Digitalization in the Electric Power Industry. Challenges and Windows of Opportunities for Russia

The trends of digitalization and digital technologies have been shaping all spheres of human life towards a new industrial revolution, or Industry 4.0 in other words. No doubt, energy is a key driver for these developments. It is also evident that that the trend of digitalization transforms the energy, in particular the electric power sector, itself. There is an emerging need for a transition to a more advanced electric power system in order to comply with technological advancements and remain competitive in the global market while addressing the grand challenges like climate change. The main goal of this study is to examine the numerous trends and drivers of change leading to the digitalization of the electric power market. First, a background to these developments is examined through a literature review. Emerging and evolving trends are examined both in the energy markets as well as in the broader social, technological, economic, environmental, political and cultural systems. The trends are further assessed and prioritized using a survey and in depth interviews with the experts. Impacts and implications for Russia are discussed. Future outlooks are developing by using a multiple-scenario approach. These help to identify future opportunities and challenges for the Russian electric power sector at the verge of digitalization. Based on the scenarios, strategies and policies are discussed for a successful transition of the sector in the next decades to come. The results of the study are expected to be useful for public government, small and medium-sized businesses, aimed at developing and implementing high-tech innovative products and solutions in new market segments of the electric power industry.