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ROLE OF INDUSTRY 4.0

IN ENERGY TRANSITION

The energy industry is going through a significant with many unpredicted, devastating climate events
transformation with Decarbonisation, Decentralisation worldwide. Considering the need for firm action to limit
and Digitalisation (3Ds) as central themes around this global warming, Paris summit on Climate Change in
transition. It is touching every entity in the value chain; 2015 reaffirmed the global warming target of 1.5ºC w.r.t
from energy-producing companies to the last mile base reference and legally binding agreement came
consumers. The clean energy drive originates from the into existence with acceptance of 195 countries.
efforts to contain GHG emissions as part of the global
climate change initiative. Digitalisation complements 1% 2%
this drive by technologically enabling the transition.
Decentralised production and energy consumption 6%
would significantly help reduce transmission losses 11% Energy, N2O
and improve access to quality energy. The change is F-Gas
visible in energy production, consumption and the GLOBAL Non- Energy,N2O
way it is transmitted and distributed. Digitalisation GHG 8% Non- Energy, CH4
would accelerate each step of the transition by making 66% EMISSIONS Non- Energy, CO 2
them more efficient, flexible and reliable. Industry 4.0 6% Energy, CH4
technologies, Internet of Things (IoT) and Artificial Energy, CO 2
Intelligence (AI) /Machine Learning (ML) can improve
the efficiency of plants/industries and reduce fossil fuel
consumption. This article covers the impact of Industry
4.0 technologies and digitalisation on energy transition. Source: WEF, Energy Transition 101, July 2020
Fig. 1
Decarbonisation for Existence of

Humanity Significant technological and policy-related
interventions are in various implementation stages to
The Intergovernmental Panel on Climate Change reduce emission levels and achieve carbon neutrality by
(IPCC) of UN estimated that the human activities are 2050. The energy sector is the major contributor to GHG
responsible for about 1ºC of global warming by 2030 emissions. It corresponds to about 73% of the overall
w.r.t the pre-industrial levels and are likely to reach 1.5º C GHG emissions globally. Hence, a continued focus on
by 2050 if the current activity levels continue. Global the energy sector is essential to reduce emission levels.
warming effects are visible in the past couple of years And about 66% of it is CO emissions. Refer Fig. -1.
2

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