How energy industry is benefiting from digital transformation?

Digitalisation and revolution in energy are not separated from each other. In today’s modern world, they are linked and overlapping with each other.  In the distribution network, the turnaround taking place in energy includes 97% of the electricity generated plants which are renewable. Around 45% of the electricity distribution grids are managed by municipal companies in Germany. German key infrastructure which is around 770,000Km are already been digitised and “smart”.

It has been speculated that by 2050, there is a possibility of electric consumption of up to 80% as per the Federal Government’s target. Intelligent grids play an important role in controlling the decentralized generation without that energy revolution will not succeed. Till now in Germany, the electricity grid has been designed in order to bring energy from nuclear and fossil-fuel power plant to the end consumer via the transmission and distribution grid.

Electricity generated from renewable energy plants is usually decentralized in regions that are selected mainly on the basis of climatic and topological aspects. Thereby, the electricity is not flowing from a high voltage level to a low voltage level but transported bi-directionally from the distribution grid to the transmission grid level.

As a result, digitalisation of the existing networks becomes important and required in the distribution networks. Expansion in Smart Grid is important. Intelligent distribution grid clusters are the possible solution to balance out fluctuations in energy generation through renewable energy source, regenerative energy source in a hastily efficient way. Energy storage and integration are very important in addition to sophisticated grid and power plant control into the existing system.

But there is no real business model available as of now, the slow rise in electromobility and demand of energy storage system is causing the market to have a motion in its own pace. Digitization of an energy world can be termed as Smart Energy or E-Energy. One of the major significance is virtually mapping the players involved in the core energy network which enables them to communicate and control each other which makes the supply/demand more flexible.

In December 2015, “Intelligent Energy Shop Window” project was launched where a total of five selected shop-window regions were served as a blueprint for the broad implementation of intelligent energy networking through Germany.

To sum it up, an intelligent distribution grid provides storage and consumption to ensure supply security and system stability with 100% electricity supply being generated from renewable energy sources.

Source- Kommunale Energieversorger als wesentliche Akteure der Digitalisierung by Katherina Reiche.

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