NESO to coordinate the delivery of energy data sharing infrastructure

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Ofgem have asked the National Energy System Operator (NESO) to coordinate the delivery of the data sharing infrastructure for the energy sector until 2028. This is a significant step forward in the digitalisation of the energy sector, building on DESNZ’s response to the Digital Spine Feasibility Study. 

NESO are uniquely positioned to run the set up of the data sharing infrastructure. They have a holistic oversight of both electricity and gas networks and can ensure an integrated approach. As an independent, publicly owned body, NESO provides impartial expertise and will prioritise public interest and system-wide benefits.   

The UK’s electricity network is racing to incorporate the developments necessary to deliver power generated by renewable sources. This comes with a list of problems to solve. We need to make sure we don’t overbuild and put too much strain on the network, manage intermittent sources to provide a reliable stream of energy to consumers, and ensure that suppliers can offer fair tariffs that pass savings onto consumers. 

The integration of digital technologies will enable real-time decision making about how to manage the energy network in an intelligent, efficient, reliable, and sustainable way. For example:  

  • Smart Grids: Smart grid technologies provide real-time monitoring of the flow of energy through our system. For domestic consumers, smart meters help manage energy use more efficiently     
  • Internet of Things (IoT): IoT sensors and devices are being integrated across the grid to monitor equipment health, grid conditions, and environmental factors. This data helps improve grid management and predictive maintenance, reducing downtime during outages    
  • Digital Twins: Digital twins are virtual replicas of physical systems. They are used to simulate and analyse the performance of energy assets, enabling better decision making and fine-tuning processes    
  • Integration of Distributed Energy Resources (DERs): Advanced control systems to manage the integration of renewable energy sources, energy storage systems, and other distributed energy resources   
  • Data Sharing Infrastructure: The processes, systems and governance structures that make data exchange across the energy sector secure and efficient  

Data Sharing Infrastructure facilitates the digitisation of the UK energy system whilst making sure everything is safe and secure and runs efficiently. This will include:    

  • ensuring different systems and devices can communicate seamlessly; this is essential for integrating energy assets and technologies    
  • protecting sensitive data; employing robust security measures to safeguard data against unauthorized access and cyber threats    
  • standardising the format in which data is exchanged, making it easier to use across different platforms and applications    
  • establishing an effective governance structure for managing and operating the data sharing infrastructure; this includes defining roles and responsibilities and agreeing protocols for data sharing    
  • promoting innovation in the energy sector, clearing the path for the development of services and solutions that improve system efficiency and support the transition to a smart and flexible energy system  

Ambitious digitalisation is essential to deliver a cheaper, more sustainable energy system. We have seen notable improvements over the past 5 years. Announcing NESO as the lead on this work is an exciting step forward when it comes to the wider digitalisation mission.  

We need industry to invest more in data, improve data quality, treat information as an asset, and work towards a culture of data sharing. Only through such a transformation can we realise the full potential of digitalisation and move forward in the transition to a more sustainable energy future.   

Read our decision on Governance of the Data Sharing Infrastructure.

Read NESO's press release 'NESO Appointed by Ofgem as Interim Data Sharing Infrastructure Coordinator'.