Icebreaker One’s Open Energy programme is designed to make it easy to search, access and securely share energy data. Backed by Ofgem and the UK Government, it will bring together data held by thousands of individual organisations and institutions in an open marketplace. Currently in its pilot stage, the Open Energy service is being developed based on use cases that are designed to address real-world problems put forward by industry stakeholders. 

One use case currently in development is focused on how Open Energy will help electrical network and system operators meet the evolving and growing needs of EV users. We’ve conducted detailed interviews with the people on the front line of making this happen – here’s what we know so far.

Why the UK needs more EV charging points

The switch from conventionally-fuelled to emission-free vehicles forms a core part of the UK government’s Net Zero strategy, with the sale of new petrol and diesel (internal combustion engine, or ICE) cars to be banned by 2030. The reason for this is clear; transport produced 27% of the UK’s total emissions in 2019. The ban on the sale of new ICE cars, combined with lower running costs for EVs and an anticipated drop in up-front EV prices, means we can expect an explosion in EVs on the road over the coming years. 

But, as anyone who drives an EV knows, our EV charging infrastructure is inadequate. Not every household is in a position to install its own charge point, and even those that are will sometimes make use of public chargers. The UK government estimates that, by 2030, the country will need around 400,000 public charging points. But, as of December 2021, according to ZapMap, there are fewer than 30,000 public charging devices. This is a massive ramp up, and doesn’t even take into account the anticipated rise in installation of home EV charge points. 

In itself, the need for an exponential increase in charge points is a massive logistical challenge. But what’s arguably an even greater challenge is the capacity of our electricity network to cope with the rising demands placed on it. 

What’s standing in the way

Central to the task of ensuring that demands placed on the grid by the rising uptake of EVs are the UK’s Distribution Network Operators (DNOs). Their connection departments are responsible for processing and managing requests to the grid for electricity in the here and now, as well as forecasting future capacity requirements so that they can prioritise where to invest in greater capacity.

They need to know when and where charge points will be installed (domestic, public, commercial and industrial), the nature of these charge points (slow, rapid, ultrarapid, for example), and how they are utilised. But there is currently no mandatory registration of installations, with data having to be pulled from multiple sources. Data on utilisation of different types of charge point and plans for future installations is even more patchy and problematic to access. Concerns from those that hold the data may include reservations about access control, and whether their data is in a format that is suitable for sharing.

These challenges with data access make it inefficient and challenging for DNOs to plan for likely capacity requirements. This is only going to become trickier as EV uptake accelerates, potentially resulting in a too-slow rollout of charge points. 

Matt Webb, Head of Enterprise Data Management at UK Power Networks, told us:

‘The likely future demand on the electricity network that will be created through the accelerating uptake of EVs poses a significant challenge for network operators. We are faced with the need to meet customer and stakeholder expectations through the facilitation of timely connection of all forms of EV charging infrastructure while maintaining continuity and quality of electricity supply at lowest possible cost to the customer.

‘To ensure we are ready to service increasing numbers of fuse upgrades and potential network reinforcement where aggregate demand from EVs has the potential to exceed local network capacity, we require insight into potential and actual charge point installation and utilisation. The provision of data from a variety of stakeholders is key in this respect and the Open Energy programme has the potential to streamline processes to help meet this need and the challenge of delivering an electricity infrastructure that is fit for the future.’   

Matt Webb, Head of Enterprise Data Management at UK Power Networks

How Open Energy helps 

Open Energy makes data sharing simpler by automating data licensing, security checks, and technical integration. It can work with organisations that hold the data needed by DNOs, bringing it together into a one-stop shop with appropriate security and access controls, and in a consistent format. Using Open Energy, a DNO will vastly improve its access to the data they need to help make sure that grid capacity can meet the demand from newly installed EV charge points. They will be able to access this information more quickly and cost-effectively than ever before. They will be able to access hundreds of datasets with just one round of authentication and technical integration. 

In turn, it will allow DNOs to collaborate more effectively with other industry stakeholders. As well as accessing others’ data, DNOs can publish their own data securely, safe in the knowledge that only authenticated users can access it. It means no need to agree to a unique set of terms and conditions every time someone requests your data. Agree to Open Energy rules and policies once, and they’ll be applied automatically every time data is shared. 

Ultimately, better access to data via the Open Energy programme will help break down silos and ensure that an increase in the number of EVs – and EV charging points – does not place unsustainable demands on our energy resources. This will, in turn, help ensure that the UK is able to meet its ambitious targets for EV ownership by 2030 and beyond. 

Get involved

• Become a member of Open Energy to use our pilot service
• Join our Advisory Groups to help shape the future of the Open Energy service
• Join Icebreaker One, which develops and operates Open Energy, as a supporter
• Sign up to the Open Energy newsletter

Photo credit: Precious Madubuike on Unsplash

Archive video:

What:

Our January Open Energy webinar will explore what a DNO could look like by 2030, as the UK strives to digitalise its energy networks and cut emissions by 68% as part of the Paris Agreement.

Considering the decade ahead, our panelists will discuss imminent questions such as the challenges and opportunities that digitalisation and net zero bring for the energy sector and the role of DNOs in the transition process. They will offer their unique perspectives on how demands on DNOs are likely to change, including from other energy system actors as well as Government and regulators, and the cultural shifts required inside the energy ecosystem over the next few years.

Speakers:

• Vichi Chandra, Open Engagement Manager, Icebreaker One (Chair)
• Gavin Starks, Founder, Icebreaker One
• Matt Webb, Head of Enterprise Data, UK Power Networks
• Dhara Vyas, Deputy Director, Energy UK

If you think a colleague or sector expert would be interested in joining this event, please share it with them.

Open Energy has been supported in-part with UK Government funding from UK Research and Innovation (UKRI) and BEIS.

Archive video:

What:

Our January Open Energy webinar will explore what a DNO could look like by 2030, as the UK strives to digitalise its energy networks and cut emissions by 68% as part of the Paris Agreement.

Considering the decade ahead, our panelists will discuss imminent questions such as the challenges and opportunities that digitalisation and net zero bring for the energy sector and the role of DNOs in the transition process. They will offer their unique perspectives on how demands on DNOs are likely to change, including from other energy system actors as well as Government and regulators, and the cultural shifts required inside the energy ecosystem over the next few years.

Speakers:

• Vichi Chandra, Open Engagement Manager, Icebreaker One (Chair)
• Gavin Starks, Founder, Icebreaker One
• Matt Webb, Head of Enterprise Data, UK Power Networks
• Dhara Vyas, Deputy Director, Energy UK

If you think a colleague or sector expert would be interested in joining this event, please share it with them.

Open Energy has been supported in-part with UK Government funding from UK Research and Innovation (UKRI) and BEIS.

Insurance frequently gets a bad press for not covering what consumers want or for charging prices that force more to self-insure. Indeed, over the last 20 years, only one third of total global economic losses have been insured – so over $2.5 trillion uninsured! The coronavirus Covid-19 has again highlighted potential gaps in cover: businesses may be unable to claim on business interruption policies if there is no actual physical damage to insured premises.Insurers provide a crucial role in society though, and have already reported losses in excess of US$25bn for Covid-19. They contributed massively to rebuilding cities post-catastrophe, like New Orleans following the devastating [$50bn insured] loss from Hurricane Katrina in 2005.

Climate change is next year’s problem?

Most non-life (re)insurance policies cover risks for a period of 12 months. Some classes of business do align insurance with specific projects (such as Contractors’ All Risks Insurance), but insurers have been more reluctant than others in risk finance (such as mortgages or bonds) to offer greater durations of cover. Don’t forget that claims on some policies (e.g. liability insurance) may attach years after the expiry date of the policy, especially for claims involving occupational diseases and environmental pollution. So-called “short-tail” policies, like Property, tend to capture claims very quickly, so pricing tends to be more reactive to actual claims experience.

Insurers exposed to greater frequency and severity of “weather” losses caused by climate change can reflect this increased exposure by adjusting next year’s annual premium. But this does not incentivise any change in behaviour in the customer, other than to shop for a cheaper deal elsewhere.

What’s the incentive?

Policyholders already have some tools at their disposal to influence the price they are charged. Crude measures, including limiting cover or increasing excesses may reduce premiums, but they don’t encourage greater uptake of insurance cover itself. Building resilience, building back better [post-loss] or adaptation are all tools that can negate the impact of climate change. Unfortunately, individual adaptation may not be enough; community solutions are required to shore up flood defences, enhance infrastructure and build preparedness. All of this requires local or national government intervention and may not be reflected in individual policyholder’s insurance premiums. It may just be the difference between being insured or not.

A paradigm shift in product design is required. Rather than pricing based on the rear-view mirror, climate-ready insurance requires a systems- and outcomes-based approach. This will incentivise adoption of carbon net-zero goals. Big data, machine learning and artificial intelligence will all enable insurers to harness technology to offer new products and services in this space.

How are corporations responding?

Reputational risk is now one of the biggest risks faced by businesses. Asset owners and portfolio managers (such as through organisations like the IIGCC) are responding to investor demands to better align their holdings to meet the goals of the Paris Agreement, follow the latest science and allow them to become “net-zero investors”. Similarly, there has been an acceleration in the number of companies publicly agreeing to transition to a low-carbon economy. Organisations like Science Based Targets are encouraging companies to commit to reducing Greenhouse Gases (GHG) emissions by set percentages and target dates. 

All of this leads to peer pressure on other companies to be seen to be aligning with investor demands; failure to do so could lead to increased litigation exposure for Directors and Officers.

What can insurers do?

Insurers’ biggest challenge is to remain relevant to the needs of their customers. The “Protection Gap” [being the difference between the total economic cost and insured loss covered] has been well-studied and its impacts are different for developing and mature insurance markets; the gap is not closing and “non-damage business interruption” (where business interruption cover is excluded when there is no first-party damage) is an increasing exposure. Innovative products that support carbon net zero goals could provide opportunities for insurers to do more than provide post-loss financing options to the few that can afford the limited cover available.

You can help!

Icebreaker One is working with insurers, brokers and other stakeholders to develop new climate-ready insurance financial products that support carbon net-zero goals. These could be changes to or extensions of existing policies or new policies using shared data with pre-emptive licences. What gaps exist in existing policies? What new products could be developed using new technology to make them insurable for the first time? Can the greening of infrastructure risk, perhaps supporting the circular economy, aligned with real-time sensor technology be the next big thing?

Join us here and help us deliver a net-zero future!