Impact of Digital Transformation on the Energy Sector: A Review

Abstract

Digital transformation is a phenomenon introduced by the transformative power of digital technologies, and it has become a key driver for the energy sector, with advancements in technology leading to significant changes in the way energy is produced, transmitted, and consumed. The impact of digital transformation on the energy sector is profound, with benefits such as improved efficiency, cost reduction, and enhanced customer experience. This article provides a review of the impact of digital transformation on the energy sector, highlighting key trends and emerging technologies that are transforming the sector. The article begins by defining the concept of digital transformation, describing its scope, and explaining two conceptual frameworks to provide a deep understanding of the concept. This article then explores the benefits of digital transformation, examines its impact, and identifies its enablers and barriers. Each source examined was analyzed to extract qualitative results and assess its contribution to the researched topic. This paper also acknowledges the challenges posed by digital transformation, including concerns about cybersecurity, data privacy, and workforce displacement. Finally, we discuss the potential developments that are expected in the future of digital transformation in the power sector and conclude that digital transformation has the potential to significantly improve the energy sector’s efficiency, sustainability, and resiliency.