algorithms

Review
Impact of Digital Transformation on the Energy Sector:
A Review
Zahra Nazari and Petr Musilek *

Department of Electrical and Computer Engineering, University of Alberta, Edmonton, AB T6G 1H9, Canada
* Correspondence: [email protected]

Abstract: Digital transformation is a phenomenon introduced by the transformative power of digital

technologies, and it has become a key driver for the energy sector, with advancements in technology
leading to significant changes in the way energy is produced, transmitted, and consumed. The impact
of digital transformation on the energy sector is profound, with benefits such as improved efficiency,
cost reduction, and enhanced customer experience. This article provides a review of the impact of
digital transformation on the energy sector, highlighting key trends and emerging technologies that
are transforming the sector. The article begins by defining the concept of digital transformation,
describing its scope, and explaining two conceptual frameworks to provide a deep understanding of
the concept. This article then explores the benefits of digital transformation, examines its impact, and
identifies its enablers and barriers. Each source examined was analyzed to extract qualitative results
and assess its contribution to the researched topic. This paper also acknowledges the challenges
posed by digital transformation, including concerns about cybersecurity, data privacy, and workforce
displacement. Finally, we discuss the potential developments that are expected in the future of digital
transformation in the power sector and conclude that digital transformation has the potential to
significantly improve the energy sector’s efficiency, sustainability, and resiliency.

Keywords: digital transformation; digitalization; energy sector; power industry

1. Introduction
Digital transformation (DT/DX) is a phenomenon introduced by the transformative
Citation: Nazari, Z.; Musilek, P. power of digital technologies. This trend has gained significant attention in academic
Impact of Digital Transformation on and business settings, including education, government, banking, and manufacturing,
the Energy Sector: A Review. especially during the fourth industrial revolution (4IR). For more than 20 years, scholars
Algorithms 2023, 16, 211. https:// have been studying the different aspects of digital transformation, including its enablers,
doi.org/10.3390/a16040211 barriers, and how it creates value [1,2].
Academic Editor: Frank Werner The rapid advancement of society, the economy and industry depends on digital
transformation. Today, digitalization and globalization are inseparable and shape human
Received: 10 February 2023 life. By 2030, the European Commission (EC) predicts that the “transformative industrial
Revised: 14 April 2023
and technological revolution“ will be a major global theme. As technology continues to
Accepted: 16 April 2023
progress, it will have an impact on various aspects of society, such as lifestyle, education,
Published: 18 April 2023
politics, research, collective intelligence networks, governance, the establishment of open
systems, and even health, including the alteration of the human genome [1,3,4].
Similarly to other institutions and nations, the EC has made digital transformation a
Copyright: © 2023 by the authors.
top priority for both businesses and society. To measure progress across European countries,
Licensee MDPI, Basel, Switzerland. the EC has introduced a digital transformation monitor and scoreboard as part of its
This article is an open access article initiatives [5]. The Organization for Economic Cooperation and Development (OECD) also
distributed under the terms and launched a new global project in 2017 called “Going Digital: Making the Transformation
conditions of the Creative Commons Work for Growth and Well-being”. The objective of the project is to help policy makers
Attribution (CC BY) license (https:// understand the digital transformation taking place and create a policy framework that
creativecommons.org/licenses/by/ promotes economic and societal growth in a world increasingly driven by data and digital
4.0/). technologies [6].

Algorithms 2023, 16, 211. https://doi.org/10.3390/a16040211 https://www.mdpi.com/journal/algorithms

Algorithms 2023, 16, 211 2 of 22

Digital technologies have also become integral to our daily lives, influencing our work,
communication, and behavior as consumers. In addition, digital technologies, in order to
connect the physical and digital worlds, are rapidly catering to the individualized needs of
consumers. Consequently, businesses across industries are experiencing a diversification
of rapidly changing demands, now affecting areas that have always been dependent on
physical materiality [7].
Numerous organizations and businesses have integrated modern technologies such
as Big Data analytics, the Internet of Things (IoT), cloud computing, and social media to
enhance their day-to-day operations. Failure to adapt to the digital world may result in
being a victim of “Digital Darwinism”, whereby established players may fade away. Only
the most adaptable and responsive companies that keep up with technological advance-
ments will remain competitive in the market. These digital technologies are transforming
commercial activities, and the term “digital transformation” is frequently used to describe
these changes. However, there is currently no standardized definition for this term. While
some consider digital transformation and digitalization to be synonymous, most studies
show that they differ and require distinct definitions [8,9].
Historically, the energy sector has been at the forefront of embracing novel technologies.
As early as the 1970s, electricity providers and oil and gas companies were pioneers in
utilizing emerging technologies to streamline grid management, as well as to simulate
exploration and production assets. This digital transformation has been underway in the
energy industry for several years, and it has led to significant changes related to the fourth
industrial revolution or Industry 4.0 [10,11].
Given the significance of digital transformation in shaping the future, it is imperative
to assess the current status and impacts of this trend on diverse industries and anticipate
future developments and their potential consequences. Accordingly, this article aims to
examine the impact of digital transformation on the power industry. The power indus-
try is undergoing a rapid digital transformation, changing how electricity is generated,
transmitted, and distributed. Digital technologies are improving the power system’s ef-
ficiency, reliability, and safety. In addition, the power industry is facing challenges such
as increasing demand, the need for renewable energy sources, and aging infrastructure.
Digital transformation is seen as a way to address these challenges and improve the overall
performance of the power system. In Section 4, we will provide a literature review and
examine the impact of digital transformation on the power industry, focusing on its effects
on energy consumption, economic aspects, and social dimensions.
To reach the objectives determined above, we have organized this contribution as
follows. First, we begin by introducing the research questions and methodology. We
continue by defining digital transformation and showing that it is distinct from digitization
and digitalization. Then, we review the different definitions of this term and introduce
two conceptual frameworks that facilitate a better understanding of this phenomenon.
Next, we move on to discuss digital transformation in the energy sector in general and the
electric power industry in particular. In the following, we discuss drivers and barriers to
digital transformation in the energy sector and its economic and social impacts. Finally, we
present our main findings and discuss the expected impacts of digital transformation on
the power industry.

2. Methodology
This study investigated what digital transformation is and how it has affected the
energy sector, specifically the power industry. To identify relevant articles for our study, a
keyword search was performed based on the following questions and queries:
Questions:
• What is digital transformation and why is it essential for an organization?
• How has digital transformation changed/affected the energy sector (power industry)?
• What are its economic and social impacts?
Algorithms 2023, 16, 211 3 of 22

Queries:
• “Digital transformation” and (“definitions” or “conceptual frameworks”).
• “Digital transformation” and (“challenges” or “barriers” or “issues”).
• “Digital transformation” and (“enablers” or “drivers”).
• “Digital transformation” and (“importance” or “necessity”).
• “Digital transformation” and (“impacts on power industry” or “impacts on energy
sector” or “benefits for industries”).
To ensure the relevance of the paper, a rigorous selection process was implemented
to identify suitable papers. Initially, the abstract, introduction, and conclusion of each
paper were assessed, and those with a strong link to the research topic were shortlisted
for detailed examination. Following this, a comprehensive analysis of each paper was
undertaken to evaluate their qualitative findings and their potential contribution to the
research topic. The study aimed to incorporate a wide range of relevant papers and thus
did not rely solely on factors such as citation count or impact factor for selection.

3. What is Digital Transformation?

Over the past few years, the widespread adoption of digital technologies has signifi-
cantly impacted various aspects of our society. This phenomenon, commonly referred to as
digital transformation, has captured the attention of scholars, managers, and businesses
alike. Despite its growing importance, the exact meaning and scope of digital transfor-
mation remain unclear, and there is no widely accepted definition of this term among
academia, industry pioneers, and practitioners [12–14].

3.1. Digitization, Digitalization, and Digital Transformation

In the course of our in-depth search and analysis of the phenomenon of digital trans-
formation, we observed that the terms digitization and digitalization were used side to side,
sometimes interchangeably and inferrably for the term digital transformation. There-
fore, before discussing digital transformation, it is necessary to grasp what digitization
and digitalization mean because the three terms are often used together and sometimes
interchangeably, which is a mistake.
There are several definitions for “digitization,” which differ depending on the context.
According to [15], “digitization essentially refers to taking analog information and encoding
it into zeroes and ones so that computers can store, process, and transmit such information”.
Converting handwritten or typewritten text into digital form is an example of digitization,
and it is the information you are digitizing, not the process—that is where digitalization
comes in [15,16].
The first use of digitalization can be found in an essay published in the North America
Review in 1971 [17]. I-SCOOP [18], a digital business consultancy, has offered the following
concise definition: “Digitalization means the use of digital technologies and of data (digi-
tized and natively digital) in order to create revenue, improve business, replace/transform
business processes (not simply digitizing them) and create an environment for digital
business, whereby digital information is at the core” [18,19].
Digital transformation encompasses a broader scope and significance than digitaliza-
tion (automation). When comparing these three terms, it becomes apparent that they are
distinct: we digitize information, digitalize processes and roles, and digitally transform
businesses and their strategies. Each stage is necessary but not sufficient for the next.
Crucially, while digitization and digitalization pertain to technology, digital transformation
centers around the customer [15]. Westerman et al. define digital transformation in a
Capgemini Consulting and MIT Sloan Management article as “the use of technology to
radically improve the performance or reach of enterprises” [20]. While this definition
highlights the widespread application of digital transformation, it fails to include the
essential components required to achieve this transformation. Emphasizing the key ele-
ments necessary for digital transformation is vital, as it is unattainable and impractical
Algorithms 2023, 16, 211 4 of 22

without them [12]. Table 1 outlines the critical factors that differentiate the concepts of
“digitalization/automation” and “digital transformation” [21].

Table 1. Key indicators characterizing the notion “digitalization” and “digital transformation” [21].

Indicator Classification Automation/Digitalization Digital Transformation

fundamentally enhancing the company’s
Goal enhancement of operational productivity and efficiency
competitiveness and boosting its worth.
Objectives operational, solution of tactic problems strategic and sometimes marketing
innovative concept generation for addressing business
Role user, software, and system maintenance
requirements
solutions based on innovative technology that are
solution and technology with a well-understood set of exclusive to the firm; There are few instances of
functions and outcomes, measurements, time limits, introductions; Not usually are the introduction periods
Features
and examples of their implementation in other well established; The implementation follows the agile
organizations without altering business processes. development paradigm; It results in changes to
corporate procedures or models.
stoppage of information systems does not result in the
physical company activity is theoretically impossible
cessation of the company’s physical operations.
Dependence on IT without enabling the functioning of the physical reality
Therefore, it is feasible to switch to the use of hardcopy
digital twin.
data carriers.
the physical reality is somewhat reflected in the a digital twin/digital platform is established as the
Relation to physical reality
company’s information space. company’s information area.
Head of IT department, Chief Information Officer Digital transformation programs are headed by the
Management
(CIO), etc. Chief Digital Officer (CDO), etc.

Implementing technologies into business processes is only a small part of digital trans-
formation. Technologies must generate additional value and synergy for the customers, the
business, and other key stakeholders. “To succeed in digital transformation, leading com-
panies focus on two complementary activities: reshaping customer value propositions and
transforming their operations using digital technologies for greater customer interaction
and collaboration” [19,22].
Over the past 20 years, there have been many discussions regarding digital transfor-
mation and its various components, including factors that drive or hinder it, strategies for
implementation, and its effects on different industries and businesses. Despite this, the
concept of digital transformation is complex and can be interpreted differently depending
on the context. As a result, there is no single definition of digital transformation that is
consistently applied, and sometimes no definition is provided at all. When a definition is
provided, it may be unclear due to being mixed with information about project success or
cautionary notes. Alternatively, there may be a clear definition, but it differs from those
found in other sources [1,19,23].
Hence, many researchers have worked to formulate a comprehensive and commonly
accepted definition for this buzzword. The following examples show that tens of definitions
have been proposed for digital transformation [19,23]:
• “Digital transformation applies digital technology to an existing business”.
• “Digital transformation aims to create new businesses”.
• “Digital transformation is the application of Cloud, Mobile, Social and Analytic
technologies”.
• “Digital transformation is about changing the company. However, it is not just a
change due to the application of new digital technologies and services. It is much
more than that”.
• “Digital transformation is not only a technological change but also as an organizational,
cultural and managerial one. Digital transformation is about reworking strategies,
products and processes by leveraging digital technologies. Digital transformation is
really business transformation”.
Algorithms 2023, 16, 211 5 of 22

• “Digital transformation is the deep transformation of business models and competen-

cies, organizational models, business processes and practices”.
These definitions of digital transformation reflect many perspectives on the topic.
Technology, customer value, and expected organizational values are some main points that
are highlighted in the above definitions. Some focused on digital transformation’s aims,
while others addressed the related organizational changes. Therefore one can conclude that
the digital environment has undergone numerous changes. Additionally, there has been a
variety of digital transformations in various domains. Digital transformation of computer
hardware and software, communications, commerce, products, relationships, humans,
industry, and digital transformation of society are some types of digital transformation that
have been addressed by different researchers [19,24,25].

3.2. Digital Transformation Framework

The prior section presented various interpretations of digital transformation, which
differ significantly in language usage, prompting some authors to recommend distinguish-
ing between the different definitions. The absence of a consistent theoretical foundation to
integrate all aspects of digital transformation is also evident from this lack of clarity. As
a result, some scholars have suggested conceptual frameworks to elucidate the concept
of digital transformation, identifying its fundamental constituents, facets, and groupings,
which reconcile the disparate definitions and aspects of this phenomenon.
For this purpose, Verina and Titko [1] used text extracts from scientific databases,
reports, surveys, papers published by non-governmental organizations, and concept-
related text segments to analyze definitions of the term “digital transformation” put forth
by various researchers, government officials, and business experts. Applying the frequency
analysis process within the content analysis approach, the analysis was carried out, and
the inter-rater reliability was assessed using Cohen’s Kappa coefficient. The expert survey
was also conducted to assess the elements influencing the effectiveness of the digital
transformation process and to increase the validity of the results that had already been
received. Figure 1 presents a visual conceptual model that visually represents the study’s
final findings. The model that illustrates factors enabling digital transformation processes
as well as the potential outcomes. Table 2 also presents the categories of the concept “digital
transformation” and the elements within.

Figure 1. Conceptual model of digital transformation (adapted from [1]).

Algorithms 2023, 16, 211 6 of 22

Table 2. Categories of the concept “digital transformation” and the elements within [1].

Technologies Management/Processes People

Data Strategies Customers
Mobile devices Business models Executives
Cloud Operating models Talents
Social media Business activities Employees/workforce/people
Big Data New services Managers
Artificial intelligence Operational processes Suppliers
IoT Coordination mechanism Owners
Software Products Competencies
Analytics Organizational culture Stakeholders
Cybersecurit Organizational structure Partners
Embedded devicesy
App marketplaces

Veldhoven and Vanthienen [26] have formulated a conceptual framework that har-
monizes the discrete definitions and facets of digital transformation. Moreover, they have
formulated a new, all-encompassing definition of digital transformation. Their approach
entailed an inductive analysis of the definition of digital transformation to construct a
conceptual framework. They exclusively examined exclusive and distinctive explana-
tions of this concept, deconstructing them into recurring, vital constituents to identify the
fundamental aspects of digital transformation.
The following key components are the ones that are most frequently obtained from
definitions: utilizing digital technology, developing a new business model, internal opera-
tions, customer experience, society transformation, organizational transformation, digital
innovation, the digital economy, the change process, value creation, and products and
services are just a few of the topics covered. Figure 2 demonstrates how all of the previously
mentioned key elements are arranged around a conceptual framework to balance the many
aspects of digital transformation [26].

Figure 2. The interaction-based framework for digital transformation (adapted from [26]).

The framework shown in Figure 2 condenses the most important elements and the
literature on digital transformation into three axes, their segments, and interactions between
the axes. The axes depict the three transformations that can be derived from the components:
Algorithms 2023, 16, 211 7 of 22

the transformation of digital technologies (digital innovation), business transformation

(goods, services, organizational transformation, internal operations, and new business
models), and societal transformation. Table 3 lists the definitions of the key elements shown
in the conceptual framework [26].

Table 3. Definition of essential components in conceptual framework.

Dimension Segment Definition

Society Tasks modifications to discrete tasks and activities
Connectivity alterations in the network, information, and communication
Structure alterations to routines, habits, and the work-life balance
People changes in people’s values, notion of ownership, identity, and way of living
Usage adjustments to the everyday goods and services
Business Internals internal operational, technological, and labor changes
Offerings new or enhanced products and services
Connectivity alterations in the relationships between entities, businesses, and procedures
Business model modifications to the business’s scope, management, and strategy
Structure changes to the culture, responsibilities, and organization
Digital technologies Internet affordable, universal connectivity, and information sharing
IT automating discrete tasks and doing problem calculations
SMACIT social media, mobile, analytics, cloud computing, and IoT
Advanced AI actions that typically demand human intelligence
Integration more accessible, ubiquitous, and available computational power

• Digital technologies transformation—Figure 2’s vertical axis serves as its representa-

tion. There are numerous digital technologies that are responsible for digital trans-
formation; five important waves from the previous five decades are shown in Table 3
in chronological sequence. Despite the fact that advanced artificial intelligence (AI)
is still in its infancy, it is included since many organizations consider it as a possible
technology for digital transformation in the near future [26].
• Business transformation—the left axis depicts organizational changes that lead to
appreciable gains in performance or value. A growing variety of business-related
issues are evolving. Using the keywords and associated terms as a basis, they are
categorized into five groups. The categories are listed in chronological order since this
is the most common way that they change [26].
• Society transformation—the right axis shows the evolution of civilization (digital
maturity), which can be interpreted as the evolution of individuals, groups of people,
and societies over time. The right section of the framework illustrates the changes
brought on by the greater use of digital technology in the context of digital transforma-
tion. Digitalization is the process through which people gradually incorporate digital
technologies into every aspect of their lives. This affects their adoption of digital
trends, identity, and privacy concepts, as well as their employment, communication
style, and way of life [26].
Therefore, it can be seen as the circular movement toward the outer reaches of the
digital transformation framework where digital technologies incrementally advance further
changes in business, society, and their linkages, as depicted in Figure 3. By proposing that
the enhanced interactions between these advancements, as seen by the two-headed arrows
connecting the framework’s axes, are causing and steering the digital transformation, Veld-
hoven and Vanthienen [26], elaborated on this theory. As a result, there is a significant rise
in the speed, scope, and influence of the many transitions as they become interconnected.
Consequently, the following definition is suggested:
“Digital transformation is the continuously increasing interaction between dig-
ital technologies, business, and society, which has transformational effects and
increases the change process’s velocity, scope, and impact”.
Algorithms 2023, 16, 211 8 of 22

In this section, we discussed two conceptual frameworks of digital transformation.

Researchers have utilized different definitions proposed over time for digital transformation
and constructed conceptual frameworks that help to understand this phenomenon on a
deeper level. If we compare the extracted categories and elements, they are almost identical;
however, the methods differ.

Figure 3. The digital transformation process (adapted from [26]).

3.3. Why Digital Transformation?

The fourth industrial revolution, or Industry 4.0 scenario, led society towards a funda-
mental change. Digital technologies enhance the quality of people’s lives and facilitate work
in numerous industries. Digital transformation enables an organization to keep up with
emerging customer demands and, consequently, to survive in the future. It also enables
businesses to compete more successfully in a continually changing economy due to tech-
nological advances. Effective digital transformation management provides organizations
with operational and productive advantages [7,27].
Prior to the outbreak of COVID-19, the main emphasis of digital transformation was on
enhancing the customer experience. However, the pandemic wrought widespread changes,
accelerating the pace of technology adoption and expanding the scope to encompass other
stakeholders, including users, administrators, managers, and the like. While COVID-19 was
responsible for creating a global crisis and disrupting the activities of people worldwide, it
also triggered a surge in digitization. The pandemic-induced factors such as reduced social
interaction, social isolation, lockdowns, travel restrictions, and business reorganizations
have caused significant disruptions to our daily lives and necessitated our acceptance
and adaptation to the “new normal”. To continue personal and professional services and
interactions, information and communication technologies (ICT) have become essential
tools in both social and business contexts [28–30].
Although organizations started to address the digital transformation of the workplace
before the COVID-19 epidemic, employers did not anticipate such a quick confrontation
with the digital age’s impact on the personal, professional, social, and financial dimensions
of human capital. Now, digital transformation is the focal point of operational efficiency
and innovation for all businesses. Change comes in shorter waves across sectors than ever
before, and CEOs are aware that digital transformation and fluency are crucial to their
future survival and success [28,31].
When discussing digital transformation, it is essential to note that it involves a vast
array of changes to business models and business core, organizational culture, employee
Algorithms 2023, 16, 211 9 of 22

work habits and activities, and the delivery of products or services to customers, all with
the full support of digital technologies [28,32].
Numerous organizations engage in digital technology implementations that support
business model transformation. Advanced manufacturing, Big Data, blockchain, AI, robots,
IoT, and other technologies herald the emergence of a new age in the IT industry. Digital
transformation is altering the appearance of industry, the structure of the economy, and the
way people work and live. It is ubiquitous, and no sector is immune to its advantages [28].
The post-pandemic environment in which we exist is fostering a ”digital fever” atti-
tude. Successful businesses will design intelligent experiences and customer journeys that
facilitate and/or enhance the lives of their customers. In contrast, those that do not strive
to gain from emerging AI technologies and do not use data to forecast demand patterns,
inform regulations, or make workforce-enhancing choices will fail [27]. Digital change in
the sector offers the chance to merge practices and methods, resulting in new approaches,
skills, and revenue streams. The following are some of its primary benefits:
• It decentralizes manufacturing by promoting distant communication and mobility.
• It increases operational productivity and efficiency.
• It decreases expenses as a consequence of process time reductions.
• It enhances integration and internal cooperation by easing departmental communication.
• It creates new business prospects and income sources, allowing for the development
of new goods and services.
• It facilitates decision-making by enhancing data analysis (Big Data).
• It accelerates the reaction time to changes in market demand.
• It creates a competitive advantage for the business by improving the quality of the
produced goods.
• It encourages the identification of systems and piques the curiosity of specialist experts,
hence attracting fresh talent.
• It drives the innovation culture and prepares the business for any disruption.
Today, digital transformation is a need; we must leave our comfort zones, reinvent
ourselves, and compete in a world dominated by technology advancements; otherwise, the
utopia humankind was longing for would turn out to be our dystopia.

3.4. Enablers and Barriers

Digital transformation is not a simple project but a complex phenomenon combining
technological and organizational challenges [33]. The complexity of the digital transforma-
tion process results in the creation of various concerns and problems that must be resolved
in order to develop creative business models that allow the full use of an organization’s
potential. In this part, we detail the many hurdles associated with digital transformation
and identify the primary challenges, problems, and barriers that organizations encounter
while pursuing digital transformation, as well as the facilitators for this turnaround, [28,34]
as shown in Table 4. In addition, different resources are required for a successful digital
transformation. Consequently, it is crucial to identify internal and external elements that
directly affect success or failure and feasibility [28,35,36].
Algorithms 2023, 16, 211 10 of 22

Table 4. Enablers, challenges, problems, and barriers to digital transformation.

Digital Technologies Business Society

The complexity of the logistics system Lack of industry-specific transformation Mistrust in digital transformation in
and core processes guidelines general
Adoption of new and complex
Poor organizational environment Resistance to change
technologies
Challenge Legacy systems Organizational structure
Traditional business model and
processes
Lack of expertise to lead the digital
transformation initiatives
Poor technical / IT skills Lack of clear vision Lack of training on new digital tools
The inadequate strategic vision of top Unidentified benefits from the digital
Technological compatibility
management transformation
Lack of coordinated digital strategy Lack of required digital skills (digitally
Poor data quality
Problem (unclear strategy) skilled employees)
Lack of coordination between different
Misunderstanding of the digital
stakeholders in public and private
transformation process
industry
Lack of change management strategy
Security concerns Budget constraints Lack of national standards and policies
Complexity Lack of infrastructure and connectivity
Barrier
Poor legal framework
Inadequate legislation for digitization
AI and machine learning Clear integrated strategy Customers’ demands
Big Data Put people in the right places Employees’ demands
Increasing awareness and building
Cloud computing Agile way of working
digital skills
Enabler/Driver
Commit to leadership from the top
Cybersecurity Standards and legal frameworks
through the middle management
Creation and promotion of digital
VR and AR
competences

4. Digital Transformation in the Energy Sector and Power Industry

Digital transformation is rapidly changing the energy sector and the power industry,
bringing significant benefits to companies and customers alike. The energy industry was
a pioneer in adopting digital technology. Power utilities and oil and gas companies were
digital pioneers in the 1970s, using new technology to simplify grid administration and
operation or to model exploration and production assets [10,37,38].
It has been several years since the global digital revolution of the energy industry
began. Decades ago, this sector was a pioneer in the use of emerging technology, such
as IT. Industry 4.0, sometimes known as the fourth industrial revolution, has ushered
in substantial developments in recent years. Companies in the energy industry have
invested heavily in digital technology, and the pace of digitalization in this industry is
growing [39–41]. Since 2014, according to the International Energy Agency (IEA), world-
wide investments in digital power infrastructure and software have increased yearly by
more than 20%, reaching USD 47 billion in 2016. In 2016, digital investments were almost
40% more than worldwide investments in the natural gas power industry (USD 34 billion)
[42]. Deregulation of the power industry and the adoption of new policies for renewable
energy formed the basis for these changes in several nations, mostly in European Union
member states [41].
In recent years, the power industry has been experiencing a wave of digital transfor-
mation driven by the adoption of digital technologies such as the Internet of Things, AI,
Big Data analytics, and blockchain. In the power industry, digital transformation is having
a profound impact on the way electricity is generated, transmitted, and distributed. This
literature review explored the impact of digital transformation on the power industry and
the benefits and challenges associated with this transformation [41].
The power industry has traditionally been characterized by large centralized power
plants that generate electricity and transmit it to consumers through a network of high-
Algorithms 2023, 16, 211 11 of 22

voltage transmission lines. However, the emergence of digital technologies is changing

the way electricity is generated, distributed, and consumed. The power industry is now
moving towards a more decentralized model, where electricity is generated from renewable
sources such as solar and wind, and distributed through microgrids and smart grids.
Digital technologies are also being used to improve the efficiency of power generation,
transmission, distribution systems, and customer experience resulting in lower costs,
customer satisfaction and reduced carbon emissions [41,42].
• Impact on power generation: one of the most significant impacts of digital transforma-
tion on the power industry has been in the area of power generation. Power generation
is the process of converting various sources of energy into electrical power that can be
distributed to homes and businesses. Digital technologies have been used to improve
the efficiency and reliability of power generation. Predictive maintenance using Big
Data and machine learning algorithms is being used to identify potential equipment
failures before they occur. This approach helps power companies to reduce downtime
and improve the reliability of their power plants. Another impact of digital transforma-
tion on power generation is the use of renewable energy sources. Digital technologies
are being used to integrate renewable energy sources such as solar and wind into the
power grid. Although the unpredictable and intermittent nature of these variable
energy sources can lead to challenges for maintaining the stability and reliability of
the grid, digital technologies can support the integration process through enhancing
grid visibility and providing tools for coordination and learning. In addition, digital
technologies are being used to optimize the use of renewable energy sources. Machine
learning algorithms are being used to predict when renewable energy sources will be
available and when they will need to be stored for later use [38,41].
• Impact on power transmission: digital transformation has also had a significant impact
on power transmission and distribution. Power transmission and distribution is the
process of transmitting electrical power from power plants to homes and businesses.
Digital technologies are being used to improve the efficiency and reliability of the
power grid. Sensors and IoT devices are being used to monitor the health of power
lines and transformers. This information is then used to identify potential issues and
prevent power outages [38].
• Impact on power distribution: digital technologies are also being used to improve the
distribution of power. Smart grids are being used to balance the supply and demand of
power. This approach helps to reduce the cost of electricity and improve the reliability
of the power grid. In addition, digital technologies are being used to optimize the use
of power during peak demand periods. Machine learning algorithms are being used
to predict when power demand will be high and when it will be low. This information
is then used to adjust the distribution of power to meet the needs of customers [38].
• Digital transformation is also having a significant impact on customers. Digital tech-
nologies are being used to improve the customer experience. Mobile apps are being
used to provide customers with real-time information about their energy consumption.
This information helps customers to better manage their energy usage and reduce
their energy bills. In addition, digital technologies are being used to improve the
billing process. Digital billing and payment systems are being used to reduce the cost
and time associated with the billing process. Another impact of digital transformation
on customers is the emergence of new business models. For example, some power
companies are now offering customers the ability to generate their own power using
renewable energy sources such as solar panels. This approach allows customers to
reduce their dependence on traditional power sources and save money on their energy
bills [43,44].
Therefore, emerging technologies need particular consideration because they fa-
cilitate the development of other technologies and uses, are broadly adaptable, and
contribute to the energy sector’s stability, efficiency, and environmental sustainability.
Tables 5 and 6 detail digital applications, their usage, their advantages in the energy sector,
Algorithms 2023, 16, 211 12 of 22

and the effects of digital transformation on the energy sector and the power industry,
respectively [41,45,46].

Table 5. Digital applications and their use and benefits in the energy sector [41].

Application of Digital Technology in the Types of Digital Technology Most Used

Main Benefits of Digital Transformation
Energy Industry in the Energy Industry
Big Data
Environmental protection Smart grids and optimized operations Blockchain
Cloud computing
Machine learning (ML)
System security and stability and cost reduction
Artificial intelligence (AI)
Artificial neural network (ANN)
Robotic process automation (RPA)
Big Data
System security and stability and cost reduction Smart market and flexibility integration Blockchain
Cloud computing
Environmental protection Internet of Things (IoT)
Artificial intelligence (AI)
Artificial neural network (ANN)
Big Data
Cost reduction Anomaly detection and prediction Cloud computing
Machine learning (ML)
System security and stability Artificial intelligence (AI)
Artificial neural network (ANN)
Robotic process automation (RPA)
Big Data
Cost reduction Process efficiency Blockchain
Cloud computing
Machine learning (ML)
Artificial intelligence (AI)
Artificial neural network (ANN)
Robotic process automation (RPA)
Customer satisfaction Big Data
Environmental protection Smart home Blockchain
Cloud computing
Internet of Things (IoT)
Artificial intelligence (AI)
System security and stability Trust and transparency Big Data
Customer satisfaction Blockchain
Cloud computing

Overall, digitalization can save the power industry around USD 80 billion per year,
or 5% of total annual power generating costs. These cost savings is the consequence
of digitalization’s advantages, which include a reduction in operating and maintenance
expenses, a reduction in unexpected outages and downtime, an improvement in power
plant and network efficiency, and an extension of the operational life of assets. Using drones
to monitor tens of thousands of kilometers of transmission cables across rugged terrain is
one example. Digitalization also has the ability to trigger more fundamental, system-wide
changes by dismantling conventional demand and supply limits [47–49].

4.1. Drivers of Digital Transformation in the Energy Sector

Economic benefit and revenue growth through introducing new products, services,
and customers are the primary goals of all businesses; digital technologies have the potential
to provide economic benefits for all types of businesses. Energy companies have recognized
the potential of digital technologies and taken steps to become digital [50].
Moreover, digital transformation in the power industry is being driven by a combina-
tion of factors. Increased demand for renewable energy, customer satisfaction and changed
expectations, aging infrastructure, industry disruption, regulatory requirements, renew-
able energy, energy efficiency, cost reduction, increased competition, and the emergence
of new technologies are some of the key drivers of digital transformation in the energy
Algorithms 2023, 16, 211 13 of 22

sector, and power industry. However, renewable energy is the most significant driver
of digital transformation in the power industry. Digital technologies can enable power
companies to optimize the placement and operation of wind turbines and solar panels
which reduces costs and improves efficiency. The transition to renewable energy sources is
also necessary to achieve environmental goals and lessen the carbon footprint of the power
industry [51,52].

Table 6. Ways digital transformation has impacted the power industry.

What? How? Results

Implementation of digital technology in the energy grid enables
improve efficiency
real-time monitoring and control of power distribution
Smart grids
reduce costs
increase reliability
Digital technologies are being used to monitor the health of power
reduces downtime
equipment and predict when maintenance is required.
Predictive maintenance
reduces maintenance costs
increasing the reliability of the power grid
Digital technologies such as predictive analytics, machine learning, and
IoT sensors are being used to optimize the performance of renewable more efficient
Renewable energy
energy sources, such as wind and solar.
cost-effective
Digital technologies are also playing a key role in energy storage
solutions. Advanced battery storage systems use data analytics to reducing costs
Energy storage
optimize the use of stored energy
increasing reliability
The use of digital technologies in buildings and industrial processes can
help improve energy efficiency. Building management systems, for
Energy efficiency reducing energy consumption
example, use sensors and data analytics to optimize heating, ventilation,
and air conditioning systems.
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 Customer satisfaction
Customer experience
from their smartphones, while chatbots and virtual assistants can
provide instant support and advice.
Better customer engagement
Digital transformation enables companies to better data collection,
make more informed decisions
Data analytics analysis, and management in the energy sector.
optimize their operations.

Customer satisfaction is another critical driver for going digital. Customers’ needs and
expectations have changed through the years, and companies compete to provide better
services and achieve higher satisfaction. For decades, customers have wanted cheaper
and more accessible electricity, and consumers from highly developed countries have had
even higher expectations. The importance of climate-friendly energy, its use, and cost
transparency have increased. Smart meters and smart homes are digital applications that
can assist in meeting the goals of decreased costs, increased transparency, and increased
usage of renewable energy [53–55].
The smart home solution allows the daily measurement and invoicing of energy use,
as well as the visualization and display of the energy consumption of particular household
appliances [56]. This technology creates transparency and provides the opportunity to
identify energy-saving potential. The utilization of artificial neural networks in such
systems can help adapt to consumer preferences. As most interactions can be completed
through online consumer portals, these solutions boost customer satisfaction while reducing
costs [41,57].

4.2. 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
Algorithms 2023, 16, 211 14 of 22

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].
Even if organizations overcome internal barriers and meet the requirements, and the
need to implement them is justified, prioritized, and feasible, difficulties in the application
and use of digital technologies may arise from external conditions. Poor legal frameworks,
a lack of national standards and policies, government limitation of investments in this area,
the resistance of social groups, and a lack of industry-specific transformation guidelines
are some examples of external barriers to the energy sector’s digital transformation [41].
Although many national and regional governments have defined digitalization as a strategic
priority and undertaken large-scale initiatives to support the digital transformation of
science, industry, and society, the swift and effective digital transformation in the energy
sector is impossible without support from the government and social groups that are
associated with this sector. They must be aware of the vital changes that may occur due to
sector transformation, especially the layoffs [41]. Figure 4 illustrates the main drivers of
and barriers to digital transformation in the energy sector.

4.3. Social and Economic Impacts of the Digital Transformation on the Energy Sector
The impact of digital transformation on our society and economy is complex, and
it is important to understand the dynamics, interactions, models, actors, and influencing
factors involved. Investigating these aspects can provide insight into the profound impact
of digital transformation [52].
Macías [61] identifies three key factors that will transform work and employment in
the digital age. The first factor is the automation of work, which involves the replacement
of human labor with digitally enabled machines for certain tasks within production and
distribution processes. While the concept of machine automation has been around for
centuries, advancements in AI and other digital technologies have vastly expanded the
possibilities for automation, meaning that a wider range of tasks can now potentially be
automated.
The second factor that [61] identifies is the digitalization of processes. This involves
using sensors and rendering devices to convert physical aspects of the production process
into digital information (and vice versa), taking advantage of the enhanced processing,
storage, and communication capabilities of digital information. Digitalization is the primary
mechanism by which the characteristics of the digital economy are extended beyond the
ICT sector to other industries and sectors.
Algorithms 2023, 16, 211 15 of 22

Figure 4. The key drivers of and barriers to digital transformation process in the energy sector.

The third factor is coordination by platforms, which refers to digital networks that algo-
rithmically coordinate economic activities. Platforms are digital networks that facilitate
transactions through algorithmic coordination. This definition encompasses two critical
elements: the structured digital "space" where goods or services can be offered or de-
manded, and the set of algorithms that match and coordinate transactions in an automated
way [61,62].
The vectors of change mentioned above of change can have a significant impact on
the structure of employment, affecting both occupational and sectoral structures, as well
as working conditions, industrial relations, and the social organization of production.
As [52,61] notes, mid-skilled occupations in the energy sector that involve high levels
of repetition, standardization, and limited social task content are at a high risk of being
disrupted by automation as advanced robotics and AI-enabled machines, become more
prevalent. However, digital transformation can also create new job opportunities based on
high-value digital services and activities, as well as a new industrial value chain, which
can mitigate job loss [5,52,61]
The digitalization of the grid through smart grids is a transformative development in
the electricity sector. The World Economic Forum has highlighted that smart grids and grid-
edge technologies, including smart meters, have resulted in cost reductions and enabled
innovative business models that empower customers. Additionally, smart grids have led
to a 60% improvement in the asset utilization of the electricity system. Digitalization has
also facilitated increased data collection and analysis to optimize production processes,
improve energy efficiency, and reduce waste, among other benefits that can be applied to
all production processes [63,64].
Despite the advantages offered by smart grids and grid edge technologies, concerns
related to privacy, safety, and loss of control have emerged in society. Therefore, the
acceptance of consumers has become a critical factor in the digital transformation of the
electricity sector [65]. To increase acceptance, it is important to raise awareness, educate
consumers, and highlight the benefits of smart meters, such as providing precise billing,
reducing energy consumption, and lowering costs by adjusting usage. A survey conducted
by Smart Energy GB among individuals in the UK using smart meters found that 73% of
respondents would recommend them, 82% believed that smart meters could help them
Algorithms 2023, 16, 211 16 of 22

better understand their energy expenses, 81% considered their energy bills accurate, and
82% had taken measures to reduce energy waste [66].
Engaging consumers and using microgrids (local energy communities) can enhance
demand-side management (DSM), which is crucial for managing losses in transmission
and distribution systems and improving energy efficiency for end-users. In addition,
microgrids can contribute to the transition to future electricity systems by adding resilience
and inclusiveness. As of 2014, over 3.5 billion euros had been earned annually by the local
economy through demand response, increasing interest in DSM in the energy sector[5].
Digitalization, according to the International Energy Agency, has the potential to
save approximately USD 80 billion per year, which is equivalent to 5% of the total annual
power generation costs. This can be achieved through reduced operation and maintenance
costs, improved efficiency of power plants and networks, minimized unplanned outages
and downtime, and extended lifetimes of assets. For instance, using drones to monitor
transmission lines over rough terrain can be a cost-effective way to monitor thousands of
kilometers [47]. Overall, the digital transformation of the power sector has both positive
and negative socio-economic impacts that are classified in Table 7. However, the impacts
have been largely positive, with the potential to create significant benefits in terms of
efficiency, reliability, cost-saving and environmental sustainability.

Table 7. Socio-economic impacts of digital transformation on power industry.

Social Economic
Positive Negative Positive Negative
Energy access Job displacement Improved reliability Job displacement
Energy efficiency Digital divide Increased flexibility in operations Regulatory compliance
Energy security Cybersecurity risks Environmental benefits Infrastructure costs
Renewable energy Data privacy concerns Better customer experience Data privacy concerns
Job creation Increased efficiency Cybersecurity risks
Energy democracy Increased competition Digital divide
New business models
Environmental impacts: to
improve environmental Environmental impacts: increased Improve sustainability of energy
sustainability, by enabling the production of electronic waste sector: enabling the integration of
integration of renewable energy and carbon emissions from renewable energy sources and
sources and reducing energy energyintensive data centers. improving energy efficiency.
consumption.
Reduced costs
Investment opportunities
New revenue streams: sale of data
and value-added services
Supply chain optimization:
improving logistics, reducing
waste, and increasing
transparency.
Increased productivity:
automating routine tasks and
enabling faster and more accurate
decision making.

5. Discussion
As we stated earlier, digital transformation is beyond digitalization. Hence it is not
just the implementation of digital technologies. Instead, digital transformation changes
the whole aspects of an industry, as it must generate additional value for its customers,
business, and key stakeholders. Some believe that digital transformation has increased
the demand for and consumption of electricity. However, others believe that it has not
caused an increase but a decrease in demand, causing savings in electricity, less energy
consumption and preventing energy losses. Because of new technologies and intelligent
electronic devices, energy management can be more effective, sending electricity only
where it is needed.
Algorithms 2023, 16, 211 17 of 22

Digital technologies have also changed the process and speed of work, which, as a
result, reduces the demand for and consumption of electricity. According to the existing
definitions, “digital transformation” is a process that affects the business process, society,
lifestyle, business strategy and culture, and most aspects of life. As a result, it may have a
different effect than digitalization which only focused on automation.
The digital transformation process began decades ago, has altered multiple sectors,
and is continuously accelerating. Energy, transportation, construction, health, education,
government, and public administration are some sectors that have witnessed massive
changes due to digitalization, and more radical transformations are expected in the future.
Hence, the world population is expected to move increasingly from rural to urban areas due
to this transformation. Consequently, the number of smart cities will increase to provide
their growing population with the required utilities, including power. Therefore, there will
be a growing need to adopt smart energy systems.
Numerous digital applications have been embraced in the energy sector, and many
others are expected in the future. These technologies will make global energy systems
intelligent, efficient, trustworthy, and sustainable in the coming decades. Big Data, analyt-
ics, and networking breakthroughs enable many new digital applications, such as smart
appliances, shared mobility, and 3D printing. Future intelligent energy systems will identify
who requires energy and deliver it at the appropriate time, place, and cost. However, it will
not be easy to carry this out properly [67].
Various emerging technologies, including AI, blockchain, ML, and cloud computing,
are extensively employed in various sectors, including the energy industry. Numerous
studies suggest that blockchain technology can facilitate decentralized energy markets
while also presenting numerous benefits, such as enabling direct peer-to-peer markets and
the economically viable integration of small-scale generation and consumption units. It
can also enhance transparency and consumer trust, and open up new business models for
suppliers, provided that regulatory and technological obstacles are overcome. Furthermore,
AI and ML can substantially improve energy security, accuracy in demand, generation, and
price forecasting, and consequently, support the implementation of smart grids and the
integration of more renewable energy [51,68].
Weigel and Fischedic [51] conducted a literature review, providing a comprehensive
overview of potential digital applications, expected benefits, and stakeholders impacted by
digitalization in the energy sector. They categorized the impact of digital applications into
three categories: “customer orientation”, “system balance”, and “process optimization”,
each comprising various individual digital applications. Based on their findings, digital-
ization has primarily improved system stability through better balancing of generation,
consumption, and grid capacity, and enhanced environmental protection by integrating
more renewable energy. Additionally, digitalization has led to reduced energy demand
through energy efficiency applications and reduced losses, cost savings due to more effi-
cient and effective processes, increased revenue through new business models, products,
and services, and higher customer satisfaction. The literature review revealed that cost
reduction was the main benefit of digitalization in the energy sector, indicating that most
digital applications, even those not primarily focused on cost reduction, have the potential
to reduce costs [69].
In the energy sector, anomaly detection and prediction, smart grids, smart markets,
and smart homes have been found to be the most important digital innovations. Digital
applications have a wide range of effects on the energy value chain, including on the
sale, environment, society, and the national economy. However, the main stakeholder that
benefits greatly from digitalization is the grid, which can take advantage of monitoring,
control, and communication technologies. Consumers are also significantly impacted, as
their role has changed from passive to active customers who can now offer generation and
flexible demand capacity to other participants or the market [69,70].
Algorithms 2023, 16, 211 18 of 22

Digital transformation has also affected the efficiency, sustainability, and resilience
of power systems. The efficiency has been enhanced by improving operational processes,
reducing costs, and increasing productivity. The use of digital technologies such as sensors,
analytics, and automation, enables power companies to optimize their operations, reduce
downtime, and improve maintenance schedules. They also facilitate monitoring and
analysis of data in real time, allowing their users to make informed decisions quickly and
efficiently.
Recently, the power industry has undergone significant changes with a growing focus
on sustainability and reduction of carbon emissions. Digital transformation has played
a significant role in enabling the industry to achieve these goals. For instance, the use
of renewable energy sources, such as wind and solar power, has increased significantly.
Additionally, digital technologies have allowed power companies to manage these sources
better, mitigating their intermittency and optimizing their output. Digital technologies have
also enabled power companies to implement smart grids, enabling efficient and sustainable
distribution of energy. The power industry is critical to the functioning of modern society,
and disruptions in the industry can have severe consequences.
The digital transformation has significantly enhanced the resilience of the power in-
dustry by improving its ability to rapidly respond to disruptions. For example, digital
technologies have provided power companies with capacity to better monitor their infras-
tructure, identify potential problems before they occur, and quickly respond to outages
or other disruptions. They have also provided power companies with new tools for inte-
grating distributed energy sources, reducing the impact of associated disruptions on the
overall energy supply [71,72].
Finally, the future of digital transformation in the power sector is expected to be
revolutionary due to ongoing technological advancements and a growing integration of
renewable energy sources. Moreover, the power sector faces problems such as climate
change, energy security, changing customer expectations, and increasing pressure to cut
carbon emissions and improve efficiency. Hence, digital transformation will be vital to
tackling these problems and driving growth, as it will help the power sector deal with
these problems and meet changing customer expectations. Based on our discussions in
previous sections, a list of potential developments in the future of digital transformation in
the power sector is expected, which are as follows.
• Artificial intelligence and machine learning: The use of AI and machine learning
is expected to increase in the power industry, enabling power companies to better
forecast demand, optimize power generation and distribution, and enhance system
performance.
• Blockchain-based systems: Blockchain technology has the potential to revolutionize
the power industry by facilitating peer-to-peer transactions, improving energy trading,
and enabling greater energy market transparency and efficiency.
• Advanced analytics: Due to the application of new technologies, the power industry
is generating vast amounts of data, and advanced analytics tools will enable power
companies to make better use of their data to optimize operations, improve reliability,
and reduce costs.
• Internet of Things (IoT): The IoT enables the deployment of smart grids and connected
devices, which will provide power companies with real-time information on energy
consumption and enable them to manage their operations more effectively.
• Cloud computing: Cloud computing enables power companies to store and analyze
large amounts of data more efficiently and is expected to become more prevalent
in the power industry. Hence, power companies can optimize power generation,
transmission, and distribution, and improve the customer experience.
• Smart homes and buildings: The integration of smart homes and building technologies
enables customers to manage their energy usage more effectively and participate in
demand response programs and this will become increasingly important.
Algorithms 2023, 16, 211 19 of 22

• Decentralized energy systems: The growth of decentralized energy systems, such as

microgrids and distributed energy resources, will require new digital technologies to
manage and integrate these systems with the larger power grid.
• Electrification: The electrification of transportation, heating systems, and other fa-
cilities will create new opportunities and challenges for the power sector, as power
companies seek to manage increased demand and optimize the use of renewable
energy sources.
• Cybersecurity and data privacy: As the application of digital technologies is increas-
ing in the power industry, cybersecurity, and data privacy will become increasingly
important. Power companies will need to invest in robust cybersecurity and data
privacy systems to protect their networks and customer data.
• The continued growth of renewable energy: New digital technologies are required to
manage the variability and intermittency of renewable energy sources such as wind
and solar and integrate them with traditional power generation sources.
• Policy and regulation: The development of policies and regulations that support
digital transformation will be critical to enabling the power industry to realize the full
potential of these technologies.
The future of digital transformation in the power industry will likely be shaped
by a combination of technological innovation and policy and regulatory developments,
focusing on addressing key sustainability, reliability, and customer engagement challenges.
By addressing these challenges, the energy sector can drive growth and build a more
sustainable and equitable energy system for the future. However, it will face challenges in
cybersecurity, data privacy, and the digital divide. Ensuring the security of digital systems
and data and addressing concerns related to data privacy will be critical to building
trust and confidence in adopting new digital technologies. Additionally, the successful
adoption of digital technologies in the power industry will require collaboration and
coordination among stakeholders, as well as ongoing investment in infrastructure and
talent development.

Author Contributions: Conceptualization, Z.N. and P.M.; methodology, Z.N. and P.M.; investigation,
Z.N.; resources, P.M.; writing—original draft preparation, Z.N.; writing—review and editing, P.M.;
supervision, P.M.; funding acquisition, P.M. All authors have read and agreed to the published
version of the manuscript.
Funding: The research reported in this article has been supported by the Government of Alberta un-
der the Major Innovation Fund project RCP-19-001-MIF, and by the Natural Sciences and Engineering
Research Council of Canada under the Discovery Grant program RGPIN-2017-05866.
Data Availability Statement: Not applicable.
Conflicts of Interest: The authors declare no conflict of interest.

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