Say Hello to the Internet of Energy (IoE)

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As you know, the energy industry is going through a transformation, and this evolution has spawned the emergence of the so-called Internet of Energy (IoE).  Simply put, the IoE represents an interconnected network of systems and data working in tandem to optimize energy production and distribution.   Because this framework represents the future, it’s worth taking a closer look.

The Nuts and Bolts of the Internet of Energy (IoE)

The IoE can best be thought of as a subcomponent of the broader Internet of Things (IoT).  Whereas the IoT is grounded in connectivity and communication across a broad spectrum of devices and uses, the Internet of Energy utilizes smart technology, digital connection, and data analytics to specifically optimize energy management by enabling more intelligent decisions and processes.

The engine behind this concept is the smart grid and its underlying smart devices, which can manage real-time, 2-way communication via the use of smart meters, sensor networks, and analytical tools that collect and process all the data.  According to the article linked to above, here are the key components of the IoE:

• Distributed energy resources (DERs): The Internet of Energy streamlines the process of integrating DERs like solar, wind power, and energy storage technologies into the grid.
• Artificial intelligence (AI): AI-driven insights such as predictive maintenance and demand forecasting allows operators to make better decisions.
• Smart devices & sensors: These are critical system components that monitor equipment and components, energy consumption trends, and equipment condition to deliver real-time insights to operators.
• Blockchain technology: While this might seem a bit far out, blockchain technology enables peer-to-peer energy trading so users can directly purchase and sell excess energy.  The decentralized nature of the IoE makes blockchain a perfect fit.

In the final analysis, the Internet of Energy is an important concept to understand, because it represents the framework of the future.  If your company is not actively pursuing IoE practices, the time to start is now.