A climate-neutral energy system requires not only the expansion of renewable energy sources but also the right digital technologies. Hannes Bluhm of the Institute for Ecological Economy Research (IÖW) examined the environmental impacts of digitalization in the energy sector in his successfully completed dissertation, “Assessing the Environmental Effects of Energy Sector Digitalization – Evidence from Small-Scale Energy Flexibilities.”
His research focuses on the flexible operation of household energy technologies, particularly photovoltaic (PV) systems with battery storage, heat pumps, and electric vehicles. The key finding: digital infrastructures are an important building block for organizing a renewable, flexible, and climate-neutral energy system. While digital control and flexibility can contribute to climate protection, they also create additional environmental impacts. As a result, a digitalized energy system is not automatically sustainable.
The cumulative dissertation was developed within the junior research group SteuerBoard Energie, funded by the Federal Ministry of Research, Technology and Space (BMFTR).
More Digitalization Does Not Automatically Mean Environmental Sustainability
Until now, a comprehensive approach for systematically capturing both the positive and negative environmental effects of digitalization in the energy sector has been lacking. Together with the co-authors of the individual scientific publications, Hannes Bluhm developed a taxonomy to describe the environmental impacts of energy sector digitalization at different levels.
He also conducted a workshop with life cycle assessment (LCA) experts, carried out interviews and surveys, and combined life cycle assessments with complex energy system models for various use cases.
The results show that digitalization does not automatically lead to greater sustainability. On the one hand, it can reduce greenhouse gas emissions by enabling better integration of renewable energy and shifting flexible electricity consumption to periods of high renewable generation. On the other hand, additional environmental burdens arise from the use of mineral resources and from environmental impacts along global supply chains during the production, operation, and disposal of digital technologies. Furthermore, digitalization may contribute to more intensive use of heat pumps and battery storage systems, creating additional environmental effects.
“Digitalized and flexible energy technologies, such as a smartly controlled PV system that stores surplus energy during periods of high generation, make an important but not sufficient contribution to achieving the energy sector’s climate targets by 2030. Nevertheless, digitalization is a key building block for organizing a renewable and increasingly complex energy system, provided it is implemented in the right way,” summarizes Hannes Bluhm as one of the central conclusions of his work.
Digitalized Electric Vehicles, Heat Pumps, and PV Battery Storage Systems Can Reduce Emissions
According to Bluhm’s calculations, flexibly controlled electric vehicles and heat pumps offer the greatest potential for climate protection. The effects of PV battery storage systems, however, depend more strongly on the specific application scenario. The findings therefore highlight the need to consider both the environmental opportunities and risks of digitalization together.
Based on his research, Hannes Bluhm derives options for next steps for the German federal government and businesses. These include measures for the sustainable design of digital infrastructure, the further development of smart electricity tariffs, and stronger consideration of environmental aspects in funding programs for household energy technologies.
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