Leveraging Digitalization for Improving Energy Efficiency

  • Living reference work entry
  • First Online:
The Handbook of Energy Policy
  • 33 Accesses

Abstract

Energy efficiency holds a lot of promise for boosting economic growth while also reducing greenhouse gas emissions. Digital technologies help to improve energy efficiency by providing efficiency, analytics, and enhanced control. Some of the most likely effects of digitalization include innovation, new business strategies and models, and energy-efficient products and services. Digital transformation can help build smart energy-efficient homes, smart buildings, smart energy systems, smart cities, and low-carbon systems that can lead to significant energy savings. This chapter explores the potential for leveraging digitalization to maximize energy efficiency and the impact of digitalization in achieving energy optimization as well as sustainable development goals. The study aims to identify key areas of focus, such as energy efficiency strategies, technological advancements, and the potential for energy savings and reducing carbon emissions as a result of these developments. Examples of real-life situations are included in the study in order to highlight the key policy initiatives and research efforts. The research provides qualitative perspectives based on a comprehensive literature review and an understanding of insights into key aspects of the current situation, the progress of digital transformation, challenges, future direction, and suggestions for achieving sustainable energy efficiency.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Institutional subscriptions

Similar content being viewed by others

References

  • Balakrishna, C. (2012). Enabling technologies for smart city services and applications. In Proceedings of the 6th international conference on next generation mobile applications, services, and technologies. IEEE. pp 223–227.

    Google Scholar 

  • Brody, P., & Pureswaran, V. (2015). The next digital gold rush: How the Internet of Things will create liquid, transparent markets. Strategy and Leadership, 43(1), 36–41.

    Article  Google Scholar 

  • Brown, M., Woodhouse, S., & Sioshansi, F. P. (2019). Consumer, prosumer: How service innovations disrupt utility business model. Academic Press.

    Google Scholar 

  • Brugger, H., Eichhammer, W., Milkova, N., & Donitz, E. (2021). Energy Efficiency Vision 2050: How will new societal trends influence future energy demand in the European countries? Energy Policy (Science Direct), 152, 112216.

    Article  Google Scholar 

  • Elagiry, M., Dugue, A., Costa, A., & Decorme, R. (2020). Digitalization tools for energy-efficient renovations. 65(9). Available via www.mdpi.com/journal/proceedings

  • Fatras, N., Ma, Z., & Jorgensen, B. N. (2020). Digitalization for energy efficiency and flexibility. Chapter 9. Available via https://www.researchgate.net/publication/347874282

  • Gambhir, A., Napp, T. A., Emmott, C. J. M., & Anandarajah, G. (2014). India’s CO2 emissions pathways to 2050: Energy system, economic and fossil fuel impacts with and without carbon permit trading. Science Direct, Elsevier, Energy, 77, 791–801.

    Google Scholar 

  • Ghahramani, A. et al. (2020). Artificial intelligence for efficient thermal comfort systems: Requirements, current applications, and future directions. Frontiers in Built Environment. Available via https://www.frontiersin.org/articles/10.3389/fbuil.2020.00049/full

  • IEA. (2012). International Energy Agency. Energy technology perspectives pathways to a clean energy system. IEA; OECD.

    Google Scholar 

  • IEA. (2017). Digitalization and energy – Technical report. International Energy Agency.

    Google Scholar 

  • IEA. (2019a). Energy Efficiency 2019. Global improvements in primary energy intensity, 2000–2018. Available via. https://www.iea.org/reports/energy-efficiency-2019

  • IEA. (2019b). International Energy Agency. Energy efficiency and digitalization. Available via https://www.iea.org/articles/energy-efficiency-and-digitalization

  • IEA. (2021). International Energy Agency. Better energy efficiency policy with digital tools. Available via https://www.iea.org/articles/better-energy-efficiency-policy-with-digital-tools

  • Jacobides, M. G., Cennamo, C., & Gawer, A. (2018). Towards a theory of ecosystems. Strategic Management Journal, 39(8), 2255–2276.

    Article  Google Scholar 

  • Jasonarson, I. K. (2020). Digitalization for energy efficiency in energy intensive industries. KTH energy technology. Division of Energy Systems.

    Google Scholar 

  • Kaplan, A., & Haenlein, M. (2019). Siri, Siri, in my hand: Who’s the fairest in the land? On the interpretations, illustrations, and implications of artificial intelligence. Business Horizons, 62(1), 15–25.

    Article  Google Scholar 

  • Kohli, R., & Grover, V. (2008). The business value of IT: An essay on expanding research directions to keep up with the times. Journal of the Association for Information Systems, 9(1), Article 1.

    Article  Google Scholar 

  • Krotov, V. (2017). The internet of things and new business opportunities. Business Horizons, 60(6), 831–841.

    Article  Google Scholar 

  • Lange, S., Pohl, J., & Santarius, T. (2020). Digitalization and energy consumption. Does ICT reduce energy demand? Elsevier. Ecological Economics., 176, 106760.

    Article  Google Scholar 

  • Lyons, L. (2019). Digitalization opportunities for heating and cooling. JRC technical reports. European Commission’s science and knowledge service.

    Google Scholar 

  • Maiti, D., Castellacci, F., & Melchior, A. (2020). Digitalization and development: Issues for India and beyond. In D. Maiti et al. (Eds.), Digitalization and Development. https://doi.org/10.1007/978-981-13-9996-1_1

    Chapter  Google Scholar 

  • McAfee, A., & Brynjolfsson, E. (2017). Machine, platform, crowd: Harnessing our digital future. WW Norton & Company.

    Google Scholar 

  • Mohamed, N., Al-Jaroodi, J., & Lazarova-Molnar, S. (2019). Leveraging the capabilities of industry 4.0 for improving energy efficiency in smart factories. IEEE Access, 7, 18008–18020.

    Article  Google Scholar 

  • Nambisan, S., Wright, M., & Feldman, M. (2019). The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes. Research policy., 48(8), Article 103773.

    Article  Google Scholar 

  • OECD. (2016). OECD science, technology and innovation outlook. Organization for Economic Co-operation and Development.

    Google Scholar 

  • Parikh, K. S., & Parikh, J. K. (2016). Realizing potential savings of energy and emissions from efficient household appliances in India. Energy Policy, 97, 102–111. https://doi.org/10.1016/j.enpol.2016.07.005

    Article  Google Scholar 

  • Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard Business Review, 92(11), 64–88.

    Google Scholar 

  • Porter, M. E., & Heppelmann, J. E. (2015). How smart, connected products are transforming companies. Harvard Business Review, 93(10), 96–114.

    Google Scholar 

  • Prince, K., Barrett, M., & Oborn, E. (2014). Dialogical strategies for orchestrating strategic innovation networks: The case of the Internet of Things. Information and Organization, 24(2), 106–127.

    Article  Google Scholar 

  • Rong, K., Hu, G., Lin, Y., Shi, Y., & Guo, L. (2015). Understanding business ecosystem using a 6C framework in Internet-of-Things-based sectors. International Journal of Production Economics, 159, 41–55.

    Article  Google Scholar 

  • Saarikko, T., Westegren, U. H., & Blomquist, T. (2020). Digital transformation: Five recommendations for the digitally conscious firm. Elsevier. Business Horizons, 63(6), 825–839.

    Article  Google Scholar 

  • Saarikko, T., Westergren, U. H., & Blomquist, T. (2017). The internet of things: Are you ready for what’s coming? Business Horizons, 60(5), 667–676.

    Article  Google Scholar 

  • Sarangi, G. K., & Taghizadeh-Hesary, F. (2021). Market-led energy efficiency transformation in India: A deep dive into the perform, achieve, trade (PAT) scheme. In Y. Liu, F. Taghizadeh-Hesary, & N. Yoshino (Eds.), Energy efficiency financing and market-based instruments. Economics, law, and institutions in the Asia Pacific. Springer. https://doi.org/10.1007/978-981-16-3599-1_10

    Chapter  Google Scholar 

  • Saturno, et al. (2017). Proposal of an automation solution architecture for industry 4.0. In 24th international conference on production research. Available via https://www.researchgate.net/publication/319944621

  • Schramm, H. et al. (2017). Optimizing control of energy use in technical building systems: Why the energy and climate policies should fill regulatory gaps, ECEEE summer study.

    Google Scholar 

  • Shinkevich, M. V., Vertakova, Y. V., & Galimulina, F. F. (2020). The synergy of digitalization within the framework of increasing energy efficiency in the manufacturing industry. International Journal of Energy Economics and Policy, 10(3), 456–464. Available via www.econjournals.com

    Article  Google Scholar 

  • Sun, L., Cao, X., Alharthi, M., Zhang, J., Taghizadeh-Hesary, F., & Mohsin, M. (2020). Carbon emission transfer strategies in the supply chain with a lag time of emission reduction technologies and low-carbon preference of consumers. Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2020.121664

  • Thapar, S. (2020). Energy consumption behavior: A data-based analysis of urban Indian households. Energy Policy, 143, 111571. https://doi.org/10.1016/j.enpol.2020

    Article  Google Scholar 

  • Tiefenbeck, V. (2018). Leveraging digital technologies for fostering resource conservation among the general public. Nature Energy. Available via https://go.nature.com/2qSngnk.

    Google Scholar 

  • Ullo, S. L., & Sinha, G. R. (2020). Advances in smart environment monitoring systems using IoT and sensors. Sensors, 20, 3113. https://doi.org/10.3390/s20113113

    Article  Google Scholar 

  • Verma, N., & Jakhar, I. (2016). Analysis of energy efficiency in India. International Journal in Management and Social Science., 04(04), 142–159.

    Google Scholar 

  • Verma, et al. (2020). Digitalization: Enabling the new phase of energy efficiency.

    Google Scholar 

  • Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144.

    Article  Google Scholar 

  • Westergren, U. H., Holmstro, M. J., & Mathiassen, L. (2019). Partnering to create IT-based value: A contextual ambidexterity approach. Information and Organization, 29(4), 100273.

    Article  Google Scholar 

  • World Energy and Climate Statistics. (2021). World energy data yearbook. Available via https://yearbook.enerdata.net/total-energy/world-energy-intensity-gdp-data.html

  • **nhua. (2013). Wuxi demo zone inaugural top ten IoT application cases. Available via http://money.163.com/13/0926/10/99MNN8MB00254TI5_all.html

  • Yu, M., Kubiczek, J., Ding, K., Jahanzeb, A., & Iqbal, N. (2021). Revisiting SDG-7 under energy efficiency vision 2050: the role of new economic models and mass digitalization in OECD. Energy efficiency, Springer. Springer Nature B.V..

    Google Scholar 

  • Zhu, S., Song, M., Lim, M. K., Wang, J., & Zhao, J. (2020). The development of energy blockchain and its implications for China’s energy sector. Resources Policy, 66, 101595.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2022 Springer Nature Singapore Pte Ltd.

About this entry

Check for updates. Verify currency and authenticity via CrossMark

Cite this entry

Subramanian, M. (2022). Leveraging Digitalization for Improving Energy Efficiency. In: Taghizadeh-Hesary, F., Zhang, D. (eds) The Handbook of Energy Policy. Springer, Singapore. https://doi.org/10.1007/978-981-16-9680-0_22-1

Download citation

  • DOI: https://doi.org/10.1007/978-981-16-9680-0_22-1

  • Received:

  • Accepted:

  • Published:

  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-16-9680-0

  • Online ISBN: 978-981-16-9680-0

  • eBook Packages: Springer Reference Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

Publish with us

Policies and ethics

Navigation