Electricity system in transition requires new strategy for success

The supply and demand in our electricity system must always be balanced, requiring continuous monitoring and adjustments on both short and long timescales. ‘This is quite a challenge during the energy transition, as the responsibility in the Netherlands is divided among various parties,’ says Aliene van der Veen, digital energy systems expert. ‘Unlike most other high-tech systems, there is no central coordination of the design and operation of all components. This makes it difficult to achieve a well-functioning design. Even with top-down control, it remains a challenge. Investments in technology and governance are needed in many areas, and it's impossible to communicate with all parties simultaneously, including the one in the middle.’

Significant changes

The motivation of citizens and businesses to take responsibility in the energy transition is high. However, the necessary electrification has made the playing field even more complex. Renewable energy sources like solar and wind are less predictable than traditional ones. Additionally, households and businesses are increasingly generating and feeding back their own energy. Where a few national network and energy companies once dominated the market, it is now highly decentralised with many players. This changes market dynamics: new players and changing roles require even more coordination. Moreover, we must consider significant societal and technological changes.

Key role for digitalisation

The transitioning electricity system must function properly, and digital technology is indispensable. ‘Digital technology allows multiple parties to exchange and process more information in less time. To maintain the balance between generation and consumption, information about supply and demand adjustments must be continuously available throughout the electricity system,’ says Wouter Leibbrandt. ‘This requires digitalisation across the entire system at various levels. Having information available is one thing, but demand must also be adjusted accordingly. This process is faster and smoother when automated, which is crucial as our electricity grid quickly becomes overloaded. Building new infrastructure is no longer feasible in the long run, so we must use the existing infrastructure more intelligently.’

In the future, AI will also play a key role in the exchange game Leibbrandt describes. It can combine vast amounts of information to gain new insights and better predict supply and demand. Leibbrandt: ‘Without digital technology, we cannot efficiently switch to variable energy sources, consume more electricity, or play the exchange game. We would get stuck in the old electricity system.’

Situational awareness

While digitalisation offers many opportunities, it also brings new vulnerabilities, such as cybersecurity risks. Another obstacle to successful digitalisation of the electricity system is the lack of central coordination, which hinders an integrated approach. It is crucial for players in the electricity system to understand their own situation and that of others, and how they relate to each other. This is known as 'situational awareness'. Each player must know how their situation connects to the rest of the system without knowing the entire system dynamics. When players understand how their choices affect the system, it becomes easier to find solutions together.

Enrich each other's perspectives

This way of working requires a different mindset, explains Van der Veen. ‘Everyone working on solutions in the energy system must realise their view is limited and be aware of what they don't know. For example, a software developer should build flexibility into their technology, as the world may look very different in a few years. It helps to look at your business case from another's perspective. Our advice is: focus on collaboration and enrich each other's perspectives. That is the key to success.’

Action agenda

Leibbrandt's team conducts extensive research into the digital transition of the energy system. This is why the Ministry of Climate Policy and Green Growth (KGG) has asked TNO to develop an action agenda for energy system digitalisation, in collaboration with all stakeholders. This creates a community with a clear goal where players in the energy transition can practice situational awareness. Leibbrandt: ‘We gather with energy suppliers, grid operators, IT companies, energy management system suppliers, and equipment manufacturers. Together, we outline what needs to change for a reliable, flexible, and sustainable energy supply. What steps should we take? Then, let's get started: who will manage which task?’

Would you like to stay informed about the action agenda and join its implementation? Contact Wouter Leibbrandt.

Interesting quest

Van der Veen is convinced that strong situational awareness will help stakeholders solve system digitalisation issues. ‘They describe their world so others can understand a part of it. It may turn out that working together is better than 'each for themselves'. If you are transparent about your plans, it can give others confidence that they are also on the right track. It's not a master plan, but a recipe for a continuous search for improvement and progress.’