# Internet of Things (IoT) and the Energy Sector
### Motivation  
The global energy demand rose by 2.3% in 2018 compared to 2017, which is the highest increase since 2010 [9]. As a result, CO\({}_{2}\) emissions from the energy sector hit a new record in 2018. Compared to the pre-industrial temperature level, global warming is approaching 1.5 \({}^{\circ}\)C, most likely before the middle of the 21 Century [10]. If this trend prevails, the global warming will exceed the 2 \({}^{\circ}\)C target, which will have a severe impact on the planet and human life. The environmental concerns, such as global warming and local air pollution, scarcity of water resources for thermal power generation, and the limitation of depleting fossil energy resources, raise an urgent need for more efficient use of energy and the use of renewable energy sources (RESs). Different studies have shown that a non-fossil energy system is almost impossible without efficient use of energy and/or reduction of energy demand, and a high level integration of RESs, both at a country level [11], regional [12], or globally [13].  
Based on the United Nations Sustainable Development Goals agenda [14], energy efficiency is one of the key drivers of sustainable development. Moreover, energy efficiency offers economic benefits in long-term by reducing the cost of fuel imports/supply, energy generation, and reducing emissions from the energy sector. For enhancing energy efficiency and a more optimal energy management, an effective analysis of the real-time data in the energy supply chain plays a key role [15]. The energy supply chain, from resource extraction to delivering it in a useful form to the end users, includes three major parts: (i) energy supply including upstream refinery processes; (ii) energy transformation processes including transmission and distribution (T&D) of energy carriers; and (iii) energy demand side, which includes the use of energy in buildings, transportation sector, and the industry [16]. Figure 1 shows these three parts with their relevant components. Under the scope of this paper, we discuss the role of IoT in all different segments of the energy supply chain. Our aim is to show the potential contribution of IoT to efficient use of energy, reduction of energy demand, and increasing the share of RESs.  
IoT employs sensors and communication technologies for sensing and transmitting real-time data, which enables fast computations and optimal decision-making [17]. Moreover, IoT can help the energy sector to transform from a centralized to a distributed, smart, and integrated energy system. This is a key requirement in deploying local, distributed RESs, such as wind and solar energy [18], as well  
Figure 1: Energy supply chain.  
as turning many small-scale end users of energy into prosumers by aggregating their generation and optimizing their demand whenever useful for the grid. IoT-based systems automate, integrate, and control processes through sensors and communication technologies. Large data collection and use of intelligent algorithms for real-time data analysis can help to monitor energy consumption patterns of different users and devices in different time scales and control that consumption more efficiently [19].