How will Digitalization Change the Energy System of the Future?

Abstract

This study explores the impact of digitalization on the future energy system in Central Europe using both qualitative and quantitative research methods. Three digitalization scenarios were developed for the future energy system, ranging from low to highly digitalized. The results show that digitalization can reduce overall system cost, investment cost, and CO2 emission for the future energy system. The study also found that the electrification of energy technologies (e.g., electrolyzers, heat pumps), co-generation technologies (e.g., combined heat & powers), and longterm energy storage technologies (e.g., H2 storages, thermal storages) will gain prominence in the context of digital energy systems. In contrast, fossil-based (e.g., gas turbines, gas boilers, electric boilers) and short-term storage (e.g., Li ion batteries) technologies will see a drop in new investments. To fully realize the benefits of digitalization, a highly digital energy system is required, emphasizing the implementation of residential demand response and smart electric vehicle charging.Overall, digitalization has the potential to bring about an efficient, optimized, and fossil-free energy system.