Ericsson White Paper GFTL-23:001893 Uen February 2024 Innovative Energy sharing Innovative Energy sharing Content February 2024 2 Content Introduction 3 What is energy sharing, and what can be anticipated from it? 4 Transforming the energy ecosystem 7 Conclusion 13 Glossary 14 References 15 Authors 16 Innovative Energy sharing Introduction February 2024 Introduction This white paper discusses the evolution necessary for enabling energy sharing. It traces the progression from current energy solutions in the Information and Communication Technology (ICT) sector to a future ecosystem about 2030. This ecosystem involves multiple sectors contributing to energy sharing in society, where power and connectivity act as trusted partners when needed the most. Readers are encouraged to explore this white paper to grasp the following key points: 1. ICT sites have the potential to support the power grid with energy ancillary services, utilizing energy storage at the sites. This provides ICT site owners with opportunities to generate new revenues. 2. ICT sites can play a role in local microgrids, enhancing resilience by having local power. This ensures that connectivity services remain operational. 3. The facilitation of energy sharing becomes crucial in crisis situations, especially as more services become digitalized and dependent on connectivity. Exploratory activities are underway, including collaborations in these areas. This white paper will reference ongoing joint efforts across industries and sectors to enable energy. 3 Innovative Energy sharing What is energy sharing, and what can be anticipated from it? February 2024 What is energy sharing, and what can be anticipated from it? The ultimate goal is to establish the capability to share energy generated and stored within a specific geographical area, particularly during instances of power grid disconnection. In light of the evolving climate situation, societies worldwide are encountering novel crisis scenarios. The increasing reliance on connectivity services, driven by 5G and 6G technologies, demands a continuous and available energy supply. This necessitates significant enhancements in the power grid, as depicted in Figure 1: • Decarbonization: A concerted effort is made to reduce greenhouse gas emissions in power generation. • Decentralization: The energy market transforms into an extensive multi-point system with two-way energy transfer distribution. • Digitalization: The new multipoint setup for both power generation and the energy market underscores the requirement for numerous measuring points. 4 Innovative Energy sharing What is energy sharing, and what can be anticipated from it? February 2024 Decarbonization Generation Energy market Distribution Consumer - Prosumer Digitalization Decentralization Figure 1: Power grid transformation Power grid challenges and how ICT can support With an increasing shift toward fossil-free energy generation and electrification, power grid owners require assistance in addressing the emerging challenges brought about by the transformation in energy generation and consumption. Key factors posing challenges to grid robustness include: • bottlenecks in transmission capacity • growing share of intermittent energy sources such as solar photovoltaic/wind • reduction in the share of rotating mass for electricity balancing in the power grid In the transformation of the power grid, enlarging the energy reserve capacity is imperative to ensure stability, making the balancing of every electricity grid the new norm. The ICT industry and other sectors can play a role in fortifying the power grid. Digitalization and smart energy orchestration have the potential to capture small energy generations from energy communities and establish innovative business models. This reinforcement can be examined from both sustainability and intent perspectives, as illustrated in Figure 2. 5 Innovative Energy sharing What is energy sharing, and what can be anticipated from it? February 2024 6 Energy evolution Innovative Intent: Smart X energy consumption % renewable energy X technology usage On demand Resilience Prolong usage & Life cycle Environmental Prediction Micro grid Awareness Secure interface Industry & Society Prioritization Trustworthiness Community interaction Societal OPEX Energy as new revenue API Automation Energy @ edge Energy slicing Business eco system Energy f