Future of energy: digitalise today for a sustainable tomorrow

As Europe maintains its focus on the ambitious journey towards Net Zero, the scale of the challenge is enormous. The aging grid infrastructure, with 40% of it over four decades old, and the increasing role of non-energy companies (Amazon, Microsoft) in the sector are contributing to the complexity of the energy landscape.

To reduce greenhouse gas emissions by 55% and achieve a 45% share of renewables by 2030 as planned, Europe must build a smarter, digitalised energy system. This transformation is not optional; it is a necessity for the future of energy, where digitalisation will play a pivotal role in navigating the complexities of the landscape and ensuring a sustainable tomorrow.

Read on as we explore the evolving landscape of energy systems, the importance of planning and digitalisation, and the critical steps organisations can take to build a robust energy ecosystem capable of meeting the ambitious goals of a sustainable, Net Zero future.

What is digitalisation in energy?

Digitalisation in the energy sector is the use of digital technologies to optimise energy generation, transmission, distribution, and consumption. It includes:

• Smart grids for efficient power supply 
• Predictive maintenance solutions in power plants 
• Real-time data platforms for better decision-making 
• Smart energy solutions for managing the increased volatility of renewables 
• Support of decentralised prosumer solutions

Digitalisation offers an alternative to building new infrastructure, which can be costly and slow to implement. It can help energy players maintain high service quality without requiring extensive civil works and installations.

Traditional energy system

The traditional energy system of 20 years ago was characterised by centralisation and simplicity. For instance, in the UK, there were only 50 to 100 power stations across the entire country. These stations operated continuously, with a few providing the necessary flexibility to meet fluctuating demand. If there was a sudden spike in energy consumption— such as the entire nation watching a football match—the national grid would simply call up the relevant power station and ask them to ramp up the turbines.

Communication was straightforward, often done via a simple phone call, and demand calculations were done manually with pen and paper. In this system, the need for digitalisation was minimal, as the entire process could be managed through direct human intervention and analogue tools.

Future energy ecosystem

The future energy ecosystem will be vastly different from its predecessor. In the near future (and in some cases, already today) energy decisions will no longer be made by centralised power stations, but by a diverse array of entities, each with unique needs:

• Devices: Smart appliances, electric vehicles, solar panels, and batteries are becoming commonplace in households and businesses. Each device has its own energy requirements and usage patterns, contributing to a decentralised energy landscape.
• Households: Individuals now have greater control over their energy use, whether through smart home systems or direct management of appliances. This introduces a new behavioural layer to the energy system, as people’s preferences don’t always align with the optimal times for energy consumption.
• Businesses: Corporations, especially tech giants like Amazon, Google, or Microsoft, are not only large energy consumers but are increasingly becoming energy producers. For example, Amazon added over 100 wind and solar projects in 2023 alone, and now operates more than 500 renewable electricity generation projects across 27 countries. Once fully operational, these projects will generate over 77,000 GWh of electricity annually.

Discover what the future energy ecosystem will look like and how organisations like yours are already paving the way in digitalisation through our interactive experience below.

In this new ecosystem, managing energy flows is far more complex. Not only are businesses and households becoming intelligent actors in producing, storing, and consuming energy, but smart devices are as well. With IoT and AI-driven solutions, every device—from refrigerators and cars to cold storage units—becomes a decentralised and autonomous element for managing energy peaks.

You’re no longer coordinating a few power stations centrally but tens of millions of devices, each operating on individual needs and choices. This new ecosystem will be very powerful but is also less stable than the old, requiring the energy sector to undergo a huge transformation.

In this context, digitalisation is not just beneficial—it is essential. The only way to manage the immense flow of information, communicate effectively with millions of devices, and keep the lights on every day – without investing into a brand-new infrastructure – is through advanced digital tools and concepts.

For instance, network companies need to predict how large a substation needs to be, or the capacity of cables required to support an area’s future energy demands. Without accurate projections, we risk imposing limits that could hinder progress and create problems down the road.

To avoid this, we must understand the landscape in detail and predict future energy hotspots well in advance. That’s no easy feat and the planning process is further complicated by factors like: 

• Environmental concerns: energy projects must be designed to avoid harming local ecosystems, such as ensuring that wind turbines do not disrupt fish or bird populations. 
• Infrastructure synergies: planning energy infrastructure must be done in conjunction with other needs, like water resources, which may require the placement of energy facilities in specific locations. Here, it’s crucial to consider the interdependencies and effects across systems and markets to ensure reliability. 
• Industrial growth: balancing the need for job creation and economic expansion with the availability of energy infrastructure is crucial. Companies may hesitate to invest in areas without reliable information about energy connections, even if conditions are ideal.

All these considerations lead to a huge information challenge. How can we design a country’s infrastructure in a way that securely integrates energy systems with all other critical needs?

Achieving Net Zero is an ambitious goal that requires more than just a commitment to renewable energy—it demands a comprehensive systems architecture capable of managing the complexities of the future energy landscape. At Zühlke, we call this a Net Zero Systems Architecture and it is one that will enable us to:

1. Manage the diverse energy needs and actions of devices, people, and businesses. 
2. Gain a clear view of the current energy landscape and its future, allowing us to make informed decisions that will benefit us for years to come.

Without a Net Zero Systems Architecture, we risk a grid that’s unable to cope with the influx of renewable energy or maintain stability. Even if we manage to integrate high levels of renewables, without the right systems in place, we could lose control of grid stability, leading to potential brownouts or other disruptions.

Considering the above, what are the initial steps for Europe to get to Net Zero? Let’s take a look.

Imagine a world where data flows seamlessly, driving precise system planning and ensuring efficient operation even as renewable energy sources and connected devices multiply. This vision of the future energy landscape—one where humans design and computers execute—can only be realised through full-scale digitalisation. 
 
The energy system of tomorrow will be vastly different from anything we've known. It will be a dynamic, interconnected web of devices, consumers, and businesses, all operating in harmony thanks to the power of data. This digital transformation will enable us to optimise for the lowest carbon footprint and the most cost-effective solutions, ensuring that consumers have access to reliable and affordable sustainable energy. 
 
One of the most exciting prospects of this digital transformation is the innovation it will require. With a vast amount of data available, a level playing field will emerge, sparking innovation across the energy sector, leading to new use cases and technologies that we can only begin to imagine. 
 
Our experts understand the intricacies of both energy systems and digital technologies and are ready to help you on this transformation journey. From the initial deployment of secure connected devices to the full-scale integration of a Net Zero Systems Architecture, we are equipped to help you navigate this complex landscape. 
 
The road to Net Zero is challenging, but with the right digital tools and strategic partners, it’s a journey we can—and must—undertake together.

Explore our roadmap to a digital, resilient grid and discover actionable insights for navigating energy’s digital transformation in the short, medium, and long term.