Digital Energy to deliver a Sustainable and fair future for all

In a time of socio economic crisis, arising from the ever increasing existential threat of climate change, there is a pathway to a sustainable future being built. Numerous studies and trials have clearly demonstrated that we have the tools to decarbonise our energy system, while also delivering sustainable economic benefits across society. This subject formed the basis of my talk at the Subak Climate Summit last week. 

On shore wind and solar energy generation are now the lowest cost energy source in 90% of the world. Solar as a primary energy source is 250% more efficient than coal. An electric vehicle is 400% more efficient than an internal combustion engine. Costs of renewables and battery storage are forecast to decline further (RMI - “Energy Transformed” Oct. 2022).

However, this is only one half of the opportunity we have. Our present energy system, based upon the original design of a century ago, is designed to satisfy national “Peak” demand, which can occur for only a few minutes, on only a small number of days a year. Centralised fossil fuel driven generation plants with considerable ongoing operational costs feed massive national networks to distribute energy long distances to final energy to consumers. And around 75% of those transmission and distribution networks have no monitoring or control to identify where that energy ends up …or not.

Where the Energy Transition meets global digitalisation, is found the possibility of a future decarbonised, decentralised and digital energy system. By embracing the advances in digital communications together with data processing and analytics, consumers' energy demand can be automated to match local sustainable energy availability.

Electric vehicles will become intelligent sources of energy generation, storage, and consumption, depending upon the availability of other energy sources. Consumers will be able to trade energy with neighbours in community and local energy markets. Heat Pumps and thermal storage solutions will receive automated signals identifying the most cost effective times to consume electricity from the grid or instead utilise their stored energy.

And by providing low cost but pervasive digital management of energy, both in the home and across local power grids, the majority of energy demand will be met by self supply, local generation and storage. This will not only significantly reduce total national energy demand, but also significantly reduce the considerable costs of operating and balancing national power networks.

This may sound like some distant future, however these technologies and opportunities are with us now. Local Authority led initiatives such as Bristol City Leap and Greater Manchester Combined Authority’s “Go Neutral” represent the first stages of Smart Local Energy Systems or “SLES” implementations. These look to combine energy decarbonisation, digitalisation and distributed energy investments to deliver coordinated Local Energy services and markets. The aim is to accelerate decarbonisation of regional energy, reduce energy costs for all and realise socio economic value for the whole of their respective populations.

This bottom-up approach to our battle against climate change is ultimately our best bet in realising a sustainable future, with fair and just outcomes for all in society. Global energy markets cannot change and adapt to the urgency of our climate change battle in time. And neither can they deliver economic benefits fairly across society as SLES approaches to energy system design and operation are designed to do.

It is therefore ongoing innovation and adoption of digital and data applications across the energy supply chain and related industries which offers us a true sustainable and fair energy future. Policy Regulation and politics need and must catch up.