The energy transition is entering a critical phase, driven by the need to integrate growing volumes of renewable energy, strengthen grid resilience and meet rising electricity demand fueled by electrification and the rapid expansion of artificial intelligence. In this evolving landscape, technologies such as AI, advanced data analytics and the Internet of Things are becoming essential enablers for improving energy efficiency, increasing system flexibility and supporting the transition towards a more sustainable and resilient energy ecosystem.
We spoke with Joseph Alenchery, SVP and Business Head – Energy Next at Infosys, about Spain’s readiness to achieve its 2030 energy ambitions; the role of artificial intelligence and digital technologies in improving energy efficiency across industries, cities and data centres; how traditional energy companies can accelerate the energy transition through innovation and digitalisation; and the leadership, governance and organisational commitment required to make sustainability and energy efficiency core business priorities.
Interview with Joseph Alenchery, SVP and Business Head – Energy Next, Infosys
As energy systems become more complex, AI and digital technologies are helping improve efficiency, integrate renewables, and support the energy transition at scale.
Is Spain prepared to meet the challenges of the 2030 Horizon?
Spain is in a strong position when it comes to renewable energy, and in many ways further along than people realise. Over 55% of electricity comes from renewables, mainly wind and solar, with strong year-on-year growth. The goal of reaching around 80% renewable electricity by 2030 is ambitious, but there is strong momentum behind it. Grid infrastructure and energy storage are getting significant investment for handling intermittency at scale. Further, there is a need to focus on Distributed Energy Assets (DER). These are small to medium scale energy generation, storage, and demand resources located close to where energy is consumed, enhancing grid flexibility, resilience, and decarbonisation. In this context, at Infosys, we’ve developed an AI-powered DER aggregation and orchestration platform – Cloud Energy Management Platform (CEMP) – which uses forecasting to optimise renewable utilisation and costs. It coordinates solar PV, battery storage, and flexible loads, while enabling distributed control, advanced analytics, real-time alerts, and Virtual Power Plant capabilities. This drives smarter dispatch, higher self-consumption, and participation in flexibility markets.
Spain has the ambition, investment, and momentum; the key is how quickly it can embed AI to make the system intelligent, responsive, and scalable.
What role does technology play in achieving more energy efficient institutions/cities/industries/data centers? What do you consider the most relevant trends in this area?
In Spain and across the EU, AI is becoming the backbone of energy transition as energy systems grow more complex.
As more renewables come online, it has become crucial to balance supply and demand, managing distributed assets and making the entire system more efficient. This is where technologies such as AI, data analytics, and the Internet of Things (IoT) are starting to make a significant difference.
In data centres, for example, the rapid growth of AI is driving higher energy demand. This is driving interest in new technologies such as immersion cooling combined with AI-based optimisation to improve efficiency and reduce emissions. At Infosys, in collaboration with ExxonMobil, we are exploring how these technologies can help address both performance and sustainability objectives.
In buildings, which account for about a third of global energy consumption, the shift is towards smart, connected infrastructure using AI and IoT to continuously optimise energy usage. Infosys and bp have developed an AI-based energy-as-a-service (EaaS) platform that helps organisations manage their energy use – right from supply and generation to demand management. It helps identify opportunities for energy savings, renewable energy integration, and smarter building operations.
We are seeing similar developments in industrial sectors such as refining, where AI is helping improve energy efficiency, operational performance, and product quality.
More broadly, one of the most interesting trends is the emergence of smart energy ecosystems. Instead of optimising individual assets in isolation, organisations are beginning to orchestrate generation, storage, and consumption as part of a single system.
Do you consider reducing energy consumption to be a strategic priority for companies in the sector? Should they implement a plan with defined goals and timelines to improve energy efficiency? What role should technology play in this plan?
Absolutely! The reality is that the world needs more energy than ever before, and the most sustainable way to meet that demand is through significant improvements in energy efficiency. We need to grow smarter in how we produce, manage, and consume energy.
At Infosys, we began this journey as early as in 2010. We have embedded sustainability into our operations and made it an important part of our operations. In 2020, we were among the first technology services companies globally to become carbon-neutral, well ahead of the Paris Agreement timeline. Along the way, we also significantly reduced our per-capita energy consumption.
One lesson we have learned is that the journey to carbon neutrality starts at the top. In my experience, it works best when there is strong leadership commitment. Technology plays an important role, but the real change is cultural.
At our campuses, we often host organisations looking for practical examples of what has worked and what has not. We share our experience and we’re now seeing many of those practices being adopted across Europe and the Middle East.
Are we currently at a key moment for the energy transition? What role do traditional energy companies play in this transition?
I believe the next few years are going to be particularly important, driven by the need to balance energy security, affordability, and sustainability – especially given geopolitical shifts and the surge in AI-driven energy demand.
Traditional energy companies have a key role to play here. They have decades of experience delivering complex projects at scale, backed by significant capital and engineering expertise. That capability will be critical as investment grows in areas like carbon capture, utilisation, and storage (CCUS) and large-scale renewable energy programmes.
Meanwhile, many are using digital technologies to improve the performance of existing operations. Recently, Infosys, in collaboration with Microsoft, has developed an AI-powered drilling co-pilot that analyses real-time drilling data and provides predictive insights to engineers. It helps improve efficiency, reduce unproductive time, enhance safety, and lower the carbon footprint of existing production processes.
The energy transition is about building new systems. But it is also about making the existing systems more efficient and more intelligent.
Which roles do you believe should be involved in these topics (CIO, COO, CEO, etc.)?
The journey to a cleaner future has to start at the top, with the CEO and the Board leading the initiative.
At Infosys, sustainability as well as the environmental, social, and governance (ESG) agenda are woven into long-term strategy, with the Board playing an active role in guiding it. A dedicated ESG Committee helps steer initiatives across the business and reinforces sustainability as a core priority.
Execution is also equally important. An ESG Council, made up of senior leaders from across the company, is responsible for putting the priorities set by the ESG Committee into action. The Council meets regularly and reports progress back to the Committee. ESG goals are also part of our corporate scorecard. These goals are reflected across leadership teams, ensuring sustainability remains an important part of how the business is run.
From there, it becomes a shared effort. The CIO helps build the digital foundation, using data, AI, and digital platforms to improve efficiency and transparency. The COO drives operational execution, making sure energy efficiency and sustainability are part of the day-to-day processes.
Business and functional leaders help bring these priorities into daily decision making. Ultimately, progress is shaped by the decisions made across infrastructure, supply chains, delivery, and client engagements every day.
In other words, leadership sets the direction, but progress happens when the entire organisation is aligned in working towards the same goals.
