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The Internet of Energy Illustration

The Internet of Energy (IOE) Explained: A Beginner’s Guide

by | Educational, Energy

First came the internet. Then came the Internet of Things. Shortly after, the Internet of Everything popped up. How do all these developments affect energy? 

Climate change and global emissions are among this decade’s hottest topics. Clean energy systems, energy management, and energy consumption drive conversations about our energy networks. At the same time, digital communications, website browsing, and sending messages all add to our modern energy demands. 

Digitized energy usage and energy efficiency now come under the umbrella term of the Internet of Energy. Let’s look at how the Internet of Energy, or IoE, will affect power generation and energy resources as countries work towards net-zero emissions. 

Explaining the Internet of Energy, Things, and Everything 

We need to look at three different definitions to understand what we mean by the Internet of Energy (IoE). All of these concepts are an extension of how we use the internet. 

The Internet of Things (IoT): Physical objects like smartphones and smart meters connect over the internet and share data. These smart objects communicate in real-time without human intervention and automatically perform tasks. For example, a smart meter becomes aware of a cold weather snap and turns your heating on while you are away from home to prevent pipes from freezing. These objects are also known as smart devices. 

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The Internet of Everything: This takes the IoT further. The Internet of Everything incorporates physical objects that communicate just like the Internet of Things. However, the Internet of Everything also includes how people interact with smart objects and with each other; people to people, people to machines and vice versa, and machine to machine. The Internet of Everything has four pillars: people, things, data, and processes, whereas IoT has just one pillar — physical objects. 

The Internet of Energy IoE: While the Internet of Energy shares the IoE acronym with the Internet of Everything, it describes something very different. IoE concerns energy generation, energy distribution, and energy usage. The energy-based IoE looks at everything from power grids and energy storage, giving an overview of every aspect of the energy industry and its customers. 

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What Is the Definition of the Internet of Energy (IOE)? 

The Internet of Energy (IoE) describes everything within the smart energy infrastructure system. Anything within this smart energy system must connect with the internet and share data. 

Energy infrastructure includes everything from storage systems to wind farms, energy meters, transmission lines, and generators (e.g., power plants). The IoE aims to improve energy efficiency, which includes generation, transmission, functionality, and energy usage, thus creating less waste and a more reliable and flexible energy supply. 

Why Do We Need the Internet of Energy (IoE)? 

We live in a data-driven world, with connectivity a must-have. More and more people live in smart homes with smart appliances like washing machines, smart meters, and even lightbulbs.  

The Internet of Energy connects these devices with information such as electricity prices. For example, consumers can program their smart washing machine to turn on when electricity prices are low. 

Energy producers can predict energy demand based on upcoming weather events and match it with data on energy production. Utility companies can predict solar power levels thanks to solar panel capacity and performance tied to the weather forecast. 

Renewable energy sources are great for reducing emissions, but solar energy and wind power are notoriously unreliable. IoE energy technology means excess renewable energy on windy days can be stored or offered at lower prices to those waiting washing machines, and isn’t wasted.  

The same IoE data can help identify power outages or surges more efficiently, and anticipate maintenance issues. In short, the Internet of Energy can be a fantastic tool for promoting efficient energy usage. 

IoE’s potential use is enormous as we start to build interconnected smart grids. 

What Are Some Examples of the Internet of Energy? 

Internet of Energy | Example Fueling Vehicle Emissionssource

Our energy-driven lives are becoming increasingly complex. This is especially true as we move from burning fossil fuels like coal and gasoline in our power plants and cars to lower-emissions energy sources both large-scale and at home. 

Electric vehicles are an excellent example of how the Internet of Energy will join up the dots in a smart grid. Every electric vehicle has a large battery that needs charging. A smart grid can learn when and where people recharge their vehicles and balance the grid accordingly. It can also communicate with cars, so they charge when electricity is cheapest or most abundant. 

Electric vehicles’ batteries also act as energy storage systems. Vehicle-to-grid (V2G) technology also allows electric vehicle owners to feed energy stored in their car’s battery back into the grid. These big batteries can help store excess energy and return electricity to the grid during peak demand times. 

Imagine the same happening with small, localized wind farms or solar panels. Residents can share and use renewable energy efficiently via microgrids, reducing their need to draw electricity from distant power plants. 

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UK-based utility company National Grid estimates that consumers could avoid 30-50% of grid fluctuations if they adjusted their power usage during peak periods. 

General Electric estimates big data and real-time monitoring with the IoE saved 25% on maintenance costs, reduced unplanned downtime by 5%, and resulted in a 75% drop in false outages. The IoE’s information helped prioritize which crews to send to power outages and identified false alarms. 

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How Can the Internet of Energy Help With Sustainability? 

Sustainability is a watchword across the energy sector, from production to consumption. The United States has around 7,700 power plants with 707,000 miles of high-voltage lines. 

However, around 5% of the country’s generated electricity is lost through and during transmission. Waste and congestion cost consumers around $6 billion a year in higher energy bills. On the other hand, many transmission lines are underused, making for an inefficient and wasteful power grid. 

In 2016, China was estimated to have wasted enough energy to power Beijing — population approximately 21 million — for an entire year. 

The Internet of Energy monitors real-time data and gives an overview of power grids at both the macro and micro levels. The IoE can help reduce waste, improve generation, transmission, and storage, and help us make the most of our power systems. Less energy waste will set us en route to a more sustainable relationship with energy. 

Renewable Energy and the Internet of Energy 

Renewable Energy and the Internet of Energy | Photo of Stacked Rockssource

Renewable energy sources, especially utility-scale structures, are often in remote areas, a long way from end-use consumers. This distance can result in substantial energy loss through transmission and distribution. 

Renewable energy is intermittent, with varying energy supply levels depending on weather conditions. The Internet of Energy analyzes weather patterns to help balance the power grid, taking into account how much renewable energy is due to be generated. 

Load balancing the grid will become more critical as more battery storage comes online and renewable energy production increases. Electricity companies and providers will need to know when best to charge utility-scale battery storage farms and when to let stored energy flow back into the grid to meet demand.  

This grid balancing may result in fewer power outages and a more efficient grid.  

What Are the Benefits of the Internet of Energy? 

The main benefits thanks to the Internet of Energy include: 

  • Better productivity 
  • Energy savings 
  • Fewer emissions and waste 
  • Less maintenance on infrastructure 
  • Accurate data for repairs, energy demand, and production 
  • Better load balancing (supply and demand) for power grids 
  • Cheaper bills for consumers 

What Are the Disadvantages of the Internet of Energy? 

The Internet of Energy is not a panacea for all power issues. Data sharing requires people to trust the companies and government agencies that hold the data. 

Further implications include: 

  • Data reliability and possible manipulation 
  • Security and susceptibility to hacking 
  • Standardization of smart grid technology systems 
  • Extra energy is used by billions of objects’ smart sensors being in constant operation 
  • Protecting off-grid citizens 
  • Data ownership and control 
  • Cost and waste associated with replacing non-smart appliances with smart appliances 

It’s not impossible to imagine an entire smart grid being attacked by hackers creating enormous potential consequences. Hackers have already successfully taken down the United States’ largest fuel pipeline. In 2021, the Colonial Pipeline stopped operating for more than a week after a security breach.  

Who Invented the Internet of Energy and Why? 

The Internet of Energy, along with the Internet of Things and the Internet of Everything, are terms associated with something called Industry 4.0, or the Fourth Industrial Revolution.  

The first Industrial Revolution occurred in England in the 1760s, followed by the second one in the last 19th and early 20th centuries. The third revolution came in the late 1900s with the spread of machines, automation, and digitization within production lines. 

Industry 4.0, or the Fourth Industrial Revolution, refers to industrial smartness, aiming to take production optimization to new levels. The Internet of Energy is part of Industry 4.0, which is as much a technological revolution as it is an industrial one. 

Germany led Industry 4.0, which looks to digitize, optimize and automate production, along with human-machine interactions to add value to businesses and services. Finally, Industry 4.0 incorporated automatic data exchange and communication to achieve greater efficiency. 

Will the Internet of Energy Use Blockchain Technology? 

Internet of Energy and Blockchain Technologysource

Blockchain technology is still in its beginning stages but is already making inroads into smart grid technology systems. 

For example, the Internet of Energy Network (IoEN) uses blockchain technology to create localized virtual energy microgrids. Generators like solar panels, storage systems like batteries, and smart appliances all connect to a blockchain-backed microgrid.  

Every connected appliance uses data sharing to create an energy-efficient microgrid backed by blockchain’s immutable record system. Such systems could be replicated across countries, or perhaps, one day, join together entire national power grids.  

How Does the Internet of Things Differ from the Internet? 

The internet is a giant network of billions of computers and electronic devices connected by cables that crisscross the globe. We connect to the internet or go online by tapping into this network of wires — even WiFi routers connect to cables eventually. Our search queries go to servers that store websites that display once we click on the link to them. 

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The Internet of Things (IoT) uses that same internet network but the IoT refers to physical objects that connect to the internet. These objects are familiar things such as smartphones, smart meters, and even smart light bulbs. There could be as many as 22 billion smart objects communicating via the internet by 2025. 

Each object has a smart sensor to connect to other devices and smart systems using the internet network. The objects exchange data and information which then causes them to perform in certain ways, for example, turning on the lights at home when it’s dark.  

Will the Internet of Energy Help Fight Climate Change? 

The Internet of Energy promises plenty, and the theory is impressive. Data-driven behaviors can help reduce energy wastage, improve consumers’ energy usage, and help energy producers balance power grid supply and demand.  

Smart devices can talk to the grid in real-time, so energy companies know what power to supply and when. Utilities can store excess renewable energy once large-scale battery farms exist in abundance and we can use the store at more opportune times. 

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Together or piecemeal, this means greater energy efficiency for power grids. Fossil fuel reliance would reduce, resulting in fewer greenhouse gas emissions contributing to climate change. 

However, today we are far from a 100% interconnected Internet of Energy system.  

Using the Internet of Energy to Lower Emissions 

The Internet of Energy promotes energy efficiency across the power grid. Consumers and businesses can improve energy generation, transmission, and energy usage through data-driven choices. Smart devices will give us insights into our energy behaviors while utilities can view, repair, and maintain a smart grid in real-time. All these changes lead to a more effective and streamlined energy circuit.  

But the nascent Internet of Energy doesn’t deal with all the pressing emission issues of today. People who want to reduce their carbon footprint now should switch to a green energy plan as soon as possible while IoE technology and infrastructure develop. That way, you’ll be kinder to the planet from now onwards with the possibility to reduce your emissions further once technology and budgets allow. 

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