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Digitalization in the energy transition:�A system challenge

Bas Huijbrechts

Digital Transition Energy Systems

bas.huijbrechts@tno.nl

Energy workshop Eindhoven, 18 Sept 2024

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Outline

Energy workshop

  • TNO & DTES
  • Energy transition: key drivers and consequences
  • Why digitalization?
  • NPE: coordination in a fragmented landscape
  • Raising to system level
  • Example of digitalization: flex
  • Summarizing

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We are TNO

TNO’s mission is to create impactful innovations for the sustainable wellbeing and prosperity of society.

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DTES targets enablement of the energy ecosystem to fully benefit from digitalization, creating flexibility without losing reliability of the Dutch energy system by providing a systems approach and state-of-the-art digital systems engineering methodologies and skills.

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Energy workshop

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The key drivers and their consequences

Energy workshop

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Climate goals

Economic

Intermittent and unpredictable energy supply

Massive electrification

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  • -55% in 2030; -100% in 2050
  • Phase-out fossil fuels
  • Shift to renewable sources
  • Efficiency increase
  • Solar and wind now cheaper than gas or coal plants
  • (Levelized cost of electricity)
  • 40% electricity solar/wind in 2023; growing fast
  • Demand 🡪 supply driven
  • Flexibilization of energy
  • EV’s, heatpumps, industry, …
  • Up to 5x increase in electricity demand in 2050
  • Smarter use of infrastructure

Unprecedented engineering effort in times of scarcity of experts and tight labor market

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Grid operator scaling challenges

Energy workshop

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In the next 10 years:�

  • 1 in 3 streets must be dug open to reinforce electricity cables
  • 4 times as many new electricity stations must be built as in the last 25 years
  • Workforce must double to do the job

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Fragmented field, many stakeholder perspectives

Energy workshop

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Energy Supply Chain

Energy Hubs

Service Market

Energy Cooperations

Policy & Regulation

‘customers will get the right to sign multiple, long-term secure and dynamic pricing, contracts with different suppliers at the same time’

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‘customers will be able to share their renewable energy with anyone, outside their suppliers’

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Why does the energy transition need digitalization?

Energy workshop

  • Demand-side matching – balancing challenge
  • Effective use of grid – congestion challenge
  • Grid control and grid recovery – stability challenge
  • Collective ownership asks for a collaborative system approach
  • Optimize mix energy carriers
  • Insight and comfort to consumers and users
  • Productivity increase (digital engineering)
  • New business models
  • Adaptable to needs, trends and policies

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Capaciteitskaart afname elektriciteitsnet July 2024 (source: Netbeheer Nederland)

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NPE: Digitalization offers opportunities

Energy workshop

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  1. Maximum supply 

Maximum commitment to the supply of sustainable energy and energy infrastructure.

2. Energy saving

Saving as an important cornerstone of energy policy

3. Smart use of energy and infrastructure

Scarce energy and infrastructure are deployed where they are most needed from a system perspective.

4. International cooperation

Strong international cooperation and a maximally connected energy system.

5. Joint steering

With citizens and businesses, allowing for participation and initiative.

Smarter operational control

  • Making assets controllable
  • Smart algorithms
  • Smart coordination between parties

Current/real-time insight

  • Monitoring
  • AI
  • Sovereignly unlocking measured data

Digital Opportunities

Enable new (market) mechanisms

  • Adapt more dynamically to the market
  • Utilize and valorize hybridization and flexibility

Equipping end users

  • Democratization: enabling active participation in the energy system
  • Facilitating collaboration within hubs and communities

Guiding choices NPE

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Raising to system level,�boundary conditions for successful digitalization

Energy workshop

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Organizing the digital chain

  • Getting the chain started
  • Managing and coordinating dependencies
  • Data, functionality, and regulation

Ensuring robustness

  • Requirements for data and functionality
  • Standardization where necessary
  • Cybersecurity
  • Digital resilience

Future-proofing

  • Facilitating technologies and applications – digital architecture
  • Regulations for digitalization and digitalization for regulations

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Example: Unlocking (all) flex is essential

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Demand-side response required for business case CO2-free energy

Balancing national grid

Congestion in HV & MV grids

Congestion in LV grid

Reduce reinforcement need

Industry

Mobility

Built environment

Need for flex

Flex potential

Much flex in built environment,

but fragmented.

Digitalization key to unlocking!

Energy

hubs

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Digitally disclosing & controlling flex

Energy workshop

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Source: USEF White Paper – Flexibility Value Chain, 2018

Flex demand-side matching�digital control of flex-disclosing devices ..

Flex trading & sharing�.. interacting with digital flex markets

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Summarizing

Energy workshop

The energy transition is a systems level challenge, requiring a system approach

  • Digitalization is essential for the energy transition to succeed
  • Digitalization brings many additional benefits

including new business and earning models, making energy transition a source of profitability

  • Digitalization adds to the system complexity

Net congestion is one of the current consequences of the transition from fossil-based to renewable energy sources

Solutions to congestion are:

  • Costly grid extension and reinforcement (possibly infeasible)
  • Smarter use of the grid by digitalization, including:

optimal use of flexibility potential by automated demand-side matching

consumption from local sources

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October 8: bringing the ecosystem together

Energy workshop

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https://www.tno.nl/nl/newsroom/agenda/digital-energy-systems-event