# Impact of Digital Transformation on the Energy Sector: A Review
## 5 Discussion
Various emerging technologies, including AI, blockchain, ML, and cloud computing, are extensively employed in various sectors, including the energy industry. Numerous studies suggest that blockchain technology can facilitate decentralized energy markets while also presenting numerous benefits, such as enabling direct peer-to-peer markets and the economically viable integration of small-scale generation and consumption units. It can also enhance transparency and consumer trust, and open up new business models for suppliers, provided that regulatory and technological obstacles are overcome. Furthermore, AI and ML can substantially improve energy security, accuracy in demand, generation, and price forecasting, and consequently, support the implementation of smart grids and the integration of more renewable energy [51; 68]. [PERSON] and [PERSON] [51] conducted a literature review, providing a comprehensive overview of potential digital applications, expected benefits, and stakeholders impacted by digitalization in the energy sector. They categorized the impact of digital applications into three categories: \"customer orientation\", \"system balance\", and \"process optimization\", each comprising various individual digital applications. Based on their findings, digitalization has primarily improved system stability through better balancing of generation, consumption, and grid capacity, and enhanced environmental protection by integrating more renewable energy. Additionally, digitalization has led to reduced energy demand through energy efficiency applications and reduced losses, cost savings due to more efficient and effective processes, increased revenue through new business models, products, and services, and higher customer satisfaction. The literature review revealed that cost reduction was the main benefit of digitalization in the energy sector, indicating that most digital applications, even those not primarily focused on cost reduction, have the potential to reduce costs [69]. In the energy sector, anomaly detection and prediction, smart grids, smart markets, and smart homes have been found to be the most important digital innovations. Digital applications have a wide range of effects on the energy value chain, including on the sale, environment, society, and the national economy. However, the main stakeholder that benefits greatly from digitalization is the grid, which can take advantage of monitoring, control, and communication technologies. Consumers are also significantly impacted, as their role has changed from passive to active customers who can now offer generation and flexible demand capacity to other participants or the market [69; 70]. Digital transformation has also affected the efficiency, sustainability, and resilience of power systems. The efficiency has been enhanced by improving operational processes, reducing costs, and increasing productivity. The use of digital technologies such as sensors, analytics, and automation, enables power companies to optimize their operations, reduce downtime, and improve maintenance schedules. They also facilitate monitoring and analysis of data in real time, allowing their users to make informed decisions quickly and efficiently. Recently, the power industry has undergone significant changes with a growing focus on sustainability and reduction of carbon emissions. Digital transformation has played a significant role in enabling the industry to achieve these goals. For instance, the use of renewable energy sources, such as wind and solar power, has increased significantly. Additionally, digital technologies have allowed power companies to manage these sources better, mitigating their intermittency and optimizing their output. Digital technologies have also enabled power companies to implement smart grids, enabling efficient and sustainable distribution of energy. The power industry is critical to the functioning of modern society, and disruptions in the industry can have severe consequences.