Digital revolution in energy

From an expert’s perspective

Emilia Basta, Eco-energy systems engineer

The process of digitization of the energy industry is inevitable. Digitalization is transforming every area of ​​our lives, and energy is no exception. What is it about?  

Digitization greatly enhances convenience in our lives, offering products and experiences at our fingertips that were once inaccessible. In the energy sector, technological advancements in telecommunications, the Internet of Things, data processing, and artificial intelligence enable the digitization of energy systems. This transformation is driven by the need to balance power grid nodes amidst fluctuating demand for electricity. There’s a continued focus on developing distributed energy sources and electromobility.

We increasingly seek to manage and control energy consumption and generation, facilitated by technologies that require minimal human intervention. Machines support us in managing energy systems, while humans focus on creating IT connections, initial logic, and supervising energy management systems using artificial intelligence. New algorithms automatically monitor, adjust settings, and respond to failures in complex systems. This integration enables new possibilities previously unimaginable.

The pace of digitization in energy consumption devices is rapid, with many new buildings equipped with systems for temperature control, remote energy monitoring, and device management. Grzegorz Nowaczewski, CEO of Power 2030, highlights how this integration enhances comfort and saves energy in homes and workplaces.

Digitization brings about higher system efficiency by leveraging data utilization and opens avenues for new business opportunities. This translates to increased comfort and lower energy costs for consumers and prosumers.

Technological advancements enable energy companies to broaden their offerings for electricity, natural gas, and district heating consumers while enhancing overall energy security.

New technologies and digitization of the energy industry

Energy companies are constructing intricate sustainable energy generation and distribution infrastructure, which must remain in dynamic equilibrium with the infrastructure at the receiving end. Maintaining this balance was simpler in past decades than it is today. Over the last decade, traditional rules have undergone intensive updates through the utilization of mathematical modeling and artificial intelligence.

The energy sector’s advancement is driven by the continual introduction of new technological solutions, all underpinned by digitalization. For instance, sensor networks, known as the Internet of Things, are deployed in energy infrastructure to continuously monitor energy demand for improved area balancing.

Artificial intelligence facilitates the joint analysis of data from sensors, weather forecasts, energy demand profiles, and renewable energy generation profiles. This proactive approach helps prevent power outages by introducing preventive measures and precisely adjusting technical infrastructure maintenance to potential threats identified through the implementation of the Internet of Things and artificial intelligence.

Moreover, smart grid networks and demand response models are gaining traction. Intelligent networks, supported by demand response models, enable real-time monitoring of changes in energy demand and autonomous responses to these changes by adapting energy distribution or storage processes.

Virtual Power Plant (VPP) 

The virtual power plant (VPP) functions as a real-time energy management system that oversees the profiles of numerous consumers, generation sources, energy storage units, and charging stations for electric vehicles, forming clusters. Its primary objective is to maximize the utilization of electricity generated from renewable sources while reducing the costs associated with area balancing or scheduling for trading companies. VPP combines monitoring, forecasting, and control of multiple devices continuously. It forecasts energy demand resulting from technological processes and local generation, including renewable sources, and plans optimal adjustments in the settings of energy-consuming devices like heat pumps and air conditioning systems. Signals from wholesale energy markets, trading companies, or distribution system operators are taken into account cyclically, multiple times every hour. The accuracy of modeling and the frequency of control adjustments are tailored individually for each node within the cluster. Virtual power plants are considered indispensable technical and business solutions for the global energy industry in the coming years, according to Grzegorz Nowaczewski.

Energy management systems utilize data from virtual meters to optimize energy production and consumption by analyzing and suggesting the optimal use of energy from various sources by consumers.

The trend of “combining” virtual data from existing real energy networks is gaining popularity, thereby reducing the time and cost associated with designing new installations.

Digitization in practice

The main challenge facing the digitization of the entire energy sector lies in the inherent conservatism and cautious nature of the environment. Given the sector’s responsibility for maintaining energy supply continuity, solutions must be pursued with careful consideration and supported by thorough analyses.

In Poland, one company embracing the digital transformation challenge is PKP Energetyka, a part of the PGE group. The company has implemented controls across all stages of their services, supported by system platforms, ensuring that every process is conducted online. These controls span from measurement to customer invoicing, from planning to maintenance, modernization, and investment, as well as from demand to payment for delivery. Additionally, various support and management processes have been implemented on virtual platforms.

Digitization also facilitates savings in everyday life, with numerous “smart home” solutions enabling more economical and efficient energy consumption. Remote activation of home appliances such as washing machines, dishwashers, vacuum cleaners, automatic blinds, or entrance gates is already common and practical. Furthermore, in energy companies, digitization of business processes may reduce the costs associated with maintaining the entire energy system.

Technological innovations undoubtedly assist in transitioning the traditional energy sector toward sustainability, potentially leading to lower energy prices in the future. Energy digitization could also foster independence from Russian raw materials like coal, gas, and crude oil. This independence could spur the development of new solutions such as electrification of transport, accelerated use of green hydrogen, increased energy efficiency, and advancements in energy storage.

Prosumer solutions

For prosumers, digitization in the energy industry brings about certain simplifications. With internet access, there are increased opportunities to utilize it for enhancing consumer awareness of the energy market. Consumers can compare prices, research suppliers, and educate themselves, which promotes changes in behavior.

The introduction of smart meters has been revolutionary. These devices facilitate intelligent collection of measurements, enabling quick and contactless control of energy consumption.

Advantages of digitization of the energy industry

The integration of digitalization in the energy sector contributes to optimizing the operation of power grids and reducing specific energy consumption. Moreover, the array of innovations introduced enhances the competitiveness of energy companies, enabling them to secure additional revenue streams, streamline costs, and enhance the quality of products and services.

For instance, Tauron secured five patents for innovative solutions in 2020 alone, including groundbreaking methods for capturing sulfur and carbon dioxide compounds. However, according to the report from the National Chamber of Energy Clusters, Poland still lags behind as a leader in leveraging innovation and digital technologies for green transformation.

Nevertheless, compared to other countries, Poland’s progress is relatively favorable. The implementation of automation processes in industries, particularly those related to exports, is a positive development. However, concerns arise regarding the need to refurbish coal-fired heat and power plants in the country. This transition cannot occur without the involvement of digitalization, which ultimately reduces the costs associated with energy transformation.

In summary, green transformation presents a significant challenge not only for the energy and industry sectors but also for all economic sectors. Continued exploration, development, and implementation of digital technologies, including those focusing on energy efficiency, should be prioritized in Poland.

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