In hydropower, few ideas enjoy such broad consensus – and yet such slow progress – as digitalisation. Across industry reports, conference panels and policy discussions, the message is consistent: digital optimisation is a “no-brainer.” The tools exist, the data is available, and the potential gains in efficiency, flexibility and revenue are well understood. And yet, on the ground, adoption remains cautious.
For Uwe Wehnhardt, former President and CEO of Voith Hydro, Vice President of the International Hydropower Association and now Senior Advisor to HYDROGRID, this disconnect is neither surprising nor irrational. Speaking from decades of experience across utilities of all sizes, he sees the issue not as a failure of technology, but as a reflection of the realities of operating critical infrastructure. “Hydropower is part of the critical infrastructure,” he says. “And with this, it means you have to be very careful with all kinds of digitalisation.” This caution is not simply conservatism – it is structural. Utilities operate assets that are expected to run reliably for decades, often with minimal intervention. In such an environment, change is not automatically perceived as progress; it is, first and foremost, a risk to be managed.
Why progress still lags
The often-cited gap between digital potential and practical adoption stems from several overlapping factors, beginning with cybersecurity. Any digital initiative in hydropower must meet stringent requirements around data protection and system integrity, concerns that are central, not peripheral, to operational decision-making. “Cybersecurity needs to be in all people’s minds dealing with this kind of infrastructure,” Wehnhardt explains. At the same time, there is a more subtle but equally powerful challenge: the difficulty of clearly articulating value. Many operators simply do not see an immediate need to change systems that are already working reliably. “We are talking about a setup which runs for weeks, months without any change,” he says. “So why should I digitalise something?” In a sector built on stability, the incremental and data-driven benefits of digitalisation can be difficult to translate into compelling business cases.
Compounding this is the role of the wider ecosystem. Not all utilities have access to partners capable of bridging the gap between technology and operations, and without that support, digitalisation can remain an abstract concept rather than a practical pathway. As Wehnhardt notes, “very often the right partner was simply not in place to help utilities understand the benefits or guide them through the first small steps.” In practice, progress is often less about the availability of technology and more about the ability to connect that technology to real operational outcomes. Companies such as HYDROGRID are part of a newer wave of specialist providers aiming to close this gap – combining hydropower domain knowledge with digital optimisation tools to help utilities identify and realise value more quickly.
Beyond automation: unlocking data
A further source of confusion lies in the long-standing conflation of automation with digitalisation. Hydropower plants are already highly automated, and for many operators this raises the question of what exactly is new. Wehnhardt is clear on the distinction: “Automation and digitalisation is not the same.” While automation has been generating vast amounts of operational data for decades, much of that data has historically gone unused. “What we did not have in the past was an opportunity to deal with the mass of data this automation is generating,” he explains. Digitalisation changes this by enabling utilities to analyse, interpret and act on those data streams – whether through optimisation tools, predictive analytics or digital twins. The transformation is therefore less about replacing infrastructure and more about unlocking insight, which can make it harder to recognise but no less significant.
When adoption stalls, it is tempting to attribute delays to technology alone, but in Wehnhardt’s view, the reality is more nuanced. “For me it’s not an either-or, it’s a mix,” he says. Cost considerations, particularly for smaller utilities, do play a role. Even relatively modest upgrades must compete with other priorities, and for assets that have performed reliably for decades, the case for change is not always immediate. Yet even where solutions require minimal physical intervention, they still represent change, and change inevitably triggers human resistance. “Every human has some resistance to interventions,” he notes.
This is where communication and leadership become critical. Successful digitalisation depends not only on selecting the right technology, but on ensuring that people understand its purpose and value. “You have to make people understand why we are doing a change here,” Wehnhardt says. Without that clarity, even well-designed initiatives can struggle to gain traction.
Inside the organisation
Inside organisations, the dynamics are complex and highly variable. Hydropower utilities range from large, well-resourced organisations with dedicated engineering and IT teams to small, remote operators who may see little reason to change. “I had to deal with utilities who were very small, very remote, who were absolutely satisfied with their situation,” Wehnhardt recalls. This diversity means that barriers to adoption are rarely uniform, but a common theme is the challenge of balancing digital initiatives against competing operational priorities.
At the same time, the sector is undergoing a generational transition. As experienced professionals retire (the “silver tsunami”), utilities risk losing valuable institutional knowledge. “These people are retiring and they take all the knowledge with them,” he says. Yet this shift also presents an opportunity. Younger professionals entering the workforce are generally more open to digital tools, and emerging technologies offer new ways to capture and preserve expertise for future use.
Against this backdrop, the question becomes how to accelerate adoption without triggering internal resistance. Wehnhardt’s answer is deliberately pragmatic: start small and build from there. “In my experience, what worked the best is to run a pilot with a trusted partner,” he says. Rather than attempting large-scale transformation, utilities should focus on targeted projects that demonstrate clear and measurable value. This approach reduces risk, builds confidence and provides tangible results that can be shared across the organisation.
The effectiveness of this strategy is rooted in a simple observation about human behaviour. According to Wehnhardt, any change initiative typically encounters three groups:
• A third who are curious and eager to engage
• A third who are resistant and sceptical
• A third who are undecided, waiting to see which direction prevails
“The middle group is waiting and seeing which group is becoming the dominant group,” Wehnhardt explains. Pilot projects help to shift this balance by providing evidence of success. “If you show these benefits, this middle group will jump to the right side,” he says. From there, adoption can expand organically, supported by growing internal confidence.
From pilots to progress
Equally important is how these initiatives are structured. One of the most common pitfalls is a purely top-down approach, where management is convinced but operational teams are not fully engaged. “We had the management convinced… but we got blocked on the operator side level,” Wehnhardt recalls. Operators are central to implementation, and without their buy-in, projects can quickly lose momentum. The solution lies in building cross-functional teams that include operations, IT and management from the outset, ensuring that all perspectives are represented and aligned.
As digitalisation progresses, questions around skills and capabilities inevitably arise. For Wehnhardt, the idea that utilities can develop all required expertise internally is unrealistic. “It’s not practical that you think you can have all skills in your company,” he says. Partnerships with technology providers are therefore essential, particularly in areas such as artificial intelligence, data analytics and cybersecurity. At the same time, utilities must build a baseline level of internal knowledge to engage effectively with these partners and make informed decisions. “You have to at least understand it, and find the right partner,” he notes.
In this context, Wehnhardt points to the value of working with partners that combine digital expertise with a deep understanding of hydropower operations. Referencing his current role, he notes that companies like HYDROGRID are designed to do exactly that – helping utilities assess their potential, run targeted pilots and deliver measurable improvements without requiring major upfront changes. As he puts it, engaging with such expertise is, in many cases, “a no brainer.”
Central to this effort is the question of data. Hydropower operators already possess vast quantities of information, but the challenge lies in turning that data into actionable insight. “All utilities own massive amounts of data,” Wehnhardt observes. Identifying where that data can deliver value – whether through optimisation, forecasting or improved maintenance – is a critical step in shaping a digital strategy. “If they find the answer, then you can push the traditional hydro expertise in a new direction,” he says.
Encouragingly, the timeline for seeing results may be shorter than many expect. While large infrastructure projects often take years to deliver returns, digital optimisation can produce measurable improvements much more quickly. “It can be in weeks or months,” Wehnhardt says. These early wins play an important role in building internal momentum, reinforcing the case for further investment and expansion.
Taking the next steps
Looking ahead, the broader energy landscape is adding urgency to the digitalisation agenda. The rapid growth of wind and solar is transforming grid dynamics, placing new demands on hydropower assets. “From one day to the next, there’s a lot of new demands coming up,” Wehnhardt explains. Plants are increasingly required to operate outside their original design parameters, responding to variable generation and evolving market conditions. These changes are creating new operational challenges, but also new opportunities for digital tools to enhance flexibility and performance.
In this context, success over the next five years will be defined not just by the adoption of specific technologies, but by the establishment of a new way of working. Utilities that succeed will have identified their key pain points and addressed them through a combination of internal capability and external expertise. More importantly, they will have embedded continuous improvement into their daily operations. “A continuous improvement cycle is part of the daily business,” Wehnhardt says.
For leaders looking to take the first step, the advice is refreshingly straightforward. Begin with understanding. An initial assessment – conducted internally or with external support, including providers such as HYDROGRID – can help identify opportunities, clarify benefits and define a realistic roadmap. “An assessment could be a good start,” he suggests. Importantly, this does not require significant investment, but it does provide a foundation for informed decision-making.
There is, however, one issue that continues to shape the pace of adoption: cybersecurity. While widely recognised, it is often treated as a barrier rather than a challenge to be addressed. Wehnhardt argues that this mindset must change. “We should proactively deal with this issue… not stop any development,” he says.
Ultimately, the story of digital hydropower is not one of technological limitation, but of organisational transformation. The tools are available, the data is abundant, and the benefits are clear. What remains is the human dimension: how organisations make decisions, how they engage their people, and how they manage change.
Digitalisation may be widely described as a “no-brainer,” but turning that consensus into reality requires more than agreement. It requires leadership, communication and a willingness to move from hesitation to action.
