Moving the UK economy to net zero is probably the biggest challenge of the coming decade. The electricity grid lies at the heart of this challenge, however the country is held back by an unnecessary disadvantage: the lack of high-quality data - data needed by innovators and incumbents to maximise their potential to bring net zero technologies online cost effectively and fast.

This ties into the second challenge: the UK’s ambition to be an AI superpower. As highlighted in the AI Opportunities Action Plan, AI thrives on access to large datasets, but much of the necessary data is either locked within a handful of organisations or not collected at all. With data ownership fragmented among incumbents, AI start-ups and innovators struggle to access the information required to develop transformative solutions. This lack of open data undermines the level playing field needed for a competitive, innovative ecosystem.

The root of the issue goes back to the electricity industry’s deregulation in 1990. At the time, the UK led the way in making data available to run a centralised, coal and nuclear-focused grid. However it has failed to keep up with the shift to a decentralised, dynamic, renewables-driven grid; over 800,000 individual solar PV systems were installed in the UK between 2010 and 2017, leaving the energy ecosystem ill-equipped for today’s challenges.

Take a concrete example: the amount of solar energy generated in the UK each half hour is not recorded by National Grid, but is modelled by a university group called Sheffield Solar. They only have readings available to them from less than half of 1% of the solar panels in the UK, and they must scale that up over 200 times to arrive at an estimate of half-hourly solar PV generation. Further this data is only from domestic panels, so doesn’t include utility-scale solar facilities in the calculations. As a result, no one in the UK energy ecosystem has a full picture of how much solar energy is being generated. This lack of transparency makes it significantly more difficult for National Grid to balance the system, contributes to price spikes and drives higher system costs.

Additionally, most solar electricity is metered by solar farm operators for billing processes. However, there is no requirement for them to share this data, even though doing so would enhance grid efficiency and enhance the integration of solar energy as an asset class. Despite there being substantial potential for wider social and economic benefits, there is no incentive for solar farms to share the data and they see only the risks and costs, although small, associated with publishing the data.

We believe the conversation around energy data needs reframing: companies providing energy services use the electricity grid - the energy transportation infrastructure spanning the country - as their route to market. With this privilege comes responsibility, which should include the obligation to share data on what energy infrastructure they are installing and how they utilise the grid. This data, appropriately anonymised and managed by a regulated body where necessary, would allow the country to foster future innovation and maximise the use of existing grid infrastructure.

Further, many of these datasets have much more value to the public and to the UK economy if they are aggregated, giving a complete picture, rather than existing in isolation.

Access to this data would empower climate-tech start-ups to accelerate the transition to net-zero while building businesses capable of exporting their innovations globally as the energy transition progresses. Firstly, Britain could lead the way in developing an energy and AI innovation ecosystem assisting the net-zero transition. Secondly, this would serve as a lighthouse example for other countries to follow - showing how energy data sharing can transform countries’ energy systems to be cheaper and cleaner.

The data reporting and transparency requirements for Great Britain’s energy grid, established over thirty years ago, are no longer fit for purpose in today’s energy landscape or for achieving net-zero in an equitable and cost-effective manner. Unlocking access to more energy data holds immense value for market participants and innovators alike. While privacy and commercial concerns must be carefully addressed, these challenges are largely manageable. The Energy Smart Data Scheme and the Data Use and Access Bill are excellent starting points, but we believe more progress can be made. By opening up key datasets, the government and regulators can position Great Britain as a global leader in AI-driven energy innovation, accelerating the transition to net zero.