11 minutes to read With insights from... Daniel Clauss Head of Energy, Switzerland daniel.clauss@zuhlke.com Steven Steer Principal Data Consultant steven.steer@zuhlke.com As Europe maintains its focus on the ambitious journey towards Net Zero, the scale of the challenge is enormous. The aging grid infrastructure, with 40% of it over four decades old, and the increasing role of non-energy companies (Amazon, Microsoft) in the sector are contributing to the complexity of the energy landscape. To reduce greenhouse gas emissions by 55% and achieve a 45% share of renewables by 2030 as planned, Europe must build a smarter, digitalised energy system. This transformation is not optional; it is a necessity for the future of energy, where digitalisation will play a pivotal role in navigating the complexities of the landscape and ensuring a sustainable tomorrow. Read on as we explore the evolving landscape of energy systems, the importance of planning and digitalisation, and the critical steps organisations can take to build a robust energy ecosystem capable of meeting the ambitious goals of a sustainable, Net Zero future. What is digitalisation in energy? Digitalisation in the energy sector is the use of digital technologies to optimise energy generation, transmission, distribution, and consumption. It includes: Smart grids for efficient power supply Predictive maintenance solutions in power plants Real-time data platforms for better decision-making Smart energy solutions for managing the increased volatility of renewables Support of decentralised prosumer solutions Digitalisation offers an alternative to building new infrastructure, which can be costly and slow to implement. It can help energy players maintain high service quality without requiring extensive civil works and installations. See how a system operator advanced digitalisation The changing landscape of energy systems As mentioned, the energy landscape is growing in complexity which calls for a profound transformation. To understand why this is and what it means for the future, we need to first take a closer look at how the traditional energy system functioned and where it is heading. Traditional energy system The traditional energy system of 20 years ago was characterised by centralisation and simplicity. For instance, in the UK, there were only 50 to 100 power stations across the entire country. These stations operated continuously, with a few providing the necessary flexibility to meet fluctuating demand. If there was a sudden spike in energy consumption— such as the entire nation watching a football match—the national grid would simply call up the relevant power station and ask them to ramp up the turbines. Communication was straightforward, often done via a simple phone call, and demand calculations were done manually with pen and paper. In this system, the need for digitalisation was minimal, as the entire process could be managed through direct human intervention and analogue tools. Future energy ecosystem The future energy ecosystem will be vastly different from its predecessor. In the near future (and in some cases, already today) energy decisions will no longer be made by centralised power stations, but by a diverse array of entities, each with unique needs: Devices: Smart appliances, electric vehicles, solar panels, and batteries are becoming commonplace in households and businesses. Each device has its own energy requirements and usage patterns, contributing to a decentralised energy landscape. Households: Individuals now have greater control over their energy use, whether through smart home systems or direct management of appliances. This introduces a new behavioural layer to the energy system, as people’s preferences don’t always align with the optimal times for energy consumption. Businesses: Corporations, especially tech giants like Amazon, Google, or Microsoft, are not only large energy consumers but are increasingly becoming energy producers. For example, Amazon added over 100 wind and solar projects in 2023 alone, and now operates more than 500 renewable electricity generation projects across 27 countries. Once fully operational, these projects will generate over 77,000 GWh of electricity annually. In this new ecosystem, managing energy flows is far more complex. Not only are businesses and households becoming intelligent actors in producing, storing, and consuming energy, but smart devices are as well. With IoT and AI-driven solutions, every device—from refrigerators and cars to cold storage units—becomes a decentralised and autonomous element for managing energy peaks. You’re no longer coordinating a few power stations centrally but tens of millions of devices, each operating on individual needs and choices. This new ecosystem will be very powerful but is also less stable than the old, requiring the energy sector to undergo a huge transformation. In this context, digitalisation is not just beneficial—it is essential. The only way to manage the immense flow of information, communicate effectively with millions of devices, and keep the lights on every day – without investing into a brand-new infrastructure – is through advanced digital tools and concepts. ' The energy sector is becoming increasingly complex with every year that passes. Achieving Net Zero and meeting our decarbonisation targets is impossible without fully digitalising the energy system. This must be the top priority for all energy players. ' Steven Steer Principal Data Consultant Importance of planning for the future of energy As we move towards a more sustainable and decentralised future, the energy sector faces another critical challenge: planning effectively for the long-term. While a swift transition to renewable energy offers the potential for trillions in net savings globally, this shift can only be fully realised through meticulous, long-term planning. Energy players not only need to understand the current landscape but also anticipate future demands and infrastructure needs. Without this foresight, efforts to reach Net Zero could be jeopardised. For instance, network companies need to predict how large a substation needs to be, or the capacity of cables required to support an area’s future energy demands. Without accurate projections, we risk imposing limits that could hinder progress and create problems down the road. To avoid this, we must understand the landscape in detail and predict future energy hotspots well in advance. That’s no easy feat and the planning process is further complicated by factors like: Environmental concerns: energy projects must be designed to avoid harming local ecosystems, such as ensuring that wind turbines do not disrupt fish or bird populations. Infrastructure synergies: planning energy infrastructure must be done in conjunction with other needs, like water resources, which may require the placement of energy facilities in specific locations. Here, it’s crucial to consider the interdependencies and effects across systems and markets to ensure reliability. Industrial growth: balancing the need for job creation and economic expansion with the availability of energy infrastructure is crucial. Companies may hesitate to invest in areas without reliable information about energy connections, even if conditions are ideal. All these considerations lead to a huge information challenge. How can we design a country’s infrastructure in a way that securely integrates energy systems with all other critical needs? The answer, once again, lies in digitalisation that will enable systems to efficiently interact with each other. The future of energy calls for highly automated information flows and sophisticated, well-governed data that can track past conditions, reflect the current state, and model future scenarios. Only with such data can we accurately plan and build the secure infrastructure needed for the future energy ecosystem. Moreover, integrating renewable and distributed energy sources into this complex system presents additional data challenges. Unlike the stable, centralised sources of the past, renewables are inherently more variable. Effective digitalisation and data management are essential to ensure that energy remains reliable and efficient as we transition to these more sustainable sources. Explore Solar-Log's approach to sustainable energy supply Net Zero Systems Architecture: the key to solving energy’s information challenge Achieving Net Zero is an ambitious goal that requires more than just a commitment to renewable energy—it demands a comprehensive systems architecture capable of managing the complexities of the future energy landscape. At Zühlke, we call this a Net Zero Systems Architecture and it is one that will enable us to: Manage the diverse energy needs and actions of devices, people, and businesses. Gain a clear view of the current energy landscape and its future, allowing us to make informed decisions that will benefit us for years to come. Without a Net Zero Systems Architecture, we risk a grid that’s unable to cope with the influx of renewable energy or maintain stability. Even if we manage to integrate high levels of renewables, without the right systems in place, we could lose control of grid stability, leading to potential brownouts or other disruptions. Considering the above, what are the initial steps for Europe to get to Net Zero? Let’s take a look. Initial steps for digitalisation and getting to Net Zero The complexity and scale of integrating the multiple technologies and solutions needed to reach Net Zero emissions will not be possible without the digitalisation of the energy system. The journey to Net Zero is a multifaceted challenge that requires comprehensive planning and a strategic approach that will vary from country to country, depending on its current digital maturity. Below is an overview of the key steps necessary to begin this transformation. 1. Deploy smart meters across Europe 1. Deploy smart meters across Europe The first and most critical step in Europe’s journey towards Net Zero is the widespread deployment of smart meters. These devices are the foundation of a digitalised energy system, providing the essential data needed to monitor and manage energy consumption. Latest numbers suggest that only 13 of the 27 EU countries have completed smart meter rollouts with a penetration rate greater than 80%. Meanwhile, 11 countries are still lagging far behind, which poses a significant challenge to achieving a unified, digitalised energy system. Countries that have completed their smart meter rollouts are well-positioned to move on to more advanced stages of digitalisation. It’s therefore crucial to get those countries lagging behind on board as soon as possible because without widespread deployment, the necessary data to drive informed decisions is simply unavailable and will stall the progress towards a sustainable energy system. 2. Assess data quality 2. Assess data quality Data is the lifeblood of a digitalised energy system. To make decisions that minimise carbon dioxide emissions and ensure cost-effective solutions for consumers, high-quality data is essential. This data powers decisions made at every level—from individual households and home appliances making consumption choices to national and regional planning of energy infrastructure investments. So, it needs to be accurate, complete, consistent, unique, timely, and valid. In a system increasingly reliant on variable renewable energy sources and distributed technologies, data becomes the key to effective planning and operation. Without digitalisation and data sharing, managing the energy system at any scale becomes nearly impossible. See how a data platform helped ensure data quality 3. Outline your current infrastructure and assets 3. Outline your current infrastructure and assets Regardless of your role in the energy system, a thorough understanding of your infrastructure and assets is crucial. You need to know where assets are located, understand their capabilities, and use this information to inform system planning and management. A clear and comprehensive overview of your current physical and digital infrastructure will enable effective integration of new technologies and solutions as you work towards Net Zero. 4. Start thinking about governance 4. Start thinking about governance Governance is one of the most significant challenges in digitalising the energy system. As the grid becomes more digitalised, the need for effective governance—especially around software and data—is critical. The challenge here is fundamentally an information one. As you digitalise the grid, it’s not just about automating products and services but also automating agreements. Millions of people will need to consent to participate in the energy ecosystem, and this needs to happen in a way that is seamless, fair, and passive. As the U.S. Renewable Energy Laboratory (NREL) highlights, ‘future energy systems will require secure, autonomous, and reliable communications, control, and interoperability among millions of distributed generation points and billions of buildings, vehicles, and more’. So, high-grade digital capabilities must be embedded in your software to handle these governance agreements, abstracting and automating the process as much as possible. 5. Work with reliable integrators 5. Work with reliable integrators As digital systems take on a larger role in energy management, addressing the intersection between Information Technology (IT) and Operational Technology (OT) will be critical. Failure to properly integrate these systems could lead to operational issues or security vulnerabilities. Moreover, as the energy ecosystem evolves, the digital customer interface will play a critical role in market success. Energy companies will need digitalised end-to-end processes to manage interactions efficiently. All this complexity requires collaborating with partners who excel in governing and overseeing intricate IT architecture and integrations. So, be sure to choose a partner who can navigate systems that don’t have clear boundaries and require end-to-end capabilities—from monitoring device-level details, like voltage on the network, to integrating data across the entire system. At Zühlke, we specialise in designing and delivering Net Zero systems architecture. We are experts in building complex, modern, and secure systems at a practical level, helping organisations define and navigate the intricacies of the future energy landscape. Find out how connected data supported decarbonisation ' In the future energy grid, data is the currency of success, underscoring the indispensable need for robust algorithms, controls, and secure communication. ' Daniel Clauss Head of Energy, Switzerland Embrace digitalisation to achieve Net Zero Imagine a world where data flows seamlessly, driving precise system planning and ensuring efficient operation even as renewable energy sources and connected devices multiply. This vision of the future energy landscape—one where humans design and computers execute—can only be realised through full-scale digitalisation. The energy system of tomorrow will be vastly different from anything we've known. It will be a dynamic, interconnected web of devices, consumers, and businesses, all operating in harmony thanks to the power of data. This digital transformation will enable us to optimise for the lowest carbon footprint and the most cost-effective solutions, ensuring that consumers have access to reliable and affordable sustainable energy. One of the most exciting prospects of this digital transformation is the innovation it will require. With a vast amount of data available, a level playing field will emerge, sparking innovation across the energy sector, leading to new use cases and technologies that we can only begin to imagine. Our experts understand the intricacies of both energy systems and digital technologies and are ready to help you on this transformation journey. From the initial deployment of secure connected devices to the full-scale integration of a Net Zero Systems Architecture, we are equipped to help you navigate this complex landscape. The road to Net Zero is challenging, but with the right digital tools and strategic partners, it’s a journey we can—and must—undertake together. See how we’re transforming the energy sector
' The energy sector is becoming increasingly complex with every year that passes. Achieving Net Zero and meeting our decarbonisation targets is impossible without fully digitalising the energy system. This must be the top priority for all energy players. ' Steven Steer Principal Data Consultant
' In the future energy grid, data is the currency of success, underscoring the indispensable need for robust algorithms, controls, and secure communication. ' Daniel Clauss Head of Energy, Switzerland
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