The Linux Foundation | 15 September 2026
New benefit-cost framework gives utilities and regulators a standardized methodology to compare open source with conventional software procurement
Summary
- A new report from LF Energy reveals open source software can deliver a 2-5x greater net value for grid operators and introduces a new framework for quantifying the costs and benefits of open source software for utility grid operators.
- The framework fills a longstanding industry gap, helping shift software procurement from a regulatory and operational burden to a strategic, long-term investment.
- Real-world case studies and simulations demonstrate significantly higher returns for open source alternatives compared to existing procurement costs.
BERLIN – LF Energy Summit – Sept. 15, 2026 — 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. 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 centers 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, customization, community co-development, procurement leverage and digital sovereignty.
The LF Energy Open Source Benefit-Cost Framework fills this gap by offering a transparent, standardized 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 digitalization 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.”
Download the full report and explore the findings here. Grid operators, software developers and industry stakeholders are invited to contribute here.
Supporting Quotes
"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."
– Boris Dolley, OSPO Director, RTE
"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."
– Tim Vermeulen, Director, Strategy and Architecture, Alliander
About LF Energy
LF Energy is the Linux Foundation's neutral home to build the digital foundation for energy together. We host more than three dozen open source projects used to plan, operate, and modernize energy systems. The portfolio spans from transmission system modeling to substation virtualization, smart meter integration to EV charging. We provide the trust layer: neutral governance, legal frameworks, security practices, and community of practitioners that turn open source software, standards, and data into infrastructure the industry can depend on for decades. Members include utilities, energy companies, vendors, researchers, and technology providers, aligned to deliver affordable, reliable, safe, and clean energy. For more information, please visit lfenergy.org.