# Review and Categorization of Digital Applications in the Energy Sector
## 2 The Current State of Knowledge
Furthermore, the publication distinguishes between the two based on two questions: Are energy volumes/flows (\(\rightarrow\) market) or capacities (\(\rightarrow\) grid) considered? Does a component serve the grid and is financed by the grid (if yes \(\rightarrow\) grid)? The collected edition \"Smart Market\" [17] includes articles by researches as well as business representatives covering the aspects stakeholders, components, applications, and business models of the \"smart grid\" and \"smart market\". A review of \"smart home\" applications and their challenges is, for example, given in [19; 20]. The authors of \"Applications, Systems and Methods in Smart Home Technology: A Review\" [20] present an overview of \"smart home\" communication technologies and applications based on a literature review. They conclude that \"smart home\" systems are especially beneficial for elderly and disabled people. Similarly, the authors of \"A review of Internet of Things for smart home: Challenges and solutions\" [19] conduct a literature review of \"smart home\" and IoT (Internet of Things) applications but also present a framework to integrate \"smart objects\" in a IoT system. Furthermore, challenges regarding the interoperability of communication protocols and security/privacy issues are discussed. Digital technologies such as blockchain, artificial intelligence or cloud computing and their applications in the energy sector are, for example, discussed in [21; 22; 23; 24; 25; 26; 27; 28; 29]. The collected edition [21] gives a broad overview of the digitalization and cloud applications across different economic sectors based on articles by researchers, journalists, and business representatives. The publications [22; 23; 24; 25; 26; 27] all discuss blockchain applications in the energy sector. Both [26; 27] conclude that decentralized energy markets are possible using blockchain technology. The conclusion is based on market models and simulations. All three publications [22; 23; 24; 25] give a structured overview of blockchain applications in the energy sector and challenges based on a review of research projects/start-ups, expert interviews, and workshops with energy-related companies respectively. The conclusion of the three articles is that blockchain technology offers great potential benefits such as direct peer-to-peer markets and economically feasible integration of small generation and consumption units. For consumers the transparency and level of trust can be increased and for suppliers new business models can be developed. However, some key regulatory and technological challenges have to be overcome. The use of artificial intelligence in the energy sector is the focus of the publications [28; 29]. Both articles give an overview of practical-use cases based on a literature review and conclude that artificial intelligence and machine learning can greatly increase the accuracy of demand, generation, and price forecasting and thereby support the implementation of \"smart grids\" and the integration of more renewable energy. An assessment and a structure of different machine learning algorithms is presented in [28]. To some extent also potential risks such as cyber security and privacy issues [7; 30; 31] and a change in the work environment [32; 33] are discussed. The IEA (International Energy Agency)/OECD report \"Digitalization & Energy\" covers among other topics (see next section) the issue of cyber security, data privacy, and potential societal impacts. The authors present an overview of cyberattacks that impacted the energy system, discuss how different IEA Members approach the topic and suggest that digital resilience should be included early on in research and development as well as policies. Regarding data privacy, the authors see a potential threat for private consumers as well as companies as the energy demand can reveal much information about living habits and production patterns respectively. A suggested solution is that data protection is further regulated by policy.