This article was published by Powerline Magazine in its April 2026 Issue in print. Please click here to read the article.

      Digitalisation and artificial intelligence (AI) are rapidly reshaping the global power sector. For thermal power plants (TPPs) in particular, digital technologies are emerging as a critical lever for improving operational efficiency, enhancing reliability and enabling flexible operations in a grid increasingly dominated by renewable energy.

      Power plant 4.0

      The concept of Power Plant 4.0 builds on the principles of Industry 4.0 and involves the integration of digital technologies, advanced analytics and automation across plant operations. These technologies enable real-time monitoring, predictive decision-making and enhanced operational optimisation, thereby improving plant performance and reducing operational risks.

      A wide range of digital interventions are currently being deployed in TPPs. Drones, for instance, are increasingly used for stockyard monitoring, hotspot detection and inspection activities. They enable plant operators to identify potential risks and equipment faults much earlier than traditional inspection methods. Drones are also being used to detect boiler tube leakages, which typically become visible only after the boiler is cooled down. Early detection allows utilities to plan maintenance activities more effectively and reduce downtime.

      Predictive analytics and machine learning (ML) are also playing a growing role in plant operations. Advanced algorithms can analyse data from distributed control systems (DCSs), vibration sensors and other monitoring equipment to predict equipment failures before they occur. This allows utilities to shift from reactive maintenance to predictive maintenance, thereby reducing forced outages and improving plant availability. Another emerging application is the use of automated predictive spare parts management systems. These tools analyse equipment performance data and operating conditions to estimate the likely consumption of spare parts. As a result, utilities can optimise inventory levels, avoid unnecessary stockpiling and ensure the timely procurement of critical components.

      Digital technologies are also improving plant training and safety management. Augmented reality (AR) and virtual reality (VR) solutions are increasingly being used for workforce training and safety simulations. These tools allow plant personnel to familiarise themselves with equipment and operational scenarios in a virtual environment, thereby enhancing preparedness and reducing the risk of operational errors.

      At the operational level, advanced combustion optimisation technologies are helping plants achieve better environmental and efficiency outcomes. These solutions monitor parameters such as SOx , NOx and particulate emissions in real time and optimise combustion conditions accordingly.

      Digital twin technology is emerging as a particularly powerful tool in enabling operational flexibility. A digital twin is a virtual replica of a physical power plant that can simulate plant behaviour under different operating conditions. Using such simulations, plant operators can evaluate the impact of operating at different load levels and determine the optimal operating configuration. For instance, if a plant is scheduled to operate at 67 per cent load, the digital twin can simulate plant performance at that load level and estimate parameters such as heat rate and fuel consumption. This enables utilities to assess whether operating at that load level is economically viable before making operational decisions.

      Similarly, digital twins can simulate plant operations at very low load levels, which is increasingly required in systems with high renewable penetration. Such simulations help identify the optimal mill combinations, burner configurations and operational parameters required to maintain stable operation at lower loads.

      These technologies are also enabling real-time decision support for plant operators. Data from multiple plant systems can be analysed simultaneously to identify potential issues and recommend corrective actions. Early warning systems based on vibration monitoring, thermography and other diagnostic tools can detect developing equipment failures and allow operators to intervene before a major breakdown occurs.

      Another emerging trend is the establishment of remote expert centres. Large utilities with multiple generating units are increasingly setting up centralised monitoring centres where experienced engineers can monitor plant performance across multiple locations in real time. These experts can provide guidance to plant operators, assist in troubleshooting and support faster decision-making.

      Digital interventions across the value chain

      The benefits of digitalisation extend beyond core plant operations. AI and advanced analytics are now being applied across the entire thermal power value chain, including logistics, fuel management, maintenance, despatch planning and support functions.

      In coal logistics and fuel management, digital tools are being used to optimise coal blending, monitor coal quality and reduce coal losses. Real-time gross calorific value tracking systems allow operators to monitor coal quality continuously and adjust combustion parameters accordingly.

      Maintenance activities are also becoming increasingly data-driven. Advanced pattern recognition and ML algorithms can detect subtle changes in equipment performance and predict potential failures. Technologies such as motor current signature analysis, blade vibration monitoring and turbine crack detection are helping utilities identify equipment issues at an early stage.

      Fatigue monitoring systems are particularly relevant in an era of increased plant cycling. As thermal units ramp up and down more frequently, equipment is subjected to higher levels of thermal and mechanical stress. Real-time fatigue monitoring systems analyse temperature and operational data to estimate component fatigue and predict maintenance requirements.

      Digital tools are also improving shutdown management and maintenance planning. By analysing plant operating data, utilities can identify opportunities to carry out maintenance activities during periods of low demand or partial load operation. This reduces the need for extended shutdowns and improves overall plant availability.

      In despatch planning, AI-based forecasting systems can predict demand patterns and optimise generation scheduling. Signature-based power scheduling systems analyse historical plant performance data to determine the most efficient operating configuration for different load levels.

      Digitalisation is also transforming support functions such as finance, procurement and human resources. Robotic process automation is being used to automate routine administrative tasks such as billing, workflow management and order processing. Digital procurement platforms and smart contract management systems are improving transparency and efficiency in procurement processes.

      Enablers for digital transformation

      While digital technologies offer significant benefits, their successful adoption requires more than simply deploying new tools. Several organisational and strategic enablers are critical for ensuring that digital transformation initiatives deliver tangible results.

      Leadership alignment and sponsorship are two of the most important enablers. Digital transformation programmes require sustained commitment from senior management, not only in terms of approving investments but also in guiding and monitoring implementation. Successful transformation initiatives typically involve regular engagement between leadership and implementation teams to review progress and address challenges.

      Another key requirement is the formation of cross-functional teams. Digital transformation cannot be treated as the responsibility of a single department ,such as control and instrumentation or IT. Instead, it requires collaboration across multiple functions, including operations, maintenance, finance and procurement. Each function brings valuable insights that can improve the effectiveness of digital solutions.

      A platform-based technology architecture is also essential. Many utilities have experimented with isolated pilot projects or proof-of-concept initiatives that ultimately failed to deliver lasting value. One of the main reasons for such failures is the lack of integration between different systems. Adopting a platform-based approach ensures that different digital solutions can communicate with each other and share data seamlessly. An industrial internet of things platform can serve as the backbone for integrating legacy systems with new digital technologies.

      Organisational culture is another critical factor. Digital transformation requires a culture that encourages innovation, experimentation and continuous learning. Utilities must invest in reskilling and upskilling their workforce to ensure that plant personnel can effectively use digital tools and interpret data-driven insights.

      Building strong ecosystem partnerships is equally important. Collaboration with technology providers, equipment manufacturers, research institutions and industry peers can help utilities access new capabilities and best practices. Such partnerships can accelerate innovation and reduce the risks associated with adopting new technologies.

      Outlook

      When implemented effectively, digital interventions can deliver significant operational and financial benefits for TPPs. Industry experience suggests that digitalisation can improve plant heat rates by around 2-3 per cent through better operational optimisation and combustion control. Predictive maintenance and advanced monitoring systems can reduce forced outages by as much as 15 per cent by identifying potential equipment failures at an early stage. Maintenance capital expenditure can also decline by around 10-15 per cent due to improved maintenance planning and optimised spare parts management. Similarly, overall operation and maintenance budgets can be reduced by approximately 10-15 per cent through automation and process optimisation. Perhaps most importantly, digitalisation can enhance overall plant profitability by around 5-10 per cent.

      Looking ahead, the concept of a “digital thread” is emerging as the ultimate objective of digital transformation. In such a system, all plant data is interconnected, creating a single, reliable source of information for operational and strategic decision-making. Digital twin implementations and advanced analytics platforms are expected to play a central role in enabling the transformation.


      Author

      Sandeep Chittora
      Sandeep Chittora

      Associate Partner, Industrial Automation, Intelligence and Digitalisation

      KPMG in India

      How can KPMG in India help

      Helping ensure impactful intelligent experiences through a combination of cloud, data, and AI to help you achieve your business objectives

      Transformation driven by data, enabled by digital technology, and led by business initiatives

      We understand the complexity of deploying disruptive technologies, their impact on businesses, and the resulting transformation



      Access our latest insights on Apple or Android devices