Page 41 - European Energy Innovation - Summer 2016 publication

Summer 2016 European Energy Innovation
responsive acquisition of data along
with increasing computing power
enable smart production systems
to track energy consumption and
optimise processes so that they adapt
and operate with less resources, save
energy and identify waste of energy.
This offers tremendous opportunities
for our economy and society.
IOT: A BIG BENEFIT FOR ENERGY
MARKETS
The IoT can bring significant benefits
for energy efficiency. At the level of
the production of energy, smart grid
sensors can improve utility operations
and performance by better monitoring
the energy network, so that resources
are allocated more precisely and closer information that in the past was either
to the actual demand needs, avoiding
energy waste. At the level of the
consumption of energy, smart meters
can provide a wealth of information
that can help minimise energy costs,
e.g. through fully automated billing
based on time of use or network
status, or enabling meter-to-appliance
communications to help consumers
change their behaviour to reduce their
costs.
IoT will help industry to optimize the
use of energy at all stages. It could
reduce the consumption of electricity
at peak hours by shutting down/
reducing the use of equipment and/
or production. Lighting/heating/
cooling will be improved depending
of the operational conditions, and/
or the weather/time of the day. Taking
advantage of advancements in device
connectivity, manufacturers can now
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INTERNET OF THINGS
track energy consumption patterns
at the device level. By tracking each
piece of machinery on the floor,
managers get granular visibility
into energy consumption, as well
as actionable insight about waste,
available efficiencies and more. A great
opportunity for the IoT can be found in
some specific application areas too.
Smart Cities is one of the examples
where by using IoT technology,
the distinct pillars of the modern
city (energy, mobility, buildings,
water management, lighting, waste
management, etc.) will become part of
a structured, interconnected ecosystem.
IoT technologies, by gathering
impossible or difficult to gather, will
enable optimize public transport (real-
time location, utilization), environmental
data, noise, monitoring of waste
bins, energy consumption in public
buildings, lighting, etc. Barcelona’s
Energy-Saving Smart Streetlights¹ is a
nice illustration: sensors are installed in another one on Smart Cities (with up to
streetlights, enabling automatic control
of brightness by analysing the levels
of noise, air pollution, and population
density. Result: at least 30% energy
savings per year.
IoT technologies in Smart Farming
will bring Precision Agriculture and
Precision Livestock Farming to another
level: the use of water, fertilizer or
heating in green houses, in correlation
to the climate or the harvesting
at optimum maturity will allow a
more sustainable, productive and
competitive EU farm sector.
A CHALLENGING IMPLEMENTATION
The IoT is sometimes perceived as
more closely linked to consumer
markets, like to smart thermostats
or fridges. However, less than 8% of
the households have a smart device
with energy-related functions. Such
penetration is low, and it may be
explained by a difficulty for users to
understand the benefits of the IoT, or
maybe worries about installing sensors
in their house, for privacy and security
issues. To unblock the market, the
Commission has launched in 2016 a
Focus Area on IoT under its Research
and Innovation Programme, Horizon
2020. IoT Large Scale Pilots will be
funded to test technology, business
models and standards, and to test with
real users how much they welcome
the IoT solutions. Even though energy
efficiency is not specifically targeted, it
will be indirectly addressed we believe
through one pilot dedicated to Smart
Homes for Independent Living (with
up to 20 Million euros funding) and
15 Million euros of funding). The pilots
will hopefully also give useful insights
as to what barriers may exist towards
a greater adoption of IoT solutions by
consumers, which could eventually lead
to policy proposals by the Commission.
But we find that the biggest
opportunities are rather in the industrial
adoption of the IoT, including for
industrial machines, factories and
buildings. According to a study from
IDC², Smart Manufacturing is projected
to be the largest potential opportunity
in terms of IoT spending. Consumers