Clean energy asset management: The challenges and solutions

Clean energy asset management teams face significant challenges, and Kraken now offers a robust solution tailored to meet these demands.

Managing a diverse portfolio of clean energy assets comes with its own set of pressures. Asset management teams are responsible for overseeing numerous assets spread across continents, each varying in energy type, size, and age. These assets are often onboarded through acquisitions, bringing unique operational quirks and requirements.

While a diversified portfolio is beneficial for risk management, it can pose significant operational challenges, especially when scaling quickly. For those also managing non-energy assets—such as property, social infrastructure, or transport—the complexity only increases. Without strategic operational changes, these challenges will persist.

Compounding these challenges are the demands from the board, who expect assets to be in optimal condition while generating the revenue needed for future growth. The expectations for detailed reporting and insightful analysis have never been higher, driven by advancements in technology. The global pandemic has further emphasized the need for efficiency as teams adapt to remote work while still striving to maximize profits.

The challenge of information overload

A major challenge for asset managers is handling the overwhelming amount of information. Efficiently capturing, storing, and retrieving data is crucial for maintaining asset value and meeting the needs of investors and management. The question becomes: How can this be done swiftly, consistently, and accurately with every new data request?

Another significant hurdle is data visualization and reporting. Asset managers often find themselves stuck with standardized reports that fail to capture the portfolio's nuances or spending excessive time creating custom reports. This time-consuming process detracts from high-value initiatives aimed at enhancing assets, which are essential to satisfying investors.

The right tools for the job

Consider the practicality of continuing to rely on generic programs like SharePoint to manage an ever-growing portfolio. As the portfolio doubles or quadruples in size, how sustainable is this approach? How would it cope with the addition of new assets in the coming months?

Success in this field requires the ability to quickly access data, interpret key metrics, and leverage insights to drive decisions. Relying on generic tools and databases that were not designed for these specific tasks is not a viable long-term strategy.

For directors managing large and complex portfolios, the constant challenge is determining what to prioritize and which issues to address first. One common theme among industry professionals is that simply keeping operations running consumes a significant amount of time each week.

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As one asset manager noted, “The challenge we have is that sites were set up in the cheapest way and not in the most robust way.” This highlights the difficulties in managing assets that lack long-term resilience.

Another frequent issue is the ability to quickly gather qualitative information about incidents for discussions with contractors. Sifting through Excel spreadsheets to find the necessary data in time for a meeting can be nearly impossible. Being better prepared for these discussions could lead to meaningful changes in contractor behavior. Additionally, investors would benefit from a clear demonstration of how incidents and asset deficiencies are managed.

The solution for success

One potential solution is to develop proprietary software tailored to your specific needs, delivering critical information on time and within budget. However, software development is expensive and requires a long-term commitment.

Kraken offers an alternative. By integrating deep industry knowledge with technical expertise, Kraken provides a highly functional tool for clean technology asset management. This tool is designed to manage both offshore and infrastructure environments, tailored to each client’s needs, and seamlessly integrated. The platform is built to handle information overload, consolidating all data into one intuitive and flexible system. It addresses critical factors such as speed, risk management, and cost-effectiveness—key elements for success in the clean energy sector.

With ongoing pressure to scale operations, the need for efficiency, and the inherent complexities of asset management, choosing a proprietary platform from an expert provider like Kraken is an option worth serious consideration.