Open source software offers 2-5x more value for grids

LF Energy and Linux Foundation Research have published a report finding that open source software can deliver 2-5x greater net value for grid operators than conventional software procurement. It also sets out a standard method for utilities and regulators to compare the two approaches.

The study, titled The Open Source Value Proposition for the Energy Sector, introduces what the organisations describe as the first standardised benefit-cost framework for assessing open source software in utility settings. It evaluates software choices across four areas: total cost of ownership, risk exposure, strategic value, and societal impact.

The findings come as power networks rely more heavily on software to manage renewable generation, rising electricity demand, and stricter reliability requirements. The authors argue that many existing procurement assessments focus too narrowly on acquisition and operating costs, overlooking longer-term factors such as interoperability, customisation, procurement leverage, and digital sovereignty.

The framework was tested through simulations and three case studies. Those exercises showed that open source options produced significantly higher returns than legacy procurement models, according to the report, giving grid operators a quantitative basis for investment decisions and regulators a method for oversight.

Alex Thornton, Executive Director of LF Energy, said the industry needed a clearer economic case for software choices as digital systems become more central to grid operations.

"Affordability and the pace of change are the grid's two hardest problems right now, and digitalization is key to solving both. This research demonstrates an open source strategy returns far more than conventional procurement. Utilities operate under a bargain: a regulated monopoly in exchange for affordable, reliable, safe, clean energy, and every major investment has to be defensible. Now there's a way to make that case with numbers," said Thornton.

Membership growth

Alongside the report, LF Energy added two General Members: Coreso and Landis+Gyr. It also announced four new open source projects, along with a series of software and governance milestones across its portfolio.

Coreso is a European regional coordination centre, while Landis+Gyr supplies energy management technology. Their addition points to broader interest in shared software development among both grid operators and equipment providers.

The four new projects are AssetLife, CityLearn, EnerGNN, and Smart HEMS Benchmark. Contributed by system operators, academic institutions, and industry groups, they expand the range of tools available within the LF Energy ecosystem.

AssetLife is a Python library for utility asset management decisions using stochastic modelling and survival analysis. The project weighs direct costs alongside broader effects, including carbon shadow pricing.

CityLearn is a multi-agent reinforcement learning environment focused on urban energy management and microgrids. EnerGNN uses graph neural networks to model power grid topologies for tasks including power flow analysis and forecasting.

Smart HEMS Benchmark is designed as a manufacturer-neutral platform for evaluating home and community energy management systems. It uses shared datasets, common scenarios, and standard metrics across the residential distributed energy resource lifecycle.

Technical milestones

LF Energy also reported progress across several existing projects. OpenSTEF reached version 4.0 with what it described as a major architectural update for energy forecasting, while SEAPATH advanced to Graduated stage and CoMPAS moved to Early Adoption.

Two other projects, Grid2Op and OpenGridFM, moved from Sandbox to Incubation stage. The changes indicate that more projects in the portfolio are progressing from experimental work towards wider operational use.

Attendance at the organisation's European summit in Berlin rose by more than 30% from a year earlier. The increase suggests growing interest in open source approaches in the energy sector, particularly as utilities face pressure to modernise systems while controlling costs.

One of the report's supporting voices came from RTE, where open source policy has become part of a wider debate about digital infrastructure and public procurement. Backers of the report argue that software choices for utilities now have implications beyond IT budgets, affecting resilience, governance, and market structure.

"As open source practitioners, we often treat the value of open source as self‐evident. But is this the right stance when engaging policymakers and public procurers? I would argue it is not. Open source is not an end in itself. It must be justified through demonstrable value and sound risk management for all stakeholders. Open source should be positioned as one option within a broader governance and procurement strategy: make, buy (in the digital realm, rent), or make together. When a digital asset is intended to interoperate with peers and even competitors over a non‐limited period, the 'make together' approach is the most appropriate. This report presents a concrete, illustrated feedback loop showing how shared development, transparent governance, and long‐term maintenance turn public investment into durable, sovereign digital infrastructure," said Boris Dolley, OSPO Director, RTE.

Alliander also backed the framework's broader approach to software evaluation in grid operations.

"For grid operators, software decisions are increasingly strategic decisions. This research provides an important framework for evaluating not only costs, but also long-term value, resilience, interoperability and digital autonomy. At Alliander, these are key considerations in how we approach digitalization and open collaboration," said Vermeulen.