The challenge of digitizing the electrical network: where should we invest?

Europe is entering the era of energy transition and digitalization of electrical distribution networks It becomes an urgent need. A recent study prepared by the Technological Research Institute of the Universidad Pontificia Comillas, published by the Naturgy Foundation, reveals that the transformation of the sector requires not only a review of investments, but also a regulatory framework that encourages innovation.

The report “The digitalization of electrical distribution networks: Indicators and investments” highlights that a large increase in investments in electrical infrastructurebut also in the operating costs of network managers. This poses a dilemma: modernization must be balanced with the demand for a resilient electricity system; cost and effectiveness. In this sense, the European directive emphasizes the need to adapt remuneration schemes.

In what areas? Néstor Rodríguez, postdoctoral researcher at the Institute and author of the work, highlights three: digitalization, flexibility and interconnection. “Connectivity is one of the pillars of the digitalization of distribution networks, as it allows collecting crucial data generated by sensors and issuing action orders,” he points out. However, the increase in network complexity brings great interoperability and information management challenges.

Digitizing electrical networks to integrate the distributed energy resources imposed by the energy transition, such as the electric vehicle, represents a great challenge in itself. But in addition, Rodríguez warns that “information management becomes essential to ensure that it really serves to improve the planning and operation of the networks.” That’s why, one of the most critical aspects of the report is cybersecurity. Data protection, information integrity and network security are imperative in a world where any interruption in power supply could have serious repercussions for society.

Lastly, the study proposes the creation of specific indicators to measure the progress of digitalization and integration of distributed energy resources. The definition and homogenization of these indicators will be “key to making them truly useful and allowing network managers to evaluate the effectiveness of their investments.”

In a discussion following the presentation of the report, sector experts discussed the viability of digitizing electrical infrastructure. Juan José Picón, director of Legal Services and Regulation of UFD, highlighted that “It is not possible to digitize the entire electrical grid infrastructure”underscoring the importance of identifying key areas where digitalization is most needed.

Luis Marquina, president of the Spanish Association of Batteries and Energy Storage, highlighted the role of storage as “the element that can bring calm to the system as a guarantee of security of supply.” Rafael Cossent, researcher at the Institute, highlighted that “the future of the generation is uncertain, which makes it essential to make the remuneration system more flexible.”