What is the Fourth Industrial Revolution?
The Fourth Industrial Revolution is a concept coined by Klaus Schwab, the founder and executive chairman of the World Economic Forum, to describe the current period of technological change. 4IR is different from previous industrial revolutions due to the speed, scope, and systemic impact of the innovation taking place. It is not just about isolated technological advances, but about the interconnection and fusion of these technologies, which blur the lines between the physical, digital, and biological realms.
This revolution is driving never-before-seen levels of efficiency and productivity and posing significant challenges in terms of inequality, employment, and ethics. In the energy sector, for example, 4IR is facilitating the transition to renewable energy sources and the creation of smarter and more resilient electricity grids. According to the International Energy Agency, renewable energies accounted for 80% of new global power generation capacity in 2023, a clear indication of the paradigm shift that is partly driven by these advanced technologies.
Key technologies in the Fourth Industrial Revolution
4IR is based on a group of disruptive technologies that are maturing and converging at an accelerated pace:
The Internet of Things
The Internet of Things (IoT) refers to the network of physical objects equipped with sensors, software, and other technologies that allow them to connect and exchange data with other devices and systems through the Internet. In the energy sector, IoT plays an essential role in smart energy management, enabling real-time monitoring of consumption, optimization of distribution, and predictive infrastructure maintenance. It is estimated that by 2025, there will be more than 27 billion connected IoT devices worldwide, a figure that demonstrates the omnipresence and transformative potential of this technology.
Artificial intelligence
Artificial intelligence (AI) encompasses systems capable of performing tasks that normally require human intelligence such as learning, decision-making, and pattern recognition. In the context of sustainability and energy, AI optimizes the operation of renewable energy plants, predicts energy demand, manages smart grids, and develops new materials for batteries and solar panels. A PwC report estimates that AI could contribute up to $15.7 trillion to the global economy by 2030, mostly due to improvements in productivity and efficiency.
Advanced robotics
Advanced robotics refers to robots with enhanced perception, cognition, and manipulation capabilities that can operate autonomously or in collaboration with humans in complex environments. In the energy sector, robots are used for inspecting and performing maintenance on critical infrastructure (such as wind farms or high-voltage power lines), building energy facilities, and managing waste. The International Federation of Robotics (IFR) reported that sales of industrial robots reached a record high in 2022 with 553,052 installed units globally, which shows that adoption is increasing in various industries.
Big data and data analysis
Big data refers to data sets that are too large and complex for traditional data processing methods. Big data analysis involves extracting patterns, trends, and associations, especially those related to human behavior and interactions. In the field of sustainability, big data allows us to gain a better understanding of climate patterns, optimize the use of resources, predict natural disasters, and design more efficient cities. The ability to analyze large volumes of data is crucial for informed decision-making in the energy transition.
Blockchain
Blockchain is a distributed ledger technology that makes it possible to keep an immutable and transparent record of transactions. Although it is best known for its use in cryptocurrencies, its potential goes much further. In the energy sector, blockchain can facilitate peer-to-peer energy trading, the management of renewable energy certificates, supply chain traceability, and the creation of decentralized energy markets. This can increase transparency and efficiency, reducing transaction costs.