Digitalization in Energy Sector – Luxury, Boon or Bane?

Digitalization is an interaction between the digital and the physical world which involves data, analytics, and connectivity.

Global investments in digital infrastructure and software have been increasing around 20% annually in the recent past. Many sectors are currently exploring the potential of Industry 4.0 and digitalization is becoming a growth driver.

Digitalization can transform the Energy sectors in various ways as listed below:

1. Making Transport sector safe and efficient. Vehicle automation and electrifications are likely to reduce energy consumption up to 50%. Integration of mobility services with public transport, walking, cycling would have a direct impact on emission. The three trends which are likely to shape the future of ITS are: Connectivity, Shared mobility and Automation.

2. Reducing 10% electricity demand by the Year 2040 for the Buildings sector. Most of the savings are by integrating SMART thermostats for heating, cooling, and lighting, which contributes to 60% of the total final energy demand.

3. Technologies like smart sensors, Digital twins, Artificial Intelligence, 3 D printing, and Machine learning technology could help to improve efficiency and productivity for the industrial sector.

4. Reducing coal production cost up to 20%. It can also recover 5% extra oil and gas resources when used in association with existing technology. Automation and Predictive maintenance can offer a safe environment in the coal mines.

5. As per IEA, Digitalization in the Power sector can save around $ 80 Billion per year which is equivalent to 5% of total power generation cost.

Interoperable software, policies, regulations, enhanced cybersecurity, and the right skills to operate evolutionary technology are the key factors that will decide the implementation and commercialization rate for digitalization.

Although, the world started acknowledging that digitalization is bringing transparency, improving quality of life, and enhancing efficiency…It is Boon indeed!

Happy Learning.

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