Part 2: The Role of IoT in the Just Energy Transition

Introduction

In part one of this series titled The Role of Digital Transformation in the Just Energy Transition, we looked at the meaning of some key terms - energy transition, just energy transition, digitisation vs digitalisation vs digital transformation, and energy 4.0. We also looked at the requirements or the 5Ds of the energy transition: decarbonisation, decentralisation, digitalisation, democratisation and deregulation.?

We also saw that technology is the ship that gets us to the port called ‘just energy future’. Technology is not the destination but is a mode of transport to help us get to our desired future.

According to the Environmental Protection Agency (ERA), the top three industries with the highest carbon emissions in the U.S. are transport (27%), electricity production (25%) and industry or manufacturing (24%). These industries will have the greatest impact on the Net Zero by 2050 goal and will drive the energy transition. The oil & gas industry is also key, as it provides fossil fuels that power the above industries.

Digital Transformation is the complete shift we need to get an enormous boost towards meeting Net Zero by 2050. In this article, we will look at one of the digital technologies that will help us leap into the just energy future - IoT.

What is the Internet of Things (IoT)?

Internet of Things (IoT) is an umbrella term that refers to a network of devices with embedded smart sensors that collect data from the environment and exchange it with other devices through the internet. Smart sensors collect various data sets from the environment, e.g., temperature, humidity and movement. When IoT is used in the manufacturing industry, it is known as the Industrial Internet of Things (IIoT) and when used in the energy industry, it is known as the Internet of Energy (IoE). IoT simply means connected devices.

What are Some Use Cases of IoT for the Just Energy Transition?

Smart Grids are an example of IoT/IoE. Smart sensors are embedded in the electricity grid/network and collect key real-time data from the environment for remote monitoring, control, asset management, and predictive maintenance. There are different smart sensors, e.g., voltage sensors, temperature sensors, and pressure sensors, among others. Smart grids also allow for the 2-way flow of electricity and data from the point of generation to consumption and vice versa. General Electric is an example of a company that offers smart grid solutions.

Smart meters are an important part of the smart grid infrastructure. They read consumption data in real-time and that data is useful to both the consumer and the utility company. An in-home display or device comes with a smart meter and is a portable screen that displays energy use and cost in real time. It helps the consumer monitor usage, manage energy cost, and reduce consumption when necessary. SmartThings Energy Control (STEC) is an app that pairs with your in-home device to give you access to your energy data from your smartphone or tablet.

Solar Home Systems (SHSs) are IoT-enabled solar panels that provide electricity to low-income households that do not have access to the electricity grid. According to GOGLA, solar home systems have a solar panel rated from 11 Wp to usually up to 350 Wp and provide multiple electricity functions, such as lighting and powering a wide range of appliances such as TVs and fans. SHSs use IoT for remote monitoring to get data insights on usage and for preventive maintenance. Bboxx is an example of a company offering IoT-enabled solar home systems to provide energy access to households with no access to the grid.

Virtual power plants (VPPs) aggregate many small-scale distributed power producers (Distributed Energy Resources or DERs), which run on different sources of renewable energy, into one grid. The DERs consist of solar panels, wind farms, battery storage and even electric vehicles. The consumers are also producers (prosumers), and there is a trading of power among the prosumers (peer-to-peer trading). VPPs use IoT to provide remote monitoring and control, reliability, flexibility, and energy efficiency. They provide solutions for low-income households. Next Kraftwerke is an example of a VPP that also provides VPP-as-a-service software.

Smart mobility means connected vehicles. The connected vehicles can have an embedded connection to the internet or a connection through a smartphone. Uber is an example of a connection through the driver’s smartphone. Connected vehicles can connect to the internet (Vehicle to Cloud or V2C), to other vehicles (Vehicle to Vehicle or V2V), or to the road infrastructure (Vehicle to Infrastructure or V2I), among others. They use smart sensors to collect data from the environment on location, light, proximity, temperature, etc. Autonomous or driverless cars may take a long time to scale but connected vehicles (a precursor to autonomous vehicles) are already here with us. We are seeing a push to electric vehicles to reduce carbon emissions. Internet of Vehicles (IoV) is a term used to refer to connected vehicles. Syntegra is an example of a company that offers an IoV platform and car connectivity solutions.

What is the Role of IoT in the Just Energy Transition?

IoT is a key enabler of the just energy transition. It enables the success of decentralisation through collecting data for remote monitoring and managing different energy resources effectively. IoT creates new opportunities and business models, with new revenue streams. It also provides solutions for low-income households, especially those with no access to the central grid, thus making the energy transition ‘just’.

IoT combined with renewable energy sources will help us achieve Net Zero by 2050 as per the Paris Agreement.

Conclusion

Oil & gas companies must rethink their business models to fit a future with more renewable energy and less fossil fuel. Investments in carbon capture technologies, where carbon dioxide is taken out of the atmosphere, are being explored as a decarbonisation strategy. Investment in electric vehicle charging stations is another shift we are seeing, with oil & gas and utility companies investing in the infrastructure.

Monopolistic utility companies must also rethink their business models to fit a future where grids are decentralised, democratised and deregulated.

The future is kind to those that are prepared!?

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