Harnessing scientific and technological innovation in the UK
What is the role of funding, collaboration, skills and policy in harnessing scientific and technological innovation in the UK?
The incorporation of digital technologies in the energy sector can support progress towards key UK objectives such as achieving Net Zero emissions targets. It can also transform current methods of energy generation, transmission, regulation, and trading. This POSTnote presents an overview of key digital technologies and their main applications in the energy sector. It provides an overview of the potential benefits to using these technologies, and recent developments in this area. It describes the role of data in underpinning digital technologies in the sector, and some of the issues raised by its use. It also discusses broader challenges associated with energy sector digitalisation and measures that could help address them, including issues related to technology, regulation, and impact on consumers.
Energy sector digitalisation (372 KB , PDF)
DOI: https://doi.org/10.58248/PN655
Digital technologies such as Artificial Intelligence (AI), the Internet-of-Things (IoT) and Distributed Ledger Technology (DLT) can improve the efficiency and flexibility of the UK energy system, support deeper penetration of renewable and distributed energy sources, and help support the development of innovative products and services for consumers.
The Department for Business, Energy and Industrial Strategy has estimated that by 2050, improved energy system flexibility through digitalisation could reduce the overall UK energy system costs by up to £10 billion annually and create up to 24,000 jobs. A 2020 report by the accounting firm PwC estimated that by 2030, the incorporation of digital technologies such as AI into the energy sector may boost global Gross Domestic Product by up to £3.82 trillion while helping reduce global carbon emissions by up to 4%.
Digitalisation of the energy system is prominently featured in the UK Government’s 2020 Energy White Paper. In March 2021, the Department for Digital, Culture, Media & Sport listed the use of digital innovation to reach Net Zero as one of its ten technological priorities. In July 2021, the first energy sector digitalisation strategy and action plan was published by the UK Government.
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Acknowledgements
POSTnotes are based on literature reviews and interviews with a range of stakeholders and are externally peer reviewed. POST would like to thank interviewees and peer reviewers for kindly giving up their time during the preparation of this briefing, including:
*denotes people and organisations who acted as external reviewers of the briefing
Energy sector digitalisation (372 KB , PDF)
What is the role of funding, collaboration, skills and policy in harnessing scientific and technological innovation in the UK?
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