Digital Transformation of the Energy Sector: The Business Model of “Energy as a Service”

Archil Grigalashvili

Associate Professor, Georgian Technical University

a.grigalashvili@gtu.ge

 

Archil Samadashvili

Professor,  Georgian Technical University

a.samadashvili@gtu.ge

 

Ketevan Iluridze

Assistant, Georgian Technical University

ke.iluridze@gtu.ge

 

Abstract

 

The energy sector is facing significant challenges: population growth, the expansion of industrial production, and climate change require more flexible, efficient, and sustainable energy supply systems. The traditional model, based on centralized generation, is no longer sufficient to meet modern demands.

In this context, big data has become the main driving force of energy transformation. Its five “V” (Volume, Velocity, Variety, Veracity, and Value) define the importance of data, while the four types of analytics (descriptive, diagnostic, predictive, and prescriptive) create a complete decision-making cycle. The proper use of big data enables the optimization of energy consumption, reduction of costs, introduction of dynamic tariffs, and creation of added value for consumers.

At the core of the modern transformation of the energy sector lies the “Energy as a Service” (EaaS) model. It no longer treats energy merely as a product but as a service that includes consumption analysis, savings strategies, integration of renewable sources, and automated management. Its key features are flexible tariffs, personalized services, and guarantees of energy efficiency.

Digital transformation is based on the Internet of Things (IoT), smart meters, artificial intelligence, and blockchain. Artificial intelligence and machine learning provide accurate demand forecasting, grid optimization, and prevention of failures, while blockchain enhances transparency and trust.

For Georgia and the South Caucasus, this model has particular importance: hydropower resources, the potential for microgrids, and experience with blockchain create a foundation for introducing innovative energy services in the region.

Big data and the “Energy as a Service” model are transforming the energy sector both technologically and strategically. The future belongs to data-driven services, where energy is not only a resource but also an integrated service that enhances economic efficiency, consumer engagement, and environmental sustainability

Keywords: Big Data, Energy as a Service, Digital Transformation, Artificial Intelligence, Renewable Energy

JEL:  Q40; C55; L94

DOI: 10.52244/c2025.24

The article is in Georgian.

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