomes inevitable. Heathrow’s outage underscores the importance of redundancy in critical infrastructure. Diversifying power sources and establishing robust back‑up systems can prevent single points of failure from causing widespread disruption. Ensuring clear communication between grid operators and dependent services is vital to minimizing disruption. The incidents also emphasize the need for proactive risk management. Regular assessments of infrastructure vulnerabilities, coupled with investments in modernization, fortify energy systems against anticipated and unforeseen challenges. Governments and regulators must play their part too, by mandating transparency, preparedness and system‑wide coordination among energy‑market participants.

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Building a secure energy future

A man stands amidst a field of grass, with wind turbines

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Achieving energy security in the face of evolving demands and climate imperatives demands a multifaceted approach. It begins with investment in infrastructure to upgrade ageing transmission and distribution networks to accommodate new energy sources and technologies. Supportive policy and regulations establish frameworks that incentivize resilience and encourage the integration of renewable energy. Collaboration between public and private sectors will fund and implement innovative solutions. At the same time, education and workforce development must ensure a pipeline of skilled professionals to manage and operate advanced energy systems effectively. Last but not least, building trust in these systems is crucial. Citizens and businesses must feel confident that the grid will deliver stable power, even during periods of peak demand or weather volatility. This trust is earned through transparency, performance and accountability. The path forward is not without obstacles, but the technology and insight to overcome them already exist, meaning a secure, reliable and clean energy future is already within reach.

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What’s next?

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Over the next decade, digital tools and AI will become increasingly important for strengthening grid resilience and preventing blackouts by making energy systems more predictive and responsive. Smart grid technologies that use sensors and real‑time data already help operators balance supply and demand more effectively, improving reliability as renewable energy capacity grows. Grids equipped with digital automation have been shown to cut supply interruptions by up to 45% and shorten outage durations by more than 50% in controlled trials.

Already, AI‑enhanced forecasting in Denmark has reduced operating reserve costs by 10–15% and improved the integration of variable generation such as wind and solar. Industry examples show how digital transformation boosts performance. Utilities deploying AI and analytics across transmission and distribution systems have improved grid stability by around 15%, while predictive maintenance using sensor data can reduce equipment downtime by up to 50%. Predictive analytics and machine learning already help operators anticipate grid stress and schedule maintenance before failures occur, shifting energy operations from reactive to proactive management.

Looking ahead, digital twins—virtual models that simulate grid behavior under different conditions—will help operators identify stress points, test contingency plans and reach decisions with greater confidence. As regulators and markets increasingly prioritize grid security and decarbonization, investments in unified digital platforms, automated controls and forecasting will help maintain stable power systems and integrate distributed energy resources without compromising reliability. These advancements reinforce global research suggesting that digital integration strengthens resilience at scale. Ultimately, resilient digital operations don’t just improve KPIs—they protect communities and essential services as energy systems decarbonize.

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How can we build an energy-secure future and prevent blackouts?

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