Internet of Things (IoT) adoption challenges in renewable energy: A case study from a developing economy

Abstract

Digitalization of Renewable Energy (RE) systems will play a decisive role in integrating clean energy sources and optimizing energy use. While energy digitalization is mainly governed by technological progress, the societal acceptance of such emerging technologies is essential for a successful energy transition. This study aims to identify critical challenges to IoT-enabled renewable energy use through the lens of the consumers. It attempts to analyze the challenges to implementing IoT effectively in emerging economies like India. The present study employs Exploratory Factor Analysis (EFA) to classify 16 critical challenges into five main dimensions, using the responses obtained from 95 participants. Subsequently, the fuzzy decision-making trial and evaluation laboratory (DEMATEL) prioritizes the identified challenges and organizes them into cause-and-effect groups based on their interactions. The findings indicate that technological challenges constitute the most critical cause barrier that affects other category barriers. Besides technology, challenges reflecting the social infrastructure have emerged prominently in this study. Thereafter, the analysis suggests that modifications to the structure, procedures, and technology are required to create capabilities and enhance the compatibility of IoT with RE applications. Further, proactive governance and reorienting market design are highlighted to foster emerging technologies and develop a robust regulatory framework. The insights from this study are pertinent for policymakers, regulatory bodies, and practitioners seeking to capitalize on the immense potential of this sector and expedite energy transactivity.