As global electricity demand rises with the expansion of renewables, electrification and data-centre growth, power grids are facing increasing pressure to modernise. Simon Evans, Director & Global Digital Energy Leader at Arup sat down with ENERGDIVE to discuss the urgent need for grid modernisation, digital infrastructure, interoperability and governance as electricity systems adapt to rising demand from renewables, electrification and data centres.
The International Energy Agency has stated that global investment in electricity grids must rise significantly this decade to support electrification, renewable integration and rising demand from data centres and industry. Which grid segments require the most urgent upgrades to prevent systemic bottlenecks?
Absolutely, we need to invest heavily in every single jurisdiction across all parts of the energy value chain to meet the demands we are seeing from data centres and many other aspects. The part that I think is really interesting is that we also need to consider, as we start developing and building these physical assets, what the digital versions of them are? How do we start creating a digital backbone to support them so we can make the most of them? We can leverage them and allow them to deliver the services needed to get to this decarbonised future.
Grid operators say that legacy power systems were not designed for bidirectional flows, variable renewable generation or highly concentrated new loads. What technical and operational changes are most critical for enabling grids to manage real-time complexity without compromising reliability?
Yes, the system was designed for a different purpose when it was much simpler and there was much more centralised generation. With the introduction of loads of distributed energy resources, the grid is becoming much more complex.
So what it is about is understanding how we can make the right interventions and the right investments across the grid to allow it to deliver the services it is required to provide.
Various multinational development banks highlight that grid digitalisation can improve efficiency, visibility and asset utilisation when supported by interoperable standards and data architecture. How important is standardisation in communication protocols, data models and cyber frameworks for enabling smart grids to scale across regions and utilities?
Really important. I think the key way of looking at it is that irrespective of your jurisdiction, most are stating a target for Net Zero or a clean power system by a certain date. In order to achieve that objective, you need to have an integrated energy system. To run an integrated energy system, you need to be able to model a range of scenarios. The modelling of those scenarios requires you to have visibility of the system, its behaviours and how it operates, which inherently requires you to share data. That also requires a level of interoperability across the system at a machine level.
Unless we can unlock this interoperability within the system, it will be very difficult to deliver those outcomes. Addressing that and understanding how we enable connectivity between assets at a system level is going to be critical.
Countries such as India have launched national smart grid programmes to modernise electricity systems, reduce losses and enhance system visibility. What lessons from early smart grid deployments are most relevant for scaling digital grid infrastructure in large, complex power systems?
There are so many lessons that could be shared from all parts of the world. I think the key thing is to look at what other organisations and sectors have done and understand how we can take those lessons across.
A big thing to look at is making sure that we are not only considering the technical deployment — building the infrastructure and getting it out there — but also considering the social aspects.
What does it mean for the users and consumers? What are the processes and systems around it that support it? Considering this as both a social and a technical challenge is going to be important.
Grid investment needs are increasing in many regions and utilities often face different regulatory and financing conditions when planning physical and digital upgrades. In your assessment, which regulatory and financing approaches are most practical for enabling grid modernisation while maintaining affordability and investment discipline?
Regulatory regimes vary so much across the world. Each has its pros and cons. It is about understanding what the appropriate approach is in that country based on how the system operates and what the regulatory requirements demand. There is no right or wrong — it is about making sure that your solution fits the environment.
As power systems incorporate more digital technologies and interconnected assets, governance, coordination and cyber resilience become critical operational considerations for system operators. What governance or risk management practices have helped utilities maintain reliability as grid digitalisation expands?
The key part you mentioned is governance, making sure from the outset that you understand who is doing what, the right roles and responsibilities, where accountability sits, and how issues are handled.
It is equally important to understand the system level. Just as we have a physical system planner who determines what gets built, where, and how it develops, there must be a digital equivalent. The system’s digital architect plays this role, ensuring that from the outset, design and development remain connected, coherent, and aligned.
