Page 29 - Gi flipbook - November 2018
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Amazon and Netflix have been                                in a fashion that ensures continued
                       successfully harnessing machine                             public confidence in the system.
                                                                                     As regulation looks to keep pace
                       learning for some time... that insouciance                  with digitalisation in the energy sector
                                                                                   and more generally (most notably via
                       may not equally apply to our energy use                     the Network and Information Systems
                                                                                   Regulations 2018 (NIS) and the
                                                                                   implementation of the EU General
                 learning-based predictive algorithms   necessarily conservative standard   Data Protection Regulation (GDPR)),
                 can offer significant advantages to   operating parameters.       and energy suppliers face maintaining
                 traders, given their sophisticated power   Systems incorporating very high   public confidence in the security of
                 to draw out relevant patterns in   volumes of data, that need to be   their data, the skills required within
                 market drivers and behaviour and their   analysed and acted upon in near   supply-side companies are changing.
                 ability to handle larger datasets,   real-time, are ideal for machine   Alongside the already complex energy
                 enabling a broader range of parameters  learning-based decision-making. Deep   specific regulation faced by the sector,
                 to be considered. It is also clear that   analysis, using probabilistic decision   there is a growing body of data and
                 government, Ofgem and National Grid   algorithms, allows optimised decisions   cybersecurity regulation, which energy
                 are keen not to stymie this opportunity.  to be made at speeds not humanly   companies and their advisors must be
                 The government and Ofgem’s 2017   possible. Digitalisation therefore   resourced to navigate and to apply.
                 Smart Systems Plan  was accompanied   allows operators to make better use   On smart metering specifically, the
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                 by a series of balancing services   of existing infrastructure, avoiding   provisions of GDPR, coupled with the
                 reforms from National Grid, most   billions in capital upgrades. Despite   security requirements imposed by NIS
                 recently in the form of confirmed plans  these advantages, handing control of   and the Smart Energy Code (SEC),
                 to further open up access to the   the nation’s power to AI would   represent a subset of regulation quite
                 balancing mechanism to ‘virtual power   undoubtedly make some feel uneasy.   distinct in nature from the transactional
                 plants’, made-up of distributed   In the event of a failure, those   and regulatory understanding required
                 generation and demand assets .   machine-based decisions may be hard   to ensure the physical infrastructure is
                                         3
                   Digitalisation is also meeting   to reconstruct or explain to those   installed appropriately.
                 challenges in energy infrastructure   responsible for oversight.    There is no denying that
                 operation and maintenance. The ability   At the consumer level, the (at times   cybersecurity is challenging, but the
                 to deploy increasingly cheap sensors,   controversial) implementation of smart   banking industry has demonstrated
                 tied to the ability to collect and   metering represents a tangible example   that with the right regulation and
                 analyse the resulting datasets, allows   of the reach of digitalisation, with the   industry approach, consumer
                 the construction of ‘digital twins’ for   potential for a truly two-way, real-time   confidence can be gained. A reminder
                 major assets. Digital twins are a highly   relationship between supplier and   of the benefits of digitalisation and
                 accurate digital representation of a   customer. The benefits for the   the profound changes underway in
                 complex physical asset that uses   consumer have been heavily promoted,   our energy system means that hitting
                 continual machine learning to model   but inevitably there is a certain amount   the stop button simply isn’t an option.
                 the performance of the asset     of public disquiet about what happens   If the energy industry can harness the
                 throughout its lifetime. Groups of   to the data they produce and the fact   power of digitalisation, it will bring
                 digital twins can be modelled    that suppliers have been tasked with   enormous efficiency savings for the
                 collectively to predict and optimise   leading on roll-out.       nation and for individuals, not to
                 complete sections of energy systems.   The reality is that the mind-boggling   mention greatly facilitating the
                 Hence, machine learning can facilitate a   amount of data (35,000 data points   journey to decarbonisation. ■
                 transition from planned or condition-  per year, for each household) is simply
                 based maintenance practices to   too huge to be analysed effectively   ■ Compton Energy Associates is a
                 predictive maintenance regimes. The   – by humans. But with AI, deep-seated   sustainable energy consultancy
                 prediction of failures allows the   patterns of consumption behaviour   specialising in renewables and whole
                 avoidance of unscheduled maintenance.  can be teased out of huge datasets,   energy system issues. For more
                 When integrated with market      almost in real time, through the use of   information, email andy.compton@
                 predicting algorithms previously   analytics, and this is where the   comptonenergyassociates.co.uk.
                 described, corrective maintenance can   valuable information starts to appear.   LexisNexis is a leading global provider
                 be scheduled to avoid high-revenue   Amazon and Netflix have been   of legal, regulatory and business
                 opportunity periods. Further, it can   successfully harnessing machine   information and analytics. In October
                 optimise operating regimes to ensure   learning for some time to recommend   2017 LexisNexis launched LexisPSL
                 the asset reaches the intended   product and film choices and most   Energy, a dedicated energy sector
                 maintenance period without failure.   consumers seem relatively relaxed   platform. For more information visit
                 Digital twins allow the opportunity to   about this. However, that insouciance   www.lexisnexis.co.uk
                 simulate performance under extreme   may not equally apply to our energy
                 scenarios without risk to the physical   use. Legitimate concerns around
                 asset. Better knowledge of the asset’s   cybersecurity and data privacy will   REFERENCES
                                                                                   1. www.iea.org/digital
                 performance could allow operators to   require robust safeguarding measures.   2. www.gov.uk/government/publications/upgrading-our-
                 release additional performance,   Similarly, the question of what we allow   energy-system-smart-systems-and-flexibility-plan
                                                                                   3. www.nationalgrid.com/sites/default/files/documents/
                 previously considered risky under   AI to control will need to be addressed   Wider%20BM%20Access%20Roadmap_FINAL.pdf





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