| |SEPTEMBER 20229It is important to do a deep dive in order to understand the role of digitalization in lowering carbon footprint. The first thing digitalization does is bring-in efficiency in operations. This ensures faster turnaround times, higher and better deliverables, while simultaneously using lower amounts of energy in diverse industries. In the case of electricity, digitalization drives higher energy efficiency. As some 50 billion devices are likely to be connected by 2020, Big Data and IoT (Internet of Things) are now playing a greater role in promoting efficiency and operational sustainability, according to a BSA Foundation report.Based upon smart connectivity, the real-time tracking of energy assets permits prudent use and more informed decision-making, which includes the linking of energy use to consumers' behaviour, further enhancing efficiency. In the digital era, automation, Big Data and data analytics can jointly ensure better energy management by boosting efficiency, as well as the productive deployment of energy and other resources.DRIVING SUSTAINABLE SOLUTIONSIn promoting a more sustainable future, the `3Ds' represented by digitalization, decarbonization and decentralization are steering the convergence of how companies purchase power, use energy and then operate sustainably. This is only possible via a multi-dimensional view comprising efficiency, supply and sustainability ­ all of them being crucial in active energy management. In the case of digitalization, it offers an opportunity to optimize the entire value chain right from generation to consumption, ensuring higher efficiency, more control and better value for resources. As for decarbonization, it offers another great opportunity for improving energy efficiency and the sustainability of operations. Consider the energy grid. Going by experience, thrice the decarbonization can be delivered by the demand side compared to the supply side. Decarbonization in companies can be promoted by creating a sustainability index, which tracks the carbon footprint of all products, activities and services available. Subsequently, awareness about any inefficient products or services can help organizations innovate and produce those offering higher energy efficiency. Thereafter, companies can work towards becoming more carbon neutral, which will help in creating a more sustainable, greener planet.The last `D' in creating a greener Earth is decentralization. Opportunities in this connection are rising universally in various market segments such as solar, smart grids, micro-grids and grid automation. With renewable energy prices becoming more affordable and reaching new lows even as better storage solutions appear, decentralization will inevitably grow. In undertaking these sustainable solutions however, we should not miss the wood for the trees. It is important to note that digital can leave its own carbon trail. There is a misconception that data stored on the Cloud is stored virtually when it is actually saved on huge servers or data centres, some of them the size of football fields. These centres need tremendous electricity to keep them running 24x7. Unfortunately, most of this energy comes from fossil fuels or coal-generated power. In other words, digital means have a CO2 trail too, even if proportionately lesser than the other carbon footprints. Therefore, the ultimate use of 100 percent clean energy at the earliest possible is critical. On a practical level though, it is not possible to discontinue the use of polluting fossil fuels immediately since renewables (solar, wind and biomass) have their own challenges for mass deployment. These barriers can lead to supply-and-demand mismatches, which mean higher production costs. But the current challenges can be overcome sooner or later via means such as smart meters, smart grids, and others that can eliminate these hurdles. The advent of AI (artificial intelligence) may speed-up the search for solutions in the mass production and convenient storage and consumption of renewable energy. The ultimate success of digitalization in ushering a green world would then become a worldwide reality. It is important to do a deep dive in order to understand the role of digitalization in lowering carbon footprint
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