5G and the future of the energy sector
Overview
5G and rapid digitalisation enables energy providers to enhance operational efficiency, reduce carbon emissions, and support the transition towards renewable energy.
Energy providers need to identify commercially viable 5G slicing use cases, strengthen collaboration, address technical challenges, and support the renewable energy transition.
Driven by key enablers like 5G networks and rapid digitalisation, energy providers must harness innovation at pace. To do so, they should seek deeper and more collaborative relationships with technology companies.
Together, organisations have a clear opportunity to enhance operational efficiency, reduce carbon emissions, and support the transition toward renewable energy for whole regions – or even entire countries. Innovations like 5G slicing and digitalised substations, such as those explored in UK Power Networks’ Constellation project, are at the forefront of this change.
But what does better connectivity mean for the energy industry? And what will it take to make it happen?
The potential of 5G
5G is much more than a mobile upgrade; it’s a foundational technology for what’s being called the “industrial internet” – the convergence of the industrial system with advanced computing, analytics, and the internet.
Enabling faster, more reliable connectivity opens the door to new business models for the energy sector. However, one of the most exciting features of 5G is its slicing capability, which allows for the creation of tailored virtual networks within the same physical infrastructure. This allows for the prioritisation of services and better network design for specific applications.
For the energy sector, this could mean creating highly specialised networks for real-time grid management, where speed and data accuracy are critical. Ultimately, this technology can excel in high-demand environments, such as densely populated areas, where business critical traffic mixes with high levels of consumer network demand.
Constellation: digitalisation at the Edge
One of the main challenges to improving networks is distance – not only physical distance but also the distance data must travel to be consolidated and analysed before finally returning to reach decision-makers. For the energy sector, this hurdle must be overcome if it is to continue delivering more responsive services in the future.
Enter UK Power Networks’ Constellation, which is focused on digitalising substations to improve grid operations. The project aims to push intelligence to the “edge” of the network, meaning directly at substations, rather than relying on a centralised hub. This approach allows for faster, more localised decision-making, which is crucial for efficiently managing modern, complex energy networks.
By decentralising intelligence, substations can react to local conditions in real-time without waiting for instructions from a central system. This distributed intelligence model improves responsiveness, operational efficiency, and grid reliability. It also supports decarbonisation efforts, optimises energy use and reduces waste. In fact, UK Power Networks estimates that if rolled out across the UK, the 5G-powered solution being trialled in Constellation could save 63,702 tonnes of CO2 by 2050, equivalent to the carbon emitted by over 38,000 return flights from London to New York.
Energy progress in lockstep
What sets Constellation apart is its collaborative, open approach. Funded by Ofgem, the UK’s energy regulator, the project operates under a framework where insights, intellectual property, and learnings are shared with the broader energy sector. This ensures that the benefits of the innovations developed through the project are accessible to all, not just UK Power Networks.
Such collaborative efforts are critical for accelerating the adoption of digital technologies across the energy sector. Sharing insights and pooling expertise can help solve the sector’s most pressing challenges, from integrating renewable energy sources to ensuring grid resilience and reliability.
Steps toward a connected future
5G, digitalisation, and collaboration set the stage for a more efficient, resilient, and sustainable energy sector. With the success of UK Power Networks’ Constellation and the ongoing exploration of 5G slicing, the energy industry is on the cusp of harnessing powerful new tools to meet future demand.
Yet, as the energy sector continues to evolve, energy providers and technology companies will need to focus on:
Identifying commercially viable 5G slicing use cases: Fine-tune and test applications to deliver measurable benefits.
Strengthening collaboration: Continue industry-wide knowledge-sharing, which is vital to accelerate the deployment of digital technologies.
Addressing technical challenges: Carefully plan and invest in edge computing infrastructure to overcome economic hurdles.
Supporting the renewable energy transition: Use 5G to support a more decentralised, renewable energy grid.