Electricity Digitalisation

Electricity digitalisation and smart energy systems in the UK were the subjects of a recent Westminster Forum webinar. This post will explore ideas relating to digitalisation, why it is necessary, and how it might be accomplished. Background is provided by a 2017 report for decision makers in government and industry from the International Energy Agency which “examines the impact of digital technologies on energy demand sectors, looks at how energy suppliers can use digital tools to improve operations, and explores the transformational potential of digitalisation to help create a highly interconnected energy system” (IEA, 2017). Digital technologies are seen as having the potential to make energy systems worldwide “more connected, intelligent, efficient, reliable and sustainable” and to identify “who needs energy and deliver it at the right time, in the right place and at the lowest cost”, but they also raise new security and privacy risks, and challenge existing business models. There is a tension between the dynamic nature of energy systems and the inflexible characteristics of the infrastructure and assets upon which they are built.

Some key headings in the IEA report are Smart demand response, System integration of renewables, Distributed energy resources and Cyber security. Shifting or reducing electricity demand can help to balance the grid, and is the subject of a later report where it is viewed as having great potential to provide flexibility and reduce infrastructure investment costs (IEA 2022). Digitalisation can help integrate variable and distributed energy sources by enabling grids to “better match energy demand to times when the sun is shining and the wind is blowing”. Digitalisation can however make energy systems more vulnerable to cyber-attacks, and three key security concepts are outlined; resilience, cyber hygiene and security by design. Privacy and data ownership are major concerns for consumers, but aggregated and anonymised individual energy use data can improve energy systems and help lower costs for individual consumers; suitable policy is needed to balance these issues. “Digitalisation can facilitate positive change, but only if policy makers undertake efforts to understand, channel and harness digitalisation’s impacts and to minimise its risks.” The report lists no-regrets policy actions for governments: building digital expertise; ensuring appropriate access to suitable data; building flexibility into policies to accommodate new developments; using pilot projects; participating in inter-agency discussions; focusing on overall system benefits; monitoring the impacts of digitalisation on overall energy demand; incorporating digital resilience into research, development and product manufacturing; facilitating competition between companies; and learning from others.

A 2021 news item reported that the European Commission had launched a roadmap for the digitalisation of the energy sector and provided a link to the roadmap document (EU, 2021). This reiterates some of the points made in IEA 2017, but enlarges interestingly on certain problems. One of these is that without “an overall strategy that exploits synergies between the various legal instruments and financial support for data exchange projects at national and EU level, a fragmented approach is likely to persist”, missing important links between different parts of the energy supply chain. New digital solutions need to be “interoperable at EU level” to avoid jeopardising “scalability, system integration, and consumer/prosumer participation.” The roadmap also notes social challenges such as lack of citizens’ trust in data-driven energy services and lack of adequate skills, and growth in the energy consumption of Information and Communication Technologies that might prove unsustainable.

In 2022 the European Commission published “Digitalising the energy system - EU action plan” which states that “To end the EU’s dependence on Russian fossil fuels, tackle the climate crisis and ensure affordable access to energy for all, the European Green Deal and REPowerEU require a deep digital and sustainable transformation of our energy system”(EU 2022). The document lists in its annex a number of key actions with time scales, grouped under the following headings: An EU framework for sharing data; Promoting investments in digital electricity infrastructure; Ensuring benefits for consumers: new services, skills and empowerment; Strengthening cybersecurity and -resilience in the energy system; Controlling the energy consumption of the ICT sector; and An EU-wide coordinated approach.

In the UK the electricity distribution network operator UK Power Networks is “developing and trialling a software-based, machine learning tool to enhance visibility and unlock fresh insights into network demands so they can plan targeted investment in infrastructure and enable flexible response to distribution-level conditions and market signals” (Ofgem, 2021). This work is presented as a response to the UK government’s legally binding targets for net zero by 2050, which implies a transition to a renewables-based energy future. The challenges faced by electricity network operators include limited historical data on loads at the low voltage (distribution) ends of the network and “a high degree of uncertainty when planning network interventions, such as building new infrastructure and when designing new connections.” To provide appropriate data is to ‘enhance visibility’ and allow better demand forecasting, advanced planning, strategic investment and customer services. Minimising the investment necessary to achieve the legally binding targets appears to be a central aim. Work has been done on a proof of concept system for demand estimation modelling.

In 2022 the UK government launched a feasibility study to explore the creation of a “digital spine” for the energy system (Heynes, 2022). The study aims to assist policy development for the digitalisation of the UK’s energy system, which could improve energy security, help deliver net zero and reduce cost to the consumer.  Two project phases are envisaged; the first addressing project scope and stakeholder engagement, and the second exploring feasibility and delivery. The digital spine has been described as “a thin layer of interaction and interoperability across all players which enables a minimal layer of operation critical data to be ingested, standardised and shared in near real time”. Its functions would be to “facilitate efficient system operation, improve access to new markets and support development of new services for a smart and flexible energy system.” The digital spine was referred to earlier in a UK taskforce report on digitalisation of the energy sector (BEIS, 2022a). Here it was set in the context of delivering interoperability in the energy sector, and the study was set to consider the “opportunities, risks and potential architectures” associated with it, and “how it could interact with delivering a data sharing fabric.” The concept is described in an invitation to tender for the study as follows: “An energy system ‘digital spine’ is a framework of technical processes and defined governance roles and responsibilities that allow the exchange of energy system data in a secure and interoperable manner” (BEIS 2022b, p.26). Here the ability to exchange data is seen as a fundamental feature of a digitalised energy system in which intermittent sources of generation such as solar and wind will play a growing part, along with smart technologies making use of low carbon energy, and where the swift exchange of energy data in support of net zero objectives and energy flexibility will have increasing importance.

The Westminster Forum webinar referred to above cited a range of UK projects related to electricity digitalisation, three of which will be outlined here, with emphasis on control and optimisation methods. ReFLEX Orkney intends to provide Responsive Flexibility in an integrated, affordable, low-carbon energy system in the Orkney Islands (ReFLEX, 2023). The project is led by the European Marine Energy Centre and aims “to interlink local electricity, transport and heat networks into one controllable, overarching system, digitally connecting distributed and variable renewable generation to flexible demand.” The technologies to be employed include battery storage, electric vehicles, smart chargers and smart meters, which will be leased to local households and businesses. Integration of some of the separate elements of the system and automatic decision making within it will be provided by SMS's FlexiGrid control platform. This is described by SMS plc as “cloud-based software that communicates with, monitors and controls a range of distributed energy resources (DERs) to create smart, flexible local energy systems.” ReFLEX Orkney recognises the crucial role of the Orkney community: “Data collected from the people, homes and businesses who host these new energy technologies, in particular the human interaction with these assets, will provide a basis for further research and continued focus” on decarbonisation of the energy system.

Energy Superhub Oxford is a demonstrator project part-funded by the UK government’s Industrial Strategy Challenge Fund under its “Prospering from the Energy Revolution” programme (ESO, 2023).The PFER programme is about delivering innovation in smart local energy systems (PFER, 2022). The project features “a giant hybrid battery” and an electric vehicle (EV) charging network to encourage EV uptake; the Council’s own fleet of vehicles are being electrified, and low carbon heating is being installed in homes using small ‘shoebox’ ground source heat pumps with smart controls. The EV charging hub developed by Energy Superhub Oxford is described as Europe’s most powerful, delivering up to 10MW of power, enough to charge 400 cars at once. EDF Renewables has installed the UK’s first transmission-connected battery, a Lithium-ion/vanadium flow battery. A combined energy management system controls and communicates with an Optimisation and Trading Engine which underpins the whole project, and will decide the optimum charge/discharge schedule for the battery, enabling it to trade on the Day Ahead and Intraday markets and the Balancing Mechanism.

The Greater Manchester Local Energy Market is described as “the first project of its kind to be delivered at scale across a city-region”. It is funded by InnovateUK and 11 partners, and sets out to help Greater Manchester achieve its target of becoming a zero-carbon emissions city region by 2038 (Regen, 2023). There are two key themes: an approach to Local Area Energy Planning which integrates the demands of the energy transition with traditional local authority-led planning, and the development of a new Local Energy Market supporting the integration of new smart technologies across the heat, power and transport sectors. The project requires the development of new digital tools, and details are given in a separate document (GMPFER, n.d.).  The capabilities of the required digital energy platform include control, optimisation, dispatch and trading in a local energy market and integration with other local control platforms, such as those operated by the Distribution Network Operator, who provides constraint management locally and interfaces with the national transmission system. Other functions of the digital energy platform are provision of rolling 24 hour forecasts of renewable energy generation, half-hourly updates of wholesale market price forecasts, optimal dispatch plans for given sites, control of storage in order to maximise income and minimise energy imports, and real-time monitoring of asset behaviour in order to update forward planning. Upside Energy describe their cloud-based smart grid platform as easing peak-time pressure “by connecting a range of common devices that store energy”. The platform “aggregates the energy stored in everyday connected devices, such as batteries and hot water tanks, to create a virtual energy store that can be drawn on as needed. Devices in homes and small businesses can then be quickly switched on or off at the right times, communicating through the Internet of Things” (Upside Energy, 2022).

 

References

 

BEIS, 2022a, Energy Digitalisation Taskforce report: joint response by BEIS, Ofgem and Innovate UK, BEIS July 2022, online, accessed 25 Feb 2023

https://www.gov.uk/government/publications/digitalising-our-energy-system-for-net-zero-strategy-and-action-plan/energy-digitalisation-taskforce-report-joint-response-by-beis-ofgem-and-innovate-uk

BEIS, 2022b, Energy system ‘digital spine’ feasibility study, BEIS Nov. 2022, online, accessed 25 Feb 2023

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1109954/energy_system_digital_spine_scoping_study.pdf

ESO, 2023, Energy Superhub Oxford, online, accessed 9 Feb 2023

https://energysuperhuboxford.org/

EU, 2021, Action plan on the digitalisation of the energy sector – roadmap launched, European Commission, online, accessed 25 Feb 2023

https://commission.europa.eu/news/action-plan-digitalisation-energy-sector-roadmap-launched-2021-07-27_en

EU, 2022, Digitalising the energy system - EU action plan, European Commission, online, accessed 25 Feb 2023

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52022DC0552&qid=1666369684560

GMPRER, n.d., PFER: Local Energy Market Proposal, Greater Manchester, online, accessed 21 Feb 2023

https://democracy.greatermanchester-ca.gov.uk/documents/s2711/Local%20Energy%20Market%20Bid%208.pdf

Heynes, G., 2022, UK government launches ‘digital spine’ feasibility study, Current News, Oct 2022, online, accessed 21 Feb 2023

https://www.current-news.co.uk/news/uk-government-launches-to-feasibility-study-to-create-a-digital-spine-for-the-energy-system

IEA, 2017, Digitalisation and Energy, International Energy Agency, Nov 2017, online, accessed 25 Feb 2023

https://www.iea.org/reports/digitalisation-and-energy

IEA 2022, Demand Response, International Energy Agency, Sept 2022, online, accessed 25 Feb 2023

https://www.iea.org/reports/demand-response

Ofgem, 2021, Case study (UK): Digitalising energy systems for net zero, Ofgem, online, accessed 22 Feb 2023

https://www.ofgem.gov.uk/publications/case-study-uk-digitalising-energy-systems-net-zero

PFER, 2022, Industrial Strategy Challenge Fund Prospering from the Energy Revolution (PFER) explained, InnovateUK, online, accessed 21 Feb 2023

https://iuk.ktn-uk.org/perspectives/industrial-strategy-challenge-fund-prospering-from-the-energy-revolution-pfer-explained

ReFLEX, 2023, ReFLEX Orkney, online, accessed 21 Feb 2023

https://www.reflexorkney.co.uk/

Regen, 2023, Greater Manchester Local Energy Market, Regen, online, accessed 8 Feb 2023

https://www.regen.co.uk/project/gmlem/

Upside Energy, 2022, A cloud-based smart grid platform, Upside Energy, online, accessed 28 Feb 2023

http://www.mission-innovation.net/our-work/mission-innovation-breakthroughs/upside-energy-a-cloud-based-smart-grid-platform/

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