Elhub in the cloud - a foundation for digital transformation of the power industry

Elhub is the central IT platform for the distribution of metered values, management of market processes and data sharing between players in the Norwegian power industry. Cegal was an important supporter when the platform was moved from on-prem to Oracle Cloud. The cloud migration has resulted in increased flexibility, faster development, and lower IT costs.

- Elhub aims to provide the market with the highest quality service, ensuring security and cost efficiency. Therefore, managing development and operations internally has been the correct approach for us. Migrating the Elhub platform to Oracle Cloud and collaborating with external experts such as Cegal will ensure that we reach our goal, says Sigbjørn Høgne, CEO of Elhub.

Elhub was established in 2019 as a wholly owned subsidiary of Statnett. Elhub operates and develops the IT platform of the same name. It handles data from the country's electricity meters and ensures that the information flows between the players in the market.

The Elhub platform ensures the flow of information between:
- 3.4 million electricity meters
- 125 grid companies
- 145 power companies
- 52 third parties

Annually, Elhub handles 30 billion transactions with a total data volume in the order of 1 Peta Byte. The data is the basis for the financial settlement between players in the energy market, and the requirements for data quality and completeness are very high. The operational stability and high quality of the Elhub platform are critical.

Quick cloud journey

Due to the need for security and stability, Elhub selected Oracle's software and hardware when setting up the IT platform. The platform was established early in the development phase, in the mid-2010s, and already after three years of operation (2019-2022) it became outdated.

- Our physical infrastructure was about to expire and was expensive to maintain. The decision was whether to make substantial investments in new hardware and software or transition to the cloud, to Oracle Cloud Infrastructure. We also needed to ready the IT platform for 15-minute meter readings, resulting in quadrupled processing and data volume. This means the IT platform will face significantly more demanding tasks. Flexibility and scalability are crucial, says Høgne.

- Many companies are gradually moving their infrastructure, applications, and services to the cloud. Initially, you transition one solution. Afterward, you refine and enhance it before proceeding to the next service.

In practice, we moved the entire platform over the course of a weekend.

Sigbjørn Høgne, CEO of Elhub.

- Prior to this, we spent two years building the foundation, testing, and preparing, adds Ken Tore Tallakstad, CTO and Team Leader Technology and Security at Elhub.

Tallakstad notes that a crucial aspect of the preparations involved gaining a comprehensive understanding of the IT platform: - Taking the time to thoroughly understand the solution has been crucial for Elhub in evolving into an IT organization with deep expertise and a strong sense of ownership over development and operations.

The benefits of Infrastructure as Code

Through the migration, Elhub has revolutionized the operation of its IT platform by implementing Infrastructure as Code (IaC) and Config as Code (CaC). This approach automates setups and changes, eliminating the need for manual processes. IaC/CaC ensures higher quality, more consistent environments, and significantly accelerates the development and deployment of services.

- IaC and CaC have significantly transformed the way we operate and develop Elhub. By implementing changes to the infrastructure consistently, we can effectively measure their impact. With IaC/CaC, setting up a new instance elsewhere is quick and straightforward, says Sigbjørn Høgne.

IaC also provides savings on IT operations:
- In essence, we power down certain systems at the end of the day and reactivate them in the morning. This optimization can lead to significant cost savings, although the most substantial efficiency improvements have been observed in operations, says Høgne.

A cloud platform for digititalization of the power industry

According to Høgne, the cloud migration represents both an update of outdated IT architecture and the creation of a platform that enables the delivery of future-ready solutions for the power market.

He cites data sharing as an example.

- We can now demonstrate how various grid tariffs can help smooth out consumption peaks. By evening out electricity usage, local grid companies might avoid the need for grid expansion, which conserves both financial resources and the environment. These capabilities are more accessible with our advanced, cloud-based IT platform, says Høgne.

An important IT partner for over 10 years

Cegal's position as one of Elhub's key IT partners for over ten years shows that the technology company has a unique combination of industry and technology expertise.

Høgne continues.

Elhub builds on a long history. In 1997, the power industry initiated electronic message exchange. By 2012, authorities determined that Statnett should create a neutral data hub to enable secure and efficient information exchange among industry players. At the same time, comparable initiatives were underway in four other European nations: Finland, Sweden, Denmark, and Belgium. From the start, Statnett sought to engage expertise that was not tied to a specific vendor. The choice fell on Sysco, which later merged with Cegal, under the leadership of Leif Morland. Morland brought valuable experience from his consultancy work on a project in Denmark, conducted under the Danish Energinet.

Initially, six individuals from Sysco were involved in the Elhub project. Currently, three of them continue to contribute to Elhub, notes Leif Morland, who remains with Cegal as a Principal Business Consultant.

The power industry quickly recognized the value of a centralized data hub to ensure efficiency and high uptime.

At the picture: Ken Tore Tallakstad, Sigbjørn Høgne, Sverre Sandernes, Jon Petter Hjulstad.