# Internet of Things (IoT) and the Energy Sector
## 4 IoT in the Energy Sector
### Smart Grid  
Smart grids are modern grids deploying the most secure and dependable ICT technology to control and optimize energy generation, T&D grids, and end usage. By connecting many smart meters, a smart grid develops a multi-directional flow of information, which can be used for optimal management of the system and efficient energy distribution [121]. The application of smart grid can be highlighted in different subsectors of the energy system individually, e.g., energy generation, buildings, or transportation, or they can be considered altogether.  
In traditional grids, batteries were recharged by adapters through electricity cables and AC/DC inverter [121]. These batteries can be charged wirelessly in a smart grid, using an inductive charging technology. In addition, in a smart grid, the energy demand pattern of end users can be analyzed by collecting data through an IoT platform, for example, the time of charging of mobile phones or electric cars. Then, the nearest wireless battery charge station can allocate the right time-slot and that device/vehicle can be charged. Another advantage is that the use of IoT will lead to better control and monitoring of the battery equipped devices, and therefore, first, the energy distribution can be adjusted, and second, the delivery of electricity to these vehicles can be guaranteed. This will reduce unnecessary energy consumption considerably.  
Moreover, IoT can be applied in isolated and microgrids for some islands or organizations, especially when energy is required every single moment with no exception, e.g., in databases. In such systems, all the assets connected to the grid can interact with each other. Also, the data on energy demand of any asset is accessible. This interaction can assure the perfect management of the energy distribution whenever and everywhere needed. In terms of collaborative impact of smart grids, as it is shown in Figure 3, in a smart city equipped with IoT-based smart grids, different sections of the city can be connected together [121].  
During the collaborative communication between different sectors, the smart grid can alert operators through smart appliances before any acute problem occurs [113; 122]. For example, through constant monitoring, it can be detected if energy demand exceeds the capacity of the grid. Therefore, by acquiring real-time data, different strategies can be adopted by authorities and energy consumption can be rescheduled to a different time when there is lower expected demand. In some regions, smart (or dynamic) pricing tariffs have been considered for variable energy prices in this regard [123]. Real-time pricing (RTP) tariffs as well as the energy price will be higher at a certain time when the consumption of energy is likely to be higher. Through the data gathered from the components of the smart grid, energy consumption and generation can be perfectly optimized and managed by far-sighted strategies. Reduction of transmission losses in T&D networks through active voltage management or reduction of non-technical losses using a network of smart meters are other examples of applying IoT [37].