SECTORAL TRENDS OF DIGITALIZATION OF THE GLOBAL ENERGY SECTOR

  • Tetiana Dombrovska Kyiv National Economic University named after Vadym Hetman
Keywords: energy, green energy, energy companies, business models, digitalization

Abstract

Since the 1970s, the main driving forces of the system processes of digitization of the global energy sector have been dynamic scientific and technical progress and the emergence of innovative types of equipment and technologies that require the implementation of digital solutions at the level of all links of the global value chains formed in the energy sector. In today's conditions of aggravation of environmental and climate problems of humanity, the social importance of digitization of the energy sector is growing significantly in connection with the significant complication of its functioning and the decrease in the level of resistance to the action of internal and external destabilizing factors. Global trends of technological and digital transformation of the world energy sector have a powerful influence on its structuring in accordance with the leading trends of world economic development. This actualizes the issue of maximum adaptation of the activities of energy companies to the digital environment based on the improvement of current business models and systematic restructuring of current business processes in the context of increasing the competitive positions of firms in the global market and creating new value for consumers. Under such conditions, there is an active transition of energy companies from the model of extensive growth of their own business based on the diversification of the geographic structure of sales of energy products and increasing revenues to a qualitatively new business model based on offering new value to consumers. At the same time, the trend of transformational changes in energy companies from the traditionally organized, vertically integrated and hierarchically managed large corporations prevailing in the pre-digital era to network formats of business activity organization with territorially distributed energy capacities and a significant number of small-sized local producers of energy products is becoming more and more crystallized. The natural result of this kind of changes is a significant increase in the efficiency of power system management based on the processing of large arrays of information data, the widespread use of artificial intelligence technologies, digital doubles, cloud computing, etc.

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Published
2023-04-25
How to Cite
Dombrovska, T. (2023). SECTORAL TRENDS OF DIGITALIZATION OF THE GLOBAL ENERGY SECTOR. Economy and Society, (50). https://doi.org/10.32782/2524-0072/2023-50-22
Section
INTERNATIONAL ECONOMIC RELATIONS