Strategy
Deloitte developed Scotia Gas Networks’ (SGN) Energy Horizons AI platform, a strategic tool predicting individual customer energy transition pathways to guide heat decarbonisation and net-zero planning.
As the UK accelerates towards our net-zero 2050 target, the imperative to decarbonise heat is paramount. SGN, a critical gas network serving millions, faced significant strategic uncertainty regarding the pace of heat pump adoption. The pace of energy transition will profoundly impact its network infrastructure, operational and commercial viability, impacting its ability to support energy security and decarbonisation.
Alongside SGN, Deloitte developed an innovative strategy to support executive decision-making in this uncertain environment – bringing diverse capabilities to enable a clearer understanding of energy transition impacts on the network. This approach enabled SGN to understand the key strategic choices available, and plan for the future.
Through this work, SGN’s strategic decision-making platform, Energy Horizons AI, was developed. The platform predicts the individual energy transition pathway of SGN’s 6 million customers. It enables an understanding of when an individual customer will electrify, the costs associated with transition, and how they interact with their unique built environment.
This state-of-the-art AI cloud platform understands a diverse set of econometric, practical, physical and environmental factors. Coupled with sophisticated pressure modelling, it supports an understanding of the impact of transition on individual pipes in the ground. Stress-testing capabilities enable an examination of shareholder returns against the uncertainty of the changing policy environment.
Energy Horizons AI positions SGN as a transition leader, actively contributing to our net-zero ambitions. It supports investment, and the avoidance of unnecessary infrastructure upgrades. This will benefit consumers – unlocking lower network charges, supporting a more affordable, efficient, and equitable net zero.
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