Why 5G is more than just a new network
The energy sector is facing a transformation that will be significantly accelerated by 5G technology. But what exactly makes 5G so special – and why should companies include this standard in their planning today?
In technological terms, 5G is far more than just a “faster version” of 4G. It is based on a combination of familiar frequency bands (in Europe between 700 MHz and 3.5 GHz – as with 4G) and new, higher frequencies (e.g. 3.4-4.7 GHz). These enable extremely high data rates with low latency – ideal for real-time applications and remote control. In addition, more devices can be served at the same time with a higher capacity. Thanks to better network stability, the 5G network is less susceptible to interference.
These properties make 5G particularly interesting for applications that require fast, stable and reliable data transmission – such as in Industry 4.0 or in the energy supply sector.
5G in the energy sector
The expansion of renewable energies, decentralized supply concepts and the increasing importance of e-mobility require an intelligent, controllable power grid. This is precisely where 5G comes in – as the technological backbone for the next stage of digitalization.
Currently, data transmission in many smart metering systems is still based on mobile communications standards such as LTE Cat 1 to Cat 4. Although these technologies have proven their worth, they are increasingly reaching their limits – especially when it comes to latency, network capacity and reliability. With “RedCap” (Reduced Capability), the new 5G technology provides precisely the solution that mediates between classic low-power communication standards and high-performance 5G applications. The 5G RedCap (Reduced Capability) technology offers a more efficient use of the 5G network by reducing the demands on devices and infrastructure. By reducing costs and energy consumption, 5G RedCap enables more cost-effective and resource-efficient integration of devices into the 5G network without sacrificing the benefits of 5G performance, such as higher speed, low latency and large network capacity. – In other words, precisely the three requirements that modern smart metering infrastructures have today and will have in the future.
This promotes the development and spread of innovative applications in areas such as smart cities, healthcare and Industry 4.0.
This makes RedCap the natural successor technology for LTE-based solutions. It not only enables robust, secure and cost-efficient communication, but also ensures that systems are equipped for future requirements – such as higher device density, faster response times or prioritized data transmission. Those who pay attention to RedCap compatibility when selecting hardware and systems today are laying the foundations for a sustainable, future-proof infrastructure.
In addition, the full potential of 5G can only be exploited with a targeted network expansion. New frequency bands – for example in the 3.4 to 3.7 GHz range – offer significantly higher bandwidths, but are only available to 5G. The 3.8 GHz range in particular is reserved for private campus networks, especially in Germany, which enables individual, high-availability communication solutions directly on site.
A key technical feature of 5G is the possibility of slicing. Dedicated network resources can be reserved for specific applications or users. In the energy sector, this means that operators can set up slices for specific applications or requirements, such as high bandwidth, low latency or a high number of connected devices. This part of the network resource is then reserved for the operators and offers more efficient and individual use of the network infrastructure, which is even blackout-proof when booked. This type of virtual network separation was previously not possible in 4G networks.
Thanks to the highly available data connection via 5G, smart grids can react to consumption and generation data in real time. Photovoltaic systems, wind turbines and battery storage systems can be controlled more efficiently and electricity can be directed to exactly where it is needed. The smart metering process enables consumption to be recorded down to the minute – the basis for dynamic electricity tariffs and improved grid stability.
Smart home systems and intelligent charging solutions for electric cars also benefit from 5G technology in the private sector. The low latency allows real-time control of devices, heating systems or wallboxes – even remotely. Low bandwidth and computing power requirements mean that IoT applications and wearables in particular can benefit from the technology.
Even if 5G is not yet available nationwide, there is already a high level of network coverage: at the end of 2023, 90% of the area in Germany was covered with 5G by at least one provider. By the end of 2025, 99% of the German population should be covered by the modern mobile communications standard. However, in order to be able to communicate fully via 5G RedCap, the energy sector needs a 5G stand-alone network and not a hybrid between 5G and LTE – the so-called non-stand-alone.
However, companies that get to grips with the technology early on are already gaining a clear competitive advantage by integrating RedCap and 5G capabilities into their digital business models – and are already laying the foundations for a future-proof, scalable infrastructure.
Conclusion
5G is not just a new generation of mobile communications – it is the progressive basis for an intelligent, networked and sustainable energy supply. Whether smart grids, dynamic tariffs or smart households: 5G can make the energy sector not only more efficient, but also more customer-friendly and future-proof. That’s why it’s worth switching to the new mobile communications standard now.
