LF Energy Summit 2024 held in Brussels highlighted the critical role of data sharing and infrastructure in advancing energy systems, especially in emerging markets. In a keynote session titled “The Role of Data Sharing and Infrastructure in Energy Data Infrastructure of Emerging Markets,” experts from the World Bank, NEO BV, Open Data Services Co-operative, and Open Climate Fix discussed the unique challenges and opportunities in modernizing energy systems in these regions. Moderated by Anders Pedersen from the World Bank’s Energy Sector Management Assistance Program (ESMAP), the panel explored how emerging markets can leverage data and infrastructure improvements to accelerate the energy transition (full video follows below).
Key Takeaways
- Global Energy Challenges and the Importance of Digital Infrastructure Pedersen set the stage by explaining that the World Bank’s global energy team works to decarbonize grids and provide energy access to 700 million people worldwide who currently lack it. Financing is often directed towards grid modernization and energy access programs in emerging economies. Pedersen emphasized that while open source is not yet the central focus, it holds great potential in unlocking innovation and improving the performance of energy grids, particularly when integrating renewables.
- Legacy Systems in Emerging Markets Pose Unique Barriers A significant challenge in many emerging markets is the outdated energy infrastructure, often decades behind that of developed countries. This creates difficulties when introducing modern technologies designed for more advanced grids. Pedersen highlighted the need for interoperability and flexible technologies that can adapt to the phased modernization of grids in these regions. The panel acknowledged that these legacy systems require component-based solutions that can be iterated upon and adjusted as modernization progresses.
- The Value of Open Data and Standardization in Energy Systems Neelima Janardhanan of Open Data Services Co-operative underscored the importance of responsible data sharing frameworks. Her organization has been working on developing such frameworks for mini-grid projects in Sub-Saharan Africa. She noted the challenges around defining consistent Key Performance Indicators (KPIs) across various actors, from developers to governments. The solution proposed was a data-sharing agreement rather than creating new standards, allowing for shared responsibility and alignment in data collection, which facilitates better decision-making and accountability in energy projects.
- Equity and Access in Data-Driven Energy Systems Data sharing frameworks bring challenges, especially for smaller developers in emerging markets. Janardhanan pointed out that while larger developers can absorb the costs of compliance, smaller players often struggle. This highlights an equity issue within the energy sector, where open source software might help, but more needs to be done to support smaller developers and ensure they aren’t unfairly burdened by the costs of compliance.
- Trust and Collaboration in Data Sharing Building trust in data sharing ecosystems is another critical barrier to overcome. As Dan Travers of Open Climate Fix discussed, many energy stakeholders in emerging markets are reluctant to share data due to concerns over privacy and misuse. He highlighted examples where solar data in the UK, for instance, could be shared more openly to enhance machine learning models, which could then be applied in other countries. Trust in data aggregators and ensuring that shared data creates value for all participants are essential to building more collaborative energy systems.
The Path Forward: Open Data and Infrastructure for a Just Energy Transition
As emerging markets work to meet their growing energy demands and integrate renewable energy sources, the role of data sharing and digital infrastructure will be critical. The panelists agreed that international collaboration, open standards, and flexible, component-based technologies can help these markets leapfrog legacy systems and accelerate their transition to cleaner energy.
Pedersen concluded the session by emphasizing the need for localized versions of initiatives like LF Energy, particularly in regions like India, where open data discussions and political buy-in are necessary at the early stages of the energy transition. The panel’s consensus was clear: a focus on building trust, equity, and collaboration through open data frameworks will be essential to ensuring that the energy transition benefits all, particularly in the emerging economies that stand to gain the most.
