Industrial Electrification Is Possible – But Requires Digitalisation and Collaboration

The electrification of industry is progressing faster than the power grid can keep up. Companies are eager to make the transition – but are held back by capacity constraints, lengthy permitting processes, and agreements that do not encourage flexibility. Now, the RedigitiZE feasibility study shows that digitalisation and collaboration could be the key to using existing grid capacity more intelligently.

In October, representatives from industry, research, technology development, and energy and grid companies gathered at Karlstad Innovation Park to review the findings and discuss the way forward.

– It has been incredibly valuable to bring together so much knowledge, experience and ideas in one room. Despite the complexity of the topic, there hasn’t been a single quiet moment – the level of engagement shows how strong the interest is in solving these challenges together, says Oliver Ingwall King, Project Manager at Glava Energy Center.

The electrification of industry, transport and society is both in demand and essential – but the lack of grid capacity is slowing progress. Planned grid reinforcements are often too slow and expensive, while industrial demand for electricity is growing rapidly.

Mapping and Digitalisation

Over the past six months, RedigitiZE has gathered insights through interviews, workshops and analyses with industrial companies, energy and grid operators, researchers and technology suppliers. The aim has been to understand both the technical and business barriers to industrial electrification – and to identify new ways of working together.

– It’s not the technology that’s missing, but the ability to use it systematically. Many companies have both the knowledge and the will, but are held back by unclear incentives, slow permitting processes and the lack of shared models. To unlock capacity, we need clearer roles and stronger coordination between industry, grid operators and authorities, says Elias Hartvigsson, CTO at Endre, who led the study’s interviews and needs analysis.

Digitalisation of energy data is a crucial piece of the puzzle. The technology already exists – with sensors, control systems and platforms capable of measuring and adjusting electricity use in real time – but it is used unevenly.

– Many of the digital solutions we need are already available. The challenge is to scale them up and create secure, shared platforms that more actors can use. Cybersecurity and data quality must be built into the solutions from the start, says Elin Sandahl, CEO of the cybersecurity company Norgald, who led the mapping of digital solutions in the study.

From Technology to Incentives

Several participants confirmed that technology and knowledge largely exist, but that the exchange between actors is hindered by unclear drivers. Industrial companies see great potential, but also the need for clearer incentives.

– Many companies already hold valuable data and expertise, but the question is why they should share it. It comes down to having the right incentives to move forward. Much of the hardware and competence is already in place, but the benefits of sharing must be made clearer, says David Blecko, Head of Energy, Technology and Infrastructure at Uddeholm, which has made significant progress in smart energy management and flexibility.

Energy companies recognise the same challenges.

– We already help our customers visualise and make their capacity available – but imagine if we could do this more systematically, on a broader scale, says Jenny Kongseryd, Head of Business Development at Jönköping Energi, who attended the event for inspiration.

From a cluster perspective, the focus is on spreading knowledge and building engagement among member companies.

– In the long term, we want to support our member companies so that they have access to the energy they need, when they need it. That’s why we need to monitor and follow this issue – to inspire companies to get involved and contribute, says Matilda Iverlund, CEO of Paper Province, a cluster organisation helping new and established companies develop and launch sustainable innovations linked to the forest industry.

Towards Holistic Solutions

Chalmers Industriteknik also participated in the event, highlighting parallels with another Vinnova-funded feasibility study on flexible industry.

– There are many concepts and technologies already developed, but they are rarely assembled into complete solutions. The knowledge exists but is fragmented – we need a more coordinated approach, says Claes Sommansson, Group Manager at Chalmers Industriteknik.

The results point to the same conclusion across several parts of the energy system: the technology and solutions are there – but governance and incentives lag behind.

– What’s missing are business models, regulations and incentives that make it profitable for industry and grid owners to collaborate, says Lars Olsson, Senior Expert in Sustainable Energy Systems at Seniorit AB.

Next Step: A Demonstration Project

RedigitiZE, funded by Vinnova, is part of the Swedish innovation agency’s programme for feasibility studies that support system-changing projects in advanced digitalisation.

The next step is to demonstrate the potential in a nationally significant pilot project, where digital solutions and new forms of cross-sector collaboration can be tested in real industrial environments.

Focus Areas of RedigitiZE

• Mapping: What do the industry’s energy needs and current grid capacities look like? Many companies buy more capacity than they actually need – out of uncertainty.
• Needs: What barriers and opportunities exist for industry and grid operators? Industry wants to contribute to flexibility – but lacks incentives.
• Digital solutions: What technologies are available and what is missing? Systems exist but need scaling and integration.
• The way forward: How can collaboration be strengthened? A shared mission and testing in real-world settings.

Read more about the project on the feasibility study’s website.