The digitalisation of the UK energy system is not a technical problem waiting for a technical solution. It is a governance problem waiting for a governance solution. The technology exists. The standards exist. What is missing is the institutional architecture to coordinate their development and mandate their adoption.
The stories of 3GPP and the IETF demonstrate that when a sector establishes an independent, authoritative, and open standards body, the results can be transformative. 3GPP enabled the seamless global rollout of mobile telecommunications, creating trillions of dollars of economic value. The IETF enabled the explosive growth of the internet, transforming every sector of the economy. Both models combined mandatory interoperability with competitive innovation, creating level playing fields on which a diverse ecosystem of companies could compete and innovate.
The UK energy sector needs its own equivalent. It needs an EnergyOS — a digital operating system for the national energy system, governed by a Central Independent Digital Delivery Body that has the authority and mandate to drive the digital transformation of the sector.
The prize is substantial. A properly digitised UK energy system could unlock £10 billion or more in annual flexibility value by enabling the full participation of distributed energy resources in energy markets. It would accelerate the integration of renewable energy, reducing the need for expensive balancing services and network reinforcement. It would reduce consumer bills by enabling smarter, more efficient use of energy. It would establish the UK as a global leader in energy system digitalisation, creating export opportunities for UK technology and expertise. And it would deliver the Clean Power 2030 target by providing the digital infrastructure required to operate a highly distributed and dynamic energy system.
The UK has the opportunity to lead the world in the digitalisation of its energy system. The 3GPP and IETF models show the way. The time to act is now.
Six Recommendations
Establish a Central Independent Digital Delivery Body
The UK government, in consultation with Ofgem and the energy industry, should establish a CIDDB with a clear mandate to govern the development and adoption of EnergyOS standards and architecture. The CIDDB should be established by legislation or regulatory mandate, with sufficient authority to enforce compliance.
Mandate the Adoption of Open Standards
Ofgem should mandate the adoption of the IEC CIM and other key EnergyOS standards as a condition of licence for all regulated market participants. This mandate should be phased in over a period of three to five years, with clear milestones and a certification scheme to verify compliance.
Adopt the 3GPP Release Model
The CIDDB should adopt a Release-based approach to EnergyOS standards development, publishing a series of Releases that provide stable, implementable platforms for market participants to build on. The first Release should be published by the end of 2027.
Build on Existing Initiatives
The CIDDB should build on and coordinate the existing digital initiatives in the energy sector, including NESO's DSI and VES programmes, the MHHS programme, the SSES programme, and BSI's CIM governance work. These initiatives should be brought within the EnergyOS governance framework, rather than being allowed to continue in isolation.
Champion Consumer Empowerment
The CIDDB should have a specific mandate to champion the interests of consumers in the development of EnergyOS. This should include delivering a Consumer API that gives consumers control over their energy data, and ensuring that the benefits of digitalisation are shared fairly.
Align with International Standards
The CIDDB should maintain close alignment with the IEC and other international standards bodies, ensuring that UK EnergyOS standards are compatible with international standards and that the UK's experience contributes to the development of global smart grid standards.