"Green digitalization" - the path to a successful energy transition

Behind the energy transition is a complex system. That's why the switch to renewable energies is not as simple as some people imagine. Is digitization the key to a successful energy transition and greater sustainability? We talk about this in the following interview with Maximilian Irlbeck, head of the ZD.B topic platform digitalization in the energy sector.

Is the current energy system sustainable, Maximilian?

Maximilian Irlbeck: Let's look back to the year 2000: At that time, the law for the priority of renewable energies was passed and no one would have expected today's positive development. At that time, renewable energies accounted for just six percent of electricity consumption in Germany. Today, we have achieved about 42 percent. However, when we talk about climate targets on a global level, the development is not satisfactory. A lot of work is still needed here.

What goals do we need to achieve to stop climate change?

Maximilian Irlbeck: We have to manage to make our livelihood sustainable. By that I mean a renewable energy system, without producing emissions. Otherwise, we will continue to fuel climate change. The challenge here is that a sustainable energy system doesn't just include the electricity sector. Many people equate electricity with energy. But the energy transition also involves sectors like mobility , industry, agriculture and many more are involved. All of these sectors must reduce their CO2 emissions to zero by 2050. And finally, it is necessary to link all the sectors involved in the future. Because only this sector coupling will enable a sustainable, economical and secure energy system overall. This is a huge coordination task in which we are still at the beginning.

Is digitalization the lever for more sustainability in the energy sector?

Maximilian Irlbeck: Yes, we will definitely need digitalization to achieve sustainability in the energy system, but also in other areas. After all, it is precisely this that will enable the coupling of the various sectors. However, important basics are still lacking here:

• For example, you need sufficient knowledge about the respective sectors in order to charge at the right time, for example.
• In addition, you need to coordinate consumers, volatile generators and storage as a whole, and that means that you need not only technical data, but also, for example, forecast data, market data and a countless number of sensor data.
• But data alone is again also not enough, because these must be coupled in a system. For this coordination, you need interfaces and a lot of digital technologies.
• Last but not least, all the players involved must also speak a common language if they want to exchange information about the collected data and jointly define next development steps.

Are there already best practice examples that illustrate the theory?

Maximilian Irlbeck: Yes, there has been the Energie Start-up Bayern competition since 2016, where young energy pioneers can apply to present their ideas for the future of energy. Of course, this is a jigsaw puzzle work, because states are also involved in this overall system and one company alone cannot deliver best practice for now. But nonetheless, there are a number of companies that are contributing good ideas.

• This is, for example, enmacc GmbH - an OTC trading platform for the energy industry and the world market leader when it comes to liquidity hedging in energy markets. The company makes it possible for data from different markets to be mapped on one platform.
• The second example is gridX GmbH from the energy IoT sector. The company is a specialist in linking different devices with the aim of establishing an operating platform for decentralized and digitized energy transition.
• The third example company is VoltStorage GmbH - incidentally also the winner of our INNOVATION LIFE AWARDS . VoltStorage is the first company in the world to make VRF technology, which has been successful in the large-scale storage segment, available as a home storage solution for private households.

So there are a number of good ideas to solve the many challenges. But there is still a lot of work ahead. By that, I mean especially getting citizens to understand and accept the complex system behind the energy transition .

How could we increase citizen acceptance?

Maximilian Irlbeck: Through more citizen participation, which is also being actively researched, especially in digital energy systems. For example, there is the C/sells project . This is a national showcase project across southern Germany that explores citizen participation using digital technologies. We ran the 14-day C/sells climathon with the 2020 project. The goal was to use digitization to create solutions that make citizens feel that the energy transition is reaching them in urban areas. Great ideas came out of that!

Can you elaborate on how to further strengthen citizen participation?

Maximilian Irlbeck: Yes, digitization per se offers many opportunities. For example, you can manage citizen participation via blockchain . It is a major issue that the Renewable Energy Sources Act incurs a feed-in tariff for solar panels or renewable energy systems. This regulation expires in 2021 for the first plants. That means you no longer have a guaranteed feed-in tariff. Therefore, many owners of open spaces and (roof) plants are faced with the question: "Where will we get the investment in the future to be able to continue operating the plants?"

For this purpose, the company Youki, for example, offers an investment management for solar parks via blockchain. This is an independent system that is tamper-proof. With it, you can invest in a solar park for as little as one euro and also participate in its remuneration and generation. The whole thing is based on a blockchain node, which is operated on a smart meter gateway, i.e. a certified, calibrated meter, and through which the generation and profits of the solar park are then distributed to the citizens. That's real citizen participation.

A lot of great ideas have also emerged as part of the C/sells Climathon:

• For example, so-called climate boxes. With these, municipal utilities can offer citizens an all-round carefree package for digitally linking individual devices.
• Another opportunity is the "heat as a service" concept. Here, citizens no longer have to worry about heat being produced sustainably, because energy suppliers offer this as a basic service. Fully digital, of course. That's why I think it's really important to strengthen citizen participation, and digitization can definitely help.
  
  

How do you imagine our world in 2030 with a focus on the energy transition?

Maximilian Irlbeck: E-mobility , for example, is a topic that is on the rise. But I hope that by 2030 it will be integrated into the power sector and into the energy system. This would allow us to build charging stations more quickly, for example. I would also like to see electric cars produced sustainably and at the same time deliver on their range promise. Although that's already not too much of a problem today. Furthermore, it is of course desirable that we come one step closer to our climate goals overall through modern regulation. Also through framework conditions that strengthen innovation, reward experimentation rather than punish it. And finally, as I have just explained, the key to success for me is increasing citizen participation through digital technologies. We need many more skilled workers for this. Hopefully we will succeed by 2030.

We support #TeamEnergiewende for a sustainable future.

The interview was conducted by Dr. Kord Pannkoke, Head of Business Development at Bayern Innovativ GmbH.

Listen to the full interview as a podcast: