Internet of Energy

The Internet of Things has been one of the revolutions of recent years. Its mission, seemingly simple, was to connect everyday objects to the internet. Thanks to this, there have been significant advances in the automation of processes such as temperature control, which, as well as making our lives much easier, has led to increased efficiency in homes and offices.

Now these processes have also reached the world of energy thanks to the Internet of Energy (IoE). The aim is to automate both the transmission and consumption of energy, which in turn will improve efficiency and the use of resources. These improvements would also enable greater uptake of renewable energy as self-consumption would become easier with less reliance on external sources.

What is the Internet of Energy?

The concept was coined in 2011 by the economist Jeremy Rifkin in his book The Third Industrial Revolution. Rifkin argues that the IoE is based on five pillars:

• The shift towards renewable energy.
• The shift to microgrids.
• The roll-out of storage technologies integrated with renewable sources.
• The decentralisation of energy production and distribution.
• The mass electrification of transport.

How does the IoE work?

The Internet of Energy represents a further step forward in the concept of smart grids. Although smart grids enable more sustainable energy management through the automation and digitalisation of processes, the data they generate is not usually shared between them. The key to the IoE lies in the shared ecosystem. This technology harnesses the data collected by smart devices, sensors and meters so that the networks and connected systems can then automatically adjust consumption, storage or distribution. In this way the customer, the networks and energy assets can interact more efficiently.

IoE technologies

One of the greatest advances in the IoE lies in the use of big data, which makes it possible to analyse everything that happens throughout the entire process. For example, it reveals consumption trends, which can help ensure sufficient energy is available when needed. It also provides real-time information on everything that is happening, enabling the network to deal with any unforeseen events.

Alongside this, AI (Artificial Intelligence) is also used in power stations and development systems. AI, combined with the information provided by smart meters, enables the distribution of energy to be optimised even further. The use of smart grids – electrical networks capable of intelligently and dynamically integrating the actions of all users connected to them – is presented here as a key factor in realising the full potential of this optimisation. In this way, we are taking another step forward in our commitment to electrification, a process that we at Iberdrola regard as fundamental to achieving a clean and sustainable energy model.

Real-world applications of the IoE

Smart grids and energy transmission

Making the most of smart grids involves upgrading the infrastructure, such as the development of ultra-high-voltage transmission grids. Automation is integrated into an interconnected system to ensure efficient electricity use.

Electric vehicles

The widespread electrification of vehicles requires the installation of more charging points that, thanks to the IoE, can use consumption data to establish two-way connections with vehicles.

Smart homes

In the home, various devices such as air conditioning, heating and smart light bulbs can be connected to the system to communicate their actual electricity requirements, thereby promoting responsible consumption.

Demand management

The creation of new energy storage facilities, with the aim of storing energy for times when there is an overload, allows for greater flexibility in the face of growing energy demand.

Integration of renewables

Electrification finds an ally in the IoE as it provides accurate and personalised data on each consumer's actual energy needs and indicates the best option for optimising their use.

Personalisation of customer engagement

Users do not merely consume energy; they are able to optimise their consumption, shift consumption patterns and manage the use of their devices and their charging times. They take on a more active role, supported by the personalised data collected by their devices.

Iberdrola and the use of the Internet of Energy: Advanced Smart Assistant

At Iberdrola, we have an Advanced Smart Assistant, a connected energy solution that enables customers to play an active role in the shift towards a more sustainable model. As the Internet of Things is a natural evolution of smart grids, which already made it possible to optimise the use and distribution of energy, this digital solution enables customers to reduce the consumption of smart electrical devices by between 10% and 30%. By using complex algorithms, we can reach almost 100% of our customer portfolio, breaking down their consumption by individual appliances, comparing it with similar households and personalising savings estimates and return on investment through the different Smart solutions that will help make their homes more efficient.

The digitalisation of electricity infrastructure gives us greater flexibility and bidirectionality. With this programme, Iberdrola customers can connect and control different electrical solutions in their homes, including heating and cooling, domestic hot water and electric vehicle charging management. The platform is designed to shift consumption to the hours with the lowest electricity tariffs, taking into account the available power in the home and adapting to the customer's energy needs and comfort, while also facilitating electrification and improving the sustainability of the system by seeking out periods of peak renewable generation.

In addition, if customers have solar panels at home, the platform intelligently manages household energy consumption, shifting non-urgent consumption to periods when the home's solar panels are generating the most renewable energy, thereby improving energy efficiency.

All this is delivered through a simple experience in the Iberdrola Customers app, while also providing advanced information and recommendations, enabling consumers to play a direct role in electrification and use energy more efficiently in their own homes.

The future of the Internet of Energy

In the future, the Internet of Energy is set to become a key element in achieving a more flexible grid. This technology enables devices connected to the Internet of Things (IoT) to be integrated into a dynamic network that optimises the distribution and use of energy.

The smart electrification of infrastructure, industries and production processes requires data exchange and bidirectional management of energy transmission. Furthermore, users are taking on a more active role in managing their own consumption. Thanks to the Internet of Energy, consumers will be able to shift their demand patterns, manage local storage systems and become part of the self-consumption ecosystem.