What digitisation means to the energy sector

• The energy sector needs digitisation to optimise networks and improve efficiency, but modernising energy grids presents some complex challenges.

• Digitisation represents an important key step towards increased monitoring, automation and intelligence. Energy providers with a clear, actionable digitalisation strategy can focus on decarbonisation, system resilience and more informed decision-making.

When it comes to modernising the energy sector, the need for a digital transformation is clear. Not only does it appeal to both private and public organisations by optimising networks and enhancing efficiency, but it can also futureproof entire grids at scale.

However, modernising energy grids is beyond complex, leaving most organisations asking: where do we even begin?

Matt Webb, CIO of UK Power Networks, suggests “a multi-pronged approach is required” to set up a successful roadmap that considers the all-encompassing nature of digital transformation – from foundational technical infrastructure changes to existing solutions swaps. Intuitively, this also means there is a need for business plans that embrace constant innovation.

Innovation as a means to an end

The biggest benefit of digitisation is its role as an enabler. Digitisation can optimise how energy grids produce and dispense electricity, streamline utilisation across regions, and assist in decarbonising operations at scale.

In fact, with the government's accelerated decarbonisation targets, energy providers can position themselves as decarbonisation facilitators, simplifying how distributed energy resources and low-carbon technologies connect and operate – removing any barriers to connection.

Crucially, it’s a key step towards increased monitoring, automation and intelligence. It enables improved insight for future investment, anticipating future demand and optimising usage to provide new service offerings for an increasingly diverse customer base.

However, digitisation is not without its challenges. In fact, energy systems sharing operating systems and solutions can all ‘go dark’ at once due to unforeseen – and unrelated – technical faults.

Finding opportunities within obstacles

Not much operates today without electricity, a statement that is doubly true in an increasingly digital world. For this reason, new regulations like the System Restoration Standard, are driving a renewed focus on resilience. That is why augmenting visibility and interoperability between critical energy infrastructure will pay dividends in preparedness and efficiency – especially in emergency situations.

Suppose you’re supplying electricity to a critical water pumping station, for example. When power is limited, knowing which specific critical utilities provider must remain operational is possible through systems that provide enhanced visibility and allow for a prioritised intervention.

What’s more, digital twins and data sharing can further improve situational awareness and enable more proactive and prioritised responses during outages.

Possibilities of a broader Digital Twin

The possibilities tied to a digital twin of an entire energy grid (or an entire country) are inspiring. Yet, the difficulty lies in agreeing on common applications and building infrastructure to a standard across the energy sector. In a brand new, greenfield project, this would be hard enough. But in today’s reality, pre-existing infrastructure and legacy solutions are an added layer of difficulty.

However, no matter the size of the challenge, interoperability is a great opportunity. Matt Webb encourages us to think of systems trying to “communicate” with each other. That’s when the concept of a national digital twin, a digital replica of a built asset, has the most value: “where you start to understand the true real-time (or near real-time interactions) and interdependencies between different parts of the energy system.”

Far beyond enabling energy suppliers to monitor their systems, digital twins open possibilities for improved insights that can inform future investment.

A roadmap for the energy sector of tomorrow

Energy companies must consider investment in digital infrastructure and capabilities to meet decarbonisation targets and enhance system resilience. Their focus, however, should be on planning for standardisation and interoperability to create a truly integrated energy system. To that end, the development of clear, actionable digitalisation strategies should:

• Promote standardisation and interoperability

• Foster a culture of innovation and collaboration

• Focus on key priorities like decarbonisation and system resilience

• Invest in data infrastructure and analytics to support informed decision-making