Energy Outlook for 2025: Embracing Digitalization in the Energy Sector

The energy industry has always been at the forefront of embracing new and innovative technologies. These advancements play a crucial role in driving the energy transition and managing the increased complexity of energy markets. Similar to other sectors, market players are exploring the potential benefits of digital solutions like blockchain, artificial intelligence (AI), and data analytics while addressing security concerns in a digital environment. In 2025, there will be significant advancements in digital regulations impacting the energy sector, providing opportunities for organizations to shape future regulatory frameworks.

In the UK, the energy regulator Ofgem is focusing on enhancing data sharing within the energy sector through the Data Sharing Infrastructure (DSI). The DSI aims to streamline data exchanges among energy companies, fostering collaboration and innovation. Currently, data sharing processes are manual and inefficient, leading to data silos and inconsistent standards. The proposed DSI includes components like a data preparation node, a trust framework, and a data sharing mechanism to improve market access to energy data, enhance grid security, and support the growth of new green industries.

Within the EU, specific rules governing data in the energy sector, such as those outlined in Directive (EU) 2019/944 and Implementing Regulation (EU) 2023/1162, are crucial for creating a competitive energy market where consumers are empowered. The EU’s Data Act and Data Governance Act will complement sector-specific rules, impacting data access and connected technologies. The European Strategy for Data includes plans for a common European data space, and the Community Research and Development Information Service (CORDIS) will focus on developing a Europe-wide Data Sharing Infrastructure for new energy services.

Additionally, Australia’s energy market operator is working on Project EDGE (Energy Demand and Generation Exchange) to explore integrating distributed energy sources into the Australian energy market. The project aims to enhance grid flexibility and reliability while incorporating renewable energy sources into the energy mix.

The EU’s Data Act, set to take effect in 2025, focuses on access to and sharing of data, alongside regulations for artificial intelligence. Users will have the right to access data generated by connected products and services, including personal and non-personal data. The regulation covers metadata, sensor data, and data from user interactions, with limited exceptions for withholding data. The Data Act also imposes interoperability requirements for participants in data spaces, including the Common European Energy Data Space (CEEDS).

As we look ahead to 2025, the energy sector will continue to embrace digital solutions to drive innovation and enhance operational efficiency. Regulations around data sharing and digital technologies will shape the future of the energy market, providing opportunities for collaboration and growth in green industries. The energy industry’s commitment to digitalization will pave the way for a more sustainable and secure energy future.