NESO launches Energy Sector Digitalisation Plan
The National Energy System Operator (NESO), in collaboration with the Department of Energy Security and Net Zero (DESNZ) has set out key actions needed to digitalise the energy sector.
The Sector Digitalisation Plan, which was also created in partnership with Energy Systems Catapult and supported by Digital Catapult, Connected Places Catapult, and the Royal Academy of Engineering, establishes 16 key actions which must be taken in order to sufficiently digitise the energy system to meet Clean Power 2030 requirements. The 16 key actions are designed to solve energy sector challenges across six topics: consumer simplicity, consumer-led flexibility, grid decarbonisation and security, networks, access and connections, system operability, and supply chain and workforce.
For each action, NESO has established a timeframe for its implementation and an outline of who will need to be involved to achieve the outcomes. Among the key actions are several which surround data from smart meters, with Action 3 stipulating that Elexon, DESNZ, and the Retail Energy Code company (RECCo) will work together to align smart meter data access between the Smart Data Repository, the Smart Meter Energy Data Repository, and a yet-to-be-developed consumer data consent system by mid-2027.
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Additionally, multiple Actions within the Plan concern the future of flexibility markets on the British energy grid. Action 7 states that electricity networks must develop an asset register for flexibility assets that integrates with the Flexibility Market Asset Registration (FMAR) system currently being developed and implement it by October 2027.
Meanwhile, Action 8 states that the market facilitator will, before the end of 2026, determine if early progress can be made in creating new standards for flexibility markets. Elexon, which is set to take on the role of market facilitator from the end of this year, has stated that it will work on developing a common FMAR until H1 2026. Under the FMAR, the flexibility market system will become more streamlined, with flexibility aggregators and asset owners only required to register their assets once in order to participate in multiple local and national flexibility market events.
Standards for control room technology and communication will also be established through the Energy Sector Digitalisation Plan. NESO will determine the technology standards required to optimise the large numbers of low-carbon energy assets set to come online in the coming months and work alongside Distribution System Operators (DSOS) to set standards for communication and data sharing. Both of these actions will be delivered by mid-2028.
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Additionally, NESO will begin work in early 2026 on creating a Digital Coordinator role in the organisation, establishing what such a position should achieve and what oversight and power a digital coordinator would have.
Shubhi Rajnish, chief information officer at NESO, commented: “To reach Clean Power by 2030, Great Britain needs robust digital infrastructure and seamless integration across systems, sectors and society. The Sector Digitalisation Plan sets the roadmap to deliver the lasting digital journey needed to make these goals a reality. We very much see this as the 1st iteration and look forward to feedback as well as keeping pace with the evolving digital and technology landscape.”
Energy minister Michael Shanks, who recently delivered the keynote speech at Solar Media’s Clean Power 2030 conference in London, stated that digitalisation will be a “crucial tool in transforming our energy system”, adding “A flexible electricity system can help people to lower their bills through taking advantage of new tariffs and technologies – and we are working with NESO and partners to deliver this.”
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Overhauling the British energy system
The Digitalisation Plan is just one of a number of strategic changes NESO is undertaking as part of its efforts to ensure the nation can reach its Clean Power 2030 targets.
Between July and August, NESO ran a public consultation on plans to redevelop the UK’s energy network through the development of the Centralised Strategic Network Plan (CSNP). The CNSP will look beyond 2030 and establish a 25-year roadmap for transmission redevelopment, and will bring together electricity, gas and hydrogen transmission network planning. NESO was also commissioned to develop the Strategic Spatial Energy Plan (SSNP) in October 2024, a plan exploring how best to locate new energy generation projects across Britian by considering the impact of other sectors in different regions of the country.
In July, NESO began reorganising the over 3,000 projects in the grid connections queue as part of grid connection reforms designed to speed up connection times. New connection agreements are set to be issued starting from this autumn, with priority being given to projects which are ready to be delivered and are most critical to the success of the Clean Power 2030 goals.