Energy system digitalisation

This programme’s name has changed from Energy Data and Digitalisation to Energy System Digitalisation.

Digitalising the energy system is essential for the UK to achieve net zero carbon emissions by 2050. The UK is currently experiencing the largest expansion of the electricity network in a generation, with risks of overbuild amid uncertainty of the scale and pace of demand growth. 

Inefficient management of intermittent renewable energy sources, like wind and solar power, and the ability to reduce complexity of tariffs puts consumers and businesses at a financial risk.

Unless we tackle these issues using modern digital technologies and high-quality data inputs, consumers and businesses may face significant additional energy costs.

Modernising the energy system

The Energy Data Taskforce was first commissioned in 2018. Later in 2021, the Energy Digitalisation Taskforce was commissioned by the government, Ofgem and Innovate UK. A clear mandate and blueprint to modernise the energy system has been set by these taskforces. 

A fundamental digital transformation is needed across the sector. The energy network and system operators must have better visibility of all data assets involved from generation to transmission and distribution to end use.

We are working with industry stakeholders to make sure that the transition to net zero uses a flexible, resilient and efficient energy system that works for everyone. The future energy system requires better quality and more easily accessible data than is currently available, to ensure a net zero energy system is operated at least cost for consumers. 

Reliable and standardised data transfers that operate effectively will positively impact the management of capacity across networks, the rise of millions of distributed assets, the interconnected nature of different systems and operators as well as decentralisation.

Benefits

A digitalised energy system will bring benefits, such as:

• more transparent operation of the energy system
• support for network companies to address demand growth
• lower costs for consumers and businesses
• reduction in carbon emissions
• improving energy resilience

What we are working on

Learn more about what our current projects are and how they help towards our goal of digitalising the energy system.

If you want to know more about any of our projects or have any questions, please contact us at digitalisation@ofgem.gov.uk.

Data sharing infrastructure (DSI)

The Data sharing infrastructure (DSI) project focuses on facilitating a secure, trusted, and efficient exchange of data between different systems, organisations, or entities within the energy sector. This promotes and enables greater collaboration and innovation across the energy sector.

The Future systems and network regulation (FSNR) framework decision overview was published in October 2023. We have decided to develop a pathway towards delivery of a DSI as an outcome of the consultation.

The project is being developed through existing funding with a limited pilot late 2024. A consultation on governance models for DSI will also open in summer 2024.

Consumer consent

The energy system does not fully utilise the data it generates, particularly consumer data. With an increasingly decentralised energy system, consumers need more empowerment and need to trust the way they share their data is safe and secure.

We are working to make sure that consumers have control over their own energy data. This includes the ability to securely share their energy data with trusted market participants. This means that market participants can provide consumers with services such as lower bills, greener energy or a more efficient and hassle-free energy experience.  

Read more about the ideas proposed to streamline the consent process for consumers in our Call for input: data sharing in a digital future.

Data best practice guidance

Electricity and gas network licensees have to follow our Data best practice guidance. It is part of the conditions in their energy licence. The guidance outlines how to bring together datasets from different systems to improve overall data sharing across the energy sector.

The main principles are to:

• maximise the value of data by ensuring it can work in an interoperable way across the energy sector
• enable energy sector data to be discovered, surfaced, and utilised
• allow data users to engage with data holders to express their needs

The guidance is currently expanding out to other areas of the energy sector, to increase the discoverability, utility, and openness of all energy data.

Read more about changes to the Data best practice guidance in our consultation findings.

Data and digitalisation in network price controls 

We set price controls for the gas and electricity network companies of Great Britain (England, Scotland and Wales). Northern Ireland is not included in this.

Price controls balance the relationship between investment in the network, company returns and the amount that they charge for operating their respective networks. 

As part of this process, we are making sure that network companies invest in the digitalisation and data needs that are required to decarbonise and maintain resilience at a low cost for consumers and businesses.

Contact us

Want to know more about what the Energy System Digitalisation programme does? Get in touch with us at digitalisation@ofgem.gov.uk for information.