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AI & Digital Transformation: Powering the Energy Revolution

by Priya Shah – Business Editor

The Critical Need for Interoperability in the Evolving energy Landscape

The ongoing revolution in electricity systems, driven by renewable energy sources and smart technologies, hinges on a crucial element often overlooked: interoperability.Seamless interaction between all nodes within the energy network is paramount for the swift and effective integration of new technologies, allowing system operators to achieve desired outcomes more rapidly. Greater interoperability between digital technologies on both the supply and demand sides of the energy sector promises significant benefits.

Consider the potential: smart electric vehicle chargers could intelligently shift charging times to coincide with periods of peak renewable energy production. modern thermostats and appliances, responding to real-time price signals, could actively contribute to reducing peak electricity consumption. Furthermore, distributed resources like roof-mounted solar energy systems could feed electricity back into the network when needed. Within a supportive framework, these resources can function cohesively, aiding in the attainment of national and local energy goals.

Though, failing to prioritize interoperability carries ample risks. We risk squandering existing potential,missing crucial opportunities,jeopardizing investments,and exacerbating future energy security threats. The frequency of cyberattacks targeting energy utilities has more than tripled in the last four years, and the advent of artificial intelligence is making these attacks increasingly elegant. Conversely, interoperable systems built on common standards demonstrably enhance resilience against such threats.

Therefore, a collaborative effort between governments and industry is urgently needed to develop robust, secure, and digitized energy systems. A shared vision and long-term planning are essential now more than ever.Initiatives like the digital energy network proposed by the Beckn Protocol aim to establish a unified digital backbone for the energy industry ecosystem through worldwide identity, machine-readable data, and data verifiability. These features would facilitate transparent, reliable, and interoperable energy transactions, and deserve serious consideration.

India is already demonstrating leadership in this area with the launch of the India Energy Stack (IES). The IES seeks to create a digital public infrastructure, utilizing uniform specifications and standards to enable the identification and value exchange between a diverse range of actors and tools.

Ultimately, energy systems will transform. It is imperative that we proactively shape these emerging systems through thoughtful design. This necessitates fostering global cooperation and building a shared infrastructure that benefits all.

(Copyright: Project syndicate,2025. www.project-syndicate.org)

Fatih Birol

Executive Director of the international Energy Agency

Nandan Nilekani

Co-Founder and Chairman of Infosys,Founder Chairman of UIDAI (Aadhaar)

(The cover image is an illustration. Cover image source: Getty Images)

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