| |February 20229It is important to do a deep dive in order to understand the role of digita-lization 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, digitalisation drives higher energy efficiency. As some 50 billion devices are likely to be connect-ed by 2020, Big Data and IoT (Internet of Things) are now playing a greater role in promoting efficiency and oper-ational sustainability, according to a BSA Foundation report.Based upon smart connectivity, the real-time tracking of energy as-sets permits prudent use and more informed decision-making, which in-cludes the linking of energy use to con-sumers' behaviour, further enhancing efficiency. In the digital era, automa-tion, Big Data and data analytics can jointly ensure better energy manage-ment by boosting efficiency, as well as the productive deployment of energy and other resources.DRIVING SUSTAINABLE SOLUTIONSIn promoting a more sustainable fu-ture, the `3Ds' represented by digitali-zation, decarbonization and decentral-ization are steering the convergence of how companies purchase power, use energy and then operate sustainably. This is only possible via a multi-di-mensional view comprising efficiency, supply and sustainability all of them being crucial in active energy manage-ment. In the case of digitalization, it offers an opportunity to optimize the entire value chain right from genera-tion to consumption, ensuring higher efficiency, more control and better value for resources. As for decarbonization, it offers an-other great opportunity for improving energy efficiency and the sustainabil-ity of operations. Consider the energy grid. Going by experience, thrice the decarbonization can be delivered by the demand side compared to the sup-ply side. Decarbonization in companies can be promoted by creating a sustain-ability index, which tracks the carbon footprint of all products, activities and services available. Subsequently, awareness about any inefficient prod-ucts or services can help organizations innovate and produce those offering higher energy efficiency. Thereafter, companies can work towards becom-ing more carbon neutral, which will help in creating a more sustainable, greener planet.The last `D' in creating a greener Earth is decentralization. Opportuni-ties in this connection are rising uni-versally in various market segments such as solar, smart grids, micro-grids and grid automation. With renew-able energy prices becoming more af-fordable 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 24x7x365. Unfortu-nately, 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 immedi-ately since renewables (solar, wind and biomass) have their own challenges for mass deployment. These barriers can lead to supply-and-demand mis-matches, which mean higher produc-tion 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 intel-ligence) 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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