Utility Week

24 | JUNE 2021 | UTILITY WEEK Policy & Regulation Event Six of the best: accelerating the energy transition From urging companies to fire up consumers about energy, to more efforts to open up data, strong messages emerged in the virtual think-tank convened by Utility Week with Microsoft and Accenture on accelerating the transition to net zero. Denise Chevin chaired. O n 16 June 2020, the UK came to the end of a 67-day, 22-hour, 55-minute coal-free run, which saw the grid go more than two months without using any coal-fired power – for the first time since the Industrial Revolution. As this remarkable achievement demon- strates, the UK can boast considerable suc- cess in transitioning the grid to a low carbon future. Without a doubt, the industry is on an urgent mission. By 2025 National Grid ESO is committed to be able to operate a zero-carbon electricity system. The electricity system will go on to play a critical role in the decarbonisation of transportation and heating as we get to net zero by 2050. Both goals will require radical new approaches, solutions, and skill sets. It was against this backdrop that a num- ber of experts from across the energy spec- trum came together for a virtual discussion convened by Utility Week and its partners Microso' and Accenture to focus on how energy companies can rise to the challenge. The conversation was far ranging, explor- ing issues such as how digital innovation and data can be harnessed to accelerate the pace of decarbonisation, and whether we have the tools, policies and skills in place to move away from centrally generated and distributed power to a digitally managed system with multi-stakeholders and two-way power flows. Here are six key takeaways. 1. Think big, act fast The government's 10-point plan for a Green Industrial Revolution, published in Novem- ber last year, certainly provided a rousing call for the industry to rally behind. It con- tained pledges to quadruple offshore wind capacity, power a whole town on hydrogen and an end to the sale of fossil-fuel powered vehicles, all within nine years' time. How- ever, there are concerns that ambition and delivery mechanisms are not sufficiently aligned. So, the opening gambit we asked our guests to consider was this: are we thinking big enough to get to net zero? Setting the context, Rina Ladva, head of manufacturing, energy, utilities and life sci- ences at Microso' UK, remarked: "It's great to see the UK government continue to make bolder pledges around this. And some of the progress that's been made over the last 24 months, it's been very good. "But one of the things we're focusing on is how we can accelerate that, particularly with digital at the heart of it. We're continu- ing to evolve digital platforms and partner- ships, but there's still quite a fragmented approach in terms of how the ecosystem comes together, how we think about the circular economy around this, and how we accelerate progress." It was announced in February that Micro- so' was teaming up with Accenture to help speed up the UK's low-carbon transition. The companies, in conjunction with their joint venture partner Avanade, will work together to help utilities transform the energy sys- tem and lower the cost of decarbonising the supply and demand of electricity in the UK, underpinned by open data, artificial intelli- gence (AI) and a digital workforce Toby Siddall, lead for Accenture's Resources business in the UK and Ireland, also raised the speed issue: "One thing about net zero that really matters is when we get there. Yes, we may be thinking big enough, but not enough are acting fast enough? We need to pick up our run rate over the next 3-5 years on both supply and demand transfor- mation if we are going to achieve the goals that really matter." Because of the magnitude of the challenge the answer to this question from participants Key points The industry is not short on big ideas to transition to net zero – but is being held back by poor execution and deliv- ery. The UK needs a clear strategy on heat decarbonisation with- out delay. Sharing data is at the heart of a successful transition to deliver more localised flexibility on to the system, and this could be fostered by geographical trials of data sharing and open platforms, such as local authority areas and industrial clusters. A concerted campaign is needed to educate consumers on the important role smart meters have within a low carbon energy system. Organisations should not wait for government and regulators to do something – companies should look to collaborate to find successful solutions and remove uncertainty for others. Customers need to be fired up to engage with electricity and buy in to the flexibility agenda.

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