Regulation needed for successful integration of computing in energy services – German agency

Cloud and edge computing hold great promise to increase the efficiency of a future decentralised energy system, yet the widespread use and acceptance of these solutions still face significant obstacles, according to a report compiled by the German Energy Agency (dena). Uncertainties around cyber security, data protection, communication infrastructure and interoperability for the successful integration of both solutions could largely be overcome with regulation, the government-affiliated agency said. A combination of cloud and edge computing could, in future, process and exchange data along the entire energy supply chain – with cloud computing strengthening central processes and edge systems optimising for local contexts. "From a technical perspective, a combination of cloud and edge computing is a good way to take account of the emerging dynamics in the distribution grid and energy markets," dena wrote in a press release. Further pilot projects and standardisation through the smart meter rollout could also help to implement these solutions in the energy sector.

Digitalisation will play a decisive role in driving the energy transition in the future energy industry. Managing an electricity system based largely on renewable sources is a much more complex task than with conventional power plants, as it requires greater coordination between producers and consumers of electricity compared to a centralised power system. A fluctuating supply of electricity from sources scattered around the country, combined with increased electrification, means data exchange and data processing are crucial to successfully manage and balance the grid. While energy demand from data centres is rampantly on the rise, more than 100 companies, including Microsoft and Intel, have committed to increasing the energy efficiency of their data centres and to operate them exclusively with renewable energy by 2030.