Key findings of the report
This report highlights the urgency and pace needed government's approach to digitalising the energy system. Digitalisation is mission critical to deliver the government's goals of Clean Power 2030 and managing rapid electrification beyond 2030. Without urgent, sustained and substantial effort now we risk locking ourselves into a system which costs more to build, is less reliable, and results in higher bills than necessary.
The report calls on government to provide urgent and strategic central oversight through a standalone body. The report also highlights how digitalisation could bring potential benefits through increased use of digital twins.
What is digitalisation?
Using a definition from the National Energy System Operator, it is the addition of more digital technologies into a system with the goal of increasing efficiency, decision-making and opportunities. Digitalisation is a holistic system-wide process.
Digitalisation within the electricity system encompasses things such as decentralised renewable power generation, digital markets for selling domestic energy, digital monitoring of the grid to modulate for fluctuations in energy supply and demand, more smart meters able to relay information about real-time energy usage and many other upgrades.
The planned energy system of 2030 and beyond will need to be digitally enabled, exchanging data through digital means about real-time usage and power generation across the network. Prioritising digitalisation is therefore essential for our energy system to function as a whole.
Is our energy transition at risk?
Our current energy system digitalisation effort lacks the urgency, coordination and strategic oversight to meet our energy goals.
- Rapid growth in renewable generation, EVs, rooftop solar and batteries.
- Clear recognition of the need for transmission network upgrades and build
- Where they are taken up, evidence that time-of-use tariffs are already saving consumers money
- Digitalisation is progressing slowly, without clear senior accountability within government and coordination
- Smart meter rollout needs to reach high penetration, and upgrades are needed on old ones
- Interoperability between devices, systems and markets is poor and digitalisation is needed to address this.
- Governance and accountability for digital architecture is unclear after the next calendar year.
- We might fail to deliver the consumer-led flexibility needed to deliver Clean Power 2030.
- Consumers will be unable to access cost savings.
- We might lock into higher system costs and a fragmented system that becomes increasingly complex and hard to operate.
- Continued exposure to volatile gas prices and global price shocks.
What are our recommendations?
What happens next?
To save money, future integration issues and time, digitalisation and flexibility must scale rapidly alongside generation and networks.
The UK has made good progress in renewable energy production and is underway with necessary network updates. This report makes the case for faster, better to ensure the system of the future is fully integrated in a way that maintains resilience and keeps costs down.
Contact us
For further information about this project or if you have questions, please contact the Climate and Sustainability team: [email protected].
Acknowledgements
The report has been developed by National Engineering Policy Centre (NEPC), led by the Royal Academy of Engineering in collaboration with the Institution of Engineering and Technology, the Institution of Mechanical Engineers, the Institution of Gas Engineers and Managers, the Energy Institute, and the Institution of Chemical Engineers. This policy project was funded by a grant from The Gatsby Charitable Foundation. We would like to express our gratitude to the Foundation for supporting this work.
This report has also been informed by two workshops, one of which was a formal partnership with the National Energy System Operator (NESO).
We would also like to thank members of the Working Group, Reviewers and staff for their contributions to this publication. Additional information about the National Engineering Policy Centre Working Group can be found at the end of the report.
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