# Review and Categorization of Digital Applications in the Energy Sector
## 5 Overview of Benefits and Impacted Stakeholders of Digital Applications  
Besides clustering the digital applications into the described categories and subcategories, they can be evaluated along numerous different criteria. One of the most relevant evaluation criteria is the expected benefits. In Figure 2 the applications and benefits are synthesized in a visual overview. For this overview also the benefits are grouped into six clusters derived from the reviewed literature. The identified benefits can be allocated to the following six clusters:  
* System stability--Improving system stability and controllability;
* Environment protection--Reducing greenhouse gas emissions and resource use;
* Energy demand reduction--Reducing the need for primary energy and the overall consumption;
* Revenue increase--Increasing revenue by developing new business models, products/services and accessing new customer groups;
* Cost reduction--Decreasing the cost to supply energy;
* Satisfying customer needs and expectations (residential and industrial). In Figure 2 it becomes apparent that the four subcategories (smart grid & optimized operation, smart market & flexibility integration, anomaly identification and predictions, and smart home) are attributed a broad spectrum of benefits. This is not surprising since these four subcategories are also found to be the most discussed in the literature (compare Figure 1) and they include a high number of individual digital applications. The single benefit with the most references is cost reduction. At first this does not seem to match the finding that process efficiency applications are among the less discussed in the reviewed literature. However, the potential for cost reduction appears to be inherent to most digital applications independently of its category or subcategory. A potential for cost reduction is identified for every application subcategory. For each subcategory at least one quarter of the publications, which discuss the applications, identify cost reduction as a benefit. The benefit is either based on digitalization's potential to automate processes or on its potential to improve the effectiveness of processes. Following cost reduction, the next most referenced benefits are positive effects on the system stability and on fulfilling customer expectations. The benefit of improved system stability logically is mainly attributed to the applications of the category \"System balance\". The benefit is based on digitalization's potential to connect formerly separated things (e.g., equipment, machines, assets) into interacting networks. Fulfilling customer expectations is attributed to almost all application subcategories (with the exception of \"Process optimization\"). Similarly to the benefit cost reduction a potential for fulfilling customer expectations is identified for most digital applications independently of their category or subcategory. The benefit is based on digitalization's potential to increase transparency and improve convenience. Furthermore, the benefit of environmental protection is attributed to four application subcategories. Here environmental protection and system stability appear to be correlated as they are attributed mostly to the same application subcategories. The main cause of this correlation is that with improved system stability a higher share of volatile renewable energy can be integrated. Besides that, a reduction of required hardware (spare parts, grid reinforcements) reduces the need for resources. Lastly, the benefits of \"Energy demand reduction\" and \"Revenue increase\" are relatively rarely discussed. It appears that although overall digitalization is believed to have great potential for new business models, when it comes to actual digital applications in the energy sector a positive impact on revenues is relatively rarely identified. Furthermore, the understanding of who is affected by the impact of digital applications is of great importance for its evaluation.