Professional Services > Technology’s role in transforming the energy sector

Technology’s role in transforming the energy sector

As the UK continues to grapple with the challenges of climate change, energy security and an ageing energy infrastructure, technology is playing a pivotal role in transforming the way energy is produced, distributed and consumed. 

Leveraging innovative technologies not only addresses environmental concerns but also strengthens the economy and ensures a sustainable energy future.

Artificial intelligence (AI) is having an impact throughout every industry, and the energy sector is no different. The modern energy sector is creating massive amounts of data from sources like smart meters and renewable energy sources. While this information is currently harnessed by energy providers to affect things like energy prices, AI could enable this data to be used to derive insights in new and innovative ways, including via machine learning.

Businesses and consumers could use these new insights and data to be more efficient with their energy usage; and businesses that implement their own AI energy management solutions will be better placed to take advantage of other innovations.

Here’s why incorporating advanced technology into the UK’s energy sector is crucial:

Driving decarbonisation

The UK has committed to achieving net-zero greenhouse gas emissions by 2050. This ambitious target necessitates significant changes in how energy is generated and consumed. Renewable energy technologies, such as offshore wind, solar panels and tidal energy systems, have already helped the UK transition away from fossil fuels. In 2022, renewables accounted for over 40% of the country’s electricity generation, and continued innovation is essential to maintain this momentum.

Emerging technologies such as green hydrogen production and carbon capture, utilisation and storage (CCUS) will be critical in decarbonising sectors like industry and transport that are harder to electrify. By investing in these technologies, the UK can lead the global fight against climate change while creating new opportunities for economic growth.

Enhancing energy efficiency

Technology is also instrumental in reducing energy waste and improving efficiency. Smart grids and smart meters provide real-time data on energy consumption, enabling consumers and businesses to optimise their energy use.

Smart home devices, such as thermostats and energy- efficient appliances, empower households to cut costs and reduce their carbon footprints.

In industrial settings, advancements in machine learning and Internet of Things (IoT) devices allow companies to monitor energy usage patterns and identify inefficiencies. These technologies collectively contribute to lower energy demand, easing the pressure on the national grid.

Strengthening energy security

In an increasingly volatile geopolitical environment, energy security has become a pressing concern for the UK. Innovative energy storage solutions, such as advanced battery systems and pumped hydro storage, ensure that renewable energy can be reliably stored and used during peak demand.

Distributed energy technologies, including microgrids and community energy projects, decentralise energy production, making the system more resilient to disruptions. By incorporating these technologies, the UK can reduce its reliance on energy imports and shield itself from supply shocks.

Promoting economic growth

The energy transition represents a significant economic opportunity for the UK. According to industry estimates, the green energy sector could create hundreds of thousands of jobs in areas such as renewable energy installation, maintenance, and research and development.

Investing in emerging technologies also positions the UK as a global leader in the energy sector, opening up export opportunities for British innovations. For example, the UK is already a world leader in offshore wind technology, with British firms exporting expertise and components to international markets.

Empowering communities and individuals

Digitalisation is transforming the relationship between consumers and energy providers. Technologies like peer-to-peer energy trading platforms and virtual power plants allow individuals to generate, store and sell their own renewable energy. These systems give consumers more control and contribute to a more equitable and decentralised energy system.

For local communities, innovations such as energy cooperatives and shared ownership models ensure that the financial benefits of renewable energy projects are distributed more broadly, fostering social equity alongside environmental sustainability.

The integration of technology into the UK’s energy sector is not just important – it is essential. It underpins efforts to combat climate change, improves energy efficiency, bolsters energy security, drives economic growth, and empowers communities. However, achieving these goals requires coordinated efforts between policymakers, industry leaders and consumers to ensure that technological advancements are accessible, affordable, and scalable.

By continuing to innovate and invest in cutting-edge energy technologies, the UK can pave the way for a cleaner, greener and more resilient energy future.

Jon NewshamHead of Energy Services Apertus Group

For expert advice and guidance on how technology is transforming the energy sector contact Jon Newsham on 01604 212828 or you can email him at jon.newsham@apertusgroup.co.uk.

To find out more about Apertus Group visit their website.