Internet of Things is defined as a system of hardware devices, computing services, and analytics software connected over a communication network through internet. The distributed energy systems through internet using a machine-to-machine interface is known as Internet of Energy (IoE).
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Moreover, the advent of IoE can help streamline the power flow and help companies to enhance workflow and provide useful data in making decisions. Adoption of IoE technologies has resulted in increased productivity and sustainability. The shift toward the use of IoE has been widely accepted due to the increasing demand for energy conservation by remote monitoring and increasing the energy efficiency of the overall operating system. Minimization of the technologies involved and the ease of their integration with the other devices is important to obtain a viable IoE system. Moreover, the success of the system depends largely on the integration of all the technologies into one whole system.
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Despite numerous challenges in deploying IoE solutions, investment in innovation is consistent as power sector companies attempt to be more quick, efficient, and productive while reducing costs. The key hardware components such as embedded sensors, smart meters, and controllers are connected through automation system and data communication. As a result, the hardware components can gather and provide operational data from remote locations, which helps the power utilities and consumers understand the operations in an accurate and detailed manner.
Moreover, IoE also removes physical barriers so that the users can reach toward remote locations. The advantages of IoE technology for power industry are wide-ranging from equipment manufacturers to internet service providers. The two major applications of IoE in power sector are supervisory control and data acquisition (SCADA) and smart meters.
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