The impact of digitalization

Abstract

Previous energy transformations have been driven by the exploitation of a new energy resource. In contrast, although the digitalization of energy is delivering cost reductions in the supply and transportation of energy; digitalization is truly transformational because it brings the demand side into play, facilitating the move to a more integrated, highly flexible and customer-centric energy system which will ultimately unlock deep decarbonization of our societies. This fertile new energy landscape will be dominated by data-rich organizations able to establish direct relationships with consumers, resulting in the provision of new services which enable the integration of energy consumption with weather-dependent renewable production. Much of the focus is on the intelligent management of demand and supply from connected buildings and electric vehicles, leading to a proliferation of new business models. This increased connectivity comes with risks: increased danger of cybersecurity attacks and disruption of existing business relationships, staffing and organizational structures and a re-positioning of the role of the customer at the heart of the system. This commercial disruption is inherent to the digital transformation of the energy sector: an essential step in the transition to a carbon-neutral global economy.