The energy digitalisation: what is it and how does it work?
Earlier this year, the Department of Business Energy and Industrial Strategy announced a new Energy Digitalisation Taskforce (EDiT). The task force has been set up to continue the UK government’s focus on modernising the energy sector. It is expected that energy digitalisation will unlock a new era of clean growth as we drive towards our net zero targets.
As these unprecedented times continue, getting ahead of the curve is more important than ever. The pandemic has fast-tracked technology, and businesses will have to keep a steady pace to stay competitive in a changing market. In this effort, understanding schemes like energy digitalisation is essential.
We take a look at what energy digitalisation is and how it will benefit UK sectors.
While there are many benefits of energy digitalisation, there are a few key objectives that are being focused on. Market design, digital architecture and governance are taken into consideration as energy data activity is collected from across government, regulator, and industry.
Refocus: One of the most prominent objectives of energy digitalisation is refocusing. The energy sector can now realign itself to focus on challenges and opportunities that come with this transformation.
Roadmap: Laying out a digital architecture and roadmap for the modernising of the energy sector can allow it to further develop. This will also mean the scheme can keep track of achieved levels of digitalisation as we move towards net zero.
Regulation: Accelerating energy digitalisation simultaneously fast tracks the sector towards net zero targets. Artificial Intelligence (AI), Internet of Things (IoT), and asset management are just some of the ways digitalisation is revolutionising the renewable energy sector.
Risk: Identifying governance risks and mitigating issues that may arise around digitalisation. It is important that while the industry is progressing rapidly, that risk management develops just as quickly.
The digitalisation of the energy sector is imperative in the UK reaching its ambitious net zero targets. Modernisation will ensure a future-proofed, cost-efficient system. The energy sector must be smart and flexible to harness low carbon energy from natural sources such as the sun and wind.
The development of green technology such as solar panels, electric vehicles, and heat pumps will play an important role in the energy sectors evolution. These methods could drive smart flexibility, especially if they are able to share data between themselves. This is especially vital as these green energy installations become more popular and accessible. It is estimated that 600,000 heat pumps could be installed per year by 2028. Last year the government announced the phasing out of new petrol and diesel vehicles by 2030. This will propel the UK’s transition to electric vehicles, and energy digitalisation will further enable these essential tech movements.
The industry has already faced huge changes as more renewable energy is integrated into the grid. But further modernising will allow it to develop and become even more efficient. This will enable new digital tools that will promote sustainability through actions such as tracking air pollution and greenhouse gas emissions.
The energy sector is evolving. And to future-proof ourselves and our businesses, we must develop alongside it. Embracing smart tech and renewable energy is the only way we can continue to progress towards a sustainable future.
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Get in touch today to hear more about our forward-thinking tech solutions and how they can help you become green.