Energy transition: high time for a new beginning

So far, the energy transition has focused mainly on the expansion of renewables. Building wind turbines, installing solar panels, using biomass – all of those are important, but still do not constitute a comprehensive new beginning. If we want our energy future to be largely carbon-free, we need a fundamental shake-up of our energy system, not just of how we generate energy. What that means, above all else, is that we need a revolution in transport and heating that's comparable to the energy transition. And we need intelligent distribution systems.

For the most part, the distribution systems are where the energy transformation actually takes place. Policy-makers have now acknowledged this in principle. However, it would not be sufficient to solely focus on network expansion. We not only need more copper, we also need more intelligence! We must use the process of digitalisation to make our distribution systems smart – after all, smart distribution systems contribute to climate protection, system stability and security of supply.

Under tension: substantial growth in demands on distribution systems

The expansion of renewables has made our energy system more complex, compartmentalised and decentralised. Here’s an example: more and more residential households now not only have a solar power system on the roof, but also an energy storage system in the basement. This makes them more independent of their utility companies. They feed the excess electricity into the distribution system.

This trend will continue. The expansion of decentralised generator structures, the increasing autonomy of residential households, the boom in electric mobility and the use of electricity for heating are greatly increasing the demands on the distribution networks. It is becoming harder and harder to ensure system stability. The sheer frequency with which grid operators switch generation capacities on and off is clear evidence that the existing buffers in the grid system are almost at their limits. We need smart grids if we want to make the energy transition a success. 

Using intelligence: distribution systems must be made smart

There are many advantages to smart grids: they ease the situation in the grids, since they bring the fluctuating availability of renewables into balance with regional requirements. They reduce the need to extend the traditional grid system, since most of the electricity is consumed close to where it is generated, meaning the bulk of it does not require further transportation. They contribute towards security of supply, despite the fact that we have a steadily decreasing number of conventional power stations available to draw on.

Digitalisation makes the distribution systems smart. It makes it possible to manage the increasing complexity of the energy system in the first place. To be able to control the grids effectively, distribution system operators must be able to determine the status of the grid at any time, which requires real-time analysis of a huge volume of data. This will work only with a clear control hierarchy in place. What this could look like is currently being tested as part of our project, “The Proactive Distribution Grid”, in which we want to forecast bottlenecks in the distribution system using data measurement and analysis. The goal is to prevent critical grid situations from arising at all if we can, or at least to resolve them quickly when they do.

Systematic approach: policy-makers must encourage digitalisation of distribution systems

The role of distribution system operators is changing: in the energy system of the future, they will no longer be responsible for just the final distribution of electricity to power outlets at the consumer’s end, but will instead become the managers of the energy transition. The legal and regulatory conditions currently in place do not encourage this change of responsibility. They need to be adapted to enable grid operators to do justice to their future role – and to make a success of the energy transition. My core demands, therefore, are that we must:

• Uphold responsibilities: To guarantee efficient grid control, transmission system operators should no longer be able to take any action impacting grid stability without coordinating with the distribution system operators.
• Encourage grid intelligence: For distribution system operators to invest in urgently needed grid intelligence, regulations must be more nuanced in the way they treat operating expenditure, and must encourage innovative investments. 
• Reduce burdens: In view of the mammoth task represented by the energy transition, which must be dealt with mainly at a grid level, any further special conditions targeting the grids must be substantially reduced or, better still, should be removed.

Making the new beginning work: DESIGNETZ trials innovative grid solutions for the future of energy

Input is needed from policy-makers to facilitate a genuine new beginning in the energy transition. The fact that they are prepared to do so in principle is evident from political initiatives like the incentive scheme “Shopfront for intelligent energy – the digital agenda for Germany’s energy transition” (German acronym: SINTEG). Part of this programme is innogy’s DESIGNETZ initiative. We entered into the main phase of this project on 27 November, together with 46 partner entities.

We don’t have all the answers yet, but we’re asking the right questions. Via more than 30 individual projects for renewable generation, smart distribution, energy storage and digital control systems, we hope to develop the blueprint for the energy transition by 2020. A comprehensive intelligent energy system like this would restrict the expansion of the traditional grid to an ideal, efficient level, and would provide the most cost-efficient way of implementing the energy transition. These factors are important in ensuring acceptance of this long-term project by the wider society.