As the GB energy system becomes increasingly decentralised, digitalisation is no longer optional. It is fundamental to delivering affordably a resilient, flexible and low-carbon future.

In the latest article from Utility Week, in association with CGI and the Energy Geeks, the spotlight turns to a critical question: how do we balance the significant opportunities of digitalisation with the growing risks of a highly interconnected system?

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

“In their latest article, the Energy Geeks turn their collective intellect and experience to the challenge of managing risks in an energy system where system boundaries are expanded and system dynamics, both physical and commercial, are fundamentally different.

The article addresses a risk landscape that is being transformed by the energy transition. And that, in an increasingly interconnected and distributed system, risks emerge at the interfaces between system actors and in their extended supply chains. Whilst a more distributed system architecture can provide greater resilience, risks need to be managed effectively to ensure that they can’t compound and cascade across the system.”

A system transformed by connectivity

The future energy system will be built on millions of distributed, data-generating assets, from EVs and heat pumps to smart grids and storage. This transformation has the potential to unlock substantial value, improving system efficiency, enabling flexibility, and accelerating progress to net zero.

However, increased connectivity also introduces new challenges. As digital infrastructure becomes more complex, risks around cyber security, data governance and system coordination grow in parallel.

Managing risk in a digital-by-design energy system

The article identifies risk associated with the transition to a digital energy system and highlights several critical concerns:

  • Cyber and system resilience: More connected assets expand the potential attack surface
  • Data privacy and trust: Consumers must have trust in how their data is used
  • System coordination: Alignment is vital, fragmentation could undermine progress
  • Digital inclusion: Ensuring all consumers benefit from digital innovation

These risks are not reasons to slow down. Instead, they highlight the need for clear governance, robust frameworks and industry-wide collaboration.

Unlocking the opportunity

While the risks are real, the opportunity is far greater. Digitalisation enables:

  • Optimised system performance, matching supply and demand more efficiently
  • Greater flexibility, supporting renewable integration at scale
  • Improved customer outcomes, through smarter services, meaningful choices and lower costs
  • Innovation at pace, driven by data and emerging technologies

The challenge for the sector is to move from recognising these benefits to consistently realising them at scale.

Turning insight into action

From our work across the energy sector, three priorities stand out:

  1. Design for interoperability from the outset
    Avoid fragmentation by embedding common standards and architectures
  2. Build trust through governance and transparency
    Clear rules for data sharing and usage are essential to unlock value
  3. Focus on outcomes, not just technology
    Digital investments must be anchored in measurable system and customer benefits

A defining moment for the energy transition

Digitalisation will underpin the UK’s ability to deliver a clean energy system. But the path forward requires careful navigation - balancing innovation with resilience, and ambition with coordination.

The sector has a unique opportunity to shape a digital energy system that is secure, inclusive and value-driven.

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.

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