Digital transformation of the energy sector

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The UK is on a journey of change. Novel digital technologies, such as digital twins and artificial intelligence (AI), are starting to become embedded into organizational ways of working, driving unprecedented levels of transformation. These technologies are riding the wave of the fourth industrial revolution, and the prevalence of data that is now being collated and warehoused at scales never seen before. Multiple industry verticals are now looking at how to harness this data to solve challenges, improve efficiency, and monitor performance.

The energy sector is at the centre of this. There is collective belief that achieving net-zero emissions by 2050 is only possible through digitalizing and connecting the UK’s energy system via smart data-driven systems. To reduce carbon emissions and move towards greater electrification of the UK's energy system, increased collaboration among energy stakeholders is essential. Digitalization plays a crucial role in achieving net zero cost-effectively amidst volatility, uncertainty, and complexity.

Delivering a smart, flexible energy system can improve the UK’s energy security and deliver Net Zero by 2050 at least cost to the consumer. The UK Government outlined in its inaugural Energy Digitalisation Strategy in 2021 that a digitized energy system is essential to manage the multitude of new low-carbon technology-related energy flows that will be joining the grid in the coming years.

Enabling effective Demand Side Response is just one example of how the digitalization of the UK power grid to incorporate advanced technologies and digital solutions can enhance efficiency, reliability, and resilience. Yet the underlying digital infrastructure is the key to unlocking this scalability. The implementation of smart grid features will enable better management of energy flows and increasing the velocity of the smart meter deployment programme will continue to enable real-time monitoring of energy consumption at the consumer level.

The continuing integration of Internet of Things (IoT) sensors and devices across the power grid for real-time monitoring of equipment health, grid conditions, and environmental factors. IoT devices can provide valuable data to improve grid management and predictive maintenance. This will drive further grid automation, with the implementation of automation technologies enabling the enhancement of grid control and management, improving the efficiency of fault detection, isolation, and restoration (FLISR) processes, reducing downtime during outages.

Integrating Distributed Energy Resources (DERs) such as renewable energy sources, energy storage systems, heat pumps, offshore interconnectors and other distributed energy resources into the grid will require the use of advanced control systems to manage and optimize the integration of DERs while maintaining grid stability.

A significant number of digital use cases – many now being realised in the form of actual projects – are emerging across the UK energy sector.

The Electricity System Operator (ESO) – soon to be the National Energy System Operator (NESO) - is at the forefront of creating the Virtual Energy System, a network of interconnected digital twins in Great Britain. The initiative is designed to facilitate data sharing that propels innovation and results in superior whole-system decision-making. An integral part of this Virtual Energy System is the CrowdFlex use case, which investigates consumer behaviours to gauge how household-level flexibility can aid in the integration of energy usage, generation, and network operations. Presently, the project aims to grasp consumer demand and household flexibility to showcase the advantages of the Virtual Energy System, and it intends to develop integrated models of both consumer demand and flexibility.

Within the onshore gas sector, National Gas and DNV have been working as part of a project consortium that's exploring the potential for hydrogen use by constructing the innovative FutureGrid hydrogen testing facility at DNV’s site in Cumbria, UK. The FutureGrid site has been outfitted with numerous sensors that constantly gather and transmit operational data in real-time to its digital counterpart using cloud technology. Utilizing simulations and machine learning, the digital twin aids in decision-making processes.

Digital twin solutions such as this will enable operators to preview the outcomes of actions before they are executed in the actual system. It enhances their capability for making well-informed asset management choices, foreseeing future developments, and conducting pre-emptive risk assessments. After demonstrating the efficacy of the FutureGrid digital twin, its integration with additional digital twins from the energy sector could facilitate a unified management approach through the Virtual Energy System.

Understanding the potential economic impact in terms of market uptake, consumer demand, and future infrastructure investment in energy-related initiatives, such as power generation and distribution, requires establishing trust in data and specifically data that is derived from source. Over time we expect to see greater focus on validating and assuring the provenance and veracity of derived data in the energy system–particularly where human operatives are replaced or augmented by AI baked into digital twins.

Data must be sufficient, standardized, and compatible throughout the energy industry; Ofgem led Europe by outlining its regulatory stance and plans to adopt the Common Information Model (CIM) IEC standards for network data within its licensing conditions and wider industry data sharing. The expectation is that the IEC CIM standard will become mandatory for all related transactions, promoting consistency and integration, thereby laying the groundwork for broader use in the energy system. Efforts are also being made to determine how Britain’s gas networks will incorporate CIM.

The gas industry must focus on improving the quality and detail of operational asset data. As the networks advance towards a smarter infrastructure and incorporate low-carbon gases, there's a need for thorough records, like adapting pipelines for new energy carriers like hydrogen. This requires detailed knowledge of existing and operational components to make informed engineering decisions. However, filling in the missing information is often a manual process that necessitates human intervention.

Interested in digitalization of the energy industry and want to read more?
DNV’s new report – Connected Digital Twin Insights: Rising to the challenge across the UK energy sector – highlights the collective belief that achieving net-zero emissions by 2050 is only possible through digitalizing and connecting the UK’s energy system via smart data-driven systems.