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Transport currently accounts for 28% of global final energy demand and 23% of global CO2 emissions from fuel combustion. This digital investment in 2016 was almost 40% higher than investment in gas-fired power generation worldwide (USD 34 billion) and almost equal to total investment in India’s electricity sector (USD 55 billion).

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For example, global investment in digital electricity infrastructure and software has grown by over 20% annually since 2014, reaching USD 47 billion in 2016. Investment in digital technologies by energy companies has risen sharply over the last few years. The pace of digitalisation in energy is increasing.

Intelligent transport systems are using digital technologies in all modes of transport to improve safety, reliability and efficiency. The industrial sector has used process controls and automation for decades, particularly in heavy industry, to maximise quality and yields while minimising energy use. Oil and gas companies have long used digital technologies to improve decision making for exploration and production assets, including reservoirs and pipelines.

In the 1970s, power utilities were digital pioneers, using emerging technologies to facilitate grid management and operation. The energy sector has been an early adopter of digital technologies. Adding to this challenge is the extremely dynamic nature of energy systems, which are often built on large, long-lived physical infrastructure and assets. Policy makers, business executives and other stakeholders increasingly face new and complex decisions, often with incomplete or imperfect information. New business models are emerging, while some century-old models may be on their way out. It is also changing markets, businesses and employment. But digitalisation is also raising new security and privacy risks. But getting everything right will not be easy.ĭigitalisation is already improving the safety, productivity, accessibility and sustainability of energy systems. Digitalised energy systems in the future may be able to identify who needs energy and deliver it at the right time, in the right place and at the lowest cost. Stunning advances in data, analytics and connectivity are enabling a range of new digital applications such as smart appliances, shared mobility, and 3D printing. Over the coming decades, digital technologies are set to make energy systems around the world more connected, intelligent, efficient, reliable and sustainable. It also lays out no-regret recommendations to help steer the world towards a more secure, sustainable and smarter energy future. This report seeks to provide greater clarity to decision makers in government and industry on what digitalisation means for energy, shining a light on its enormous potential and most pressing challenges. The report examines the impact of digital technologies on energy demand sectors, looks at how energy suppliers can use digital tools to improve operations, and explores the transformational potential of digitalisation to help create a highly interconnected energy system. But it is also raising new security and privacy risks, while disrupting markets, businesses and workers.ĭigitalisation & Energy is the International Energy Agency’s first comprehensive effort to depict how digitalisation could transform the world’s energy systems. Digitalisation is helping improve the safety, productivity, accessibility and sustainability of energy systems around the world. Digital technologies are everywhere, affecting the way we live, work, travel and play.