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Integrating M2M and IoT technologies is crucial when it comes to advancing a functional Internet of Energy.
There’s no question that a significant increase in electric power generating capacity is taking place. Yet the widespread adoption of energy-intensive technologies, such as electric vehicles, heat pumps and industrial operations, adds strain to an aging power grid infrastructure.
The IEA’s 2022 World Energy Outlook Report predicts a 75% increase in global electricity demand by 2050, assuming the global energy system remains on its current trajectory. This further necessitates the need for innovation. And plenty of people connected to policymaking—including those in the United States, the European Union, the United Kingdom, India, Australia, Korea and Japan—and companies like Google, Microsoft, Schneider Electric and Siemens are showing interest by connecting with the IEA.
As more grid-connected devices enter the consumer market, power systems must increasingly be able to accommodate multi-directional electricity flows. Some countries are focusing on renewable energy sources to solve the increased demand, but this adds complexity to flow predictability.
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Watchers of energy developments will have heard of many proposed solutions, including the possibility of integrating cutting-edge technologies, such as machine-to-machine (M2M) communication and Internet of Things (IoT) devices to enable peer-to-peer (P2P) energy sharing in a distributed energy network. These technologies have the potential to revolutionize the way energy is produced, consumed, and shared—and they could pave the way for a functional “Internet of Energy” (IoE).
Still, the opportunities of the IoE prompt several questions. For instance, how can M2M communication and IoT devices facilitate the advancement of a functional IoE? Are existing models available to help? And what sort of device compatibility is required to enable energy-sharing?
Moreover, is implementing a potential IoE network on a large scale as simple as enabling local device interoperability to reduce users’ reliance on the grid and external energy suppliers—or is a large-scale approach more involved?
M2M, IoT tech crucial
When it comes to advancing a functional IoE, integrating M2M and IoT technology is crucial.
M2M devices with IoT functionality can facilitate the establishment of a distributed energy network by enabling seamless communication and interaction between energy-producing, consuming and storing devices. Devices could autonomously collaborate on this network by optimizing energy usage and balancing supply and demand in real time.

Because M2M and IoT communications can enable real-time monitoring and diagnosis of devices within a network/community and shift energy pathways where needed—without an interruption to supply—the sharing of energy can improve the reliability and resilience of the grid.
These technologies interfaced into an energy-sharing platform can empower consumers by enabling smart metering and providing accurate and transparent energy-use data.
Remember that various energy markets globally are run by energy monopolies, which control either a majority or full stake in how energy is distributed (and consumed). By contrast, establishing an IoE network would let consumers actively partake in the energy system. That would allow them to gain full control of their energy needs by either consuming or sharing excess energy with neighboring communities and benefiting from dynamic pricing and incentives built into a platform.
Taking advantage of existing models
M2M and IoT device communication isn’t new. These M2M communication models, combined with IoT devices, rely on the transfer of data to make logical decisions. However, enabling physical energy transfer between the same devices isn’t a trivial task.
Shifting physical energy to different parts of an interconnected network requires a proper resource-allocation scheme. That scheme must consider device constraints and preferences. It must also consider the fluctuations of solar PV and other energy-generating sources. A suitable communication protocol would also need to be implemented to minimize interference and latency issues.
There’s more: Besides the challenges of P2P energy transfer, machines must meet certain requirements beyond IoT compatibility to be IoE compatible. While IoT compatibility allows for connectivity and data transfer across a network, IoE compatibility requires machines to have the ability to autonomously participate in energy exchanges and balance energy flows.
So, what might that look like? It could involve the integration of additional processing units, specialized sensors, and unique control algorithms to monitor and adjust energy usage in real time without first changing course to a central-command processing center.
For a device to be IoE compatible, it must be able to communicate with other devices and have the capability of processing data received from other sources to generate actionable insights. It should also have the functionality to adapt to changing conditions and user preferences and have built-in security and privacy features to protect the data it handles and its actions to prevent data/energy theft or manipulation.
Looking ahead
By utilizing existing M2M communication protocols and modified IoT devices, implementing IoE on a large scale would enable users to reduce their reliance on the grid and external suppliers. By enabling local device interoperability, users can tap into local energy resources and optimize energy usage within their communities. It would promote energy self-sufficiency along the way to establishing a distributed-energy network.
But, of course, establishing an IoE is complex. It would require a potential restructuring of government-run energy monopolies, global cooperation, and participation in establishing well-defined protocols, a freeing of data storage silos, and a stringent requirement to set up necessary legislation to ensure optimal user safety and security. Needless to say, those are big challenges.
Nonetheless, a functional IoE is possible, and it’s gaining traction inside the International Energy Agency—a very good sign of progress to come.
 
This article was originally published on EE Times.
Max Goijarts is technology director and research lead with unify.energy.

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