5G RedCap for energy suppliers: When does the leaner 5G option makes sense?

5G RedCap stands for ‘5G Reduced Capability’ and refers to a scaled-down version of 5G designed for applications with moderate requirements in terms of data rate, latency and energy consumption. The technology is more streamlined than traditional 5G, yet significantly more powerful than many low-power IoT technologies. It is therefore designed for devices that are intended to benefit from the latest 5G features without having to integrate the complexity of a full 5G module.

5G RedCap utilises a simplified 5G profile for connected devices. Compared with conventional 5G devices, RedCap-enabled devices require less antenna technology, less signal processing and lower power reserves. This means they can be more compact, more energy-efficient and more cost-effective.

From a technical perspective, 5G RedCap is also of interest as a future-proof solution for applications that are currently often implemented using LTE Cat 4 (an LTE device category for higher data rates). 5G RedCap can fulfil a similar role in the mid-range performance category, but is based on 5G. Another difference lies in the device design: whilst typical LTE Cat 4 set-ups are designed for two receiving antennas, 5G RedCap can, depending on the implementation, also be used with just one receiving antenna. 

This offers energy suppliers four key benefits:

1. Simpler device integration: 5G RedCap reduces the technical requirements for connected devices. This can simplify integration into gateways, routers, control boxes or monitoring units, and make deployment across larger fleets of devices more cost-effective.
2. Greater performance than low-power technologies: 5G RedCap is suitable for applications that communicate more frequently, transmit more status information or are more closely integrated with back-end systems. This makes the technology an attractive option when simply transmitting measured values is no longer sufficient.
3. Long-term 5G outlook: 5G RedCap-enabled devices may, in the future, benefit from 5G SA features such as network prioritisation, time synchronisation or targeted resource management. This is particularly relevant for energy infrastructure, which is intended to be reliably integrated into operational and control processes in the long term.
4. Greater planning certainty for new generations of devices: 5G RedCap provides a technical foundation for IoT devices that are intended to remain in the field for many years and be integrated into modern 5G networks in the long term. This helps energy suppliers to deploy new gateways, routers or control components 

Network sensors and local network stations

Network sensors measure voltage, load, temperature or operating conditions. When this data is transmitted more frequently and integrated more closely into monitoring or control processes, the demands placed on the connection increase. 5G RedCap can be a relevant solution here when traditional low-power technologies are no longer sufficient, but full 5G would be over-specified for the data volumes and response times required. Local distribution substations and transformers can also benefit from a more streamlined 5G connection, for example for condition monitoring and predictive maintenance.

Charging infrastructure and load management

Charging points communicate with backend systems, billing, energy management and load management. For simple applications, LTE-M may be sufficient. However, if charging infrastructure is more closely integrated into dynamic control processes – for example, for load balancing or the integration of local energy sources – lower latency and more frequent status updates may become more important. This is precisely where 5G RedCap can serve as a suitable intermediate step: more powerful than traditional IoT connectivity, but leaner than full 5G.

Decentralised energy systems

Solar PV systems, battery storage, heat pumps and energy management systems are increasingly becoming part of a connected energy system. They need to be monitored, controlled and integrated into operational processes. 5G RedCap becomes particularly interesting when communication routers bundle several components and regularly transmit data to back-end systems. For such moderately complex applications, RedCap can provide a long-term 5G solution without the need to equip every system with full 5G hardware. 

Whether 5G RedCap is a viable option depends primarily on the requirements of actual operations. The following criteria help to assess this:

5G RedCap is particularly suitable when:

• devices need to transmit more than simple measurement data.
• more frequent status updates are required.
• devices are connected to a permanent power supply.
• lower latency is relevant for monitoring or control.
• gateways, routers, control units or monitoring devices need to be connected.
• new device generations are planned as part of a long-term 5G roadmap.
• existing LTE-based solutions are to be modernised over time.
• devices need to be integrated into operational processes, rather than simply transmitting data.

5G RedCap is usually less suitable when:

• only small amounts of data need to be transmitted.
• maximum battery life is a key requirement.
• deep indoor or basement coverage is more important than data rate.
• NB-IoT or LTE-M already cover the use case reliably and cost-effectively.
• device costs need to remain particularly low.

It is also important to consider market readiness. 5G RedCap is strategically relevant, but its actual deployment depends on network support, the range of end devices, modules, certification and the effort required for integration. For energy suppliers, the decision should therefore always be based on specific use cases: What data is generated? How often does communication take place? How critical is latency? Where is the device located? How long will it remain in the field? And what is the long-term network strategy? 

With eRedCap, the next stage of development is already on the horizon. In future, the technology is set to provide a further intermediate step between LTE-M and 5G RedCap. This would enable even simpler or battery-powered IoT devices to benefit from 5G standalone capabilities whilst achieving higher data rates than with LTE-M.

For energy suppliers, eRedCap is primarily a roadmap issue. Whilst 5G RedCap is currently of particular interest for gateways, routers, control units and monitoring components, eRedCap could, in the long term, bring further device categories into the 5G fold without requiring the complexity of RedCap or full 5G. 

5G RedCap bridges the gap between NB-IoT, LTE-M and full 5G. For energy suppliers, the technology is particularly relevant in situations where devices need to do more than simply act as sensors, but do not require full 5G – for example, gateways, control boxes, network sensors or communication routers.

The specific use case determines which technology is suitable: device type, data profile, energy requirements, security requirements, location, budget and long-term roadmap. 5G RedCap does not replace NB-IoT, LTE-M or 5G, but complements them as a streamlined 5G option for the next generation of connected energy infrastructure.