Building the Internet of Energy

The transformation of energy supply brings enormous challenges. Integrating energy technology with information and communication technologies plays a key role in addressing these challenges.

In the All Electric Society, various actors in the energy system communicate with each other: energy producers, grid operators, consumers, and prosumers all have different technical backgrounds and interests (e.g., cost optimisation versus grid stability) but still need to “talk” to each other.

Michael Teigeler, Managing Director of DKE, explains: “In the end, it should be possible, for example, for the photovoltaic system on an office building to supply part of the electricity that a steel mill needs at that moment. The key to this is a standardised exchange of information between sectors in a highly complex system that intelligently and autonomously manages demand, supply, and loads between producers, consumers, and storage.”

The Grid becomes Part of the IoT

The goal is an “Internet of Energy,” where smart grids collect and analyse data from IoT-enabled sensors and devices within the energy system. According to a study by the Fraunhofer Institute for Systems and Innovation Research, the widespread use of smart grids could save up to 30 percent of grid stabilisation costs by 2030.

Diverse Communication Solutions

All communication technologies of the Internet of Things can be used to transmit information. 5G is particularly suitable for real-time management and automation of the smart grid. For applications requiring low bandwidth and where high latency is acceptable, such as reading data from smart meters, low-power radio networks like LoRaWAN or NB-IoT offer a cost-effective alternative to mobile networks. A broadband powerline infrastructure, which transmits data over power cables, promises high availability and easy rollout. For communication within a building, solutions like Wi-Fi or ZigBee can be utilised.

Standardised Language

Data must not only be transmitted but also understood by different actors. This is achieved through specialised communication protocols. One example is the manufacturer-independent communication protocol EEBUS. It allows energy management-relevant devices from various manufacturers to connect and interact with grid and market operators. These include smart meters, control units, electric vehicle charging stations, heat pumps, and energy management systems.

Sebastian Wolfsteiner, an energy management expert at Schneider Electric, emphasises: “EEBUS solves the challenge of providing an interoperable, reliable, and updatable interface for all relevant devices from different industries. This is no trivial task and a challenge.” Schneider Electric has equipped its energy management solution, Home Energy Management System, with an EEBUS interface.

In addition to EEBUS, there are several other protocols: The Open Smart Grid Protocol (OSGP) is one of the most important standard groups for transmitting commands to smart meters. Published by the European Telecommunications Standards Institute (ETSI), OSGP is based on several open standards, including ANSI C12.18 and IEC 62056. Message Queuing Telemetry Transport (MQTT) is a lightweight protocol often paired with TCP/IP, requiring very little bandwidth or network resources. Additionally, specialised protocols exist, such as the Open Charge Point Protocol (OCPP) developed by the Open Charge Alliance, which enables communication between a charging station and a billing or management system.

Graphic: Available communication technologies for data transmission in the energy system

Market Growth

The Internet of Energy enables real-time data on energy consumption, allowing better management of the power grid. Solar, wind, and other renewable energy sources can be integrated more effectively into the grid by making accurate predictions about energy consumption and generation.

The prospects for the Internet of Energy are impressive: according to analysts at Prophecy Market Insights, the market volume is expected to multiply from 139.5 billion US dollars in 2024 to 493.7 billion US dollars in 2034.

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