Smart transformation of the energy industry: basic principles and components

Abstract

Introduction. With the development of modern technologies, the world is changing. Every branch of the economy needs transformation for adequate growth. Energy is no exception. Ukraine and the world are trying to transition to a digital economy and form a digital ecosystem of states. Given the high impact of energy on the economy and the implementation of the state’s digital ecosystem, it is crucial to choose the right long-term strategy for developing this industry while simultaneously reducing the impact on the environment. One of these ways is smart energy transformation, a gradual transition from using fossil fuels to environmentally friendly energy sources.

The article aims to research the development of the smart energy sector’s technologies and their perspectives.

Methods. Investigating the smart transformation trends and processes was provided using Google Trends Tools on the frame of systematic approach and analysing the development dynamic of innovative strategies implementation.

Results. The main problems of traditional energy, caused by rising energy prices, which in turn are related to the exhaustion of readily available fields of organic and nuclear fuels, as well as frequent accidents at nuclear power plants, which in turn caused the need to analyse the state of energy consumption at the current stage of development. Against the background of problems with fossil energy sources, one of the key global trends in the development of the energy industry is the development of alternative energy sources and digital energy. These processes have already significantly influenced the economy of the fuel and energy complex in some countries and continue to develop. The proliferation of renewable energy is already beginning to have a global impact on electricity generation, consumption, and operation, especially in countries where the share of renewable energy in traditional energy exceeds 10 % in such countries, and Ukraine is projected too soon. The transition from current forecast generation models with essentially constant power to networks with which variable renewable energy sources are connected will likely require significant changes. Implementing renewable and distributed renewable energy will require more effort to manage, redistribute and accumulate energy flows in the grid. Digitisation can solve challenges that will only intensify in the future in three stages: «smart» energy generation, innovative management and settlement with customers, and wise consumption. The main problem here is the need for a considerable amount of data that will need to be processed to understand how the network works at any given time so that, with constant changes to its parameters, variables can be managed, forecasted, customers’ current needs and capabilities assessed energy services.

Prospects. Digital technologies such as the Internet of Things, artificial intelligence, automation, complex cloud computing and blockchain are gaining popularity in the energy sector. Investments in these technologies are growing yearly and will become decisive by 2030. Digitisation of electrical systems was also investigated. The interconnectedness and evolving roles of generators, consumers and power grids will continue to be a central feature of the future of electricity supply.