What can IoT do for the energy sector?

The energy sector has come a long way since the days of miners’ strikes and big petrol-guzzling hot rods being de rigueur. With the whole industry now focusing on renewable sources and moving away from a dependence on fossil fuels, there’s also another sea change taking place in the technologies we use. That is, namely, how the Internet of Things (or IoT) can be used to improve businesses and help in the drive for clean energy, as well as in energy storage.

How IoT is bringing the revolution

As technology advances, we consume more, which means we need to use technology to increase efficiency and try to give back – this balancing act is one that any energy industry bod will know all too well. Where we can gain on efficiency and use fewer resources, it’s our duty to, with the added bonus that it will keep the bottom line secure.

Edge computing, for example, is a great way to harness IoT sensing and analysing devices, but without the need for constant connectivity – perfect for marine energy environments, remote areas (such as those where power stations and large grids often are), and even on-the-go needs. If it’s not something you’re familiar with, Wärtsilä, a company that dabbles in everything from storage and marine to hybrid power plants and sustainable fuels, sums it up well:

“What if running your data through a cloud isn't an option? What if internet connectivity is unavailable or is too slow, or if security is an issue? Edge computing solves this conundrum by putting [the processing action] as physically as close to the end devices as possible. A piece of hardware, called a gateway, collects information from the sensors, analyses it and generates insights. Then, if needed, it sends all or only a part of the data to the company's cloud. Cutting IoT loose from the bonds of the cloud has huge implications for a number of industrial activities, from drilling for oil or gas in remote areas to creating autonomous vehicles.”

While it may seem odd to talk about a less connected system when IoT is all about an ultra-connected system, edge computing harnesses the theories and tech of IoT with the simplicity of geographical nearness.

Now on to more IoT benefits!

Four areas where IoT can help us streamline and improve

1. Remote monitoring and asset management – The powerful sensors that make up a great portion of the IoT are amazing at flagging up when preventative maintenance is needed, as well as sensing temperature and other conditions that can save lives and costly equipment failure, and prevent damage to the environment.

2. More distributed grids – The distributed grid, or microgrid, has grown with IoT advancements, with both residential and commercial energy sources such as solar and hydro providing their own energy, and offering back a surplus of that energy to the main grid.

3. Smarter automation – While automation’s already a huge part of the industry, smarter automation uses sensors, the cloud, and ultra-fast data processing to help control power flow and efficiency. It’s also in use in SMART towers, an incredible advancement that allow businesses to monitor structures remotely and get almost real-time information on them.

4. Empowered customers – Connected smart sensors, monitors and thermostats are allowing customers to be more informed and to take an active interest in their energy consumption.

The downside

There’s always a downside, isn’t there? Unfortunately, with hyperconnectivity comes – and this will surprise no one – a higher security risk. The more devices a company uses, the more points of vulnerability there are. And of course, the energy industry is also the target of cyber attacks – impressively outdated grids and equipment in an industry that’s slow to replace older systems mean that we’re even more vulnerable to cyber attacks than many highly-regulated industries. The average power plant in the USA is more than 30 years old, for example.

Cyber attacks like the 2021 Colonial pipeline attack (orchestrated by a ransomware group and crippling huge parts of the US, leaving them literally powerless), as well as the SolarWinds attack (which left several US departments, including the Department of Energy, vulnerable), have motivated the energy sector to take a closer look at our security issues.

According to a recent article by Forbes, “Cyber risks have multiplied as the electric grid becomes more digital and interactive where customers are increasingly given control through smart grid systems. In 2020, investor-owned utilities spent $120 billion for capital investment for the grid, which includes cybersecurity, money for resilience and grid modernisation.”

And while hardware updates are most certainly the sweet spot for the sector, they’re also not happening any time soon. That means that a software or platform approach is the only sensible one. Enter Arqit Quantum. The British company has created an elegant and simple solution to literally every type of cyber attack possible (yes, every type), which was also designed with the cloud, energy hardware and the IoT in mind. You can find out more about their clever approach to encryption online.

IoT has already had a significant impact on most other industries, from transport to hospitality, but as the sector that powers all of these others, it’s the energy sector that needs to be at the forefront of this change. As energy demands continue to grow, the energy sector is set to face challenges in the near future, and IoT could be the answer – it’s just a question of whether the industry can adapt quickly enough.