How digitalisation and big data can help transform the European energy network

Global Power & Energy Elites spoke with Dr Manfred Reitenspieß, co-founder and leader of Business Development at GridData, about the challenges that scale-ups in the energy sector are facing, and their role in grid modernisation and the energy transition in general.

Often start-ups, scale-ups and small companies are the ones equipped with the innovative ideas and agile approaches critical to transforming the energy market; however, they are held back by many barriers keeping these concepts from being tested and commercialised.

Lack of funding, proving the effectiveness of a business case and increased competition from companies that are already established in the sector are some of the factors hindering scale-ups.

One such European company that has successfully overcome these challenges and is becoming a force in the sector is the German smart grid company, GridData. In the following exclusive interview with Dr Reitenspieß, we discuss the rise of the company and the impact they are making in the energy sector.

The European Commission approved the EU Horizon 2020 programme’s Net2DG project (Net2DG - 774145) which was submitted by GridData in cooperation with other European partners. In the course of the project, it was analysed how digitalisation and use of big data can help transform the European energy network.

This article was originally published in The Global Power & Energy Elites 2022

Describe the concept on which your business is based?

What is driving us to develop grid data technology? Our offering addresses the energy transition in which an increasing number of devices are being integrated with the electricity distribution network, resulting in major operational challenges for grid operators.

This prompted GridData’s participation in the Net2DG project and with the target to create a digital twin of the distribution grid, which utilities can use for various purposes including grid monitoring, grid optimisation and investment planning.

Previously, utilities were largely blind regarding the operational state of the low-voltage grids and were conducting grid planning based on assumptions only.

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What challenges is the sector facing in digital transformation?

The huge increase in available data is posing a handling, processing and utilisation challenge for many utilities. The amount of data handled by a medium-sized DSO has grown from a few hundred measurements per year to hundreds of thousands per hour, which means that the data must be processed in an automatised way. This is where digitalisation comes in.

The second challenge is maintaining the reliability and quality of the distribution grid. Distribution system operators are faced with fluctuations from renewables generation and increase in demand, which require digital solutions to ensure power quality and grid reliability. With energy generation and consumption occurring at different times, distribution system operators need to employ digital tools to ensure that a high increase in PV generation does not lead to violations of voltage bands or overloading of transformer stations or power lines.

Now that the Net2DG project is over, what is next for grid data?

The project was an important technology leap forward as it enabled extended testing for us and the development of new functions/capabilities for the low voltage grid which we tested in real-life. We have meanwhile extended the grid monitoring and planning prototypes, which we have developed and tested in the Net2DG project, and turned them into commercial products.

The project has enabled us to identify and demonstrate the benefits of our technology in the different markets in Denmark, Austria and Germany. We work with project partners and increasingly with new customers in the adoption o f our technology across Europe.

What challenges did you face both as a start-up and scale-up and how did your introduction to the EU help address the challenges?

The European innovation funding was actually the right instrument to help us address the challenge of lack of funding and of finding a platform to demonstrate our technology. Start-ups and scale-ups are struggling with not being 'found'.

Regulation needs to also support the growth of small companies and encourage partnerships between scale-ups and utilities to accelerate the transition to a carbon-neutral society.

Selling a business case or technology within the energy sector is not as easy as selling an app which can be used by some 20 million people. The business model is difficult to be fully understood on the venture capital side: What is behind it? What is the market? Who are the customers?

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What role do you think scale-ups will play in the energy transition?

In the same way, the deregulation of the telecommunications sector enabled the participation of small companies and accelerated innovation, the energy industry can also leverage start-ups and scale-ups to promote the development and use of innovative new business cases that can help ensure the energy transition becomes a reality.

The more small companies come into play and make use of available data, the more profitable the energy sector will become for all stakeholders. Increased penetration of scale-ups will also help in the delivery of energy in more cost-effective, more sustainable and smarter ways than before.

What trends are likely to shape the utility distributed energy resources and digitalisation market through 2025?

What we are seeing is that the drive for a carbon-neutral society is changing the sector and how to generate, distribute and consume energy. Technologies such as energy storage, onsite generation and energy flexibility will continue to transform the grid and digitalisation is key for making this happen. We expect to see increased innovation and the use of digital technologies to optimise data management in the distribution grid and translate it into valuable insights. Increased use of flexible energy as utilities try to avoid the costs associated with building new infrastructure will also continue.

Since the successful completion of the Net2DG pilot, GridData has been selected by Germany utility company Elektrizitäts-Versorgungs- Genossenschaft Perlesreut eG to provide its digital solution to detect critical situations and monitor voltage across the distribution grid.

About Initiate
Scale-ups like GridData are very much on the radar of Initiate. Initiate is a global movement that spotlights talents, empowers the next generation of energy entrepreneurs and creates impactful programmes to move the industry forward. Initiate offers an unrivalled platform for cutting-edge start-ups and young bright minds, providing opportunities to collaborate with established industry players and investors in the sector.

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