# Review and Categorization of Digital Applications in the Energy Sector
## 2 The Current State of Knowledge  
The term \"digitalization\" is very broadly used with different definitions. In the book \"Practical knowledge digital transformation\" by [PERSON] (2008), digitalization is described as the process of capturing, editing/using, and saving analog information on digital data storage devices, and digital transformation is seen as the application of digital technologies. The International Energy Agency (IEA) states that digitalization describes the growing application of ICT and that it can be seen as the convergence between the digital and the physical worlds [PERSON] (2008). In the publication \"The digital energy sector\" by the German Association of  
Since the status quo, regulations, and driving forces of digitalization differ by country, each country's energy sector will have a somewhat different digitalization path and will utilize somewhat different digital applications. As this publication aims at structuring the inherently broad topic of digital applications in the energy sector, it focuses on Germany. A similar approach could later be applied to other countries or bigger regions such as the EU. Technical and economic aspects of digitalization in the German energy sector are well-covered in the concurrent literature. Both broad views looking at digitalization as an overall trend as well as very specific research about individual aspects or technologies of digitalization have been published. The status quo of the overall digitalization in Germany is analyzed as the digitalization index between 0 and 100 based on survey results in [9]. The energy sector reaches an index of 47 (in 2018), which is midfield compared with other sectors. The same study reveals that the ICT sector is by far the most digitalized in Germany (74 out of 100). Therefore it is likely that the ICT sector acts as a technology push factor for the digitalization of other sectors, including the energy sector. Many companies feel a high urgency to \"become digital\" but simultaneously a high uncertainty around what needs to be done. Therefore, many publications give guidance for companies on how to successfully master the challenges of digitalization. While [10] describes the fundamental functions of digital business models, a general process to develop new digital business models is suggested in [11; 12; 13]. Approaches to successfully master the digital transformation in the energy sector are described in [14; 15; 16], e.g., in [16] (pp. 368-379) a digital transformation canvas based on a digital vision and 20 action areas is suggested. As mentioned, many specific applications and technologies are discussed in the concurrent literature. \"Smart grids\" and \"smart markets\", for example, are described in [17; 18]. The position paper \"Smart Grid and Smart Market\" [18] by the Bundesnetzagentur (German federal grid agency) first clearly defines and distinguishes \"smart grid\" and \"smart market\" and describes a target picture for both, including what needs to be done in the grid so that the \"smart grid\" can support the \"smart market\". It is concluded that grid reinforcements are needed on different grid levels as well as the integration of flexibilities and storage units in order to enable the future market logic \"demand follows generation\". The definition of \"smart grid\" and \"smart market\" given by the German federal grid  
Figure 1: Categorized digital applications in the energy sector. agency is the basis for the definition used in the current paper. \"Smart grid: _The conventional electricity grid will become a smart grid by being upgraded with communication, metering, control, regulation and automation technology and IT components_\". \"Smart market: _The smart market is the area outside the grid in which energy volumes or services derived from them are traded among market participants on the basis of the available grid capacity_\".