Forging a Smarter Path: IoT Applications in the Middle Eastern Energy Sector

In the energy sector, IoT refers to a network of interconnected devices, sensors, and systems. This network can collect, share, and analyse data fast, with the goal of monitoring, controling, and optimising energy production, distribution, and consumption.

In today’s rapidly changing world, “Internet of Things (IoT)” is one of those terms that’s often mentioned in many tech-centric discussions. 

In the energy sector, IoT refers to a network of interconnected devices, sensors, and systems. This network can collect, share, and analyse data fast, with the goal of monitoring, controling, and optimising energy production, distribution, and consumption.

IoT applications in energy

IoT in the energy industry comes in many forms. 

One prominent application is smart metering. IoT-enabled smart meters provide various kinds of real-time data — from energy consumption and voltage levels to power usage patterns. Unlike conventional meters, they help utility providers make better demand forecasting. Meanwhile, for consumers, this tech enables real-time billing and grants easier access to consumption data.

Smart grids are another example of IoT in energy. These grids rely on sensors and digital systems to enhance energy distribution and support bi-directional energy flows.

With the help of IoT, energy and utility players can also make predictive maintenance more efficient. It helps them identify potential failures before they occur, reduce costly downtime, and even enhance the safety of their workers.

Ultimately, IoT can be used for better renewable energy management. IoT solutions play a vital role in monitoring and optimising renewable energy generation. They also aid in stabilising grid performance by predicting fluctuations in supply and enabling smarter energy storage and distribution systems.

How Saudi Arabia is leading in IoT adoption

In the Middle East, research shows that the market for IoT in energy and utility could grow at a CAGR of 12.55% from 2022 to 2028. Saudi Arabia is poised to lead the charge, making up about 39.63% of the region’s IoT market.
Saudi Aramco, the country’s national oil company, utilises IoT sensors for various purposes, such as pipeline monitoring, leak detection, and corrosion, to prevent costly disruptions.

The Line, a $500 billion smart city project, is another example. Designed as part of the NEOM mega-city in Tabuk Province, this 170-km-long linear urban development is a futuristic urban project envisioned as a zero-carbon, fully sustainable city.

The success of The Line is deeply rooted in advanced IoT technologies that enable real-time monitoring, automation, and optimisation of urban systems. IoT sensors integrated throughout the city are designed to continuously monitor environmental factors, such as temperature, humidity, and air quality.

These IoT systems also play a critical role in achieving the city’s ambitious goal of running on 100% renewable energy. And they do so by monitoring solar and wind energy production, predicting energy demand, and automating energy-saving mechanisms during low-demand periods. 

Developments in the UAE and Qatar 

The UAE is also a regional leader in IoT adoption, with Dubai and Abu Dhabi at the forefront. 

For instance, the Dubai Electricity and Water Authority (DEWA) has embraced IoT to digitise its utility services. Through the Digital DEWA initiative, the organisation is working to create a smart, connected energy system.
During last year’s GITEX, DEWA inked a Memorandum of Understanding (MoU) with the Professional Communication Corporation (Nedaa). This collaboration aims to leverage IoT, fiber connectivity, cloud services, and cybersecurity to enhance critical infrastructure.

“Our collaboration with Nedaa aims to pioneer a new era of digital services and underlines our commitment to meeting the evolving needs of private and public enterprises in the region by harnessing Digital DEWA’s cutting-edge infrastructure. This ensures a brighter and more connected future,” said HE Saeed Mohammed Al Tayer, CEO of DEWA.

Qatar has also made significant strides in utilizing IoT for energy optimisation. 

Notably, QatarEnergy, its national oil and gas company, employs IoT-enabled drones for offshore inspections. These drones are equipped with sensors that enhance safety, improve operational efficiency, and reduce costs.

A smarter path to a greener future

IoT is changing the energy sector for the better — and in many ways. 

In the Middle East, IoT has proven to be beneficial in advancing the region’s journey toward a greener tomorrow. And projects like Saudi Arabia’s The Line, the UAE’s Digital DEWA initiative, and QatarEnergy’s innovative applications are just some examples of how IoT is transforming the region’s energy landscape.

However, challenges — ranging from cybersecurity risks and high implementation costs to integration with legacy systems and regulatory hurdles — remain significant barriers. There’s a clear need to address these issues in order to unlock IoT’s full potential.
 

 

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