We are collecting more data than ever before as the Internet of Things (IoT) expands and more devices become connected. Many companies are gathering big data, which consists of extraordinarily huge data sets containing information on everything from user interactions to asset performance. This data can be extremely useful to companies in the energy sector but only if it is correctly utilized.
Our reliance on modern technologies is both a benefit and a hindrance. The more advanced technologies become, and the more we use them and the more energy we consume. Even so, technology can boost efficiency by helping businesses to reduce their energy consumption.
According to the US Energy Information Administration, global energy consumption will rise by 50% between 2018 and 2050. It means that as a society we must make a determined effort as a society to lower our energy footprint as much as possible.
The Internet of Things is revolutionizing almost every part of the energy industry, from generation to transmission to distribution, and transforming how energy companies and customers interact. According to the Japanese bank Nomura, the global adoption of IoT in the energy sector will result in higher earnings for oil companies at $70 per barrel instead of $100. The effective use of technologies could result in a 20% decrease in capital expenditure and a 3-5% reduction in operational costs.
The IoT-powered devices are energy efficient. Moreover, the adoption of IoT enhances the use of renewable energy, which has a positive impact on the environment and climate change. The IoT is supported by cloud computing solutions and advanced data processing platforms and offers plenty of ways to use big data to streamline energy consumption and distribution.
According to research from MIT and Deloitte, the energy sector is still not fully digitized, so, therefore, there are a few opportunities to improve processes. The implementation of IoT in the energy sector is just one of many measures being taken to transform the energy sector and create more “smart energy”.