Digital Solutions and AI for Advancing Renewables and Community Resilience

The IRENA Innovation Day under the theme "Digital Solutions for the Energy Transition" took place at the World Future Energy Summit (WFES) in Abu Dhabi and gathered experts, policy makers and other stakeholders to discuss the use of digital technologies to advance the global, renewable-based energy transition, and support the target of tripling renewable power by 2030 (3xRenewables).

The event also focused on the challenges and opportunities for digital solutions to create more sustainable and resilient communities globally. The digital transformation is not a one-size-fits-all solution. Significant disparities between developed countries and the Global South exist, in particular in terms of access to advanced technical solutions and level of data availability. This must be considered by the global energy sector when applying digital solutions for energy systems in various regions.

W/ the increased interest in digitalisation & innovations for energy transition, @IRENA brings the discussion forward to global platform through its flagship Innovation Week. Ahead of the event in Bonn in June, the Agency held IRENA Innovation Day at @WFES, gathering experts to… pic.twitter.com/T4TzyvkrML

In his opening remarks, Roland Roesh, Director, IRENA Innovation and Technology Centre, said "Digitalisation is a key enabler and accelerator of this transformation, enhancing operational efficiency, and creating new opportunities for energy consumers and producers alike.' He continued explaining how, however, that digitalisation serves very different purposes in different regions. "As digitalisation accelerates, we must ensure that these technologies do not widen the gap between developed and emerging economies but serve as tools to bridge it," he concluded.

The following first panel discussion focused on the applications of digital technologies, including the use of Artificial Intelligence (AI), Internet of Things, blockchains and Digital Twins to advance the global, renewable-based energy transition and support the 3xRenewables goal. Advances in digital technologies and services, as well as increased connectivity are key drivers of the energy transition. Digital technologies connect devices, collect data on energy generation and consumption, monitor, and control grid performance, therefore increasing efficiency of the operations while making the grid more resilient. Digital solutions can be key enablers for integrating high shares of renewables in the grid, for implementing dynamic pricing for consumers and activating demand side response, for optimising energy use and storage.

"Digital technologies like AI and Internet of Things are transforming renewable energy by improving grid stability reliability, optimising the energy storage, and enhancing the integration of variable energy sources such as the wind and solar" says Dr. Aaseha Alnuaimi, World Green Economy Organization, during her welcome remarks.

Basing his assessment on robust experience in digitalisation, Greg Jackson, Founder and Chief Executive, Octopus Energy concluded his keynote, saying "We've been focused on how to generate electricity, so moving from fossil fuels to renewables, and we just haven't been focused enough on end use." He pointed out that we should be putting data centres not where the data is but where the cheap, renewable energy is, highlighting the importance of planning well for the increased energy demand that digitalisation requires.

During his intervention Bruce Douglas CEO, Global Renewable Alliance said, "Right from project development, planning and permitting, installation, to operation and maintenance, the use of AI and digitalisation can help harmonise and simplify the full lifespan of incoming renewable energy projects," reflecting on the power of digitalisation in accelerating the deployment of renewables to meet growing energy demands. "Digitalisation is not just important - it's essential to meet the challenge of tripling renewables by 2030," he concluded.

For Guilherme Castro, Senior Manager AI for Energy Transition at Faculty, data and digitalisation can help bring down household energy costs as energy consumers become producers by selling excess energy back to the grid. "New business models shaped by data analysis, such as 'zero-bill homes,' show how we can shift from selling electricity as a commodity to selling it as a two-way service, ultimately enabling a fully decentralised, decarbonised, and more democratic energy system." He also raised the point of data biases in AI solutions, highlighting the need for data representativeness, algorithm transparency, an iterative development process, and team diversity.

The second panel session was dedicated to challenges and opportunities in digital solutions for creating more sustainable and resilient communities, particularly in the off-grid settings. Significant disparities in digital advancements between developed countries and the Global South must be considered when discussing opportunities and challenges of digitalisation for energy systems, as well as replicability of solutions. While digital solutions hold great promise for the transforming communities, with a variety of applications ranging from empowering consumers, EV smart charging, to enabling Pay-as-you-go financing options, successful implementation requires a focus on affordability, accessibility, and consumer acceptance and education.

The conclusions were clear - by harnessing digital technologies, energy systems can withstand current and new constraints and adapt to new challenges such as needs for increased flexibility and energy demand, and thus contributing to accelerating energy transition and creating a sustainable future for all. However, digitalisation of energy systems must consider the specific context of the Global South countries for the transition to be just and leave no one behind.