IoT applications for the energy industry: enabling the sector for 21st century requirements

We look at the potential of IoT applications in industry and why they are the remedy for the transformations now being imposed on the energy sector.

IoT and the energy industry: why do they complement each other?

Briefly defined, the IoT is an environment that enables the connection of devices, sensors, actuators and industrial equipment, generating a communication network to collect and use valuable information.

While IoT has already appeared in user-level applications, it is in industry and the so-called IIoT (Industrial Internet of Things) where it is demonstrating key transformative potential.

The basic premise of these environments is to obtain data, converted through analysis into relevant information, which allows problems to be detected even before they occur and processes to be optimised. Thus, IIoT is already being applied in a variety of processes, from more efficient management of facilities, inventory and logistics to improved safety.

It is important, on the other hand, to understand IIoT as an essential part of the development of Industry 4.0. This concept implies a new industrial transformation in which technologies play a key role: the new factories will be smart and will enhance communication between machines and humans to generate more efficient processes.

Thus, the creation of an IoT environment is one of the disciplines that are enabling this advance towards Industry 4.0, together with other technologies such as cloud computing, autonomous robotics, Big Data or Augmented Reality.

Due to the particular characteristics of the energy industry, it is a sector that can greatly benefit from the applications of the internet of things.

The energy industry is undergoing profound changes in distribution and marketing models, and only through IoT will the sector be able to meet the current challenges:

• Increasingdemand for energy. The current production model and population growth will put particular strain on the energy demand and production system. According to figures from the U.S. Energy Information Administration (EIA), energy demand in OECD countries is projected to rise from the current 240 quads to around 280 quads in 2040, while global primary energy use will increase from the current 330 quads to around 530 quads in 2040.
• More distributed grids. Locally generated energy (e.g. with the installation of solar panels) requires extra effort from companies to manage it.
• Sustainability. Users and institutions are demanding that energy companies make the transition to environmentally friendly models.
• Transparency towards users, who want to know data on their consumption and performance.

Thus, according to the US Department of Energy, there are at least three strategic goals that energy companies must conquer in the coming years: grid security and resilience, achieving economically competitive models, and environmental responsibility.

IoT applications enable businesses to move towards these goals, optimising their processes and bringing about a profound transformation.

What are the advantages of applying IoT in the energy industry?

The benefits of IoT applications for energy companies include:

1. Possibility of real-time monitoring

With IoT in the energy industry, companies have access to real-time data on energy generation, transportation and consumption. This in turn translates into a number of benefits:

• Possibility of automation in plant management
• Knowledge about the supply chain, looking for points to optimise
• Capacity to manage decentralised grids in an integrated and remote manner, relying on locally generated energy.

2. Detection of potential problems and increased reliability

IIoT means the possibility of developing predictive maintenance strategies, detecting errors and failures before they occur and implementing the necessary measures to prevent them.

This avoids unplanned production stoppages, with the resulting economic impact. The result is the creation of more stable and reliable networks at distribution and consumption level, all in an automated way.

3. Security in data processing

Energy grids generate a range of compromised data. To avoid vulnerabilities that put them at risk, companies must have IoT platforms that apply security by design, ensuring confidential data handling.

You may be interested in: The key to Iot cybersecurity: devices.

4. Sustainability

Access to consumption data enables companies to increase efficiency and waste of resources, enhancing sustainable practices.

Key IoT applications in the energy sector

There are at least three examples of applications of the internet of things that highlight the benefits that the energy sector can gain from implementing this technology:

1. Remote monitoring of stations

IoT platforms empower the control of energy production, transport and distribution remotely and automatically.

Crucial parameters that can be monitored include temperature, motion or smoke detection and power consumption of equipment. Favouring automation, real-time alerts can be generated if set parameters are exceeded.

This control in turn translates into economic savings, improved production processes and efficiency in the use of resources, taking into account the real needs of the equipment and processes.

2. Predictive maintenance of systems

Another major IoT application in the energy industry is predictive maintenance: by analysing certain parameters, failure probabilities are inferred and equipment maintenance is scheduled.

Predictive maintenance provides access to significant financial savings. It is estimated that maintenance costs typically account for between 15% and 40% of total production costs. On the other hand, predictive maintenance allows savings of up to 8% and 12% compared to preventive maintenance and 40% compared to reactive maintenance.

In addition, this increases the service life of the equipment and avoids unexpected interruptions in production.

You may be interested in: How to optimise the maintenance of your industrial devices?

3. Optimising the distribution of resources

IoT ecosystems allow you to balance the amount of resources you use with those you actually need to avoid costs and increase flexibility, while relieving pressure on the network.

Do you want to get a first-hand look at IoT applications in the energy sector? Barbara OS is the platform for Industrial IoT that, applied to renewable energies and electricity distribution, allows companies to optimise their processes and resources. Request a demo and see the benefits.

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