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Energy IoT – how Internet of Things is transforming the energy industry

The combination of renewable energy and technologies such as the Internet of Things (IoT) is an increasingly critical trend. IoT is widely used in the energy industry for energy generation, management and distribution. The use of IoT in the energy sector increases the use of renewable energy and positively impacts the environment and climate change. IoT focused on the energy sector is supported by cloud computing solutions and advanced data processing platforms that significantly improves the management of large data sets on energy consumption and distribution.

Energy IoT - the future of smart energy

The Internet of Things is a digital ecosystem and a concept of connecting any device and machine to the internet – making them visible online as an interconnected network. An essential advantage of IoT is the emergence of computing power so large that it is capable of analyzing billions of data records and thus ensuring a more efficient operation. According to Japanese Nomura bank, global use of IoT in the energy sector will mean that oil companies will record greater profits at $ 70 a barrel instead of $ 100. Effective use of tech technologies would also allow for a 20% reduction in capital expenditure and a 3-5% reduction in operating costs.

MIT and Deloitte’s research shows that the energy sector is still not digitally mature, so there are a few opportunities to optimize processes and activities. The use of IoT in the energy sector is one of many steps to reshape the energy industry and create more ‘smart energy’.

IoT solutions: current challenges

The current rigid processes and regulations related to energy are not conducive to the introduction of revolutionary solutions. Additionally, grid operators control the entire energy flow process. In such system, it is impossible to use the distributed energy provided by new energy assets. Hence, the need to separate power lines from gathering information from other assets, such as solar panels, is growing stronger. The implementation of IoT will enable better management of energy data and, as a result, optimization of most processes within the network. Flexible infrastructure will also increase profits for both grid operators and asset owners.

How does it work? People with their energy assets (solar panels) are no longer dependent on the energy infrastructure. As a result, network operators become consumers of big data. They can collect data from multiple sources and use technology to prevent network congestion, breakdowns and improve the quality of offered services.

Internet of Things and power management

By connecting more devices to the Internet, all network users can use their energy resources more efficiently and profitably. Grid operators can identify participants who adjust their use to local energy availability using only trusted data. They can also manage intelligently both overcapacity and insufficient power, eliminating the need for grid investment. There’s no need for building a network from scratch – just connect it to the Internet to introduce smart management.

It is essential to develop built-in comprehensive security environments as parts of the energy management ecosystem to create smart energy systems. Such systems must consist of a secure transaction environment, data encryption and authentication, trusted keys, and much more. With time, more and more stakeholders will have access to sensitive data, and each of them should have access to a selected data directory. Thus, each stakeholder must be authenticated by the ecosystem.

Currently, blockchain technology is increasingly used to authenticate and secure data. It is a distributed public ledger that contains transaction data: sender, recipient, transaction time, and more. Blockchain is fully decentralized, which increases data security. Transactions in the system are grouped into blocks, and each block is combined into one chain. What is important: the data stored on the blockchain cannot be changed. Blockchain rules out the possibility of fraud or data manipulation and increases the security level.

Smart energy also requires a secured infrastructure. The data provided to grid operators must be reliable and accurate. Blockchain will secure the data provided; however, it does not guarantee that data consistent with the actual energy production or consumption. A secure hardware and software infrastructure should protect the smart energy ecosystem against manipulation.

Energy IoT and our experience

Codibly created a complete IoT and blockchain-based platform capable of processing raw telemetric data and delivering it to homeowners in a form of insightful dashboards with a smart transaction system, based on blockchain connected with the core of the platform.

Solution delivered by Codibly, the SolGen Platform, with its multiple autonomous modules, is a complex decentralized application based on the Internet of Things (IoT) and dedicated for solar energy real-time management on a global scale. The main platform’s objective is to enable efficient energy transfer via smart contracts between US-based prosumers (energy producers) and EU-based subscribers (energy consumers), like homeowners.

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