Integration of renewable energy and optimization of energy use are key enablers of sustainable energy transitions and mitigating climate change. Modern technologies such the Internet of Things (IoT) offer a wide number of applications in the energy sector, i.e, in energy supply, transmission and distribution, and demand. IoT can be employed for improving energy efficiency, increasing the share of renewable energy, and reducing environmental impacts of the energy use. This paper reviews the existing literature on the application of IoT in in energy systems, in general, and in the context of smart grids particularly. Furthermore, we discuss enabling technologies of IoT, including cloud computing and different platforms for data analysis. Furthermore, we review challenges of deploying IoT in the energy sector, including privacy and security, with some solutions to these challenges such as blockchain technology. This survey provides energy policy-makers, energy economists, and managers with an overview of the role of IoT in optimization of energy systems.
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