Following from our last article; Turning a digital vision into action, the Energy Geeks train their headlights on the need for clarity about governance and how the plethora of initiatives across the energy sector must be coordinated for clean energy by 2030 to be deliverable and for consumers benefit from this radically different way of sating their energy needs.

Comment from Rich Hampshire, Vice President, Digital Utilities, CGI

The Geeks nail this challenge in their second paragraph – digitalisation, in the context of the energy transition, is more than digitalising the way the system works today. An increasingly distributed energy system has fundamentally different dynamics.  If we are to realise the opportunities created by this transition, then innovation in system governance, in the market architecture, and in the business models of the system actors are all essential. But that requires clarity on the architecture of the system.

The critical need for evolving and adaptable governance

The laws of physics and engineering are givens, but the governance and the different obligations placed on system actors are choices applied to the physical system is a key insight. The system is evolving too fast to spend years theorising about a perfect design, the challenge is to identify the critical points of control around which the system has the freedom to evolve enabling system actors to invest and create value. Therefore, a change process that can respond to opportunities, and manage emerging risks effectively, is essential.

Shifting focus: Setting the foundation for effective data-led decisions

Over the last 18 months it has been fascinating to follow the evolution in the Energy Geeks’ thinking.  They have shifted the discourse from digitalisation towards data. The importance of “clarity of what [system actors] want to do with the data” is one aspect.  Knowing what to do with the data requires understanding of what needs to be done – which determines the data required to make informed decisions. Back to the Geeks’ primary call for clarity.

Beyond the end-destination, exploring the road to digitalisation

It’s clear that there is an immense number of invaluable initiatives underway. Each of these are vital pieces of a jigsaw puzzle that, when complete, will provide the foundation for Britain’s energy transition. DESNZ’s and Ofgem’s much anticipated Digitalisation Vision should provide the destination. The roadmap, the picture on the top of the puzzle’s box, must enable identification of duplicate pieces and, more importantly, whether any pieces are missing!

I look forward to seeing the Energy Geeks’ blueprint for the Digital Energy Highway Code. Once the proposed Modernisation and Digitalisation Unit (MDU) completes its 3-year mission, the question that remains is, how will the system governance be maintained as it responds to the continued evolution of the system?

Faster innovation demands smarter system governance

The one thing of which we can be certain is that the pace of technology change will continue to accelerate, and system governance will need to respond if the opportunities created are to be embraced.

Read the full article

About the programme

CGI and Utility Week, in collaboration with the Energy Geeks, examine how digitalisation can help deliver a smarter, cleaner and more flexible energy system. Learn more.