Digitalization of the electricity infrastructure : a key enabler for the decarbonization and decentralization of the power sector

Abstract

The digitalization of the electricity infrastructure is transforming the power industry and enabling its decarbonization and decentralization. In the electricity sector, digitalization is not a novelty but a process that has come in successive waves and whose implications go beyond technological change. Digitalization started at the level of transmission networks and large generation assets. By increasing the availability and usability of data on the status of the electricity network, it enabled more efficient and secure system operation. It also supported the creation of competitive wholesale markets and their integration at the regional level. More recently, digitalization has expanded its outreach to cover distribution grids and consumers’ premises, allowing a reduction in costs and an improvement in quality of service. It has also laid the basis for the establishment of innovative retail markets which empower final consumers and provide opportunities for new entrants, while challenging existing approaches to sector regulation.