Roundtable 'Digitalisation in the energy transition'

This follows two innovation missions to Scandinavia, during which a delegation from the province and municipality of Groningen, knowledge institutions, and businesses traveled to countries including Sweden and Finland. The missions aimed to exchange knowledge, gain inspiration, and explore potential collaboration with these countries in the areas of energy, sustainable transport, education, and innovation. Because digitalisation didn't always receive sufficient attention during the trip, this roundtable was established to focus on this significant accelerator of the energy transition.

An ongoing quest

On March 23, 2023, the roundtable "Digitalisation in the Energy Transition" took place at the EnTranCe Energy Barn in Groningen. King's Commissioner René Paas introduced the roundtable. In search of answers, participants considered the role, challenges, and opportunities of digitalisation in the energy transition. The conclusion is that the multi-headed monster that is the energy transition requires parties within new ecosystems to overcome their own limitations and address the various challenges within innovative business models. Although Groningen is not large enough to tackle the climate crisis alone, René Paas was confident that the road to Paris will pass through Groningen.

The role of data in the energy transition

In his keynote speech, Johan Knijp, Manager of the Technology Center Groningen at DNV, focused on the role of data in the energy transition. What can data do for renewable energy sources, transportation, and transitioning industries? How can data from different energy systems complement each other, and how can digital twins, for example, enable proactive rather than reactive maintenance of electricity infrastructure? Many questions were addressed, with the integration of related technologies, both within and across ecosystems, considered essential. Artificial Intelligence holds great potential in this regard, and the associated privacy impact and energy intensity should not be ignored. To truly initiate data sharing, further defining data ownership and the associated roles will be crucial.

The role of ICT in the energy transition

After the keynote, the first roundtable session began, focusing on "the transition to a sustainable energy landscape." Robert Hoekstra, Director Consulting Expert at CGI, introduced the topic. Flexibility is becoming increasingly important in this new energy landscape, as we move toward a more unpredictable energy system. Accurate forecasting and management require access to the right data. While energy systems used to be largely standalone, we will now need to consider energy carriers as well. Connecting data hubs are expected to play an even more important role in tomorrow's energy system than they do today. In short, bits and bytes, in addition to molecules and electrons, are essential for the complexity of the energy transition. During the discussion, it became clear that educational institutions are conducting extensive research on this topic. Interdisciplinary collaboration with industry appears to be the key to success.

The participants agreed that ICT can promote collaboration in, for example, the electricity market. For some points, the new normal will also need to be considered. For example, when should energy consumers scale back and producers step up? When do we trade our energy, and what agreements apply? And how do we free up grid capacity through ICT?

How do we find the balance?

In the second round, Greetje Bronsema, Energy Transition Advisor at Enexis, took us on a journey into the world of electricity infrastructure. The transition to a sustainable energy system is a major challenge for grid operators as well. Due to the growing demand for electricity, the grid will need to be drastically expanded. However, grid operators often struggle to keep up with these necessary expansions for various reasons. For example, due to the connection obligation, energy supply and demand in certain areas are not always properly aligned. Furthermore, spatial planning procedures can be time-consuming, and there is a general shortage of technically trained personnel. All of this means that smart choices will have to be made to regulate infrastructure needs, both now and in the future. Furthermore, we will have to learn together how to optimally utilise existing connections and achieve greater flexibility in electricity supply and demand.

During the discussion, it became clear that the greatest challenge will be spatially aligning supply and demand. Greater flexibility is needed to better utilise the grid's capacity. Long-term collaborations with and between market participants will be crucial in this regard. Large consumers, for example, can help grid operators balance the grid by predicting electricity consumption in increasingly greater detail and proactively sharing these insights. Furthermore, value is seen in better utilising various energy storage methods, such as underground hydrogen storage, and working in local energy hubs. If implemented effectively, such hubs will create a more direct link between energy generation and consumption. This decentralised energy infrastructure will reduce the grid's load and reduce energy loss before and during energy transport.

How do you train the professionals of tomorrow?

The necessary adjustments to the electricity grid, the use of storage methods, and the operation of local energy hubs naturally require skilled technical professionals. Unfortunately, these are not always easy to find. The third roundtable discussion, building on an introduction by Wim van de Pol, Chairman of the Executive Board at ROC Noorderpoort, addressed the question "how to train the professionals of tomorrow?".

In general, the necessary skills of the future will have to be clearly demonstrated in practice. By creating a hybrid learning environment, education and the professional field are already being connected. Trial and error, in the form of internships and work-study placements, results in a steep learning curve. However, the perception of practical technical training does not always align with reality. The participants agree that focusing on technological innovations from primary school onward, for example, focusing on drones and virtual reality, can help spark interest in a technical profession.

In addition to vocational education and retraining, Van de Pol believes that the existing workforce, distanced from the labor market, should also be explicitly included in this transition. There is significant untapped potential among people who are eager to work, but for various reasons, find it difficult to find a job. As a solution to this labor issue, the participants saw significant value in closer collaboration between educational institutions, businesses, and government. The discussion revealed that a large proportion of the employers present are willing to further develop this hybrid sustainable learning environment in collaboration with vocational education. This will be aimed at the entire workforce, with the overarching goal of "training the energy professionals of the future."

How do you finance uncertainties?

From electrons and molecules, Erik Lücke, Director of the Cooperative Rabobank Stad & Midden Groningen, took us to the euros in the latest roundtable discussion. The energy transition in the Netherlands is currently at risk of stalling because a large portion of the required investments are proving difficult to finance. So, what exactly are they investing in? How much money is needed, and what is the expected return? If one thing is clear, it's that there are many uncertainties surrounding the energy transition. But how do you finance these uncertainties?
Where financing used to be possible based on trust, nowadays numerous laws and regulations must be adhered to. And that's precisely the problem when we're talking about financing a hydrogen electrolyser, for example. What are the operating costs of such an asset, and can the bank rely on future cash flows?

The discussion revealed that innovative financing methods are needed here, separate from general banking terms and conditions. For this new approach to financing, it's crucial to involve everyone, for example, by organizing a community-based financing roundtable. This roundtable allows us to discuss the financing of shared facilities.

An ongoing collaboration

As part of the current shift to renewable energy sources, the energy landscape is becoming more diverse, supply-driven, and unpredictable. A major challenge in this transition is to continue to spatially align energy supply and demand. To continue optimising the multifaceted energy system, consisting of various energy sources and carriers, flexibility, among other things, will play an increasingly important role. Practical adjustments, for example, within the electricity infrastructure, and the supporting role of data in all of this are essential for this ongoing transition. In addition to predicting the most suitable time to perform maintenance on energy-related assets, forecasting energy demand and supply will also allow for the more effective deployment of energy storage methods. All of this requires substantial investments, which in themselves require innovative financing methods. At the same time, we must also invest in training sufficiently skilled energy professionals. A symbiotic cooperation between the business community, educational institutions, and the government appears to be the key to success. This roundtable discussion marked the first steps towards such a symbiotic collaboration, and it is important to continue to strengthen and utilise this in the future.

This article was written by Mare Visser (New Energy Coalition) and Tim ten Brundel (CGI). For more information about CGI: cgi.com/nl