Digitalization in the Renewable Energy Sector

Digitalization in the Renewable Energy Sector

23 April 2024 | Musadag El Zein * and Girma Gebresenbet
This study explores the relationship between renewable energy adoption and digitalization in the sector by reviewing literature (2010–2022) to identify the current use of digital technologies, challenges to adoption, and future prospects. Digital technologies are crucial for supporting the renewable energy sector, but high costs and security risks are major challenges. Most papers reviewed have a positive outlook, but further research and development are recommended for effective energy transition and resilient infrastructure. The integration of digital technologies to support renewable energy diffusion extends beyond energy demand, involving sustainability and sustainable development. This study has a unique scope and novelty, considering the coupling between digitalization and the renewable energy sector, with a focus on critical areas. The relatively small sample of relevant papers (69 from 836 hits) confirms the need for more research on the subject. The study analyzed the types and means by which digital technologies influence the diffusion and adoption of renewable energy, examining industries, regions, and challenges. Digitalization is a key driver in the energy transition, with the 5 Ds (Decentralization, Decarbonization, Democratization, Deregulation, and Digitalization) expected to play a significant role in enhancing renewable energy's contribution to global electricity generation by 2035. Key challenges include cybersecurity, data management, and economic and management issues. Blockchain, IoT, and AI are the most commonly discussed digital technologies. Renewable energy types most frequently discussed are solar and wind power. The study highlights the importance of digital technologies in achieving sustainable development goals, while also noting the need to address challenges such as security, cost, and management. The findings indicate that digital technologies are expanding within the renewable energy sector, contributing positively to its diffusion and efficiency. The study concludes that digitalization is essential for the future of the energy sector, with blockchain playing a key role in enhancing sustainability and efficiency.This study explores the relationship between renewable energy adoption and digitalization in the sector by reviewing literature (2010–2022) to identify the current use of digital technologies, challenges to adoption, and future prospects. Digital technologies are crucial for supporting the renewable energy sector, but high costs and security risks are major challenges. Most papers reviewed have a positive outlook, but further research and development are recommended for effective energy transition and resilient infrastructure. The integration of digital technologies to support renewable energy diffusion extends beyond energy demand, involving sustainability and sustainable development. This study has a unique scope and novelty, considering the coupling between digitalization and the renewable energy sector, with a focus on critical areas. The relatively small sample of relevant papers (69 from 836 hits) confirms the need for more research on the subject. The study analyzed the types and means by which digital technologies influence the diffusion and adoption of renewable energy, examining industries, regions, and challenges. Digitalization is a key driver in the energy transition, with the 5 Ds (Decentralization, Decarbonization, Democratization, Deregulation, and Digitalization) expected to play a significant role in enhancing renewable energy's contribution to global electricity generation by 2035. Key challenges include cybersecurity, data management, and economic and management issues. Blockchain, IoT, and AI are the most commonly discussed digital technologies. Renewable energy types most frequently discussed are solar and wind power. The study highlights the importance of digital technologies in achieving sustainable development goals, while also noting the need to address challenges such as security, cost, and management. The findings indicate that digital technologies are expanding within the renewable energy sector, contributing positively to its diffusion and efficiency. The study concludes that digitalization is essential for the future of the energy sector, with blockchain playing a key role in enhancing sustainability and efficiency.
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