Digitalization is the key enabler of decentralization and decarbonization, the other two D’s shaping the energy industry transformation. Cloud computing, Big Data, analytics, and the Internet of Things (IoT) are among technologies that enable the digital transformation of electric utilities and facilitate new ways of electricity production, storage, distribution, and consumption.

As the backbone that integrates renewable energy, enables higher electrification rates, and manages multidirectional flows of distributed energy resources (DERs) and loads, digital investment in power distribution grids and retail is necessary for the energy transition. Market shifts and the proliferation of technologies, including smart appliances, electric mobility, and distributed solar and storage, are shaping future distribution utilities into highly flexible and strong decarbonization advocates. They are set to be key DER orchestrators and provide energy as a service bundled with related, value-added solutions tailored to users’ individual preferences.

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