How today’s technology can support the energy system of tomorrow

As energy policy and politics shift globally, business flexibility will be a necessity for the success of the energy transition. And although the tech is available to meet this need, challenges to its deployment remain, expliains Jon Slade of ENSEK.

Energy policy around the world has recently had to adapt to a massive geopolitical shift, with many countries taking steps to shore up their energy security and ensure their infrastructure and systems are built for resiliency.

And, it looks likely that things will remain uncertain, with no real end in sight. Those of us who were sentient during the 1970s may ponder the likely success of governments “picking winners” or indeed any “top down centrist” planning.

While we are all entitled to a personal opinion on these issues, in the highly regulate energy sector we tend to primarily focus on delivering against a plan that will enable us to support regulatory change……right?

Well, not quite, because anyone who has even briefly scanned the news over the last few months will have noted the shift in the political mood music around energy policy across the world. While this may be temporary, it could well be permanent, and such uncertainty demands that, more than ever, business flexibility is a key determining factor to future success.

The good news is that the technology is already available to respond to this need for flexibility and the changing demands of energy markets. However, there are a number of challenges to successful deployment.

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Some customers will embrace taking more control of their energy usage (but some won’t, or can’t)

It is certainly true that the roll out of smart meters provides energy suppliers, and their more engaged consumers, with greatly increased information about energy consumption. This data has been successfully used to develop unique energy tariffs, allowing smart devices to run or charge during off-peak hours or notify customers of peak demand as an opportunity to reduce consumption – saving money while reducing demand on the power grid.

In fact, according to Energy Systems Catapult, energy retailers will play a crucial role in helping people make low-carbon choices over the next three decades. By embracing the more complex energy market and ensuring the right digital platforms are in place early on, businesses have a unique opportunity to enhance the customer experience and build trust. From there, energy retailers can continue to grow their offerings, for example by providing new tariffs for changing energy demands, as well as holistic products and low-carbon services that nurture loyal and knowledgeable customers.

So far, so good, but what about those who are less engaged with this process; who do not have a battery electric vehicle (and are not planning to buy one), who cannot afford to replace their gas boiler with a heat pump…. or simply just do not want to? They must be supported too, and if they can’t adopt the technology that is being pushed as the green alternative to their existing car or heating, either through affordability or feasibility, what does that mean for energy supply and energy suppliers going forward?

Accessing data to adapt energy consumption

Digital transformation offers insight not just on an individual level but across communities as well. With increased urbanisation, there is an emphasis on energy consumption in growing cities. Cities consume about two-thirds of the world’s current energy, significantly contributing to the global carbon footprint. Smart cities are one response to this problem. By leveraging energy data, it’s possible to ensure the sustainable management of energy for communities on a small or large scale.

Another possible solution to improve energy management within these neighbourhoods is to use decentralised energy from waste plants or district heating networks, rather than relying completely on a centralised system.

However, as advanced countries seek to move away from “dispatchable” fossil fuel generation and become more reliant on “intermittent” renewable energy, managing demand will be vital to ensure energy stability. Digital insights from a data-driven platform can help identify trends in usage to support the deployment of the appropriate mix of generation assets and energy resources more efficiently to meet demand.

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Personalised energy tariffs

The increasing transparency around energy usage, along with better energy demand management techniques, has opened up an opportunity for retailers to implement solutions to respond to their customers’ demand for energy. The growth of renewables and advances in storage technology have allowed retailers to offer more than just standard energy tariffs. For example, more energy retailers are offering products and services that combine power saving, on-site production and storage to their commercial, industrial and residential customers.

Opportunity varies by market sector: for example, B2B businesses may be looking for efficient consumption balanced with on-site generation management, while some B2C consumers may focus on the energy requirements of smart homes and solutions for electric vehicles. Others may merely seek the best price per kWh for their consumption profile.

As a result, energy retailers will need to support those who choose to adopt the latest innovations whilst also ensuring that the bulk of consumers are catered for and at the same time keeping one eye on what else may be driving change as both the political environment and technology evolves.

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Towards a tech-driven and flexible future

Tomorrow’s energy system will likely reflect a diverse, whole-systems approach, with generation and storage assets deployed both centrally and locally.

It will give more control to enable customers to scale up their energy portfolio to include today’s essentials – heat and power – as well as tomorrow’s needs, from electric mobility to on-site generation and varied storage solutions.

All this needs to be centred around future-proof flexible technology solutions – that support easy adaptation of the system to meet future requirements and changes through configuration, rather than new development – that can adapt and support Europe’s energy retailers however that future evolves.

About the author

Jon Slade is the co-founder and CEO of ENSEK and has over 20 years of experience working in the tech sector.

He formed ENSEK following a decade of major transformation delivery across large enterprises in utilities and financial services, with formative years spent at Oracle. Jon is passionate about the energy transition and the sector working together to achieve net zero goals.