The Internet of Things (IoT) has many useful applications in many different industries, and the energy industry is no exception. Research shows that the global IoT energy market is expected to grow from 20.2 billion USD in 2020 to 35.2 billion by 2025. The numerous advantages of IoT based systems, along with the rising threat of cyberattacks, are expected to fuel this growth.
IoT has many applications in the energy industry, all of which contribute to a more effective grid that makes energy management easier and more affordable. Using IoT, the energy industry can be transformed to become smarter, streamlined, and environmentally friendly.
Applications of IoT in the Energy Industry
Process monitoring and resource optimization
One of the biggest advantages of deploying IoT in the energy sector is the potential to optimize resource usage. Automating everyday energy use, such as installing smart lights that turn on when someone enters the room, can reduce the amount of energy being consumed or wasted. IoT safeguards against excessive resource use and upholds consistency across your business. This not only prevents energy from being wasted, but also results in improved long-term operations as all the equipment is interconnected.
Data Management and Analytics
IoT enables real-time monitoring of equipment and provides data from all connected devices. This data is then stored securely on a cloud platform, from where it can be analyzed to help with planning and decision making. This data can also be used in predictive analytics to forecast future consumption patterns and develop appropriate reactions to certain situations and errors that may arise.
Smart grid
Smart grids in the energy sector refer to an electrical grid that supports two-way energy flow and includes a variety of operations including self maintenance and automatic problem-solving. A smart grid allows electricity consumers to take an active role and have control over the power flow. IoT-enabled smart grids reduce waste by adjusting energy loads to match real-time generation and return unused energy to its source or to storage assets.
Disaster Management
IoT can also be utilized to employ predictive protocols for emergencies. Past data can be analyzed to develop predictive models and forecast potential disasters, which can then be mitigated by regulating energy consumption and distribution. IoT can be very helpful in disaster management, helping prevent, prepare for, and respond to future disasters using real-time data. For example, sensors that can identify abrupt temperature increases can be used to prevent and effectively combat forest fires.
Smart meters
Smart metering technology can be used to monitor energy usage in households, buildings, or organizations and provides users with detailed consumption reports. This makes it easier to determine where the most energy is being consumed and where it can be conserved. This will also help detect defects before they cause major issues, preventing high repair costs or faulty outputs.
Cost reductions
Having complete control of all equipment makes it easier to reduce and optimize costs. Proactive testing and repair reduce both the time that machines are inactive and their maintenance costs. For example, smart sensors and proactive repair mechanisms can be set to send information from remote equipment when equipment is broken or requires maintenance, avoiding serious damage and providing more flexibility.
Sustainability
IoT solutions can accelerate technological innovation that encourages sustainable practices. For example, IoT technologies are essential for enhancing the generation and deployment of renewable energy and reducing our dependence on fossil fuels. IoT can also be used to monitor greenhouse gas emissions in real-time, helping managers make better informed decisions. Edgecom Energy’s sTrack™ platform, for example, precisely tracks companies’ GHG emissions and synergizes with other products to quantify the amount of reduction achieved by adopting energy conservation measures.
The Future of IoT in the Energy Industry
Even though IoT technology has many fantastic applications in the energy sector, there is still much room for expansion in this market. Compared to others, the energy industry was late to digitalization despite being highly asset-intensive but has the potential to quickly catch up.
With the advance of the Industrial Internet of Things, the energy sector can be transformed to be more productive and efficient with more data-rich infrastructure. Wastage can be reduced using energy storage and virtual power plants and processes can be automated with the help of machine learning and AI for more responsive operations. IoT can automate the entire industry to build a system that is advantageous to both energy suppliers and consumers while becoming more scalable and futureproof.
The energy sector is transitioning away from large-scale, centralized power to become greener and more personal, enabling the emergence of new competitors with cutting-edge products and services. As technology advances, IoT has the potential to redefine and transform the industry, providing new revenue streams and shifting business models. As the transformation of the energy industry approaches, IIoT can significantly cut costs, improve operations, boost profits, and nudge companies towards more sustainable practices.
