EnergyTech: the three digital trends to watch for in 2025

The end-to-end digitalisation of the energy system – from demand and supply, to markets and networks – continues to emerge as vital to achieving decarbonisation. Here the Ashurst EnergyTech team set out a quick snapshot of three key and interlinked digital trends to watch as the energy transition progresses through 2025.

Open Data

Initiatives to make energy system data much more accessible are gathering pace in several jurisdictions. In Australia, the initial phases of Open Energy under the Consumer Data Right have been completed. In the EU, the development of a Common European Energy Data Space is underway. While in the UK, the Department of Energy Security and Net Zero has begun consulting on the Smart Data scheme, deemed to be the "open banking" moment for energy in the UK, and Ofgem is overseeing the development of the related national Data Sharing Infrastructure (with a minimum viable product due in 2025). 

These programmes offer vast potential for energy market participants, as well as consumers. In short, they provide for shared ecosystems in which key datasets are made available for the development of digital solutions. They will form the bedrock of the largescale digital twinning required to create a real-time whole system view, making it easier to integrate cleaner energy generation. These solutions will also give consumers more input and control over their participation in the energy system.

When developing open data ecosystems, it will be key that governments and regulators work in conjunction with the energy industry to develop the trust frameworks, data protocols, governance rules, and the agreements that underpin data sharing, while ensuring the ecosystem works to serve all participants.  

Interoperability

Alongside the drive toward open data, there are ongoing global programmes focused on interoperability. One example is Project Mercury, the alliance recently launched by Octopus Energy. This aims to achieve widespread buy-in for universal Bluetooth style interoperability between millions of digitally driven electricity grid inputs and outputs. This would include smart consumer devices, EVs and charge points, domestic and grid scale storage, and heat pumps. 

Wider interoperability will allow for more efficient and cheaper combinations of both physical and digital products and services, as well as better aggregation of varied sources of power generation and consumption. This should ultimately accelerate the build of smarter solutions like virtual power plants. 

While it will be interesting to monitor what agreed interoperability standards emerge, organisations working with virtual power must still achieve close co-ordination and agreement between device and vehicle manufacturers, utilities, grid operators and ultimately consumers. That co-ordination is key to building a solution which is economically viable, competitive and which does not fall foul of the expanding regulation concerning data, cyber security, AI, privacy and consumer protections. 

Digital Maturity

The energy sector as a whole continues to exploit digital technology at a level which lags behind that of some other industries. However, within the sector itself there is an entire spectrum of digital capability. A top priority for many energy businesses remains investment in the technology-driven business models that layer the benefits of digitalisation into their operations.

To do so, wholesale digital transformations, along with large-scale technology procurement processes and cross-sector technology partnerships are becoming both commonplace and strategically vital. The minimum goal for market participants is to move away from legacy IT infrastructure, switch to cloud-first IT, and secure the connectivity needed to cope with an increasingly data-driven energy system serving increasingly active consumers.

However, many impacted organisations are discovering the extent of the skills gap which is preventing the smooth implementation of these vital changes. As a result, there is a pressing need to upskill staff and embed greater digital culture into their day-to-day operations. This is not just to ensure successful technology upgrades, or to pivot toward "as-a-service" methods of delivery. It is required in order to understand how to properly deploy the truly game changing technologies like AI and secure a position at the right end of the spectrum.