Given the ever-increasing carbon emissions and carbon footprint of the energy sector, decarbonization, decentralization, and digitization are fast emerging as potent solutions to global energy issues.

• Decarbonization: This trend refers to the transition towards a clean, carbon-free world, largely by increasing the use of renewables and increasing premiums on the use of fossil fuels.
  • Electrification is often touted as a significant way to decarbonize energy. For example, switching to electric vehicles. For electricity to become emission-free, there has to be a move towards renewable energy solutions such as wind, solar, and biofuels.
  • India has set various targets for the renewable sector and has also done upward revision in its INDCs under the Paris Agreement. Globally, India ranks fourth in renewable energy capacity and wind power and fifth in solar power capacity.
• Decentralization: This trend is all about transitioning away from our current system of highly centralized energy grids run by monopolistic energy providers, towards distributed energy production systems.
  • Through a combination of renewable energy and localized “microgrids,” consumers can generate their own electricity for their own needs. It also offers revenue opportunities and a way to provide backup power to the national grid. Localized renewable power would also help in cutting carbon emissions.
  • Decentralization can drive competition up, and power prices down, as the number of energy providers increases. India has focused on technologies like net metering and smart meters for the same but a lot more needs to be done in this regard.
• Digitization: This trend is all about the use of digital machines, devices, and technology to optimize energy production, infrastructure, and use. This trend is inextricably linked to the previous two trends.
  • An increasing variety of zero-carbon energy sources will mean our energy networks become more complex. Also, decentralized grids will need intelligent solutions to monitor and manage the fluctuating demand.
  • In India, this is done via the Advanced Metering Infrastructure (AMI). It seeks to deploy prepaid smart meters at scale. ✓ The end-to-end AMI includes smart electric meters, which are supported by technologies such as communication networks, Head-End System (HES), Meter Data Management System (MDMS), and Cloud systems. ✓ Smart Meter National Program (SMNP), promoted through the Revamped Distribution Sector Scheme (RDSS), aims to replace 25 crore conventional meters with smart meters in India. ✓ Digital tools will also give an impetus to the energy sector. These include:
    • Al and predictive analytics particularly when used to analyze and predict demand, and adjust where power is drawn from on distributed grids.
    • Internet of Things including smart home thermostats that can help consumers cut their energy use.
    • Blockchain could be useful for creating smart contracts that allow consumers to trace where their energy comes from.
    • Digital twins can be used to create a virtual replica of a power plant or even an entire grid, allowing providers to model different scenarios, make better decisions, and improve efficiency.

Global energy demand is expected to increase in the coming years, especially with the industrial growth aspirations of developing countries like India. Therefore, it is imperative that most of this new energy demand is met by low-carbon, renewable sources for achieving sustainable development. This would require ramping up institutional, technical, and financial capacity across the globe.