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.[1] [2] However, realising their full potential requires coordinated regulatory support, modernised infrastructure, and investment in workforce skills.[3] 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.[4]
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.[4] IoT-enabled devices and sensors embedded across the grid capture vast quantities of real-time, granular data.[2] 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.[4]
Blockchain for Secure and Transparent Transactions
Blockchain technology supports open and secure data management and automated contract execution through smart contracts.[2] 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.[4]
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.[4]
Further Information
- IRENA (2023): Interactive Innovation Landscape for Smart Electrification.
- IRENA Innovation Toolbox.
- World Economic Forum (2021): Harnessing Artificial Intelligence to Accelerate the Energy Transition.
- HTWG Konstanz Research Project „AI4Grids” Publications (2021-2022)
- Electricity grid portal on energypedia
- Blockchain articles on energypedia
- Digitalisation articles on energypedia
References
- ↑ IEA (2024): Unlocking Smart Grid Opportunities in Emerging Markets and Developing Economies (revised version).
- ↑ 2.0 2.1 2.2 IRENA: Digitalization. Retrieved November 2024.
- ↑ Accenture / Eurelectric (2024): Wired for tomorrow. Unleashing the power of digitalisation in grids.
- ↑ 4.0 4.1 4.2 4.3 4.4 International Federation of Consulting Engineers (FIDIC) (2023): State of the World Report: Digital Technology on a Path to Net Zero – Getting Cleaner with Technology.
