In the energy sector, two giant challenges are being addressed – the green transition and security of supply

Recently, energy production and the functioning of the electricity grid have begun to interest Finns. One reason for this is the drastic fluctuations in electricity prices over the past few years. Another reason is an understanding of how deeply energy sector solutions are connected to the functioning of our society.

The green transition requires innovation

The combined output of Finland's five nuclear reactors is 4,400 megawatts. Many might be surprised to learn that the theoretical capacity of Finland's wind power significantly exceeds this. According to the Finnish Wind Power Association, wind capacity will grow to over 8,000 megawatts by the end of 2024. While solar power production is small compared to wind, there’s nearly 1,000 megawatts available. So there’s ample capacity – but since weather conditions vary, there’s still a need for regulation and energy storage.

“There’s already a deep understanding of how energy markets can operate efficiently,” says Eero Kurkela, CTO of Asteroid, who has been working with energy sector companies for over a decade. “We also understand how critical role, e.g., reserves play in the electricity market. The inherently variable production capacity based on the key renewable energy sources does not suffice for stable energy infrastructure and the security of supply unless sufficient capacity can be buffered.”

While good solutions are continuously being developed for facilitating the green transition, more are needed. “Ingenuity, new innovations, and an open mind are still required for developing all the solutions needed to achieve sustainable energy production worldwide – and the sooner, the better,” Kurkela adds. “At Asteroid, we want to contribute to implementing changes that will help make electricity markets faster and more granular for increased agility and resilience. Replacing rigid, manual processes with automation and intelligence is a key factor in enabling the green transition.”

The resilience of information systems is part of the security of supply

In addition to the green transition, the energy sector is dealing with another major issue. “Security of supply, which is closely linked to the cybersecurity of systems, is a key issue whenever information systems in the energy sector are developed,” Kurkela explains. “Digital infrastructure is more flexible than physical infrastructure, for example, in how the key locations and protections of systems can be adjusted and improved.”

The resilience of information systems must always be considered in their development, as various unexpected situations can impact the functioning of the electricity market – as demonstrated by the case of Kinect Energy (Norway) a year ago. In that case, human error led to significant underpricing of electricity supply in the electricity market, which could have even jeopardized the stable operation of Finland's electricity system if Fingrid hadn’t prepared to take on the role of balancing demand and supply.

“That was a good example of how even a part of the system, which may not seem directly related to, e.g., operating power plants or electricity grids, can prove critical on the whole,” Kurkela says. “Therefore, there are no ‘less important’ systems in the energy sector. All are important, and everything matters.”

Expertise in the energy sector means continuous learning

Asteroid's experts have collaborated with key energy companies in Finland for years, even before founding Asteroid. “Everyone developing these systems understands the significance of the work,” Kurkela says. “This doesn’t need to be emphasized because people working in this field inherently grasp its importance.”

Asteroid’s projects have included technology and strategy consulting, building customer interfaces related to billing and measurement information, and developing systems related to the operation of energy infrastructure. Projects have also involved creating sensor- and IoT-based data systems, migrating digital infrastructure to resilient cloud platforms, and establishing entirely new B2B and B2C online services to connect the various parties of the electricity market.

One project was about creating a customer portal for managing products related to the wholesale energy market and monitoring the status of the grid. Asteroid’s experts have also helped develop energy management solutions for properties.

“The list could go on,” Kurkela explains. “But all of this can be summarized by saying that no aspect of digital development in the energy sector is unfamiliar to us. We know the industry's specific characteristics exceptionally well, and we’re also constantly learning. An expert never defines their expertise by what they know, but rather by what they have yet to learn.”

The article was written in collaboration with a partner of Asteroid.