Leveraging IoT for Smart Grids and Energy Management in Electrical Systems: Applications, Benefits, and Challenges

Abstract

The integration of the Internet of Things (IoT) into electrical systems is transforming traditional power grids into intelligent, data-driven networks, capable of real-time monitoring, control, and optimization. This transformation, often referred to as the development of “smart grids,” presents opportunities for improving energy efficiency, enhancing reliability, and ensuring sustainability. IoT facilitates dynamic demand response, predictive maintenance, and seamless integration of renewable energy sources, positioning it as a key enabler of the energy transition. This paper provides a comprehensive overview of the role of IoT in electrical systems, with an emphasis on smart grids, predictive maintenance, and energy management in smart buildings. It explores IoT’s architecture, benefits, and challenges, including cybersecurity concerns and the lack of industry-wide standardization. The study also incorporates real-world data and graphical representations to illustrate the impact of IoT in optimizing power systems. Additionally, this paper discusses future prospects for IoT in electrical systems and suggests solutions to overcome existing challenges.