Review and Categorization of Digital Applications in the Energy Sector

TLDR

Digitalization is reshaping industry and society, and in the energy sector it has already introduced many applications, with further transformative change expected, making it essential to understand the benefits, risks, and stakeholder perspectives to inform societal debate and corporate strategy. The article offers a structured review of potential digital applications in Germany’s electricity sector, outlining their benefits and affected stakeholders, and proposes a holistic methodology to generate a simplified fact base for policy discussions and the development of new digital products. Drawing on a literature review, the authors present a systematic framework that categorizes digital applications and their impacts, and outline a methodology for holistic analysis that will be applied in a subsequent study.

Abstract

Digitalization is a transformation process which has already affected many parts of industry and society and is expected to yet increase its transformative speed and impact. In the energy sector, many digital applications have already been implemented. However, a more drastic change is expected during the next decades. Good understanding of which digital applications are possible and what are the associated benefits as well as risks from the different perspectives of the impacted stakeholders is of high importance. On the one hand, it is the basis for a broad societal and political discussion about general targets and guidelines of digitalization. On the other hand, it is an important piece of information for companies in order to develop and sustainably implement digital applications. This article provides a structured overview of potential digital applications in the German energy (electricity) sector, including the associated benefits and the impacted stakeholders on the basis of a literature review. Furthermore, as an outlook, a methodology to holistically analyze digital applications is suggested. The intended purpose of the suggested methodology is to provide a complexity-reduced fact base as input for societal and political discussions and for the development of new digital products, services, or business models. While the methodology is outlined in this article, in a follow-up article the application of the methodology will be presented and the use of the approach reflected.