Energy and utilities
How power, oil and gas and mining companies use Microsoft technology: smart meter and operations data on Azure, Copilot for office and field staff, edge platforms and OSDU subsurface data, within NERC CIP and NIS2 limits.
The problem
Distribution network operators must keep power flowing while connecting more low-carbon generation and demand. UK Power Networks, which delivers electricity to about 8.5 million homes and businesses across London, the South East and the East of England, aims for an affordable Net Zero transition while keeping customer service and staff safety high.
Operational data arrives at scale from smart meters, sensors and field crews, and it is only useful if it can be analyzed early enough to spot network issues before customers report them. In oil and gas, subsurface data is often locked in silos and specialist formats.
The systems that control the grid are among the most regulated IT anywhere: in North America, NERC CIP standards govern the cyber systems of the bulk electric system, and in the EU energy entities fall under NIS2.1234
The approach
Microsoft for Energy and Resources covers power and utilities, oil and gas and mining, around energy innovation, workforce safety and productivity, secure operations and net-zero goals. Products named include Azure, Azure IoT Operations, Azure Arc, Microsoft Foundry, Microsoft Fabric, Microsoft 365 Copilot, Copilot Studio, Azure Data Manager for Energy and Dynamics 365 Sustainability. Azure Data Manager for Energy is a fully managed OSDU data platform built with SLB for the energy industry.
UK Power Networks shows a staged approach. It moved aggregated smart meter data to Azure in 2023 to spot network issues earlier, then grew a Microsoft 365 Copilot pilot from 300 licenses in January 2024 to 1,000 by December 2024, using nearly 40 interviews to find close to 50 use cases and 12 Copilot Champions to guide staff. Teams built agents that make older SharePoint documents easier to find, and generative AI hosted in Azure OpenAI manages incoming email so specialists can respond faster to safety alerts. The company reports 96 percent adoption and a 480 percent return on investment; no method is published for either figure.
Control systems are a different matter. Microsoft's NERC guidance says neither Azure nor Azure Government is a bulk electric system or BES Cyber Asset, while information about those systems (BCSI) can be hosted in the cloud if proper controls protect it. For most utilities, office productivity, analytics and customer service are where cloud AI fits first.1235
Conceptual architecture
Diagram as a list
Copilot & business apps
- Office and field staff in Microsoft 365 CopilotDrafting, search and meeting support
Agents & automation
- Email triage and document agents (Azure OpenAI in Foundry Models, Copilot Studio)Prioritize inbound messages and surface older documentsConnects to Office and field staff in Microsoft 365 Copilot
Data & analytics
- Smart meter, SCADA historian and field dataRaw operational signals from the networkConnects to Operations analytics in Microsoft Fabric
- Operations analytics in Microsoft FabricJoins network, asset and customer data for analysisConnects to Email triage and document agents (Azure OpenAI in Foundry Models, Copilot Studio)
- Subsurface data on Azure Data Manager for Energy (oil and gas)Managed OSDU platform for exploration and production dataConnects to Operations analytics in Microsoft Fabric
Security, identity & governance
- Grid control systems kept inside NERC CIP boundariesReal-time control stays on premises; BCSI may be hosted with controlsConnects to Site edge platforms (Azure IoT Operations, Azure Arc)
Cloud & hybrid infrastructure
- Site edge platforms (Azure IoT Operations, Azure Arc)Collects and manages data and workloads at substations and sitesConnects to Operations analytics in Microsoft Fabric
Technologies and their roles
Microsoft 365 Copilot1
Assistant for office and field staff
UK Power Networks scaled its pilot from 300 to 1,000 licenses using interviews and a champions network (the app is now named Microsoft Copilot).
Microsoft Foundry Models1
Email triage models
UK Power Networks uses generative AI hosted in Azure OpenAI, now Azure OpenAI in Microsoft Foundry Models, to manage incoming email.
Microsoft Fabric5
Operations data platform
Named on Microsoft's energy and resources page.
Azure IoT Operations5
Site edge data
Named on Microsoft's energy and resources page for operations at the edge.
Azure Arc5
Hybrid management of sites
Named on Microsoft's energy and resources page.
What you need first3
- A boundary decision listing which systems are BES Cyber Systems and stay outside the cloud
- Encryption and key management for any BCSI stored in Azure, documented for audits
- Use case discovery through interviews with operational teams before buying licenses
- A champions network with small training groups
- Data sharing terms for smart meter data, agreed with the regulator where required
Risks and how to reduce them
- NERC CIP compliance for grid systems3
- Microsoft states that registered entities remain responsible for NERC CIP compliance; keep BES Cyber Assets on premises and follow the cloud implementation guidance for BCSI.
- NIS2 duties for EU energy entities4
- Energy is a NIS2 sector; include cloud services in risk management and significant-incident reporting.
- Quoting ROI without a method1
- UK Power Networks' 480 percent return on investment has no published cost basis or period; build your own business case.
- Mis-triaged safety messages1
- Keep human review of AI-prioritized email where messages may include safety alerts, and monitor misclassification.
Documented examples
UK Power Networks
In productionUK Power Networks: Copilot from pilot to company-wide use
96% (measured)
Energy and utilities, United Kingdom (London, South East and East of England)
Related
Sources
- How UK Power Networks is turbocharging operations using Microsoft 365 Copilot (opens in a new tab)
- What is Microsoft Azure Data Manager for Energy? (opens in a new tab)
- NERC CIP standards and cloud computing - Azure Government (opens in a new tab)
- NIS2 Directive: securing network and information systems (opens in a new tab)
- Microsoft for Energy and Resources | Microsoft AI (opens in a new tab)
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