Customers are driving the push towards Renewables and Digitalization!
The pace of digitalization in energy sector is increasing. Global investment in digital electricity infrastructure and software has grown by over 20% annually since 2014; reaching US$ 47 billion in 2019. Ventures in digital technologies by energy enterprises have risen over the preceding few years. Digitalization describes the growing application of Information Technology across the economy, leading to increasing volumes of data, rapid progress in advanced analytics, and greater connectivity between humans, devices, and machines. From sensors in oil and gas reservoirs to the rise of automated vehicles, digitalization has significant implications for how the world produces and consumes energy. The digital investment in 2019 was almost 40% higher than investment in gas-fired power generation worldwide (US$ 34 billion) almost equal to total investment in India’s electricity sector of about US$ 55 billion.
Annual Change in Primary Energy Consumption
The annual consumption of energy is changing drastically as the population is shifting towards renewables energy source. The highest change was experienced in 2010 (4.81%). Over the years, the percentage of such consumption is experiencing high and slow rates as dependency on renewable is increasing. The figure below shows the year-on-year change in the consumption rates of energy globally.
Why are Consumers Switching To Renewables?
Global energy utilization is growing, and it is expected that the world will face a scarcity of energy in the upcoming decades. Therefore, the accessibility of reserves and renewables source of energy is a significant cause of worry for the entire population. The following reasons illustrate why there is a need to switch to renewables.
- Overconsumption: Our current consumption model depends entirely on the use of non-renewable energy sources such as oil & gas, coal, and uranium. At the present rate of consumption, oil will be the primary fossil fuel to run out. As per recent studies, there would be between 40-60 years of confirmed as well as established reserves of conventional oil. Natural gas could be oppressed for another 70 years. For coal, there would be approximately two centuries of reserves.
- Overpopulation: These data are to be put into perspective because they are based on current consumption, while it will rise considerably. Energy demands will be amplified by the demographic. The world’s population is expected to reach nearly 10 billion by the end of 2050. According to the International Energy Agency (IEA), global energy demand is expected to increase by more than 50% by 2030.
- Aging Infrastructure: One more cause for energy deficiency is the aging infrastructure of power generating equipment as well as assets. Majority of energy producing enterprises keeps on utilizing obsolete equipments that restrictions energy production. The requirement to improve the infrastructure and set a high standard of performance is necessary
- Energy Waste: Mainly coming from the needless employment of energy assets, energy waste describes the consumption of energy sources, in specific fuels and electricity. Therefore, the decrease in waste is a massive source of energy savings, which necessitates measures both on an individual and collective level.
Digitalization: A New Era in Energy
Soon, digital technologies are set to make power systems more connected, quick, resourceful, dependable, and sustainable. Digitalized energy systems can categorize who needs energy and deliver it at the correct time frame, in the right place and at the lowest cost. Digitalization is already civilizing the efficiency, accessibility, and sustainability of energy systems. But digitalization is also raising new security and confidentiality risks. It is also altering markets, businesses, and employment. Fresh business models are up-and-coming, while several century-old models may be on their way out. The figure below highlights the investments made in various energy infrastructure.
Outlook for Upcoming Years
Digitalization offers the potential to increase energy efficiency through technologies that gather and analyze data before using it to make changes to the physical environment either automatically, or through human intervention. Data gathering technologies such as sensors and smart meters collect data on energy use and other conditions affecting energy use such as climate forecast. Statistics are processed into constructive information with the help of data investigation technologies such as artificial intelligence algorithms. Digitalization’s force on the demand side is complex. On one hand, digital devices potentially offer big changes in energy effectiveness for the transportation, buildings, and manufacturing segments.