Digital technology can save 270 billion US dollars in new power infrastructure investment

2017.11.09

Digital technology can save 270 billion US dollars in new power infrastructure investment

According to a new report by the International Energy Agency (IEA) on digitization and energy, digital technologies will change the global energy landscape to make it more connected, reliable and sustainable, with far-reaching and long-lasting energy supply and demand Impact.


 The report said that demand from construction, industry and transport respondents can provide 185 MW capacity flexibility, and by 2040 will save 270 billion US dollars investment in new power infrastructure.

The IEA states in its report that by 2040, beyond smart meters and connected devices, more than 1 billion homes and 11 billion smart appliances will participate in interconnected power systems, which will allow families to change the amount and timing of power drawn from the grid.

The report found that smart lighting and other digital tools and buildings can reduce their energy consumption by 10% by using real-time data to increase operational efficiency.

"Digitization is blurring the supply and demand boundaries," IEA Director Biol said. "The power sector and smart grid are at the center of this transformation, but eventually all areas of energy supply and demand, including home, transportation and industry, will be affected."



Impact on the overall energy


According to the report, the energy sector has been an early adopter of digital technologies and the pace of digitization is accelerating.

The report notes that since 2014, global investment in digital power infrastructure and software has increased by more than 20% annually, reaching $ 47 billion in 2016. Nearly 40% more digital investment in 2016 than the global investment in gas power generation (34 billion U.S. dollars), almost equal to the total investment (55 billion U.S. dollars) in India's electricity sector.



Impact on the oil and gas industry


The report pointed out that the upstream digitization of upstream oil and gas industry may initially focus on expanding and improving existing digital applications. The oil and gas industry will make more use of robotics and apply artificial intelligence to its business.

The report adds that widespread use of digital technologies can reduce production costs by 10% to 20%, including through advanced seismic data processing, the use of sensors and enhanced reservoir modeling techniques. Global recoverable oil and gas resources may increase by about 5%, shale gas is expected to increase the most.

 Impact on the power industry



The report notes that digital data and analytics can reduce power system costs by reducing operational and maintenance costs, improving power plant and grid efficiency, reducing unplanned outages and downtime, and extending the operational life of assets.

These digitized support measures are expected to save around $ 80 billion annually from 2016 to 2040 or reduce total generation costs by about 5% annually, based on the deployment of existing digital technologies worldwide to all power plant and grid infrastructures.

In the long run, one of the most important potential benefits of digitization in the power sector may be extending the life of power plants and grid components by improving the physical pressure on maintenance and reduction of equipment.

If the life of all the power assets in the world is extended by 5 years, a cumulative investment of nearly 1.3 trillion U.S. dollars in 2016-2040 can be postponed. On average, plant investment will be reduced by 34 billion U.S. dollars each year, while investment in power grids will be reduced by 20 billion U.S. dollars each year.

Digital data and analytics can reduce operational and maintenance costs and achieve predictive maintenance, reducing the costs of plant and grid owners and, ultimately, reducing end-user electricity prices.

By 2040, digitization will save businesses and end-consumers 5% on operational costs, saving an average of nearly $ 20 billion annually.


Impact on renewable energy and electric vehicles


According to the report, digitization can help integrate renewable energy with the main grid, enabling the grid to better match energy needs in sunny, windy conditions.

The report estimates that the EU's growing storage and digital demand response will reduce the PV and wind energy market dwindling from the current 7% to 1.6%, thereby reducing 30 million tons of CO2 emissions by 2040.

The report also pointed out that the deployment of EVs smart charging technology helps to change the low demand for electricity and supply time when adequate supply, and provide further flexibility for the grid, while saving 100 billion to 280 billion US dollars in new power infrastructure investment (depending on The number of deployed electric vehicles).

In addition, digital technologies can facilitate the development of distributed energy sources, such as home photovoltaic panels and storage, by creating better incentives to make it easier for producers to store and sell excess electricity to the grid. New tools such as blockchain can help to facilitate point-to-point electricity trading within the local energy area.

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