View source for Data and Digitalisation in Electricity Grids

==Introduction==
Data and digitalisation play an increasingly central role in optimising, securing, and decarbonising power systems worldwide. The digitisation of power networks is essential to meet the growing electricity demand, particularly in emerging and developing economies. As power grids face the dual challenges of decentralisation— where small-scale renewables connect to distribution networks—and the electrification of sectors like transport and heating, digital solutions are needed to ensure stable grid operation. Digital technologies, including the Internet of Things (IoT), artificial intelligence (AI), big data and blockchain can enable operators to improve grid flexibility, extend grid lifespans, monitor supply and demand dynamics, and anticipate network issues.<ref>IEA (2024): [https://iea.blob.core.windows.net/assets/5d97b28a-ca5f-46a5-a194-2c13fd6e4aad/UnlockingSmartGridOpportunitiesinEmergingMarketsandDevelopingEconomies.pdf Unlocking Smart Grid Opportunities in Emerging Markets and Developing Economies] (revised version). </ref> <ref name=":0">IRENA: [https://www.irena.org/Energy-Transition/Innovation/Digitalisation Digitalization]. Retrieved November 2024. </ref> However, realising their full potential requires coordinated regulatory support, modernised infrastructure, and investment in workforce skills.<ref>Accenture / Eurelectric (2024): [https://powersummit2024.eurelectric.org/wp-content/uploads/2024/05/Wired-for-tomorrow-full-report.pdf Wired for tomorrow. Unleashing the power of digitalisation in grids]. </ref> By embracing these digital innovations, the energy sector can make significant strides towards decarbonisation and a net-zero future, all while building a smarter, more resilient grid.<ref name=":1">International Federation of Consulting Engineers (FIDIC) (2023): [https://fidic.org/sites/default/files/SOTW_2023_Digital_Technology_Report_v10b_2.pdf State of the World Report: Digital Technology on a Path to Net Zero – Getting Cleaner with Technology]. </ref>

== Internet of Things (IoT) and Artificial Intelligence (AI) for Data-Driven Decisions ==
As renewable energy sources like solar and wind increase, their intermittent nature requires the grid to be highly responsive. IoT and AI technologies work together to address this by dynamically adjusting grid operations.<ref name=":1" /> IoT-enabled devices and sensors embedded across the grid capture vast quantities of real-time, granular data.<ref name=":0" /> This data includes information on energy consumption patterns, grid status, and asset health, which is essential for efficient grid operation. AI-powered systems process and analyse this data to identify trends and make predictive adjustments that help balance supply and demand.<ref name=":1" /> 

== Blockchain for Secure and Transparent Transactions ==
Blockchain technology supports open and secure data management and automated contract execution through smart contracts.<ref name=":0" /> Blockchain's open ledger system allows for secure records of energy transactions, which is especially useful in managing distributed energy resources (DERs) like rooftop solar panels and electric vehicles (EVs). Smart contracts on the blockchain facilitate transactions directly between producers and consumers, without the need for intermediaries.<ref name=":1" />

Blockchain also enhances transparency and trust in the system by recording every transaction in a way that is visible to all participants. For Distribution System Operators and consumers alike, blockchain offers a solution for managing the complexities of decentralised energy production while maintaining a secure system. This supports a smoother transition to a grid with numerous, smaller, renewable sources of power and promotes consumer engagement through mechanisms such as peer-to-peer energy trading.<ref name=":1" />

== Further Information ==

* IRENA (2023): [https://www.irena.org/Innovation-landscape-for-smart-electrification Interactive Innovation Landscape for Smart Electrification].
* IRENA [https://www.irena.org/Energy-Transition/Innovation/Systemic-Innovation/Toolbox Innovation Toolbox]. 
* World Economic Forum (2021): [https://www3.weforum.org/docs/WEF_Harnessing_AI_to_accelerate_the_Energy_Transition_2021.pdf Harnessing Artificial Intelligence to Accelerate the Energy Transition]. 
* [[Portal:Grid|Electricity grid portal]] on energypedia
* [[:Category:Blockchain|Blockchain articles]] on energypedia
* [[:Category:Digitalisation|Digitalisation articles]] on energypedia

== References ==
[[Category:Grid]]
[[Category:Electricity]]
[[Category:Digitalisation]]
[[Category:Blockchain]]