Roundtable ‘Digitalisation in the energy transition’

An ongoing quest

On 23 March 2023, the roundtable ‘Digitalisation in the energy transition’ took place at the EnTranCe Energy Barn in the city of Groningen. The King’s Commissioner René Paas introduced this roundtable. Looking for answers, the participants pondered the role, challenges and opportunities of digitalisation in the energy transition. It can be concluded that the many-headed monster called the energy transition requires parties within new ecosystems to step over their shadows to tackle the various challenges within renewed business models. Although Groningen is not big enough to face the climate crisis alone, René Paas was confident that the road to Paris will pass through Groningen.

The role of data in the energy transition

In the keynote, Johan Knijp, Manager Technology Center Groningen at DNV, zoomed in on the role of data in the energy transition. What kind of things can data do for renewable energy sources, means of transport and switching industries? In what ways can data from different energy systems complement each other and how can digital twins, for example, be used to proactively, rather than reactively, maintain electricity infrastructure? Many questions passed in review, in which connecting associated technologies, within and across ecosystems, was seen as necessary. Artificial Intelligence has great potential in this, with the associated privacy impact and energy intensity not to be ignored. To really get data sharing going, the further determination of data ownership and related roles will be important.

The role of IT in the energy transition

After the keynote, the first round table session started, with the topic ‘the transition to a sustainable energy landscape’. In the introduction by Robert Hoekstra, Director Consulting Expert at CGI, it became clear that in this new energy landscape, the focus is shifting from a demand-driven to a supply-driven model. Flexibility is gaining value in this as we move towards a more unpredictable energy system. In order to predict and steer properly, it is essential to possess the right data. Whereas energy systems used to be mostly self-contained, we will have to look beyond energy carriers. Connecting data hubs can be expected to play an even more important role in tomorrow’s energy system than they already do. In summary, bits and bytes, alongside molecules and electrons, are needed for the complexity of the energy transition.

During the discussion, it became clear that a lot of research is being done by educational institutions on this topic. Interdisciplinary and cooperation with industry appears to be the key to success here.

Participants agreed that IT can promote cooperation in, for example, the electricity market. For some points, it will also be necessary to look at the new normal. For instance, when should energy consumers scale down and producers step up? When do we trade our energy and what agreements are in place? And how do we free up grid capacity through IT?

How do we find the balance?

In the second round, Greetje Bronsema, Energy Transition Advisor at Enexis, took us into the world of electricity infrastructure. This is because the transition to a sustainable energy system is also a major challenge for grid operators. The growing demand for electricity will require the grid to be drastically expanded. However, grid operators are often still struggling to keep up with these required expansions due to various reasons. For instance, in the context of the connection obligation, energy supply and demand in areas are not always well matched yet. Furthermore, a lot of time can go into spatial planning procedures and there is the general shortage of technically trained personnel. All of this together means that smart choices will have to be made to regulate infra demand, now and in the future. In addition, we will have to learn together how to make optimal use of the existing connections and get more flexibility in electricity supply and demand.

During the discussion, it became clear that the biggest challenge will be to match supply and demand spatially. More flexibility is needed here, to make better use of grid capacity. Long-term collaborations with and between market players will be crucial in this respect. Large consumers, for instance, can help grid operators with balancing, by predicting the quantities of electricity to be consumed in increasing detail and proactively sharing these insights. In addition, value is seen in making better use of various energy storage methods, such as underground hydrogen storage, and working in local energy hubs. If properly deployed, such hubs establish a more direct link between energy generation and consumption. Through this decentralised energy infrastructure, less load is placed on the grid and less energy is lost before and during energy transport.

How do you train the professional of tomorrow?

The necessary adjustments to the electricity grid, exploiting storage methods and working in local energy hubs naturally require technical professionals. Unfortunately, these are not always easy to find. In the third roundtable, building on an introduction by Wim van de Pol, Chairman of the Executive Board at the educational institution ROC Noorderpoort, the question ‘how to train the professional of tomorrow?’ was addressed.

In general, the skills needed for the future will have to become clear in practice. By creating a hybrid learning environment, education and the professional field are currently being linked already. Trial-and-error learning, in the form of internships and work-and-learn sites, provides a steep learning curve. However, the perception of technical practical training does not always match reality. Participants agree that paying attention to technological innovations from primary school onwards, for example focusing on drones and virtual reality, can help spark interest in a technical subject.

In addition to (vocational) education and retraining, Van de Pol says the existing labour force with a distance to the labour market should also be explicitly included in this shift. After all, there is a large unused potential of people who would like to work, but for various reasons do not always find jobs easily. As a solution to this labour issue, participants saw great value in increased cooperation between educational institutions, business and government. The discussion revealed that a large proportion of the employers present were willing to further shape this hybrid sustainable learning environment together with vocational education. This aimed at the entire workforce, with the overarching goal of ‘training the energy professionals of the future’.

How do you finance uncertainties?

From electrons and molecules, Erik Lücke, Director Cooperative Rabobank City & Central Groningen, took us to the euros in the final roundtable. After all, the energy transition in the Netherlands is currently threatening to stagnate because a large part of the required investments are proving difficult to finance. After all, what exactly is one investing in? How much money is needed and what is the expected return? If anything is clear, it is that there are many uncertainties surrounding the energy transition. But how do you finance those uncertainties?

Whereas financing was previously allowed on trust, nowadays many laws and regulations have to be complied with. And that is exactly the problem when we talk about financing, for example, a hydrogen electrolyser. What are the operational costs of such an asset and can the bank rely on future cash flows?

The discussion showed that innovative forms of financing are needed precisely here, labelled separately from general banking conditions. For new financing, it is important to include everyone in this, for instance by organising a financing table at society level. In this, we can talk to each other about financing common facilities.

An ongoing collaboration

As part of the ongoing transition to renewable energy sources, the energy landscape is becoming more diverse, supply-driven and unpredictable. A major challenge in this transition is to keep energy supply and demand spatially aligned. To keep optimising the many-headed energy system, consisting of different energy sources & carriers, flexibility, among other things, will play an increasingly important role. Practical adjustments, within for example the electricity infrastructure, and the supporting role of data in all this are necessary for this ongoing transition. Besides, for instance, predicting the most appropriate moment to perform maintenance on energy-related assets, predictions of demanded and offered amounts of energy will also allow energy storage methods to be deployed more effectively. All this requires substantial investments, which themselves require innovative forms of financing. At the same time, we must also invest in training enough skilled energy professionals. A symbiotic collaboration between industry, educational institutions and government seems to be the key to success here. This roundtable discussion was a first step towards such a symbiotic cooperation, with the importance of continuing to strengthen and exploit it in the future.

This article was written by Mare Visser (New Energy Coalition) and Tim ten Brundel (CGI). For more information about CGI: cgi.com/uk/en-gb

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