How Smart Energy is Changing Chemical Industries

The Smart Energy System concept is essential for cost‐effective 100% renewable energy systems. The concept includes a focus on energy efficiency, end use savings and sector integration to establish energy system flexibility, harvest synergies by using all infrastructures and lower energy storage cost.

Smart Energy Solution in Chemical Industry
Smart Energy Solution in Chemical Industry

In the recent years, the phenomenon of digitization has evolved. Although the energy industry lagged begind other industries it is now rushing to catch up with rise in digital elements more and more.


According to Berhard Schaefer, senior manager at M3 Management consulting defines digitization as:

The comprehensive transformation of an energy company’s product and services, its value chain, as well as its internal support functions making use of new information and communication technologies and fulfilling related customer expectations.


As opposed to, for instance, the smart grid concept, which takes a sole focus on the electricity sector, the smart energy systems approach includes the entire energy system in its identification of suitable energy infrastructure designs and operation strategies.

The result is a “smart” utility, part of a “smart” energy world that will be embedded into the wider Internet of Things to an ever greater extent. Data led intelligence is entering more or less all steps of the energy value chain with focus on generation, distribution, metering and consumption.

The adoption of IoT based solution in industry is motivated by commercial interests. The chemical industry is a perfect example that can be benefited from adoption of IoT-based solutions.


Chemical parks increase the potential savings that can be achieved through IoT-based solutions by grouping multiple different chemical producers at a single site so that IoT solutions can be developed to encompass multiple participants.

Different IoT based services that can be included are as follows:

  • Utility Supply
  • Waste management
  • Infrastructure
  • Safety
  • Security
  • Analytics

A smart chemical park can provides facilities like integration of data sources and analysis algorithms to allow for a better understand of the system and the potential for enhanced automation.

A Smart chemical park is integrated with different forms of energy into overall optimization process, this includes electricity, gas, steam and raw materials that can be used for production of chemicals.

Smart Chemical park
Smart Chemical park (Image Reference: Aegex)

Most assets like reactors, pumps and fans can be integrated into local communication systems so that basic infrastructure for smart Chemical Park is available.

Another example of smart energy in chemical industries can be installation of electrode boiler that can create steam by heating water. A system of distributed boilers can be used to generate steams in times of low power prices and back up the existing central steam generation. They can provide negative power capacity on the balancing market.

In the coming future there will be increase role of dedicated software solution-for example for modeling, simulation and optimization of the energy infrastructure in chemical industries.


As a result energy production, delivery, and use are getting more efficient and sustainable with the Internet of Things (IoT). IoT-enabled sensors, devices, and data analytics play vital role in intelligence to equipment and deliver operational insights, hence allowing energy companies to dynamically manage assets, decrease maintenance and transmission costs, and improve worker safety.

Suraj Gehlot

Maker passionate about writing content on Technology IoT | AI/ML | Electronics | Education | Concepts | DIY

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