Energy is essential, but utilities? Digitalization: What does it mean for the energy sector?

Abstract

Digitalization changes customer behavior, consumer needs, business models, competition, and markets or at least will have a very high impact on all sectors. But digitalization offers as well opportunities for optimized processes, new digital products and services, and new data-driven business models. Considering the energy sector the existing business models are not sustainable any more. This industry stands at the tipping point of multiple disruptive changes. The increased ratio of renewable and decentral energy generation leads to an increased volatile, distributed (Distributed energy consists of a range of smaller-scale and modular devices in-cluding storage devices designed to provide energy in locations close to consumers [1].) energy production. The time of energy as a commodity is over. Customers want to be engaged and expect providers to care about their individual values and needs. New market players intrude the energy market, and the Information and Communication Technologies (ICT), the Internet of Things (IoT) and digital technologies create the basis for these new players to get into the energy market and/or to network together cross border. ICT/IoT will play a central role in the transition of the energy sector.