Internet of Things (IoT)

In the power sector, the IoT could play a valuable role in making the electricity system more agile, efficient, and smart. When the decentralization of the system is considered, IoT holds significant potential for new management and business model options due to its capacity to obtain and consolidate data. As IoT literally connects power suppliers, consumers, and grid, IoT can facilitate the operations of complex systems and to open new commercial possibilities by enabling users to further monetise the value created by their assets.

• IoT enables the distribution of computing intelligence throughout the entire power grid infrastructure by enabling access to data from remote PV sites, wind power stations, and hydroelectric power systems. The real-time data can be coupled with other public data sources such as weather patterns to help improve the accuracy of renewable generation forecasts. Ths would enable renewables participation in electricity markets and help optimize system operations.

• Real-time acquisition of operational data can also complement the currency practices of managing energy supply based on historical data. This transition from reactive to proactive operations is one of the key factors which can actualize the concept of “smart” grids, offering automated control of multiple distributed power stations.

• Using IoT technology to connect, aggregate, and control various DERs can allow them to participate in frequency regulation markets and demand response, thus providing a balancing mechanism to the grid network. Digitalization can thus enable operations to alert distributed energy resources to the current need of the grid, so that consumers, retailers, or other service providers can react and benefit accordingly.