# Impact of Digital Transformation on the Energy Sector: A Review
## 4 Digital Transformation in the Energy Sector and Power Industry
### Barriers to Digital Transformation of Energy Sector  
The application of digital technologies that result in transformative change involves many challenges in the energy sector and in all other sectors. A qualified and skilled (mainly \begin{table}
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**What?** & **How?** & **Results** \\ \hline Smart grids & Implementation of digital technology in the energy grid enables real-time monitoring and control of power distribution & improve efficiency reduce costs increase reliability \\ \hline Predictive maintenance & Digital technologies are being used to monitor the health of power equipment and predict when maintenance is required. & reduces downtime reduces maintenance costs increasing the reliability of the power grid \\ \hline Renewable energy & Digital technologies such as predictive analytics, machine learning, and IoT sensors are being used to optimize the performance of renewable energy sources, such as wind and solar. & more efficient cost-effective \\ \hline Energy storage & Digital technologies are also playing a key role in energy storage solutions. Advanced battery storage systems use data analytics to optimize the use of stored energy & reducing costs increasing reliability \\ \hline Energy efficiency & The use of digital technologies in buildings and industrial processes can help improve energy efficiency. Building management systems, for example, use sensors and data analytics to optimize heating, ventilation, and air conditioning systems. & reducing energy consumption \\ \hline Customer experience & Digital technologies are enabling a more personalized and interactive customer experience in the energy sector. Smart home systems, for example, allow customers to monitor and control their energy usage from their smartphones, while chatbots and virtual assistants can provide instant support and advice. & Customer satisfaction \\ \hline Data analytics & Digital transformation enables companies to better data collection, analysis, and management in the energy sector. & Better customer engagement \\ \hline \hline \end{tabular}
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Table 6: Ways digital transformation has impacted the power industry. digital skills) workforce is the first and foremost need from a managerial perspective. All employees need digital knowledge and skills at different levels, regardless of their organizational roles (forecasting, designing, transmitting, producing, selling, and using energy). A clear managerial vision and a well-defined digital strategy are other vital requirements for an organization to take steps toward the digital [41; 51]. Recent studies of success stories about different organizations' digital transformation have shown that a successful transition does not depend solely on the adopted technologies but, more importantly, builds on the digital strategies that its leaders deploy [58; 59]. The capital to invest in purchasing, implementing, and using digital technologies is another vital requirement. The transformation of organizations, processes, and technologies is forced by digital transformation. Such reforms are often faced with resistance at various levels of management. Change management, which is mainly focused on overcoming employees' resistance, is a critical managerial skill for businesses that cannot expand without ongoing transformation [60]. Legacy systems, poor data quality, and cybersecurity are some of the technological barriers to digital transformation in the power industry. Many energy companies are still using legacy systems that are not compatible with new technologies, which can slow down the adoption of new systems. The quality and consistency of data are also critical for digital transformation, but most energy companies struggle with poor data quality and siloed data sources. The energy sector is one of the most critical infrastructures, which makes it a high-value target for cyberattacks, and digital technologies can increase the risk [59].