Strategy for smart systems, digitalisation

Cutting-edge smart technologies will ensure the lights stay on and energy bills are cut, as demand for electricity intensifies and fossil fuels are phased out in the UK, in new plans laid out by the UK government.

Published jointly by the government and Ofgem, the Smart Systems and Flexibility Plan and Energy Digitalisation Strategy deliver on the commitments made by the government in theEnergy White Paperand represents a significant step forward on the path to providing flexibility for our energy network.

In the Smart Systems and Flexibility Plan, the government and Ofgem are driving forward plans for innovative new systems that could allow electricity generated by clean renewable sources to be stored at large scale and over longer periods, so it is ready to meet the challenges of energy system decarbonisation. Such technologies include pumped hydro storage, compressed air energy storage and the conversion of power to hydrogen so it can be used to generate electricity.

In addition, the plan looks at how electricity interconnectors with other countries can help balance the system and decarbonise at least cost.

Jonathan Brearley, chief executive of Ofgem, said: “This plan is essential to hitting the UK’s net zero climate goal while keeping energy bills affordable for everyone. It requires a revolution in how and when we use electricity and will allow millions of electric cars, smart appliances and other new green technologies to digitally connect to the energy system.”

The Energy Digitalisation Strategy will examine how energy system data is used so that the full potential of cutting-edge technologies can be realised and consumers can gain maximum benefit from new digital products and services.

Smart and flexible energy systems will be needed if the UK is to meet its world-leading commitments to tackle climate change by 2050. Meeting an increasing demand for electricity, as fossil fuels are phased out, will require a system which ensures the supply of clean energy from renewable sources is guaranteed even when the wind is not blowing or the sun is not shining.

Unleashing the full potential of smart systems and flexibility in our energy sector could reduce the costs of managing the system by up to £10bn a year by 2050, as well as generate up to 10,000 jobs for system installers, electricians, data scientists and engineers.

A further 14,000 jobs could also be created by the export potential of these new technologies. For consumers, the benefits range from households being able to trade back their excess energy to reduce bills, through to knowing when the costs of running household appliances like washing machines and dishwashers are at their lowest.