1. Introduction
Due to the accelerated decrease in natural resources, as well as the high-risk environmental impacts associated with fulfilling current energy production needs, a core focus has been placed on energy efficiency and climate-change mitigation. Although mankind has started producing energy from renewable sources in greater percentages each year, the majority of energy sources still rely on the extraction of natural resources; more precisely, 84% of energy produced at present comes from fossil fuels, and, as we continue to burn more, the total production has increased from 116,214 to 136,761 TWh over the last 10 years [
1].
In this context, the increased digitalization in energy production, distribution, and consumption brings the infrastructure required to achieve the EU 2030 and 2050 targets to the foreground. The existing challenges are based upon reaching a total energy consumption of 956 Mtoe and a primary energy consumption of 1273 Mtoe in the EU by 2030, as stated by the EU’s Renewable Energy Directive, paving a pathway toward a binding national energy efficiency standard.
According to the stated rules, each country has its own milestones—albeit with the same trajectory—to meet the requirements of extensively decreasing the impact of its footprint on the global environment. The core interest for analysis in our review of the specialized literature was articles published within the last decade by worldwide specialists attempting to find solutions to empower high-efficiency cross-country co-generation.
As each country’s existing policy measures follow primary energy savings in GWh per year, the usage of digitalization in energy production, distribution, and consumption was also found to have an impact on carbon dioxide direct emissions, taking into consideration the co-generation impact of energy production fueled by fossil fuels, with less than 270 g CO2 per 1 kWh of energy output from combined generation as we look toward economic growth decoupled from resource use. Moreover, savings were found to be feasibly made not only in production, but also in distribution; for example, tons of CO2 was saved in 2022 through the choice of intermodal transport.
One of the major existing challenges is the decarbonization of the EU’s energy system, which is critical to reaching the 2030 climate objectives and the EU’s long-term strategy of achieving carbon neutrality by 2050. The report is set at 1.5 °C and scaled down to the national level based on the interactions between economic sectors, energy consumption, and emissions, as depicted in
Figure 1.
As we went deeper into analyzing the importance of digitalization in energy production, distribution, and consumption by looking into the existing interests of specialists who have published their fieldwork research in the Web of Science and Scopus databases, we determined the servitization of the energy sector [
2] to be a second major existing challenge for reaching energy-saving targets [
3] and for the decarbonization target itself. This is because, by promoting energy efficiency in the built environment through training and education [
4], we can address the challenges posed by an evolving energy grid [
5], thus spurring cross-country companies to implement digitized services.
From our analysis, we understand that some countries are still struggling with the major existing challenge of all—the lack of unconditional access to energy across all national territories—and, in this context, in the search for energy needed for homes, workplaces, hospitals, and other national institutions, whether the energy is produced greenly or produced in the classic manner comes is a secondary concern, as long as the citizens are taken care of.
As one of the strongest challenges of all, access to energy will continue to be primarily looked at closely. Meanwhile, for countries that have overcome this deficiency, the major future challenge will be teaching all their citizens to reuse, reduce, repair, and recycle products, not just to reach the 1.5 °C milestone, but in order to continuously lead a green energy usage life. Therefore, the most important future challenge will rely on consciously aiming all of our daily actions toward the green energy pathway.
In order to overcome such challenges, specialists have conducted comparisons of power approaches for the testing of smart grid controls [
6] in order to classify energy-demand time series [
7], as the need for generic data models describing flexibility in power markets [
8] has grown extensively over the past 10 years. Furthermore, our analysis indicated that, over the past decade, green vehicle digitalization for the next generation of connected and electrified transport systems [
9] has occupied a central role in growing toward a net zero GHG (greenhouse gas) emissions target through the 2030 stage to 2050; that is, with a long-term focus.
As co-generation relies upon the fact that all countries should bring their own intakes for further promotion of sustainable consumption and production (SCP) within the scope of national action plans in the near future, the target for a heightened digitized infrastructure has grown into national policies regarding short- and long-term development. Additionally, by looking at the material footprint (MF) of each country that supports the co-generation, we can understand that the quantity of material extraction required to meet the consumption of a country can be decreased through the introduction of digitized infrastructure. Considering the total material footprint as the sum of the material footprint for biomass, fossil fuels, and metal and non-metal ores, we can rise above the question: How much natural resources are essential to decouple economic growth from resource use?
By analyzing the Domestic Material Consumption (DMC) as a production-side measure which does not account for supply chain inputs or exports, a country may have a lower DMC value if it outsources a large proportion of its materials. Decreasing the DMC poses a third major existing challenge which, to some degree, can be achieved by promoting education on lowering waste and on reusing and recovering materials, as well as predominantly using renewable resources.
As per our analysis of challenges related to short- and long-term energy production, distribution, and consumption, the results indicated that the evaluation of a country’s sustainable public procurement (SPP) implementation level, scope, and comprehensiveness is typically based on regulatory frameworks, implementation support, and monitoring of the share of products and services purchased sustainably, following an increase in positive actions and a decrease in negative impact factors (see
Figure 2). As a result, developing a fully integrated, interconnected, and digitalized EU energy market will increase energy efficiency, renewable sources, greenhouse-gas-emission reductions, and digital interconnections, which can be promoted by continuous research and innovation in the energy production, distribution, and consumption sector.
In addition, in terms of impact, we may note the positive results resulting from raising the level of transparency of public services and decreasing the discretion level within the provision of public services. As energy distribution is perceived as a public service, another advantage of digitalization and e-government is that it is a central element contributing to the reduction of petty corruption [
10].
Going further to assess the future roles of digitalization in energy production, distribution, and consumption, the researched studies reveal that, at present, the digitalized energy conservation of industrial buildings and materials [
11] should be promoted and sustained in each country, primarily through education and accessibility. In this way, post-, pre-, and non-payment accessibility conflicts can be rationalized through the digitalization of energy access [
12]. Agile digitalization evolution in the energy sector, taking into account innovative and disruptive technologies [
13], goes above and beyond the optimal digital scheduling model using artificial intelligence [
14]. Energy-related fields can obtain improvements by focusing on Open Innovation [
15], allowing for the decoupling of economic aspects from resource use through digital transformations [
16]. From our current analysis, prospects for digitalization within industrial complexes [
17] appear as a sine-qua-non prerequisite for the implementation of methodologies in well-described and mapped industrial environments.
In this context, setting forth the digital collection of energy consumption and production data [
18] within a cloud collaboration value chain based on degree analysis [
19] can promote SMART energy management systems [
20,
21], as well as providing a basis for resource conservation [
22].
Taking into consideration the global interest in digitalized future energy systems, various countries have opened collaboration pathways to promote and educate public and private companies to embrace innovation in terms of digitalization [
23,
24,
25].
With respect to how sustainable energy may empower the decoupling of the economy from natural resource use in the future, a comparative analysis of new trends in energy digitalization was conducted [
26], and efficiency models were sketched. Furthermore, studies have focused on how to empower resource saving technologies [
27], for example, as a direction for ensuring the growth of energy efficiency and energy security [
28].
When analyzing the studies published in the energy field over the last decade, as indexed in the Web of Science and Scopus databases, we noted that cross-checking among industries has been implemented, and production, distribution, and consumption frameworks are constantly under improvement. Targeting an increase in energy efficiency by 2030 and 2050 [
29], multiple countries have stated that infrastructure, supply chain strategy, and communication [
30] play key roles in the successful implementation of directives, agendas, and plans, as well as continuous monitoring for reaching net-zero GHG emissions and economic decarbonization.
As per the conducted review of the literature, digitalization [
31,
32,
33] in energy production, distribution, and consumption must also be accessible and easy to implement for the final users and consumers. A new generation of users may be raised with the knowledge that the decoupling of economic growth from resource use is a long-term strategy that can ensure the viability and stability of the environment. Research over the past 10 years has already contoured the infrastructure for renewable resource use and co-generation fundamentals, and it should be kept in mind that education for future generations starts now. The current state-of-the-art and potential for future research [
34] open pathways for clearly reaching the 2030 and 2050 net-zero GHG emissions goals.
By virtue of pro-environmental behavior becoming a core focus, the need to promote knowledge transfer to the next-generation users of energy production highlights the impact of higher education and the diffusion of information and communications technology [
35]; this includes periodically publishing sustainability reports, as transparent state-of-evolution materials, and is related to one of the key future challenges, i.e., the use and development of AI- and IoT-based infrastructure as a means of more effectively achieving the 2030 and 2050 green targets [
36].
Thereby, in order to summarize the state of progress toward decoupling the economy from resource use, machine learning, information modeling, business modeling, and data hub usage approaches may prove efficient [
37,
38]. In terms of consumers, this promotes employment in protecting consumers in regard to digitized multisource energy systems [
39], with consumer data-protection concerns being one of the main causes of lacking digitization usage (after accessibility), as such systems are not yet trusted completely.
Pursuing methods and techniques for energy efficiency based on the in-depth analysis [
40], we prominently observed that the blockchain and Value Chain Management approaches may be used in order to promote green distribution models [
41]. Such approaches were found to be capable of administering cross-country co-generation efforts, bearing in mind that each country must follow its individual sustainable energy policies [
42,
43].
By analyzing the interests of energy specialists that have published their research in the Web of Science and Scopus databases, we found that future generations are expected to closely rely [
44] on the Social Internet of Things (SIoT), which was developed to enable a systematic model for the smart integration [
45] of digitalization in energy production, distribution, and consumption domains. This context is bound with predictive control [
46], as countries are already setting goals for future smart cities [
47], in which energy distribution and trade models [
48] are utilized for core predictive management [
49]. Furthermore, from the analysis conducted, we discovered that many countries have a general need for demand forecasting to promote decentralized energy management [
50]; in particular, such forecasting is necessary to estimate the minimum energy requirement for transitioning to a net-zero GHG in 2050. Some studies have gone even further, sketching 3D indicators to guide AI applications in the future energy sector [
51,
52].
Although the pathways to the energy 2030 and 2050 goals have been disrupted by the COVID-19 pandemic, seen through the lens of the Sustainable Development Goals (SDGs) [
53], it has been revealed that the decreased travel in this period had a huge role in repairing the environment, demonstrating once more that co-generation undertaken with a focus on decarbonizing the energy sectors is feasible, albeit with great socioeconomic impacts on current and future generations [
54].
The COVID-19 post-pandemic implications for energy security [
55] have been well-analyzed, and specialists have stated that addressing Internet of Things (IoT)-related adoption challenges in renewable energy [
56] can contribute to the expansion [
57] of improved energy and recourse efficiency, as well as the environmental safety of processes [
58]. As the levy on consumers grows, mainly due to decreased accessibility and natural resources, digitalization in energy production, distribution, and consumption brings a challenging pathway toward efficiency into focus.
Thus, in light of the discussion above, consideration of energy consumption in the post-COVID-19 world [
59], marked with a series of data protection and accessibility insecurities, allows for the analysis of cross-border perspectives on future power system control centers for energy transition [
60] in which accessibility barriers are to be removed and key techniques to new power systems dominated by renewable energy [
61] are to be increased. These factors become more important as we approach the first GHG milestone (in 2030) and move slowly toward assessing the potential of Industry 4.0 in helping to achieve the 2050 decarbonization targets [
62].
Future data-driven implementations considering privacy preservation [
63] suggest that full investment in digitalization performance predictions is crucial [
64], as knowledge of its roles in energy production, distribution, and consumption will outline a comprehensive framework for system upgrading [
65]. Applying modern information technologies in the search for operational energy resources [
66] can prevent energy loss and undesired waste [
67,
68], such as when conducted in a hierarchical order considering priority corridors, as shown in
Figure 3.
With regard to the above, the use of artificial intelligence techniques in the management of enterprises in the energy sector [
69] can provide flexible production [
70], thus achieving efficiency [
71] and improving energy distribution and consumption [
72]. Large consumers [
73] and stakeholders have a key demand for these frameworks for community energy storage [
74], with increased focus on growing accessibility and reducing material footprints; this is in line with the existing challenges in energy, engineering, and consulting [
75,
76].
To satisfy the needs of these large consumers and stakeholders, the EU provides guidelines on energy infrastructure, thus supporting cross-country co-generation, as per the TEN-E Regulation. The EU has strengthened priorities on corridors for emissions reduction objectives by promoting the integration of renewables and new clean energy technologies into the energy system, including electricity corridors, offshore grid corridors, and hydrogen and electrolyzer corridors, within which the heightened usage of digitalization can assist in overcoming accessibility barriers, as explained previously.
The main advantages that are brought by IT-based solutions in terms of environmental sustainability [
77] include analyzing performance in circular economy business scenarios [
78] and helping to move toward a centralized control-and-monitoring system utilizing the IoT paradigm [
79]. Our review of the literature highlighted that such an approach will enhance cross-country cooperation in reaching the 2030 and 2050 energy milestones [
80], as web-based energy information systems [
81] can empower energy-efficient business [
82]. In this context, the decoupling of economic growth from resource use becomes attainable.
Through analyzing the main actual and future challenges related to digitalization in the energy sector, the ICT perspective provides modalities through which the energy distribution can be altered [
83]; for instance, starting with the most common change that is well-known at present, rapid innovation is implemented in the electric-vehicle charging system sector with each year that passes [
84,
85].
The last decade of research into digitalization in the field of energy production, distribution, and consumption mainly describes the headway made regarding temporary solutions [
86,
87], such as autonomous vehicles [
88] or compressed driving cycles [
89], which substantiate the relationships between technology, urbanization, and electricity consumption [
90], serving as a prediction of the future smart-city era.
Digitalization has acquired a core focus regarding renewable energy procurement [
91], IoT-enabled technologies [
92], smart technology applications [
93], and environmentally sustainable technologies [
94], which all play key roles in the successful implementation of directives, agendas, and plans, as well as continuous monitoring to reach net-zero GHG emissions and economic decarbonization.
The past 10 years of research on the implementation of smart applications—for example, using IoT-based techniques [
95] and data modeling [
96] for energy efficiency empowerment [
97]—has opened collaborative pathways to educate the public and private environment about how to embrace innovativeness, in terms of digitalization, in order to sustain the most accessible forms of co-generation.
Furthermore, highly complex forms of energy production, such as the hybridization of triboelectric–electromagnetic generators [
98], has led to the possibility of a state-of-the-art energy infrastructure [
99,
100]. In this way, society, through education, perseverance, and continuity, may leave behind its fossil fuel dependence to embark on a low-carbon path [
101]. As we observed through the analysis in the presented review of the literature, over the last decade, specialists worldwide have endeavored to empower high-efficiency co-generation.
The review of the literature that was conducted for the presented study displayed that the promotion of digitalization for energy production, distribution, and consumption can be expected to result in smart sustainability in future decades [
102], through first targeting the 2050 goal [
103] and advances in monitoring of the condition of natural resources used for decoupling. In such a way, the environmental pressure corresponding to economic growth may be decreased [
104].
From the perspective of approaching digitalization in energy production, distribution, and consumption, some conceptual delimitations are necessary; in particular, digital transformation includes three stages: digitization, digitalization, and digital transformation [
105].
Digitization involves the encoding of analogue information into digital information, such that it can be stored and transmitted by computers [
106]. Digitalization describes how digital technologies can be used to change business processes [
107]. Digital transformation is defined as “a change in how a firm employs digital technologies, to develop a new digital business model that helps to create and appropriate more value for the firm” [
108], and it involves adapting business strategies to the new digital reality, with an immediate impact at the operational and process levels [
109].
As can be seen from the previously published studies, existing and future challenges are determined by the elements that contribute to the initiation and especially to the acceleration of digitalization processes in the production, distribution, and consumption of energy. These include problems such as the scale of the digitalization phenomenon; the role of digitalization in the production, distribution, and consumption of energy; the evolution of the assimilation of digitalization technologies; and the effects of digitalization.
Considering the nature of previous approaches and the amplification of digitalization processes globally and in the energy sector, the main purpose of this study was to conduct a systematic review of the literature on digitalization in energy production, distribution, and consumption over a sufficiently long period, such that the trends and particularities of this phenomenon could be revealed at the sectoral level, with regard to the results of the main specialized publications.
The realization of a systematic review of the literature regarding the digitalization process in energy production, distribution, and consumption included the following objectives:
Identification of the main databases and sources of publications most relevant to the energy digitalization process;
Extracting the articles that refer to the subject of the review of the literature over the last ten years from these databases;
Analyzing the most relevant articles regarding digitalization in the energy value chain;
Identifying the particularities, trends, and roles of digitalization from the perspective of producers, distributors, and consumers.
Considering the objectives of the study, the analysis of the specialized literature aimed to answer the following questions:
How has the number of publications in mainstream journals on the subject of digitalization in the energy sector evolved?
How are the publications in the fields of energy production, distribution, and consumption distributed in the analysis period (2012–2022)?
What is the impact of digitalization on energy production, distribution, and consumption?
What types of technologies are used in the digitalization process in the energy sector?
What are the impacts of these technologies on energy production, distribution, and consumption?
Therefore, a systematic review of the literature regarding the digitalization process in energy production, distribution, and consumption was carried out, taking into account a very large number of articles published on this topic, thus allowing for a detailed analysis of the particularities of this process.
The period taken into account was long enough to allow for the observation of trends in the evolution of the digitalization phenomenon from the perspective of the magnitude of its appearance in the specialized literature.
2. Materials and Methods
In order to study how the main aspects, trends, and implications of digitalization in energy production, distribution, and consumption were highlighted in the specialized literature, several databases containing publications on this topic were initially analyzed. The period chosen for the study was 2012–2022, considering that the most important changes in the digital transformation of organizations in the field of energy have occurred over the last ten years. The main stages of the study focused on digitalization in energy production, distribution, and consumption were—according to the elements presented in
Figure 4—as follows:
(1) A preliminary analysis of the available databases was performed, including several databases that contain articles relevant to the topic of the study: sciencedirect.com, Scopus, Web of Science, Springer, and Google Scholar. The preliminary analysis focused on the databases in which journals/articles with similar or close content to the topic of digitalization in production, distribution, and energy consumption were most likely to be indexed.
(2) A selection of the most relevant databases was conducted based on the following criteria: The relevance of the database to the scientific community, the number of articles on the topic of digitalization in energy, the notoriety of the journals in which the articles were published, and the number of accessible items. Based on these criteria, the Web of Science and Scopus databases were selected, in which the most prestigious journals in the field of energy and digitalization are indexed. In addition, both the sciencedirect.com and Springer databases were considered to contain several articles already indexed in Web of Science and Scopus. Some previous studies have shown that Google Scholar provides the most comprehensive coverage, with similar coverage to Web of Science and Scopus; however, Google Scholar does not have a strong quality-control process and simply corrals any information that is available on academic-related websites [
110]. For this reason, we chose Web of Science and Scopus as representative databases.
(3) An identification of the most relevant articles in the selected databases was performed using digitalization and energy as key search terms. In the Web of Science database, the initial search was performed using the following syntax for the topic of the articles (title and abstract): “digitalization” AND “energy”. The initial search yielded 589 articles published in journals indexed in Web of Science (Clarivate Analytics). In the process of identifying relevant articles for research in the Scopus database, we followed three steps. The first step was to filter the articles according to the keywords “digitalization and energy”. The second step involved filtering them by “Date of publication”, excluding articles that were not in the range 2012–2022. The third step involved filtering them by document type and keeping documents that were articles. Initially, 685 articles were identified in the Scopus database.
(4) A comparison of the articles from the Scopus database with those from the Web of Science and removal common articles (i.e., removing duplicate records) were performed. Following the application of these filters, 363 duplicate articles from the Scopus database were removed and 322 articles from the Scopus database were retained for the screening phase. The articles in Web of Science were all retained (589 articles). The relatively small number of articles remaining in Scopus can be explained by the fact that the rest of the articles indexed in Scopus were also indexed in Web of Science.
(5) Screening of the articles and the removal of non-relevant articles from the Web of Science and Scopus databases were performed. This involved the exclusion of those articles that appeared in the databases that included the words “digitalization” and “energy” but which were not relevant to the topic of digitalization in energy production, distribution, and consumption. After the exclusion process, 411 articles remained from Web of Science and 88 from Scopus. Separate analyses were conducted for Web of Science and Scopus, as articles relevant to the study objectives were found in the Scopus database which did not appear in Web of Science. In addition, certain articles from the journals indexed in Scopus were analyzed, revealing certain particularities and effects of digitalization in the field of energy distribution in more detail, or offering a series of additional explanations of the particularities of digitalization in terms of energy consumption. All of this provided a broader perspective on digitization processes in the energy field, compared to if the analysis had been limited to articles from Web of Science or if we had only performed a cumulative analysis of articles from the two databases. That is why a separate analysis was also necessary for articles appearing only in Scopus.
(6) An analysis of articles from the Web of Science and Scopus databases was carried out in October and November 2022 and was completed on 28 November 2022, taking into account the number of articles published, both annually and over the entire analysis period (2012–2022); the number of articles on production, distribution, and consumption; the potential impact of articles; and the typology of technologies used in the digitalization process in the energy field. The considered impacts of digitalization included cost reduction; improving health, safety, and the environment; process improvement; reducing capital expenditure; and increasing production.
(7) A comparative analysis of the articles appearing in the two databases was carried out in order to reveal the similarities and differences that marked the approaches to the digitalization process in the two databases.
(8) A formulation of conclusions based on the analyses performed on the indexed articles in the selected databases was performed. During the formulation of conclusions, we kept in mind all of our goals for the contributions of this study in relation to the state of knowledge and research on the issue to date. The findings of this study included a number of future research directions/directions that we wish to address, especially given the limitations of the existing research.
Although the number of publications on digitalization in the energy sector has increased significantly in recent years and meta-reviews have begun to appear in this field, we opted to conduct a systematic review of the literature for three reasons:
Not all previous systematic review (or meta-review) studies have focused on such a long period (e.g., covering the last ten years);
Certain results and effects of digitalization cannot be highlighted only through the study of previous systematic reviews;
There are relatively few meta-review publications that capture the stages of energy production, distribution, and consumption as a whole.
Furthermore, we did not use a Critical Assessment Skills Program (CASP) for the systematic review of the literature, as our study did not involve an assessment of the applicability of the results of previous studies at the local level or on the local population. Moreover, not all previous studies included a geographical location, and, therefore, the third section of the CASP Checklist would have been difficult to achieve.