Economic development through sustainable energy transition: the impact of machine learning-driven energy efficiency in industrial sectors
Authors: Chijioke Paul Agupugo  , Olanrewaju Oluremi Egunlae  , Victoria Agbakwulu  , Anthony Adu-Boahen  
Published: September 2024

The transition to sustainable energy systems is a critical component in addressing global environmental challenges and fostering economic development. Industrial sectors, which are major consumers of energy and contributors to greenhouse gas emissions, play a pivotal role in this transition. Machine learning (ML) technologies have emerged as transformative tools for enhancing energy efficiency in these sectors, offering significant potential for economic and environmental benefits. This review explores the impact of ML-driven energy efficiency on economic development, focusing on its application within various industrial contexts. The integration of machine learning into energy management systems allows for advanced predictive analytics, real-time monitoring, and process optimization. ML algorithms can analyze large datasets to forecast energy demand, detect inefficiencies, and optimize operational processes, leading to substantial cost savings and energy reductions. For example, in manufacturing industries, ML-driven solutions have been employed to enhance predictive maintenance, optimize production processes, and reduce energy consumption, resulting in lower operational costs and increased productivity. Similarly, in industrial facilities such as chemical plants and data centers, ML has been used to streamline energy management and minimize waste, demonstrating its versatility and effectiveness across diverse industrial applications. The economic impacts of ML-driven energy efficiency are profound. By reducing energy costs and improving operational performance, industries can achieve significant financial savings, which in turn can be reinvested into further innovations and growth. Additionally, the adoption of ML technologies fosters job creation and skill development in the tech and energy sectors, contributing to broader economic growth. Industries that leverage ML for energy efficiency gain a competitive advantage, positioning themselves favorably in the market and tapping into new opportunities for innovation and expansion. However, the transition to ML-driven energy efficiency is not without challenges. Issues related to data availability and quality, high implementation costs, and industry-specific constraints must be addressed to fully realize the benefits. Policymakers play a crucial role in facilitating this transition by developing supportive policies and regulations that encourage the adoption of ML technologies in energy management. Machine learning offers a transformative approach to achieving energy efficiency in industrial sectors, with significant implications for economic development. By addressing the challenges and leveraging emerging opportunities, industries and policymakers can drive sustainable energy transitions that benefit both the environment and the economy. This review provides a comprehensive analysis of these impacts and offers strategic recommendations for advancing ML-driven energy efficiency in the industrial sector.
Keywords: Economic Development, Sustainable Energy, Machine Learning, Industrial Sectors.