The Role of Data and Digitalisation in the Energy Transition

Introduction

The energy transition in Great Britain is not just about new sources of generation or the electrification of heat and transport—it is fundamentally about data. As the system becomes more decentralised, dynamic, and consumer-centric, the ability to collect, process, and act on data in real time is transforming every aspect of the market. Data and digitalization are the connective tissue enabling net zero, unlocking flexibility, and empowering consumers. Yet, the journey is complex, with technical, regulatory, and cultural challenges at every turn. In this article, I’ll explore the central role of data and digitalization in the GB energy transition, the policy and regulatory frameworks shaping this evolution, the opportunities and risks, and the path forward.

1. The Digital Backbone: Why Data Matters

1.1. System Visibility and Control

Historically, the GB energy system was built for one-way flows: large, centralised generators feeding passive consumers. Today, the proliferation of distributed energy resources (DERs)—solar, batteries, electric vehicles (EVs), heat pumps—means the system is more complex and less predictable. Real-time data from smart meters, sensors, and distributed assets gives system operators, suppliers, and networks unprecedented visibility and control.

National Grid ESO’s Control Room now ingests millions of data points per second, from frequency and voltage to weather and market prices (ESO: Control Room).
Distribution Network Operators (DNOs) are evolving into Distribution System Operators (DSOs), using data to manage local constraints, procure flexibility, and integrate DERs (ENA: Open Networks).

1.2. Flexibility and Market Innovation

Data is the enabler of new market products and services:

Dynamic Tariffs: Time-of-use and real-time pricing depend on granular consumption data.
Local Flexibility Markets: DNOs use data to identify congestion and procure flexibility from local providers.
Peer-to-Peer Trading: Platforms like Piclo and Electron are piloting local energy trading, underpinned by real-time data flows.

1.3. Consumer Empowerment

Smart meters and digital platforms give consumers access to their own data, enabling informed choices, participation in demand-side response, and access to innovative tariffs. The Smart Energy Code (SEC) governs data access, privacy, and interoperability.

2. Policy and Regulatory Frameworks

2.1. The Energy Digitalisation Taskforce

In 2022, the Energy Digitalisation Taskforce set out a vision for a digitalised, interoperable energy system. Key recommendations included:

Open Data by Default: Making non-personal system data freely available to support innovation.
Digital Infrastructure: Investment in digital platforms, APIs, and data standards.
Consumer Data Rights: Ensuring consumers control their data and benefit from digital innovation.

2.2. Ofgem’s Digitalisation Strategy

Ofgem’s Digitalisation Strategy and Action Plan sets expectations for networks and market participants to invest in digital capabilities, open data, and cyber resilience. Ofgem’s RIIO-2 price controls require networks to publish digitalisation strategies and demonstrate progress.

2.3. Industry Codes and Data Governance

Smart Energy Code (SEC): Governs smart metering data, privacy, and access.
Balancing and Settlement Code (BSC): Elexon is digitalising settlement processes, including Market-wide Half-Hourly Settlement (MHHS).
Retail Energy Code (REC): Covers data flows for switching, customer information, and market processes.

3. Digitalisation in Practice: Key Initiatives

3.1. Smart Metering

Smart meters are the foundation of digitalisation at the edge of the system. As of 2022, over 27 million smart meters have been installed, providing half-hourly data for settlement, flexibility, and consumer services (Ofgem: Smart Meter Statistics). The Data Communications Company (DCC) manages secure data flows between meters, suppliers, and central systems.

3.2. Open Data Platforms

National Grid ESO’s Data Portal: Provides open access to system data, including grid frequency, balancing actions, and market prices (ESO Data Portal).
DNO Data Platforms: UK Power Networks, SP Energy Networks, and others are publishing network data to support local flexibility and third-party services.

3.3. Digital Twins and Advanced Analytics

Digital Twins: Virtual models of the energy system are being developed to support planning, scenario analysis, and real-time operation (ESO: Digital Twin).
AI and Automation: Advanced analytics are optimising grid balancing, forecasting, and asset management.

3.4. Case Study: Piclo Flex

Piclo Flex is a leading digital marketplace for local flexibility, matching DNOs’ needs with providers in real time. The platform relies on open data, standardised APIs, and digital contracts to enable efficient, transparent transactions (Piclo Flex).

4. Challenges and Barriers

4.1. Data Quality and Interoperability

Fragmented Systems: Legacy IT systems, inconsistent data standards, and siloed platforms hinder data sharing and integration.
Data Quality: Inaccurate or incomplete data undermines trust and limits value.

4.2. Cybersecurity and Privacy

Critical Infrastructure: As the system digitalises, the risk of cyberattacks increases. Ofgem and the National Cyber Security Centre (NCSC) set standards for resilience.
Consumer Trust: Ensuring robust privacy protections and clear consent mechanisms is essential for public confidence.

4.3. Digital Exclusion

Access and Literacy: Not all consumers have equal access to digital services or the skills to use them. The risk of digital exclusion must be managed through inclusive design and support.

4.4. Regulatory and Commercial Barriers

Code Complexity: Navigating data governance across multiple codes (BSC, SEC, REC, DCUSA) can be daunting for innovators.
Value Realisation: Monetising data-driven services and sharing value fairly across the system remains a challenge.

5. The Path Forward: Unlocking Value

5.1. Open Data by Default

The Taskforce’s recommendation for open data is being implemented through industry initiatives and regulatory requirements. The Modernising Energy Data Access (MEDA) competition is funding new platforms and standards.

5.2. Digitalisation Strategies and Investment

Networks and market participants are required to publish and deliver digitalisation strategies, with Ofgem monitoring progress through RIIO-2.

5.3. Consumer Data Rights and Engagement

Data Portability: Consumers should be able to access and share their data easily, enabling switching, new services, and innovation.
Engagement and Education: Building digital literacy and trust is essential for widespread participation.

5.4. Whole-System Digitalisation

Integration Across Vectors: Digitalisation must span electricity, gas, heat, and transport, enabling whole-system optimisation.
Collaboration: Success depends on collaboration across industry, regulators, innovators, and consumers.

6. Future Outlook: Digitalisation in 2024 and Beyond

6.1. Digital Twins and System Operation

By 2024, digital twins are expected to be operational at both transmission and distribution levels, supporting real-time optimisation and scenario planning.

6.2. AI-Driven Markets

AI and machine learning will increasingly drive forecasting, trading, and system balancing, enabling more dynamic and efficient markets.

6.3. Consumer-Centric Innovation

Personalised tariffs, automated demand response, and peer-to-peer trading will become mainstream, underpinned by secure, interoperable data flows.

6.4. Regulatory Evolution

Ofgem and BEIS will continue to evolve regulatory frameworks to support digital innovation, open data, and consumer protection.

7. Lessons Learned

Digitalisation is Foundational: The energy transition cannot succeed without robust, interoperable, and secure data systems.
Openness and Collaboration: Open data and industry collaboration are essential to unlock innovation and value.
Consumer Trust and Inclusion: Digitalisation must be inclusive, secure, and focused on delivering real benefits to all consumers.

Conclusion

Data and digitalisation are the backbone of the GB energy transition. The journey is complex, but the prize is a more flexible, efficient, and consumer-centric energy system—capable of delivering net zero, resilience, and innovation at scale. The next phase will require continued investment, regulatory evolution, and a relentless focus on openness, security, and consumer benefit.

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