Platforms and Ecosystems Revolutionise the Energy Transition
With the pressing demands for energy continuing to escalate as pressures to curb its environmental impact climb, governments and corporations alike are turning to technology to enhance the sustainability credentials of their activities.
Digital platforms and ecosystems have emerged as pivotal forces in transforming the energy landscape thanks to their ability to enhance operational efficiency and optimise the likes of energy production, distribution and consumption.
By seamlessly integrating cutting-edge technologies such as IoT, AI and blockchain, these platforms not only boost productivity and sustainability but also pave the way for a more resilient and adaptive energy future.
Platforms — digital frameworks that enable interactions, services and transactions between users — often integrate multiple technologies, whereas ecosystems – interconnected networks of platforms, organisations and technologies – collaborate and co-evolve to create value, drive innovation and enhance efficiency across industries by leveraging shared resources and data.
This data- and technology-driven approach is set to revolutionise the energy space as it motions toward a more sustainable-conscious future, as executives operating in the space explain.
Platforms and ecosystems are transforming complex datasets into actionable insights
“As digitisation revolutionises the way we work and interact, energy fundamentally becomes more distributed,” Frédéric Godemel, Executive Vice President Global Power Systems and Services at Schneider Electric begins.
Frédéric works within Schneider to tackle the daunting challenge that comes with increasing network output and efficiency by connecting more renewables to the grid and ensuring emissions don’t rise in parallel. This comes in the form of the company’s next-generation services — including EcoCare, EcoFit and EcoConsult — which provide unique access to Schneider’s expertise across the entire lifecycle of assets and systems. These products and innovations are stellar examples of how platforms and digital ecosystems are positively contributing to the energy space.
“The world can no longer work in independent silos,” Frédéric continues. “The need for better integration and collaboration has unearthed new opportunities and solutions.
“No business can achieve the crucial transformation alone and no solo player can provide each puzzle piece. The phases of transformation — design, build, operation, maintenance and improvement — require a complete ecosystem of partners working together.”
Schneider’s EcoStruxure platform is a prime example of this transformation, having enabled clients to reduce carbon emissions by up to 50 million tons of CO2 annually.
Ruben Van den Bossche, Co-Founder and CEO of Belgian energy tech company Gorilla concurs. Gorilla is a vertical, SaaS-based data platform that offers energy-specific, configurable applications, with clients including British Gas’ parent Centrica, Shell Energy and Atlanta-based Gas South. It works to empower energy companies to reinvent their offerings with data to align financial and net-zero goals by leveraging big data to accurately price their products amidst market volatility to better manage the energy transition.
“Our customers need us because, firstly, renewable investments are continuing to increase,” he says. “To manage the financial risk of the resulting increase in energy price volatility, the amount of data in the energy market is exploding. Smart meter adoption is reaching a critical point and regulations are driving data availability and incentives to leverage this data to hit society’s net zero targets.
“Secondly, data technology has quickly matured to enterprise level. Enterprises are recognising the value of data-driven insights for decision-making and operational efficiency. IT budgets are increasingly being directed towards data, AI and predictive analytics, while SaaS budgets are under pressure. This accelerates a transition from standard day-night tariffs to personalised tariffs, providing financial incentives for shifting energy consumption to times when carbon-free energy is available.”
With most of the world’s industries digitised to a degree, Ruben highlights how this makes the complexity and scale of the data being handled in energy and utilities vast. Despite the challenges this may throw up, he acknowledges that this is better than defaulting back to traditional tried-and-tested energy software – often patchwork solutions with legacy roots and outdated patterns – which do not thrive under current conditions.
How are digital platforms and ecosystems transforming the energy sector?
According to Jo-Jo Hubbard, Co-Founder and CEO of Electron, digital platforms and ecosystems are transforming the energy sector by enabling real-time, flexible marketplaces that optimise energy distribution and consumption.
Jo-Jo founded Electron, a leading provider of marketplace software for flexibility and distributed energy, off the back of a career with McKinsey and Citi. She emphasises how these platforms facilitate the integration of renewable energy sources, enhance grid efficiency and lower operational costs by automating processes and fostering collaboration among energy providers, system operators and distributed energy assets alike.
Through initiatives like ElectronConnect, for example, these digital solutions are driving the transition from fossil fuels to a renewable-dominated energy system, creating value and sustainability at scale.
“To really scale, flexibility market platforms need to be deployed in the context of an open ecosystem of other services, upstream datasets and downstream analytics,” Jo-Jo attests, highlighting how Electron’s multi-market platform ElectronConnect boasts innovative features and methodologies to ensure seamless and efficient management within increasingly complex energy grids.
She continues: “ElectronConnect is built to accommodate day-ahead and future-focused real-time markets and asset trading options to maximise the uptake of renewable energy and grid capacity.
“We understand that greater volumes of flexibility will drive more value for system operators — and more value will drive greater volume fromFlexibility Service Providers (FSPs). These twin needs must be addressed together to start the virtuous circle.”
As energy costs rise, technologies move faster and commitment to sustainability becomes increasingly paramount. This, Frédéric adds, brings home the need for a “trusted, devoted ally” in the form of technologically-driven infrastructure.
“Armed with comprehensive knowledge of the unique systems that power their business, customers can make the best decisions in a challenging context of changing regulations, data requirements, technologies and energy mix,” he asserts.
Giving an example, Ruben adds: “Our platform thrives on automation. The speed and quality of data collection also strengthens our customers’ ability to forecast. We can help model the outcomes of various scenarios simultaneously, allowing providers to react swiftly to uncertainty.
“Grid stress events, new regulations, extreme weather — we can account for them all.”
However, the implementation of technology to enhance energy companies’ operations brings the challenges faced in integrating new technologies to the fore. This can be attributed in part to legacy systems, the ever-growing skills gap and increasing regulatory hurdles.
While overcoming these requires a phased approach to integration, investment in workforce training, as well as early engagement with regulators, is required to bridge this gap — and solutions like Schneider Electric’s modular systems, Gorilla’s automation and Electron’s flexibility services offer practical ways forward.
“Integrating new technologies into or around legacy systems poses several challenges,” Ruben declares. “For example, there are plenty of market experts in the energy industry, but energy data platform experts aren’t as common.
“Energy companies should partner with globally-minded technology providers — like Gorilla — which can bridge both the data gap and the expertise gap.
“Comprehensive and collaborative planning, and a phased approach to implementation, can mitigate the risks and ensure a smooth transition to the newer infrastructure. This lets in-house teams focus on generating value and getting energy sold at the right price, rather than getting bogged down in endless system tweaks.”
Frédéric concludes: “As the transitioning energy system increases its reliance on clean technologies, the energy labour workforce must acquire the expertise and skills needed to support the energy transition and electrification at scale.
“With digital innovation, the invisible can become visible. Digital technology such as monitoring enables businesses to see how energy is being used. Combining this visibility with analytics and software goes a step further and enables the deployment of smart energy more efficiently.”
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