LF Energy, a Linux Foundation project dedicated to building the digital foundation for energy together, in collaboration with LF Research, today released The Open Source Value Proposition for the Energy Sector at the largest LF Energy Summit Europe to date, taking place in Berlin.
This new report introduces the LF Energy Open Source Benefit-Cost Framework, a methodology designed to help grid operators, regulators and energy industry stakeholders quantify the costs and benefits of open source software, backing procurement and policy decisions with measurable evidence.
Applied through real-world case studies and simulations, the framework found that open source approaches can deliver 2-5x greater net value compared with existing software procurement approaches.
As renewable energy generation grows, electrified loads expand for AI data centres and reliability requirements become more demanding, software-defined operations have become an increasingly strategic part of grid infrastructure.
However, conventional software procurement analyses focus narrowly on near-term acquisition and operating costs. This approach overlooks long-term considerations necessary for future-proofing, such as interoperability, customisation, community co-development, procurement leverage and digital sovereignty.
The LF Energy Open Source Benefit-Cost Framework fills this gap by offering a transparent, standardised methodology to compare legacy procurement against open source alternatives.
It evaluates strategies across four critical dimensions: total cost of ownership (TCO), risk exposure, strategic value and societal impact.
Validated through synthetic simulations and three real-world case studies, the framework distills complex financial data into intuitive metrics, helping operators identify hidden value drivers and make evidence-based decisions.
“Affordability and the pace of change are the grid's two hardest problems right now, and digitalisation is key to solving both,” said Alex Thornton, Executive Director of LF Energy.
“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.”
Boris Dolley, OSPO Director, RTE Réseau de Transport d'Electricité contends that open source practitioners 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.”
He asserts that 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."
Grid operators, software developers and industry stakeholders are invited to contribute their feedback.
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