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The energy sector ecosystem constantly evolves and witnesses digital transformation, concurrent with complex market and economic dynamics, in light of imminent energy transition and climate action requirements. As India transitions toward a lowcarbon, smart, sustainable and resilient energy future, integrating digital technologies will be crucial in addressing pressing issues like climate change and energy adequacy.

Digital transformation in the energy sector is fueled by the transformative power of advanced digital technologies in all facets of energy generation, transmission and consumption1. Digitalising the energy sector would benefit from making the energy supply system (Figure 1) more efficient and robust while meeting the increasing demands, reducing AT&C losses, adopting cleaner generation technologies, improving overall efficiency and developing climate-resilient energy infrastructure. Further digitalization can provide data-driven insights into various
trends and help formulate solutions and inform decisionmaking that go beyond traditional approaches, enabling
effective and innovative strategies for the sector as a whole.

Digitalization in the energy sector aided by advanced instrumentation infrastructure would facilitate enhanced forecast and predictive maintenance, reduced cyber security threats and integration of intermittent renewable sources. With emerging digital technologies, transforming the grids into adaptive and smarter ones, capable of combating climate change is inconsequential2. The growing energy needs in developing countries like India will increase enduse sector energy management complexities. Strong policy frameworks and viable financial instruments for digital infrastructure deployment can help tackle this. The use of electric vehicles (EV), induction-based cookstoves, and an increase in penetration of other energy-efficient electrical appliances are key examples of transitions in the energy market that influence demand-side management. To cater to the rising demand, boosting renewable energy with adequate battery energy storage systems (BESS) in the electricity grid is critical. Understanding the local energy resource potential, power sector infrastructure and financial implications will play a crucial role.

Also Read :- GETCO’s Massive Investment Plan to Modernise Transmission Infrastructure

INDIA – CURRENT TRENDS AND WAY FORWARD

Given the dynamic nature of evolution in energy markets, real-time monitoring, measurement, and analytics play a key role in adopting holistic approaches across the supply chain. India has made significant strides towards energy data analytics. In one such effort, NITI Aayog, in partnership with Vasudha Foundation (a non-profit organisation), launched the India Climate and Energy Dashboard (ICED) in 20233. ICED provides information across various
parameters on India’s energy, climate, economy and environment, including renewable sources, electricity generation, transmission, distribution, and Greenhouse Gas (GHG) emissions, amongst others. The platform stands central in driving the energy transition in India, by supporting researchers to undertake modelling assessments and enabling policymakers to make informed decisions.

In an emerging market and developing economy like India, digitalising the energy sector aligns with the vision of Shri Narendra Modi, Hon’ble Prime Minister of India. Moving towards this direction, Gujarat, a front-runner in renewable energy deployment and transition has envisaged developing a comprehensive Climate and Energy Dashboard for the state. The Gujarat Energy Development Agency (GEDA) with technical support from the Vasudha Foundation, will develop this dashboard. The proposed dashboard will be a significant step in digitalising the state’s energy sector, showcasing its endeavours towards climate action and energy transition, and promoting Mission LiFE (Lifestyle for Environment) and Panchamrits of the Hon’ble Prime Minister of India. The dashboard will also inform the policy makers and relevant stakeholders in developing the Net-Zero/Carbon Neutral Roadmap for the state of
Gujarat that will contribute towards India’s 2070 Net Zero Target.

Further, several sub-sectors of the energy value chain are undergoing digital transformation; some of the key examples are illustrated below:

1. Smart grids and smart metering using digital communication technology to monitor and manage the production,
distribution, and consumption of electricity in real-time could reduce transmission loss, enhance grid reliability, prevent outages, and support the integration of renewable energy and improve demand-side energy management and conservation. India’s Smart Grid Mission and Smart Meter National Programme are driving the deployment of advanced metering infrastructure (AMI), automated demand response, and energy management systems.

2. Digital transformation supports decentralised energy systems, such as microgrids, which provide localised
energy solutions in remote and rural areas. For instance, solar microgrids and energy storage systems are being
deployed in rural India to support offgrid communities. Digital technologies at the end user level enable energy
efficiency through smart appliances and energy automation, reducing energy wastage.

Also Read :- GSECL Leads Gujarat’s Renewable Revolution

3. The growth of electric vehicles in India drives the need for digital solutions to manage charging infrastructure, energy demand, and grid integration. Smart charging stations could use real-time data to optimise charging times and reduce the strain on the grid during peak hours.

4. Artificial Intelligence (AI) and machine learning (ML) can be deployed for grid optimization, demand prediction,
and asset management, reducing the likelihood of power outages and enhancing predictive maintenance of critical infrastructure.

5. Blockchain technology is being explored for peer-to-peer (P2P) energy trading. This would allow consumers to trade surplus energy, especially from renewable sources, with each other. This would enable a decentralised and democratised energy market and increase transparency in transactions.

Future electricity grids are envisioned as smarter and more decentralised, with end users being prosumers (producers + consumers) of energy. This makes an integrated approach using advanced digital technologies like AI, ML, Blockchain, etc. in the energy sector a necessity. Increased adoption of such digital technologies will be the key to integrating renewables into the energy system without compromising on reliability and resilience.

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