Journal of Computational Design and Engineering, 2022, 9, 1789–1816

DOI: 10.1093/jcde/qwac087
Advance access publication date: 7 September 2022
Review article

Towards an Internet of Energy for smart and distributed

generation: applications, strategies, and challenges
Qifeng Gu1 and Qiang Qu2,3, *
1
School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing 100876, China
2
Shenzhen Institute of Advanced Technology, Chinese Academy of Sciences, Shenzhen 518055, China
3
Huawei Cloud Computing Tech Co. Ltd., Shenzhen 518129, China
∗
Corresponding author: E-mail: qiang@siat.ac.cn

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Abstract
The global demands for clean and sustainable energy are rapidly increasing because of population and economic growth. The future
of energy essentially requires novel thinking and new systems to transform energy generation, distribution, and consumption. The
Internet of Energy (IoE), as a new concept, transforms the way of energy production, supply, and consumption to fulfill high-energy
demands via a smart network of industrial energy producers and consumers. The main objective of this paper is to address how the
Internet of Things (IoT) would meet the requirements of smart and distributed power generation. We did a comprehensive litera-
ture review to provide insights into the IoE applications and enlighten the current challenges. Furthermore, the paper provides deep
insights into the existing research challenges to address the current limitations of the IoE security issues, and potential directions
are also pointed for future work. The findings of this study include identifying the requirements and enabler factors influencing the
IoT-based distributed generation that would be useful for policymakers and decision-makers in the field.

Keywords: renewable energy, Internet of Energy, distributed generation, smart grids, Internet of Things

1. Introduction address the issue of energy in different ways, replacing fossil fuel
energies with renewable energies, which are produced in a con-
Nowadays, the digitalization of various business aspects is hap-
ventional manner or distributed generation (DG). Renewable ener-
pening to benefit from the full potential of digital technology, and
gies have been significantly welcomed as they can control the en-
it has made massive changes around the world (Fusko et al., 2018).
ergy supply and demand and reduce the emissions of hazardous
These changes are progressing exponentially, and they are accom-
air pollutants (Gielen et al., 2019; Qazi et al., 2019; Khan et al., 2021).
panied by technologies and trends such as the Internet of Things
DG is electricity generation at or near where it would be used.
(IoT; Attaran, 2017), robotics, artificial intelligence (AI; Webster &
It is typically developed based on renewable energy sources (El-
Ivanov, 2020), and virtual reality (Greengard, 2019), all together al-
mubarak & Ali, 2016; Quintero-Molina et al., 2017). What is usu-
tering human lifestyle and the businesses. Along with its tremen-
ally agreed upon is that the generators, regardless of generation
dous positive results, this transformation has brought influences
methods, are relatively small, grid-connected, and their capacity
as well that can impact many production and consumption pat-
is < 300 MW. Small-scale distributed generators faded away when
terns (Martin & Leurent, 2017; Pflaum & Gölzer, 2018). The energy
big power plants were established for electricity production. Nev-
industry is one of the most essential industries affected by tech-
ertheless, these generators have been reintroduced again to this
nological advances. Energy consumption is increasing, so we will
industry with the advancement of electricity generation technolo-
soon face limitations in the field of production. Hence, advanced
gies on a small scale and restructuring in the electric power in-
technologies have come to the aid of humanity to solve some of
dustry and environmental impacts. What makes the world more
the problems.
interested in DG, on the one hand, are the problems such as en-
Energy is one of the essential resources affected by recent
vironmental issues, fuel supply difficulties, low efficiency of big
events and challenges facing increasing demands worldwide
power plants, costly installation, and exploitation of distribution
(Shen & Sun, 2016; Lee & Huh, 2017). The recent International En-
and transmission grid (Abdmouleh et al., 2017). On the other hand,
ergy Agency outlook projects that by 2035 the electricity demand
this method has advantages such as grid reliability, reducing volt-
will increase more than two-third worldwide. With the increasing
age drop, decentralization, and the possibility of smartening the
number of consumers in the sectors such as household, industry,
grid (Singh & Sharma, 2017; Vita, 2017; Şeker et al., 2018). DG, with
and agriculture, the energy demand has also grown in the past
its scattered nature at the consumption site, would have created
decades. Hence, to provide energy for these sectors while enhanc-
issues. That is the management and monitoring of the elements,
ing efficiency and cutting costs need to be considered, resources
including production, consumption, distribution, produced elec-
should also be exploited without damaging the unity, beauty, and
tricity sale, generator maintenance planning, etc. Therefore, this
stability of ecosystems. In recent years, excessive demand growth
network requires a phenomenon to help it with management
in different sectors and the energy crisis have made the countries

Received: April 18, 2022. Revised: August 5, 2022. Accepted: August 8, 2022

C The Author(s) 2022. Published by Oxford University Press on behalf of the Society for Computational Design and Engineering. This is an Open Access article

distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/), which permits unrestricted reuse,
distribution, and reproduction in any medium, provided the original work is properly cited.
1790 | Journal of Computational Design and Engineering, 2022, Vol. 9, No. 5
and monitoring. However, one of the existing challenges is how
to manage energy networks composed of the producer, the con-
sumer, distribution, and transmission by leveraging IoT technolo-
gies that are rapidly becoming prevalent (Picioroaga et al., 2020;
Talat et al., 2020).
Today, the Internet plays an essential role in many aspects of
society. One of these aspects that have expanded unprecedentedly
is the IoT with the development of modern wireless communica-
tion. IoT is a network that share data and information. Commu-
nication among objects, systems, and humans can be done au-
tomatically between one or more entities. This technology has
also entered the field of energy, bringing about sustainable and
clean development. The combination of IoT and energy has made
the concept of the smart grid (SG) or the Internet of Energy (IoE).
As a popular technology, the IoE has appeared to integrate differ-
ent forms of energy. The IoE uses the Internet to collect, organize,
optimize, and manage energy networks. To develop a smart dis-
tributed energy infrastructure, the information of energy uses var-
ious edge devices (Madakam et al., 2015; Zikria et al., 2019; Mollah
et al., 2020; Rathor & Saxena, 2020). This research aims to discuss
different aspects of distributed electricity generation and provide
insight into the advantages of IoT applications in SGs. By care-
fully considering the latest literature in the field, we present a
framework of understanding at different levels, such as the the-
ory and concept of the IoE, the domain of applicability, and chal-
lenges. This study’s main objective is to discuss energy produc-
tion methods as a decentralized and DG system. Currently, most
of the energy production in the world is based on centralized sys-
tems. However, DG becomes more efficient by taking advantage of
emerging technologies such as the IoT and blockchain technology
(Lange et al., 2020).
Due to the close relationship between the energy industry and
emerging technologies such as the IoT, AI, and digital twins, and
their integration with DG, distributed storage, and load manage-
ment, the energy generation and consumption methods have un-
dergone significant changes. Therefore, with smart energy gener-
ation and storage approaches, the energy chain will be provided
with more efficiency in the near future. This review specifically in-
troduces different centralized and distributed energy generation
methods and compares them. In addition, it evaluates the role of
IoT-based DG systems in carrying out the functions required in
the IoE. The main contributions of this research are presented as
follows:
(i) A comprehensive overview of the IoT and its protocols in
DG is discussed.
(ii) A wide range of evaluation criteria is identified to evalu-
ate the pros and cons of DG compared to the centralized
generation.
(iii) An extensive view of the existing research challenges and
the future directions of the IoE is presented.
(iv) Different case studies of the IoE solutions in SG projects are
presented.
As discussed, electricity is considered a global development
factor that is intensively addressed by generating electricity from
renewable energy sources. Studying different energy sources in
energy production has motivated us to look for a reliable, cre-
ative, cost-effective, and forward-looking energy source, as sum-
marized in Table 1. Our primary motivation is to discuss the re-
quirements of the energy grid by using the perceived shortage
in distributed energy sources (DERs), small-scale power genera-
tion, and storage technologies to replace and improve the tradi-
tional power system and eventually make a SG empowered by
the IoT.
It is worth mentioning that several studies addressed dis-
tributed power generation, SGs, and also the combination of these
two fields. Mahmud et al. (2020) presented some solutions for inte-
grating small-scale generators and the IoE. They discussed the IoE
structure and compared this network with the traditional power
generations. In addition, they provided ideas about the control,
management, and optimization strategies for energy consump-
tion and energy generation. Also, different approaches in response
to the consumers’ demand are expressed. Another review paper
(Diahovchenko et al., 2020) states that the future of electric power
systems should be reliable and affordable. In order to achieve
this goal, power generation, distribution, and control should be
made smart by the IoT and AI. This paper focuses on DG, mi-
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crogrids, installing smart meters, and distributed energy storage
technologies. Finally, a comparison between the traditional and
SGs is made. However, this paper pays primary attention to the
empty capacities of current energy production systems, and nu-
merous limitations in developing the national power networks are
discussed. Next, IoT-based distributed generators are presented as
a solution to these limitations. This review will introduce DG sys-
tems’ economic and non-economic dimensions and a hierarchical
power generation evaluation criteria framework. We discuss that
creating a SG with DG would be an excellent opportunity to move
the energy industry into a new era of reliability, availability, and
efficiency that will contribute to a sustainable environment.
As shown in Table 1, an extensive attempt has been made to
introduce DG and its applications and technologies in this review.
Consequently, we have discussed different dimensions of central-
ized and DG methods. Afterward, the IoT layers, standards, and
protocols are presented, and specifically, we presented the IoE
framework and some case studies of DG.
The rest of the paper is structured as follows. Section 2 pro-
vides the research methodology and bibliometric analysis. Section
3 presents the fundamental background, including distributed
electricity generation and a comparison between distributed and
centralized generations. The elements of DG generators for power
supply are stated in Sections 4 and 5, which discuss the definition
of the IoT, its capabilities, and its applications. The smart power
grid and IoE are explained in Section 6, and then we discussed
some current case studies of IoE systems in Section 7. Finally, the
security, social, and managerial challenges of these systems and
their possible challenges are discussed in Section 8. Section 9 con-
cludes the study and presents future work directions.
2. Methodology
The research methodology of this study is to identify literature
related to the “IoE” including a systematic literature review in the
state-of-the-art published journal and conference papers. Hence,
we first selected the most well-known academic datasets, in-
cluding Web of Science and Scopus, to search and extract the
paper and construct the desired database. In consultation with
academic experts, a wide range of search terms, including “dis-
tributed generation”, “smart grid”, “Internet of Things”, “Internet
of Energy”, etc., has been identified for the search purpose. We
search these keywords in each paper’s title, abstract, and key-
words. In addition, we utilized synonyms and alternative terms by
adding AND/OR Boolean expressions to find more related studies,
as presented in Table 2.
Figure 1 presents three steps of this research to do a systematic
literature review.
 Journal of Computational Design and Engineering | 1791

Table 1: Classification of some of the selected literature summaries.

No. Subcategory Year Authors Objective

1 Consumption 2015
2 2018
3 2019
4 2019
5 2020
6 2019
Martinez, et al. Presenting a comprehensive model for the power consumption of
wireless sensor nodes.
Vannieuwenborg, et al. This paper aims to guide IoT developers in choosing the right
connectivity network based on the functional requirements of the IoT
application.
Shahinzadeh, et al. Developing a modern communicational platform for connecting
devices in SGs.
Luechaphonthara, et al. Bridging the gap between the physical and cyber world by IoT.
Tightiz and Yang Investigate the SG’s communication and introduce all IoT protocols
and their specifications.
Lenka, et al. Providing a framework by paying attention to the IoT and fog
computing due to the low cost of building them by optimized sensors.

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7 2019 Saari, et al. Energy-saving and environmentally sustainable solutions by IoT.
8 Distribution 2019 Al-Turjman and Abujubbeh Overviewing the use cases of IoT that enabled SG.
9 2018 Li, et al. Providing a strategic solution for enhancing the cyber security of the
power distribution system.
10 2019 Devadhanishini, et al. Smart power meter with IoT provides data for optimization and
reduces power consumption.
11 2019 Yue, et al. Survey the literature is the IoT devices and distributed energy
resources in the power network.
12 2021 Siddique, et al. Discuss the potential aspects of renewable energy resources in
Bangladesh and facilitate IoT.
13 Generation 2020 Hossein Motlagh, et al. Impact IoT for improving energy efficiency, increasing the share of
renewable energy, and reducing environmental impacts of energy
usage.
14 2018 Abdulkadir, et al. Optimization and metering technologies with IoT.
15 2015 Abbas and Yoon Energy-saving based on several criteria.

Table 2: Search terms list.

Row Keywords # Papers

1 “Energy Generation” AND “Distributed Generation” 620

2 “Energy Generation” AND “Distributed Generation” AND “Internet of Thing” 75
3 “Energy Generation” AND “Internet of Thing” AND “Smart City” 41
4 “Energy Generation” AND “Smart Grid” 49
5 “Energy Generation” AND “Security Energy” AND “IoT Protocols” 32
6 “Energy Generation” AND “Smart Grid” AND “IoE Layers” 56

Figure 1: Our research systematic literature review (Tranfield et al., 2003) process.
1792 | Journal of Computational Design and Engineering, 2022, Vol. 9, No. 5
Figure 2: The co-occurrence of frequent keywords in DG field.
According to Fig. 1, 620 papers were extracted based on the
identified search terms and keywords in the beginning. By further
analysis of their quality and relevance to the IoE and SG domain,
253 papers were selected which 57 papers are open access. Finally,
a comprehensive review of technologies and applications of the
IoE is presented based on a critical evaluation of collected papers.
To analyze the results and visualize them, we utilized VOSviewer
software, a powerful tool for drawing bibliographic maps of ex-
tracted keywords. In this study, the most frequent keywords and
the connections are presented in Fig. 2. The different colors in this
map indicate different clusters due to the co-occurrence of fre-
quent keywords, of which five clusters are shown. The circle size
shows the frequency of each search term, so the bigger ones are
the most frequent keywords. As shown in Fig. 2, keywords such as
IoT, smart city, security, and protocols are the most frequent, and
279 keywords are used to draw this map.
Furthermore, the collaboration network is constructed based
on 253 selected papers, as shown in Fig. 3. Here, the vertices in-
dicate counties, and edges are the connections from the collabo-
rated authors. This way, we could see the most collaborative re-
searchers in DG, which is illustrated by the size of the circles. From
Fig. 3, it can be concluded that India, the USA, China, and the UK
are the countries with the most conducted research in this field.
In the following, the collaboration network is constructed
based on the selected literature, as shown in Fig. 4. Here, the uni-
versities and institutions with the most cooperation are demon-
strated. In this way, it has been shown that the most significant
contribution of institutions and universities in the SG productions
is shown with the size of the circles. Figure 4 shows that the Uni-
versity of New South Wales (UNSW Sydney) from Australia, Nan-
jing University of Posts and Telecommunications from China, the
Federal University of Piauí from Brazil, and King Saud University
from Saudi Arabia have the most cooperation in the field. In ad-
dition, Shanghai Jiao University plays a centrality role in this net-
work.
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3. Distributed Generation
3.1. DG properties
DG uses facilities and equipment (smaller than those of central-
ized power plants) in the form of small-scale generators at or near
where they will be used. Small-scale distributed generators faded
when big power plants were established for electricity produc-
tion. Nevertheless, with the advancement of electricity generation
technologies on a small scale, restructuring in the electric power
industry, and negative environmental impacts, these generators
have been reintroduced again to this industry (Chanda & Bose,
2020; Hossein Motlagh et al., 2020).
This technology can be effective in reducing greenhouse gas
emissions as well. DG generally means producing effective and
efficient electricity at the consumption site using technologies
with relatively small power and having a capacity between 50 KW
and 50 MW that is connected directly to the distribution network
(Zhang et al., 2017; Abdulkadir & Al-Turjman, 2021).
According to IEEE, DG is the production of electricity through
sufficiently smaller facilities than central power plants and can
establish connections at any point (Lede et al., 2017). DG is
also defined as production units with 30 MW or less capacity.
These units are located at shared sites or near them to meet
specific customer needs and support the distribution network’s
economic performance. These power plants provide more flexi-
ble, reliable, and secure energy for the customers and improve
the power grid voltage stability (Khan et al., 2019; Yue et al.,
2019).
Increasing transmission and distribution costs enables dis-
tributed generators to provide cheaper electricity for consumers
and access to clean sources. It has benefits such as creating a com-
petitive atmosphere in electricity production and sale, short con-
struction period, quick response to rising demand, etc. The follow-
ing are the reasons for countries’ tendency towards distributed
power generation (Delboni et al., 2019):

Figure 3: Research collaborations among countries in DG field.
Figure 4: Research collaborations among universities and institutions.
(i) Uninterrupted power generation: One of the essential ben-
efits of DG technologies, including solar cells, Hydrogen-
based fuel cells, and wind turbines (WTs), is uninterrupted
and continuous power generation for specific consumers.
These consumers are hospitals, laboratories, and even ho-
tels for which the power cut issue is very grave (Ahmad et
al., 2017; Suraya et al., 2018).
(ii) Produced energy quality: DG improves the quality of pro-
duced energy and increases reliability. In energy quality, the
issue of the environmental impact index, greenhouse gases
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(GHGs), would be resolved using DG (Al-Sefri & Al-Shaalan,
2019).
(iii) Reliability: Providing reliable energy would be introduced
as the most critical future index in the electricity market
for distributed generators. Since these generators do not
use the transmission grids, they are safe from the acci-
dents in this grid that cause power cuts. When these units
are connected directly to the subscribers, the distribution
network could provide electricity in a distributed manner
(Ehsan & Yang, 2018).
1794 | Journal of Computational Design and Engineering, 2022, Vol. 9, No. 5
Figure 5: DG network.
(iv) Combined heat and power (CHP): On-site CHP units have
several advantages, including preventing heat loss, and
also residential users can meet their electricity needs.
Through CHP units, they can produce surplus power for
sale (Olympios et al., 2020).
(v) Peak shaving: Most DG electricity production during peak
hours reduces grid load, benefiting DG consumers and
those who do not use DG. Voltage drop is eliminated be-
cause of photovoltaic (PV) electricity at peak hours (Elta-
maly et al., 2019).
(vi) Environmental issues: Excessive energy consumption and
excessive use of conventional energy resources such as
oil and coal threaten our world in different aspects: tech-
nically, economically, and environmentally, insecurity fac-
tors, energy resources waste, high prices, and environmen-
tal damages (Khan et al., 2022c). However, one of the advan-
tages of DG is providing high efficiency in electricity pro-
duction while observing environmental issues. Distributed
technologies would significantly reduce GHG emissions by
utilizing renewable energy systems (Tran & Smith, 2018;
Sharma et al., 2021). We simplify the DG in Fig. 5.
3.2. DG vs. centralized generation
The traditional way of producing electricity versus the distributed
method can be studied with two economic and non-economic
criteria. They are classified as economic factors, including the
ability of financial resources production and reproduction, and
non-economic, including the existing technical and environmen-
tal resources and limitations (Ehsan & Yang, 2018) as presented in
Fig. 6. This framework can be considered as a hierarchical evalua-
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tion model for decision-making and prioritizing power generation
methods.
3.2.1. Environmental factor
To study environmental factors, we define two subcriteria: envi-
ronmental pollution and access to the electricity sale market.
(i) Environmental pollution: The central power plant and gen-
erator pollution impacts in connection with the environ-
ment are air pollution, water and soil pollution (through
polluted waste and leakage), noise and vibration pollution,
and damage to the environmental landscape.
(ii) Access to the sales market: This factor decides the location
of electricity generators consisting of big power plants and
distributed generators relative to the consumption load and
consumption place to prevent immense costs of transmis-
sion and power losses (Damsgaard et al., 2015; Vannieuwen-
borg et al., 2018).
3.2.2. Economic factors
The decision about generators and nationwide grid according to
the economic-related criteria is called an economic factor, which
is dividable into two subdivisions of cost and income as explained
in the following (Manteghi & Jahromi, 2012; Adefarati & Bansal,
2016):
(i) Cost: Power production costs depend on various parame-
ters such as equipment, installation, operation, exploita-
tion, fuel, and so on (Ali, 2020). These annual costs can be
divided into fixed and variable costs. Fixed costs that are not
related to the amount of connected load. In other words,

Figure 6: Power generation evaluation criteria framework.
the output of power plants would not affect these types
of costs. Fixed costs include investment costs, insurance,
power plant taxes and interests, building and machinery
wear and tear, maintenance, and management; and vari-
able costs directly connected with the amount of produced
power. Costs such as raw fuel, performance, maintenance,
provisions, and requirements vary depending on the power
plants’ size and production (Adibhatla & Kaushik, 2017; Al-
Sumaiti et al., 2020; US Energy Information Administration,
2020).
(ii) Income: The income is divided into power production sales
and others. By installing generators, in addition to the pro-
duced power sale to the grid, other incomes can be gained
by eliminating the cost of electricity purchase, transmis-
sion facilities, distribution facilities, subscription, and other
costs (Adefarati & Bansal, 2016; Al-Sumaiti et al., 2020).
3.2.3. Technical factors
Factors related to the equipment and machinery capacities in
power generation are called technical factors, divided into subcri-
teria, including power quality, grid connection, losses, power cut,
reliability, and installation time. These factors are essential in de-
ciding between the nationwide grid and the DG.
(i) Power quality: Power quality can send fixed and stable sig-
nals without deviation and aberration in the existing volt-
age. International electric standards define power quality
as an electric source’s physical characteristics in normal
work conditions that do not disrupt or cut the consumer’s
work process. Sensitive electric devices need a constant
voltage source with a fixed range. Any change in these char-
acteristics can cause disorders in the processes used by
consumers (Achlerkar et al., 2016; Elmubarak & Ali, 2016).
Power quality reduction may be due to the following rea-
sons: (a) breakdown, interruptions, and changes in the grid
performance mainly due to the voltage drop (Shringi et al.,
2018) and (b) disruptions in grid load mainly result from
vibration and fast intermittent voltage fluctuations (Mah-
foud et al., 2019).
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(ii) Grid connections: The combination of generators, trans-
mission, distribution, and consumers creates a connected
grid. In this grid, the power plants and generators’ pro-
duced power are transferred to the distribution section
through transmission lines to eventually reach final con-
sumers (Achlerkar et al., 2016; Elmubarak & Ali, 2016).
(iii) Losses: The amount of energy losses in the electrical grid of
different countries is different. It depends on the geograph-
ical conditions, vastness, and dispersion of consumers, the
distance between power plants and consumption sites,
load curve, and usage combination. Unauthorized, exces-
sive, and unrecognized electricity consumption can be con-
sidered other loss factors (Ogunjuyigbe et al., 2016; Prakash
& Khatod, 2016; Sultana et al., 2017; Ullah et al., 2019).
(iv) Outages (blackouts): The stable disorder causes outages in
the electricity voltage of the grid. They can have multiple
reasons, such as stealing distribution cables, and damages
to the power plants and generators by a natural or non-
natural crisis (Farzin et al., 2017; Rexhepi, 2017).
(v) Reliability: Trust and reliability are significant in supply-
ing the needed electricity for chemical, oil, petrochemi-
cal, metals, and telecommunication industries. These in-
dustries may fail to find high-reliable required power but
reach the desired level of reliability by investing in the DG
(Prakash & Khatod, 2016; Farzin et al., 2017; Rexhepi, 2017;
Falck et al., 2018).
(vi) Installation time: The required time to prepare the foun-
dations, building, infrastructure, and tanks to set up and
install the power plants and generators is essential in de-
ciding the electricity supply method. Minimizing this time
allows the required electricity to be distributed and pro-
vided for the consumers at the scheduled and appropriate
time (Hirsch et al., 2018).
The differences between these electric power generations
methods are compared in Table 3 based on some of the main eval-
uation criteria.
In summary, Fig. 6 shows a hierarchical evaluation model that
would be used to make decisions and choose the potential energy
1796 | Journal of Computational Design and Engineering, 2022, Vol. 9, No. 5

Table 3: Comparison of centralized generation and DG.

Evaluation criteria DG Centralized generation

Generation Generators produce electric energy with a capacity from
a few kilowatts to tens of megawatt, which can be
installed quickly and anywhere according to customer
needs (Prakash & Khatod, 2016; Bansal, 2017; Bajaj &
Singh, 2019).
Transmission Because DGs are at the consumption site, voltage level
changes and energy wastes are being kept to a minimum,
and building, operating, ownership, and system
maintenance costs are avoided (Bansal, 2017; Bajaj &
Singh, 2019).
Consumption For their required energy, energy consumers can either
invest in DGs themselves or use the competitive market
High-capacity power plants provide electric energy for
the nationwide transmission and distribution lines by
converting renewable and non-renewable sources (Clark,
2017; Liu et al., 2019).
Through the power plant, produced energy is transferred
to the transmission and super-distributed lines to be
distributed in the grid (Liu et al., 2019).
The electricity produced is transferred to the grid and the
final consumer (Liu et al., 2019).

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of energy production (Prakash & Khatod, 2016; Bansal,
2017; Siddique et al., 2021).
Distribution Because the generators are at the consumption sites,
immense costs for investing in aerial and land posts
would be prevented (Bansal, 2017; Mehigan et al., 2018;
Devadhanishini et al., 2019).
Sustainability The required and sufficient power is provided with
permanent and secure reliability without fluctuations
and disturbances for consumers (Prakash & Khatod,
2016).
Trustworthiness Expected and unexpected changes are causing power
outages and disruptions which raise doubt about using
sensitive and delicate electric equipment by the produced
power (Falck et al., 2018; Haes Alhelou et al., 2019).
Installation Due to its small and portable size, it has an easy
installation and operation feature, which enables the
consumer to install the generator easily (Shaukat et al.,
2018).
Energy exchange In the case of grid infrastructure, the power surplus can
be provided for others (Long et al., 2017).
Environment Existing generators use renewable and non-renewable
energy. The non-renewable type damages the
environment (Bajaj & Singh, 2019).
Losses Because distributed generators are at the consumption
site, the energy losses are kept to a minimum, and the
existing losses are mainly facility losses (Ogunjuyigbe et
al., 2016; Ullah et al., 2019).
Vulnerability Small sizes and being portable and scattered in different
places make generators more immune to damage and
cyber-attacks and less vulnerable (Wang et al., 2017b;
Gusrialdi & Qu, 2019).
Availability Small-sized and portable distributed generators can be
available in the most remote and hard-to-reach areas
where installing and passing through transmission lines
is impossible (Bajaj & Singh, 2019).
The distribution of produced energy requires special
investment and facilities (Liu et al., 2019).
New consumers with different required consumptions
would cause losses and problems in the grid (Liu et al.,
2019).
The existence of a vast grid fed by many power plants
and generators brings a feeling of trust and high
reliability for the consumers (Liu et al., 2019).
Given the type and volume of present power plant
activities in the national grid, establishing new power
plants has slowed down, requiring heavy investment,
which usually takes years (Liu et al., 2019).
Communication network expansion around the country
makes the power produced by all the power plants
shared, and consumers can benefit from the energy
exchange and distribution in this network (Liu et al., 2019).
The main effects on the environment due to large power
plants include air pollution, water pollution, soil
contamination, and noise pollution, all damaging the
environment (Clark, 2017; Liu et al., 2019).
Due to the transmission and distribution grid’s vastness,
significant facility and non-facility losses exist in the grid
(Liu et al., 2019).
Due to their large sizes and being fixed in one place,
power plants are easily recognizable and identifiable and
can be attacked or damaged (Liu et al., 2019).
Transmitting faces various difficulties, costs, and heavy
losses (Liu et al., 2019).

generation method. However, Table 3 summarized and reviewed
the different dimensions of centralized and DG methods based on
the available literature. Distributing DG has many environmen-
tal, economic, and technical advantages. In order to achieve these
advantages, DGs should have the right scale and be installed in
the right places. Along with the advantages of DG, some disad-
vantages must be considered. When DG is active as a separated
island, these generators can create technical risks during the out-
age of the national electricity network. Besides the technical and
security issues, there are also commercial and legal barriers to
developing DGs. These obstacles usually arise when setting up
contracts and network connection procedures. Therefore, many
factors must be considered when choosing the appropriate gener-
ation method.
4. DG Generators for Power Supply
As explained in the following, several technologies and methods
are used in the DG to produce electricity, such as gas turbines,
microturbines (MTs), diesel generators, WTs, and PVs.
4.1. Wind turbine
A WT is a type of turbine that transforms the kinetic energy of
wind, which is called wind power, into electric energy. As an en-

vironmentally friendly energy resource, wind energy is one of the
fastest resources globally (Tong, 2010; Menezes et al., 2018; Porté-
Agel et al., 2020). Multiple and efficient ways, such as WTs, have
been invented to extract energy. The wind turns the turbine pro-
peller around a rotor, and the generator produces electricity. By
aerodynamic force, a WT uses rotor blades like helicopter rotors
to make electricity from wind power (Tong, 2010; Menezes et al.,
2018; Loganathan et al., 2019).
4.2. Photovoltaic
PV is a system that directly converts solar energy to electric energy
and has a clean environment. PV is a phenomenon that uses light
without stimulus mechanisms to produce electricity. Any system
using this phenomenon is called the PV system. PV electricity pro-
duction developed rapidly in a distributed and centralized way is
a crucial way to use solar energy in cities. PV systems are among
the most widely used applications of new energies. Various PV sys-
tems with different capacities have been installed and operated
worldwide. Sun’s electrical and thermal energies are used in two
systems: centralized and decentralized (Teodorescu et al., 2011;
Sultan & Efzan, 2018; Di Carlo et al., 2020).
4.3. Diesel engine
Diesel generators are usually put in places not connected to the
power grid or used as an emergency power supply in case of a
power outage. It is also used for more complex applications, such
as secondary generators for peak lopping, grid support, and trans-
ferring electricity to the power grid. Estimating the appropriate
size of diesel generators is very important to prevent load losses.
This generator is activated by an internal combustion diesel en-
gine and is used mainly for emergencies and in case of a grid
load increase. Despite low thermoelectric efficiency, thermoelec-
tric generators can improve the overall efficiency of internal com-
bustion engines (Dasappa & Sridhar, 2013; Mobasheri et al., 2018;
Najafi, 2018).
4.4. Gas MTs
The structure and configuration of MTs are specified by the ar-
rangement and mentioned component’s connection. In general,
the two main types of MTs are uniaxial and biaxial MT (Duan et
al., 2017; Miozzo et al., 2017; Konecna & Masa, 2019). Based on en-
ergy consumption and production, MT systems are of three types
that are explained in the following:
(i) MTs with recuperators have higher efficiency because they
use the turbines’ exhaust heat.
(ii) MTs without recuperators (with simplified cycle) have
lower efficiency but lower prices.
(iii) MTs with CHP systems (Xiao et al., 2017; Konečná & Máša,
).
The main difference between the current and SG is the bal-
ance of production and demand. The current power grid includes
substantial posts connected to high voltage transmission systems.
The SG has been accepted to integrate several renewable energy
resources (Kitsios et al., 2017; Strielkowski et al., 2019). The govern-
ment and the energy industry have identified the IoE’s integration
with the SG as the primary strategic core for clean energy develop-
ment (Shahinzadeh et al., 2019a). In the foundation of the SG and
“energy + Internet” strategy, smart energy development promotes
the completion, coordination, and optimization of several ener-
gies. It synchronously uses its large database to create a “bridge”
between energy production and consumption, and it is also a key
Journal of Computational Design and Engineering | 1797
factor in making an operating mode in business (Ananthavijayan
et al., 2019).
5. Internet of Things
In the business world, those who have access to more and better
data and information and can manage them well will undoubt-
edly control the world. Despite the complexities and difficulties
of today’s world, having valuable and updated information would
produce products and services that will increasingly make human
life easier. In such an environment, the Internet can be a suit-
able infrastructure for managing these complexities (Silva et al.,
2018; Sisinni et al., 2018). In the field of computational sciences
and technologies, the Internet is a revolution that, in a short time,
could generate other technological revolutions and various tech-
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nologies and, as a result, bring comfort and relief to human be-
ings (Diène, 2020; Khan et al., 2020). One of these technologies is
the IoT, developed based on this concept. The IoT allows physical
objects to provide specific information to be understood and re-
motely controlled by the Internet, allowing for more integration
between the physical world and computer systems and increas-
ing efficiency, precision, and economic benefits. In IoT, a solution is
uniquely identified for all the smart objects connected to the In-
ternet, monitoring all objects using the designed computational
system that can cooperate with existing Internet infrastructure
(Altaf et al., 2019; Marques et al., 2019; Wafa’a Kassab, 2020).
The emergence of the IoT has promoted the traditional way
of thinking and has enabled the connectivity of many objects in
a network. It provides a smarter life for humans (Jo et al., 2019;
Sharma et al., 2019). IoT has made new and general requests for
structure, infrastructure, and platforms establishing approaches
to fulfill the requirements of the new generations of many smart
applications. The number of online devices steadily increases;
therefore, smart applications usually need to connect with thou-
sands, even millions of devices (Ang et al., 2018; Nadeem et al.,
2020). IoT is a concept and pattern that consider widespread pres-
ence in the environment of all forms of objects/things through
wired and wireless connections and unique addressing programs.
It can interact and cooperate with other objects/things to create
new programs/services and obtain shared goals. In this regard, re-
search and development challenges for creating a smart world are
innumerable (Elijah et al., 2018; Serpanos & Wolf, 2018; Nord et
al., 2019). In a world where reality, digital, and virtuality are con-
verging to make a smart environment and smartening up energy,
transportation, cities, and many other sectors. IoT’s goal is to con-
nect all things at any time and place with anything and anyone us-
ing any route/network seeking timely services. The objects recog-
nize each other; they can send information about themselves, re-
ceive the desired and necessary information, and be part of com-
plex services (Kim et al., 2017; Ray, 2018).
IoT is a term used to describe an environment with milliards of
objects as sources connected through the Internet and interacting
independently (Patel & Patel, 2016). The more objects, the smarter
the environment could perform (Pradhan et al., 2017; Asghari et
al., 2019). In this respect, products, goods, cars, trucks, industrial
equipment, industries (electricity, telephone, etc.), sensors, and
other components are combined daily through Internet connec-
tions and powerful data analysis features to transform our lives
and performances (Tiwary et al., 2018; Yang et al., 2018). Projects
based on IoT have had a striking influence on the Internet and the
economy in a way that the forecasts show that by 2025, more than
30 billion devices will be connected to the Internet (Symanovich,
2019).
1798 | Journal of Computational Design and Engineering, 2022, Vol. 9, No. 5
This technology creates a smart network of objects transmit-
ting information through equipment and network layers. Due to
the large amounts of data, this information is put in the data pro-
cessing center. Finally, when processed, this information is at the
service of individuals. In this approach, sensor-equipped devices
and objects have the addressing, detecting, and locating ability
(Atlam & Wills, 2019; Kim et al., 2019; Tran et al., 2019; Rathee,
2020).
5.1. IoT capabilities
IoT is for connecting the surrounding objects, devices, and hu-
mans to the digital world, by enabling technologies such as radio-
frequency identification (RFID) and Wireless Sensor Networks
(WSN) in the form of an independent system for the collection,
processing, and transferring of large amounts of data to share
the interactive information with people and other objects (Sethi
& Sarangi, 2017; Ansari et al., 2018). This technology has some fea-
tures that will be discussed in the following.
5.1.1. Scalability
Given the rapid growth of IoT, it is expected to become the basic
infrastructure of the information society for many online devices,
starting up a wide variety of applications. However, fast-growing
IoT technology will still face many challenges due to the hetero-
geneous IoT devices on a large scale. Large numbers of intercon-
nected devices will make a large-scale network to share the col-
lected information that senses and collect enormous data. Coop-
eration of devices with each other to strengthen services and pro-
duction of new programs are features of IoT (Gupta et al., 2017;
Chen et al., 2018; Farhan & Kharel, 2019; Davies & Fortuna, 2020).
5.1.2. Intelligence
The phenomenon of integrating sensors, computers, and network
communications to observe and collect information has appeared
for decades. The aim of these modern developments is that IoT ob-
jects give smart service to the end-users and help with valuable
and reliable decisions (Shakerighadi et al., 2018; Davies & Fortuna,
2020). IoT is a platform in which processes become smarter due to
a large amount of data and technological progress, and commu-
nications become more informative every day (Mohamed, 2020).
5.1.3. Measurement
Sensors are key elements of an IoT network capable of connecting
many devices. They can collect, measure, and calculate informa-
tion of surrounding environments. The collected information can
be obtained after registering or interacting with the environment.
IoT measurement techniques are calculative abilities that work
without much human interaction (Sethi & Sarangi, 2017; Balestri-
eri et al., 2019).
5.1.4. Unique identification
Each IoT device has an RFID tag giving it a unique identity. Manu-
facturers use this device identifier to update the software. With
billions of connected devices, the IoT system needs a designa-
tion. An architecture that creates unique identities for IoT devices
in the communicational route between different devices (Shah &
Yaqoob, 2016; Aftab et al., 2019).
5.1.5. Dynamic in the environment
IoT is a dynamic system in the environment and society, mak-
ing different objects adapt to the environmental changes and act
smartly. This dynamic system in society and today’s dynamic eco-
nomic and social environment helps companies cooperate and
compete with each other. These companies then can support new
products and services, expand markets, and encourage innova-
tions (Friess, 2016; Zeinab & Elmustafa, 2017; Čolaković & Hadž-
ialić, 2018).
5.1.6. Heterogeneity
Many producers are willing to exploit Internet connections to con-
tinue their productions. However, they face the issue of heteroge-
neous equipment. IoT includes devices with different hardware
operating systems, networks, communicational protocols, and op-
erational systems. Although the heterogeneity of these devices
causes many problems and difficulties, they can still communi-
cate using different communicational networks (Elkhodr et al.,
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2016).
5.1.7. Self-tuning (matching)
The large-scale feature of IoT machines would create serious is-
sues and difficulties for services and products as to how to main-
tain and update equipment. With the self-tuning feature of IoT,
devices can work together to provide a specific operation. Also,
these devices can configure themselves and, with little effort,
search for the newest software updates with the cooperation of
the device manufacturer (Hassan, 2019).
5.2. IoT applications
The adaptation of this technology in our daily lives is studied
from different applications’ perspectives. The design and devel-
opment of these applications depend on the existing types and
forms of technologies. Information technology, vehicle manufac-
turers, and industries are parts of the IoT that have grown in
the form of a developed system through the integration of sev-
eral technologies and communication routes such as RFID tags,
sensors, and actuators (Aftab et al., 2019; Atlam & Wills, 2019).
Smart sensors and microcontrollers are evolving mainly due to
hardware advancements such as the growth of wireless devices
and, as a result, improving machine-to-machine communication
and Internet programming. IoT has different applications, such
as surveillance over anything. It is expected to connect all man-
ufactured devices through the Internet, and all types of informa-
tion can be obtained about these things (Sethi & Sarangi, 2017;
Afzal et al., 2019; Ghasempour, 2019). Biological monitoring (envi-
ronmental technologies) has become a significant environmental
and industrial field. Monitoring systems of the earth and environ-
ment receive information such as water, air, and river pollution
and the monitoring statistics of lands and production growth in-
dex (Ahmed et al., 2016; Ullo & Sinha, 2020).
Applications such as traffic lights, chemical dangers, earth-
quakes, and volcanic eruption prediction monitoring have in-
creasingly become more critical worldwide. Based on the IoT
framework, different devices can be fulfilled reliably, efficiently,
and with low prices by defining IoT layers (Moore et al., 2020). The
IoT applications are shown in Fig. 7.
5.2.1. Smart agriculture
Smart agriculture is a system for monitoring farmlands to grow
plants, agricultural, and glasshouse products. By integrating tech-
nologies such as remote measuring, IoT, unmanned aerial vehi-
cles (drone), big data analysis, and machine learning (ML), it is
possible to change the traditional way of farming and make new
progress in agricultural methods (Boursianis et al., 2022). In smart
agriculture, a wide range of agricultural parameters is control-

Figure 7: The IoT applications.
lable, and it can improve the output, reduce the cost, and optimize
the process inputs, such as the environment. This system provides
integrated information using light and humidity sensors in smart
IoT-based agriculture and automatically performs land irrigation.
Farmers can monitor their land conditions from anywhere in the
world. Not only the IoT-based agricultural systems can be used on
a large scale with traditional agricultural methods, but also they
can be applied on small household farms with organic and mod-
ern agricultural methods (Bu & Wang, 2019; Davoody-Beni et al.,
2019; Wang et al., 2019; Boursianis et al., 2022).
5.2.2. Smart transportations
Smart transportation systems show the integration between cal-
culations and communications to monitor and control the trans-
portation network (Banks et al., 2018; Guerrero-Ibáñez et al., 2018).
The goal of the smart transportation system is to improve effi-
ciency, availability, security, and transportation infrastructure re-
liability. The IoT involves billions of smart objects ranging from
devices, sensors, industrial parts, and tools to cars, trucks, ma-
chines, and other ordinary objects connected wirelessly to the In-
ternet, changing how we work (Xu et al., 2017). It also has many
manifestations in the transportation system; e.g., the analysis of
supply network reliability of transportation between railway and
sea (Malygin et al., 2017; Lakhmetkina et al., 2019). Another feature
of using the IoT in transportation is enabling the vehicle sensors to
warn drivers of dangerous conditions with the aid of facilities such
as the Internet radio, navigation, weather, and traffic information,
Journal of Computational Design and Engineering | 1799
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automatic alerts, etc. (Contreras-Castillo et al., 2017; Al-Turjman
& Lemayian, 2020).
5.2.3. Smart city
Providing good services and infrastructures in populated urban
centers is inevitable. Using information and communication tech-
nologies to achieve this goal has allowed to development of smart
cities and future planning (Shahidehpour et al., 2018; Belli et al.,
2020). Managing the decisions regarding the city and citizens can
be carried out based on receiving information from the environ-
ment. With the high-speed progression of wireless technology,
citizens’ everyday lives have changed drastically because of us-
ing advanced high-tech devices in their daily use. The increasing
use of the Internet by citizens will increase Internet penetration
(Chatterjee et al., 2018). A wide range of IoT capabilities focuses
on constructing and developing cities while improving life quality
and making it easier for the citizens. Smart city-related programs
are in the form of architectural IoT in the services layer. This layer
includes four groups: surveillance, transportation and logistics,
infrastructure, and technology. Different types of programs apply
to each class to cope with smart city challenges (Schleicher et al.,
2016; Mehmood et al., 2017; Soni, 2019; Lin et al., 2020).
5.2.4. Smart home
By facilitating remote surveillance methods over household sys-
tems such as air conditioners, heating systems, energy consump-
tion measurement, etc., IoT services play a role in improving per-
sonal lifestyle (Zhou et al., 2016; Taştan, 2019). The home appli-
1800 | Journal of Computational Design and Engineering, 2022, Vol. 9, No. 5
ance integration with the IoT in the form of smart counters, light-
ing control systems, household automation for the disabled and
elderly, electronic health support, and baby and pet monitoring
are also examples of smart home services (Lobaccaro et al., 2016;
Stojkoska & Trivodaliev, 2017).
5.2.5. Smart healthcare
The IoT technology affects the whole sphere of the healthcare and
medical systems and operative and administrative services. The
IoT plays a pivotal role by putting sensors or medicines in the body
to monitor the psychological conditions of patients (Nausheen &
Begum, 2018; Raj et al., 2020). It can collect and analyze patient in-
formation and send it to the processing center for proper decision
and clinical care (Fouad et al., 2020). IoT is beneficial in medical
and healthcare services such as smart beds, edible sensors, at-
tached spray to the patients and elderly for detecting and manag-
ing chronic diseases, and providing personal medications (Taştan,
2018; Ananth et al., 2019).
5.2.6. Smart energy
IoT is used for optimizing houses’ and buildings’ energy consump-
tion. Using IoT in smart networks enables energy producers to
control and manage resources easily, so the resource distribution
is proportionate to the population growth (Bedi et al., 2018; Hos-
sein Motlagh et al., 2020; Xu et al., 2020). For example, smart net-
works use the IoT to connect the counters of millions or billions of
buildings to the distributed energy network. These counters will
collect, analyze, control, monitor, and manage energy consump-
tion (Bedi et al., 2018). The IoT enables energy producers to im-
prove their services and meet the need of their customers. It also
reduces errors, increases efficiency, and improves the quality of
the services (Wehlitz et al., 2017; Saari et al., 2019; Shahzad et al.,
2020). In general, it can be said that in the smart power grid, the
smart sensors of the network provide many opportunities for the
energy grid applications, such as monitoring the power, the con-
sumption management of scattered stored energy, and integrat-
ing renewable energy generators (Ziogou et al., 2017; Saleem et al.,
2019).
6. SG and IoE
The most advanced parts of IoT technology are in the “en-
ergy management” field. Intelligent measuring devices, intelligent
thermostats, and intelligent lighting are among the oldest appli-
cations of the IoT. Today, with the increasing demand for energy
consumption, this technology has come to the aid of human re-
sources to play an effective role in creating SGs for energy man-
agement. According to the subject of this paper, in this section,
we separately discuss the importance of smart energy, the usage
of DG, and its architectures. Electric energy is an essential fac-
tor and leading economic growth and development source. The
electrical energy lights up houses and schools, provides economic
activity, fuel for energy production and consumption, and partici-
pates in the health and welfare of a society (Arto et al., 2016). World
growth and living standard improvement lead to more energy de-
mand. Energy has had the most critical role in human technologi-
cal revolution history. This energy demand growth results from in-
creasing city-dwelling trends bringing about buildings as the main
energy consumers. This growth is increasing more than the popu-
lation growth rate causing world concern about grid load and gap
increase between energy producers and consumers (Petit, 2017;
Al-Badi & AlMubarak, 2019; Luechaphonthara & Vijayalakshmi,
2019).
In recent years, the energy crisis has made the countries ad-
dress the issue of energy in different ways in terms of energy
sources and production methods while slowly smartening them
up. Since fossil fuels cause greenhouse gas emissions and sig-
nificantly impact the environment and future generations, re-
placing this energy with renewable energies, efficient use, con-
trolling energy supply and demand, reducing pollutant emis-
sions, and smartening energy has been welcomed greatly (Li et al.,
2019). In order to fulfill needs, a collection of renewable and non-
renewable sources of energy has been used. Using renewable and
non-renewable resources as DG is a very attractive idea that can,
among other benefits, streamline the utilization of this system.
Due to the capability of reducing greenhouse gas emissions and
minimizing the negative impact on energy production, transmis-
sion (through high voltage lines from power plants to subscribers),
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distribution, conversion, and consumption on the environment,
the role of renewable energy has become so popular (Ahmed et
al., 2017; Güney, 2019; Liang et al., 2019a).
The energy structure is constantly changing with the increased
penetration of renewable energy sources (Deng & Lv, 2020). This
growth is described as a modern network, a future network, and
future equipment. It highlights the need for a smart network that
can be monitored and controlled in real-time to provide a safe,
reliable, resilient, and secure service. The users can also actively
and effectively benefit from future market services and opportu-
nities. The IoE is also the development of the IoT in energy sys-
tems. The IoE structure is usually composed of smart networks
such as distributed sources, storage systems, loads, counters, and
equipment such as circuit breakers, digital relays, and converters
(Rana, 2017; Shahzad et al., 2020). This interlocking and peer-to-
peer (P2P) connection strengthens the energy. The main goal of
the IoE is to collect data from all the networks and connect them
for better network management (Römer et al., 2017; Morley et al.,
2018; Rhodes, 2020). The accessibility of renewable energy sources
along with technological advancement facilitates the sensing of
data. Moreover, communication leads to the stable performance
of modern energy systems (Khatua et al., 2020). A smart network
system integrates sensors and actuators, which enables the sys-
tem to transfer and exchange energy-related data from renewable
sources to computer systems and the final consumer. The IoT can
monitor and review these data (Rehmani et al., 2018; Ghasempour,
2019).
The smart network appeared to meet the challenges of the neg-
ative impact of energy production methods on a clean and sus-
tainable environment. Smart power grid technology makes global
power systems more secure, reliable, efficient, flexible, and sus-
tainable. It will be achieved by integrating information and com-
munication networks (Child et al., 2019; Stoustrup et al., 2019;
Worighi et al., 2019).
In the energy field, the smart sensor networks provide many
opportunities in the smart power grid, such as monitoring and
controlling electricity (energy), managing demand, coordinating
distributed storage, and integrating renewable energy producers
(Worighi et al., 2019). Probably due to the low cost and ease of de-
ployment, in the future, smart sensors will be used in power grids
on a large scale (Kurt et al., 2016; Jangili & Bikshalu, 2017). The IoT
technology faces many stored data and processing costs using a
SG and DG. These data include end-user load demand, power line
faults, network components status, energy consumption plan-
ning, conditions, and situations forecast, advanced measurement
of records, power outage management record, company’s proper-
ties, etc. (Abbas & Yoon, 2015; Talat et al., 2020). For this reason,
the company’s equipment should have software and hardware to

store, manage, process and collect data inefficiently (Daki et al.,
2017; Mohamed et al., 2019).
To minimize energy waste, the IoE intends to make a self-
managed smart power infrastructure for energy facilities. The IoE
as a dynamic network infrastructure will revolutionize electric-
ity production, distribution, and transmission by integrating sen-
sors, the Internet, renewable energy sources, AMI, and automated
technologies. Therefore, energy units (locally created, stored, and
sent) will be communicated at any required time and place. In this
case, the smart network would charge electric vehicles and smart
appliances with distributed energy resources and, in general, the
form of energy production (Boroojeni et al., 2017; Irfan et al., 2017;
Ponce-Jara et al., 2017).
The IoE is a dynamic network connecting different energy
sources. It is a new type of energy industry development benefit-
ing from the deep integration of the Internet, energy production,
transmission, storing, and consumption. This network allows its
users to buy, sell and share energy in an integrated way (Shahin-
zadeh et al., 2019b; Shahzad et al., 2020). It looks like the way the
information is transferred on the Internet. By adding AI and more
complex software, this system can manage small-scale electric-
ity generation and consumption. In addition, on the other side
of this equation, cars, electrical appliances, and devices are reg-
ulated by this technology to consume less electricity. Therefore
necessary information is exchanged by energy transmission. In
smart cities, the IoE has many applications, e.g., smartening up
buildings and facilities. Through data and information processing,
the IoE creates production capacity, optimizes energy storing, and
balances between electrical energy production and consumption
in the power grid (Eroshenko & Khalyasmaa, 2017; Gururajapathy
et al., 2017; Khan et al., 2018).
Making a complete infrastructure for smart homes, buildings,
and cities requires a smart IoT-based power distribution approach.
Optimized network structure, boosting security and privacy, fast
trade of local energy, high connectivity between nodes, cheap elec-
tricity, and moredistributed energy resources (DERs) are some cri-
teria for designing and achieving an advanced energy ecosystem.
In the recent decade, the IoE has evolved in different ways in
the energy market. The IoE intends to make powerful and self-
efficient infrastructure capable of exploiting energy to minimize
energy waste. Integrating sensors, the Internet, renewable energy
sources, advanced metering infrastructure (AMI), and automated
technologies, IoE has revolutionized electricity production, dis-
tribution, and transmission (Ejaz et al., 2017; Vishwakarma et al.,
2019).
By benchmarking and integrating IoT features in the energy
section, we can conclude that the existing technology in IoT can
connect many generators, transmission systems, counters, etc.,
from any point and at any time (Bedi et al., 2018; Davoody-Beni et
al., 2019). IoT helps the energy in surveillance systems, computing,
and network control through objects, sensors, and actuators. IoT
optimizes several network performances during electricity pro-
duction, transmission, and distribution by connection, automa-
tion, and object tracking. Furthermore, the IoE can help countries
manage their required energy by activating production stations
for maximum electricity production at peak hours and deactivat-
ing them during low consumption. This technology helps coun-
tries in preventing power outages (Bedi et al., 2018; Nižetić et al.,
2020).
The energy network is defined as power generation with two
types of centralized and distributed systems from production to
end-users. Centralized systems produce a large volume of elec-
tricity in big power plants. By utilizing non-renewable resources
Journal of Computational Design and Engineering | 1801
such as large fossil boilers (gas or coal) or nuclear boilers to pro-
duce steam and move turbine generators and in the form of re-
newable resources such as solar and wind farms, these systems
produce the required electricity (Hashemizadeh et al., 2021). The
increased penetration of centralized systems to produce electric-
ity depend on many factors such as economic scale (with steam
turbines, it is possible to increase the size of turbines with margin
cost reduction).
Centralized power production depends mainly on centralized
power generation equipment, and their units are located far away
from load demand points. Power transmission from production
units to consumers is followed by power waste in transmission,
power quality problems, and the issue of reliability. Centralized
power production facilities that use coal, oil, and gas resources
negatively impact the environment (Manditereza & Bansal, 2016;
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Blaabjerg et al., 2017; Huda & Živanović, 2017).
The current power grid would suffer from the lack of proper
sustainable surveillance, the inability to access and control re-
mote devices, and the lack of diagnosis and automation tech-
niques. Therefore a large amount of energy would be lost. Many
ideas were proposed to overcome these limitations, for instance,
providing energy by exploiting the surrounding environment. It is
feasible since the required energy for each device can be very lit-
tle, ranging from microwatts to milliwatts (Ge et al., 2017; Ahmad
et al., 2020).
Adopting a distributed production approach showed that com-
pared to DG systems, the structure of the existing electricity net-
work is not flexible (Gonzales-Zurita et al., 2020). Enough towards
renewable energy and smartening up. More accurately, the gap
between production and demand can be managed by develop-
ing nearly zero-energy buildings. That is, equipping buildings with
power DG equipment and technologies (Pramangioulis et al., 2019;
Gonzales-Zurita et al., 2020).
6.1. IoE architecture
With the ubiquity of the IoT and coupling this technology with
the smart energy grid, we will observe a profound effect on en-
ergy production, consumption, and transmission control ability.
The IoT needs a coherent architecture and structure to enter the
world of energy current. The smart energy network is a network
of energy data communications in which collected and analyzed
data from transmission lines, distribution posts, and consumers
are integrated, as shown in Fig. 8 (Kafle et al., 2016; Vu et al., 2018;
Kettunen & Mäkitalo, 2019).
Based on these data, a SG can provide predictive information
for its suppliers and consumers to better manage this network.
These data flow in SG layers and are analyzed (Wang et al., 2017a).
In the smart energy network, different layer structures such as
three layers, including perception, network, application layer, and
four layers, including objects, network, cloud management, and
application layer, have been studied. Here a three-layer structure
consisting of perception, network, and application layers is pro-
vided (Wang et al., 2017a; Shyr et al., 2018; Aarika et al., 2020). The
first layer is the perception layer (or device layer or object layer),
the physical sensors in the IoT. The task of this layer is to collect
and analyze information. This layer uses power sensors, RFID, or
sensor equipment such as GPS devices or cameras to collect infor-
mation in the energy network. In the perception or object layer, a
standard plug-and-play mechanism should be used to configure
heterogeneous objects so they can connect to the system easily
and work in real-time without needing to install specific drivers.
After this layer, voluminous digital data are made, and through a
1802 | Journal of Computational Design and Engineering, 2022, Vol. 9, No. 5
Figure 8: The IoT applications in DG.
Figure 9: The IoT networks’ layer.
secure communication channel, data are transferred to the next
layer, which is called the network layer (Al Hinai & Singh, 2017; Vu
et al., 2018; Khattak et al., 2019; Shahzad et al., 2020). The layers of
the IoT framework have shown in Fig. 9.
7. Case Study
Energy consumption in the world will increase by 40% in the next
25 years, so the need for smart solutions for energy consump-
tion has reached its highest importance (Wei et al., 2018). Some
fundamental changes are underway toward more efficient energy
management. From smart lamps to fully automated oil rigs, they
show the impact of the IoT on the energy sector. Also, consumers’
increasing daily use of electrical appliances is a growing concern
in the energy sector, which creates an imbalance in the supply-
demand ratio. Demand-side energy management is essential for
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preventing significant end-to-end shortages and improving energy
efficiency (Heffron et al., 2020). Numerous companies and firms
have entered the various energy fields using the IoT, such as en-
ergy generation, lighting and intelligent equipment, energy sys-
tem management, clean energy, and energy storage.
7.1. Energy generation
(i) Duke Energy: Duke Energy is one of the largest electric-
ity holding companies in the USA, serving 7.8 million cus-
tomers in six states of the USA. It has approximately 51 000
MW of generating capacity in Carolina, the Midwest, and
Florida. From online communications to media and en-
tertainment, digital technology has become the standard
for business transactions, information transfer, and general
communications (Liang et al., 2019b). Digital technology has
entered the world of electricity and renamed it the “SG”

(Ananthavijayan et al., 2019). Intelligent digital sensors at
substations and transmission lines detect problems and are
controlled by this system. The switches then automatically
disconnect the damaged part of the line. Theoretically, the
control system continuously monitors the state of the net-
work and determines the best way to change the power path
as much as possible. The electrical grid is then automati-
cally re-configured to restore electricity to the line (Bedi et
al., 2020).
7.2. Lighting and smart equipment
(i) Philip Heu and Ecobee: Building energy management sys-
tems (BEMSs) provide users with favorable environmental
conditions by organizing air conditioning and lighting sys-
tems. Many studies have been done on energy management
systems in smart buildings. The most obvious way to save
energy is to reduce its waste. Intelligent lighting and Heat-
ing, ventilation, and air conditioning (HVAC) systems based
on new generation sensors are designed to automatically
maintain excellent spaces and keep energy consumption at
the desired level. Equipped with different sensors such as
light, motion, humidity, CO2 level, etc., these systems can
dynamically adjust depending on the changing conditions
and prevent waste when using energy at potential points
(Satrio et al., 2019). Therefore, smart lighting decreases de-
pending on the amount of daylight in the room and turns
off automatically when the room is empty. Hue and Ecobee
4 are smart lighting and thermostat ideas that provide sig-
nificant savings for households. Philips Hue family products
include indoor and outdoor LED lighting adjusted according
to people’s settings and routines and consume less energy
than traditional lamps. Philips smart light bulbs were first
introduced in October 2012 as the first controllable lighting
system by the iOS app. The initial system was connected
to a central hub with the ZigBee communication protocol
(Mtshali & Khubisa, 2019).
The central hub could connect to the Internet and con-
trol the lamps via mobile. The maximum light intensity of
the original lamps was 600 lumens. At the same time, the
light intensity of the new lamps is considered up to 800
lumens. The new generation of Philips smart bulbs, called
Bluetooth bulbs, has a lifespan of 15 000 hours, or about 14
years. The battery life of this smart system is 20 000 hours.
The Ecobee 4 thermostat automatically reduces energy con-
sumption and saves extra energy if it is the most expensive.
The Ecobee Smart Thermostat comes with voice control
and includes Alexa support, touch display, remote sensors,
and compatibility with other smart home devices (Wang et
al., 2020).
7.3. Management system
(i) General Electric (GE): GE recently received $800 million
worth of digital industrial power orders across Asia and
the Pacific and showed no sign of slowing down in the
Industrial IoT. GE’s Asset Performance Management soft-
ware is used in several power plants to connect different
data sources and help analyze data. The sensors are placed
in key infrastructures such as gas turbines to control and
collect performance and efficiency data to create the spe-
cialized technique. The collected data can be analyzed in
the cloud to provide real-time updates on gas use at the
plant. The GE Digital system, which measures power con-
Journal of Computational Design and Engineering | 1803
sumption during the Olympics, collects the actual power
consumption of each stadium for the first time since the
first PyeongChang 2018 Winter Olympics and provides an
integrated analysis. Relevant data has been discussed as
“digital heritage” for the Tokyo 2020 Olympic Games and
the Beijing 2022 Winter Olympics to save money by invest-
ing more efficiently in facilities (Zhukovskiy & Malov, 2018;
Palmer et al., 2021).
(ii) Webmens & Sens: BEMS is a sophisticated method used to
monitor and control the needs of the building energy sec-
tor. Studies on building energy efficiency have been con-
ducted through efficient and sustainable methods. In addi-
tion, policymakers are approving measures to improve the
building’s energy efficiency to enhance sustainable energy
use. Smart lamps and thermostats are popular home au-
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tomation tools that show how IoT and energy management
are saved without much effort on the user’s part. Digital
energy management systems include sensors, meters, con-
trols, programs, and analysis tools that allow users, includ-
ing households, businesses, energy professionals, commu-
nities, and governments, to monitor, manage, and control
processes, assets, and resources.
By 2023, the market for energy management systems is
expected to reach $9.3 billion. For example, smart meters
track energy consumption in real-time, calculate charges
dynamically, and communicate data between end-users
and businesses. This data helps suppliers adjust demand
response plans and pricing. Residents, in turn, can use ap-
plications to control their power consumption at the grain
level, respond to load changes, and limit energy waste
(Aman et al., 2021).
Sensor-equipped equipment can continuously report loads
and predict overheating damage hazards or line breaks,
whether heavy machinery in a factory or a home boiler.
In the case of factory equipment, it prevents the conse-
quences of damage in serious savings. Tracking data anal-
ysis helps management strike the right balance between
optimal equipment performance, wear, and energy utiliza-
tion and ensure a long life for assets (Hossein Motlagh et
al., 2020).
WebNMS is an excellent example of an IoT energy manage-
ment system for industrial and commercial spaces. This
solution provides optimized energy consumption and max-
imum efficiency measures using data generated from the
network of sensors and meters on site. The company’s
products provide energy efficiency and maximize produc-
tivity with data from a network of sensors and meters
available on site. Sense has also introduced an intelligent
measurement system for home consumption. Everything is
connected to a standard electrical panel so that residents
can control their energy use and participate in energy man-
agement (Yaïci et al., 2021).
7.4. Clean energy production
(i) Schneider: The IoT can be a tool for energy management
and green energy expansion. Residential solar systems and
IoT-based WTs provide electricity to meet all or part of
household energy demand. In the first case, residential re-
newables reduce the average energy bill by 50%. This num-
ber increases to 100% in the latter case, allowing a house-
hold to be completely off the grid. The use of renewable
housing systems not only helps to save energy but also
1804 | Journal of Computational Design and Engineering, 2022, Vol. 9, No. 5

Table 4: IoT-based DG case studies.

No. Case study Objective Description Region

1 Duke Energy
2 Philip Heu & Ecobee
3 GE
4 Webmens & Sens
Energy generation Duke Energy is a leading energy company executing USA
a clean energy strategy to create a smarter energy
future for its consumers and communities.
Lighting and smart Hue and Ecobee are smart lighting and thermostat Canadian
equipment ideas that provide significant savings for
households.
Management system GE’s strategy is energy solutions across the American multinational
electricity value chain that bring affordable, conglomerate incorporated
reliable, efficient energy to businesses and
consumers.
WebNMS is an excellent example of an IoT energy North-central France
management system for industrial and commercial

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5 Schneider
6 Brooklyn Microgrid
spaces.
Clean energy production Schneider Electric solutions provide complete French multinational
energy independence, efficient backup, or a company
combination with other energy sources.
Energy storage BMG is an energy market for locally generating New York
solar energy.

helps to reduce the carbon footprint and helps the initia-
tive to preserve the environment (Khatua et al. 2020; Zakari
et al., 2022). For example, Schneider Electric solutions for
smart homes and buildings is an excellent IoT case man-
agement case study. Solar solutions for industrial, commer-
cial, and domestic use and full-scale PV power plants are
available from the company. Each solution comprises a net-
work of connected hardware, such as gates, power banks,
batteries, meters, and converters, and software that allows
for real-time power monitoring and control. Schneider Elec-
tric solutions provide complete energy independence, effi-
cient backup, or a combination with other energy sources
(Koronen et al., 2020).
7.5. Energy storage
(i) Brooklyn Microgrid: The other IoT application for energy
saving is optimizing the main source of centralized en-
ergy production. Stations, power plants, solar fields, and
WTs also consume energy, requiring maintenance and a
wide range of effort and heavy work. The IoE is the right
way to maximize performance. Resource management on
the IoE contains a set of measures to optimize perfor-
mance in the power grid. It includes sensors, data anal-
ysis, forecast maintenance, and other measures. In New
York, the Brooklyn Power Grid has created a power grid
(Chen et al., 2019). The Brooklyn Microgrid (BMG) is an
energy market for locally generating solar energy. The
BMG market allows manufacturers to sell the extra so-
lar energy they generate to NYC residents who prefer re-
newable energy and fossil fuels. According to Fast Coex-
ist, the group uses blockchain technology to create the
first P2P energy exchange and emerging Internet energy
(Xue et al., 2017; Li et al., 2019). The project, called Tran-
sitive Grid, is a joint venture between Brooklyn Microgrid
LO3 Energy network developer and a blockchain technol-
ogy development agreement. Smart meter hardware and
blockchain-based software layers make up the network.
Smart meters connected to the blockchain are installed in
participants’ homes to measure the electricity generated
and used in the residences and manage transactions be-
tween neighbors (Mengelkamp et al., 2018; Bamakan et al.,
2021). In Table 4, the summary of described case studies is
presented.
8. Discussion and Challenges
One of the main issues of smart cities is energy, whose production,
distribution, and consumption require complete planning and use
of complex computational techniques and methods. Hence, utiliz-
ing AI and ML techniques is the most effective way of dealing with
such problems.
Recent advancements in optimization methods and intelligent
algorithms would lead to solving complex optimization problems.
Using a wide range of learning algorithms in engineering sciences,
such as electrical energy transmission and distribution systems,
would reduce the costs and provide more reliable grids. AI has
many applications in the energy industry that require special at-
tention from researchers in this field. By analyzing and modeling
the data, AI would be used to increase the efficiency of the energy
industry in different domains such as electricity trade, electric-
ity consumption, energy forecasting, tracking, and optimization
of energy efficiency.
In recent years, sustainable energy has been considered an in-
separable part and the center of all economic activities and the
main element of international politics (Arslan et al., 2022; Zhang et
al., 2022). Affordability, access to energy resources, energy security,
and environmental sustainability are essential for the well-being
of future descendants. Energy generation and solving the required
energy shortage impose significant pressure on the environment,
mostly based on limited resources (Khan et al., 2022a). Energy sus-
tainability is one of the issues related to providing sufficient, reli-
able, and affordable energy in accordance with social and environ-
mental requirements. Sustainability has many aspects, such as
human, social, economic, and environmental sustainability (Khan
et al., 2022b). Sustainability can be achieved by using renewable
energy sources and cost-effective energy generations that could
create jobs and mitigate climate changes while providing a viable
and cost-effective solution to preserve the environment. Consid-
ering issues such as climate change, energy security, and energy
shortage in the future, distributed power plants will be crucial to
meet energy demand and create a sustainable environment (Has-
san et al., 2022). DGs can significantly improve energy efficiency,

Figure 10: IoE security challenges.
energy saving, and sustainability compared to centralized ther-
mal plants that adversely affect the environment. Although var-
ious aspects of IoT-based power generation systems such as IoE
and SGs have been considered, many challenges still need to be
addressed.
8.1. Security challenges of IoE-based DG
Although renewable energy technologies help reduce climate
change, national dependency on imported energy, and increase
employment levels, adding the IoT to renewable energy sources
bring new security issues and challenges. Challenges and secu-
rity issues can prevent the establishment of IoT-based activated
energy systems used by end-users (Chin et al., 2017; Khajenasiri
et al., 2017). The most crucial security issues faced by IoT-based
activated energy systems will be explained briefly in this sec-
tion (Fig. 10). Given the wide-range distribution of IoT devices and
the confidential nature of the obtained and transferred informa-
tion by IoT nodes, security has become a significant challenge
which includes issues such as authentication, authorization, ac-
cess control, privacy, and secure architecture (Burhan et al., 2018;
Al-Turjman et al., 2019; Khatua et al., 2020). IoT-based activated en-
ergy systems are built on cyber systems, facing different security
issues (He et al., 2016).
8.1.1. Access control and authorization
Several devices or objects are needed to be remotely adjusted
and controlled, just like sensors in the field and actuators in dis-
tributed posts. Hackers or angry employees may access the infor-
mation and tamper with it, resulting in a power outage or physical
property damage such as transformer damage. The encrypted al-
gorithm that is used here is Elliptic-curve cryptography and the
secure hash algorithm (SHA 256, Nandy et al., 2019; Perwej et al.,
2019; Qiu et al., 2020). In accessing IoT resources, policies are de-
fined that can reject or accept these requests. In fact, in such a
system, all access policies are predefined. Determining the roles
between trusted action and trusted communication will lead to
Journal of Computational Design and Engineering | 1805
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decentralized trust management, and these security approaches
would solve trust issues (Nandy et al., 2019).
8.1.2. Confidentiality and data integrity
The confidentiality of obtained and stored information guaran-
tees the access of the intended recipient. Data integrity en-
sures that the obtained data are not tampered with along the
path. In the IoT network, because low-end devices are resource-
constrained, ensuring confidentiality for data transmission is
complex. Encryption or cryptography can effectively reduce the
confidentiality load of IoT node transmission (Qu et al., 2014; Khan
& Salah, 2018; Vagadia, 2020). A secure transmission path line for
microgrids in which systems can verify and preserve the valid-
ity and confidentially of messages by using special digital signa-
ture software and specifying a unique identification number to
all terminals (Perwej et al., 2019; Figueroa-Lorenzo et al., 2020).
The spread of IoT technology has increased privacy and security
challenges. Unintentional use, simple passwords, failure to update
the password, and failure to update the device have increased the
risks associated with cyber security, which has led malicious pro-
grams to access sensitive information on IoT systems (Arachchige
et al., 2020). Such inappropriate security measures increase the
likelihood of data breaches and other threats. Most IoT security
experts consider cyber-attacks vulnerable due to weak protocols
and security policies. Even if several security mechanisms are in
place to protect IoT devices from cyber attacks, there is a need for
more appropriate security guidelines (Ogbuke et al., 2022).
8.1.3. Identification
This feature is a communication tool with the object to ensure its
identity in a microgrid system. Many IoT objects, such as sensors,
are placed in a distributed way. Therefore it is more challenging
to manage objects. For example, a sensor may register itself and
claim it is located somewhere rather than its actual place. IoT de-
vice identification challenges include identifying the device and
confirming its connection with other devices through the correct
topological address (Miettinen et al., 2017; Vashi et al., 2017; Per-
1806 | Journal of Computational Design and Engineering, 2022, Vol. 9, No. 5
wej et al., 2019). Sophisticated authentication processes, RFID ID
cards, sensor networks, cloud computing, and virtualization are
just a few examples of the security technologies used in the IoT.
8.1.4. Privacy-preserving
The risk of data leakage intensifies when IoT local networks in-
tegrate with the global Internet to monitor and establish connec-
tions with the real world. Through the Internet, several organi-
zations may get access to confidential information. Regarding en-
ergy systems, smart counters and appliances at residential houses
may provide more knowledge about energy consumption power.
This information may intrude on clients’ privacy, such as their
location. It can also harm their habits, such as sleep time and
waking up times (Alam, 2018b; Hejazi et al., 2018). Also, protect-
ing privacy by the dummy-location selection algorithm through
analyzing several user privacy requirements and their computa-
tional costs for efficiently preventing users’ privacy. Estimating
that the others may use some peripheral information, the Data
loss prevention (DLP) algorithm selects to keep the confidential-
ity of some users for several months (Sun et al., 2017; Das et al.,
2020). Privacy issues can be classified into two general categories:
The first case is user-driven confidentiality which shows privacy
problems associated with measurement technology that collects
data about people in the monitored area without their knowl-
edge. The second is network-driven privacy which can be of two
types: content privacy which includes data and query privacy, and
center privacy which includes time, identity, and location privacy
(Yang et al., 2017; Hassan et al., 2019). Innovative services char-
acterize the IoT in various applications and heterogeneous tech-
nologies. Hence, security and privacy requirements play a criti-
cal role. In IoT-based systems, challenges revolve around data pri-
vacy and authentication, IoT access control, privacy and trust be-
tween users and things, and implementing security and privacy
policies.
8.1.5. Trust issues
Microgrid devices or objects can be managed by several entities,
such as network operators for sensors, counters, and clients for
smart devices. These devices can communicate without making
minimum trust. Trust establishment between devices belonging
to several entities is an essential issue in large networks (Oh &
Kim, 2017). The IoT devices are potential entry points for cyber-
attacks, given the large number of such devices. They may have
different security issues. Such uncertainties in privacy increase
the user’s rejection of IoT devices. The risks of insecure devices are
high because a weak link in a network would make hundreds or
thousands of other devices available to attackers. With billions of
Internet-connected devices, it is essential to verify the reliability
and integrity of the data received from each IoT device (Perwej et
al., 2019).
8.1.6. Data tampering
Hackers can change communication data such as previous dy-
namic price information by converting the highest price of en-
ergy consumption to the lowest price, causing overload in the elec-
tricity network and household energy consumption increase. IoT-
based energy exchange systems in microgrid networks can have
other smart devices. In any device, information security is essen-
tial because fake data injection may result in cascading failure
and probably a power outage in a wide area. A hacking detection
algorithm based on convergence properties and a reduction algo-
rithm based on the consensus of opinions is proposed to prevent
false injection. By depriving false nodes of infrastructures, a trust-
based diffusion algorithm based on the adaptive hybrid policy has
been applied for safety status estimation (Shrivastava et al., 2019;
Fazion, 2020).
Applying privacy and security requirements may lead to per-
formance problems since an IoT solution combines several fac-
tors: interface elements, embedded devices, cloud computing for
data processing, tools’ control, and many more (HaddadPajouh et
al., 2019; Miloslavskaya & Tolstoy, 2019; Tewari & Gupta, 2020). A
lightweight security solution offers authentication, authorization,
and permission mechanisms even if a valid cloud is consistent
for data processing and transmission. This concept designs feder-
ation permission is sufficient for a cloud solution that regulates
IoT nodes with client permission. This work’s explained security
description may be combined with an existing software and hard-
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ware structure and require less cost on the customer’s behalf.
User-centric IoT is a system that connects objects and services
with a primary effect on customers or through real conditions.
A unique classified scheme for different IoT objects has been of-
fered, which almost approximates real-world situations (Tawal-
beh et al., 2020).
8.2. Social and managerial challenges
This section discusses the main challenges related to DG’s social
and managerial aspects. Pollution, energy consumption, popula-
tion density, social activities, and difficulties accessing urban com-
munications and transportation have challenged different com-
munities. The use of renewable energy is the most effective step
that can be taken to have a sustainable city (Koirala et al., 2016;
Mehigan et al., 2018). On the other hand, using renewable energy
in urban infrastructure would significantly reduce city environ-
mental pollution. As fossil fuel resources dwindle and the world
faces global warming due to GHGs, more environmentally friendly
energy sources are in high demand as a viable alternative to fossil
fuels.
Furthermore, the SG effectively combines renewable energy
sources with the existing traditional networks to provide the re-
quired energy. While improving the community’s economic situ-
ation benefits the environment, the smart city will also achieve
important issues such as sustainable development, sustainability,
and diversity of energy resources. Building a smart city is based on
the IoT.
Many fundamental issues facing the IoT play a crucial role
in the success of this technology. That is how to secure the ex-
changes and interactions between the billions of IoT devices. The
idea of smart cities is slowly becoming a reality as many coun-
tries worldwide adopt this idea and offer their model of smart
cities (Alam, 2018a). Smart cities have different dimensions, ge-
ographical locations, and different levels of development, which
will bring serious management challenges, including the inability
to determine a responsible person in charge of cyber protection
or privacy risk assessment. It should be noted that senior execu-
tives are sometimes involved in the day-to-day and cumbersome
administration tasks, which prevents them from being creative
and paying attention to long-term plans such as smart cities. To
achieve a smart city, capable managers who understand it and its
requirements are needed. A smart city would effectively respond
to the challenges of population growth by using government re-
sources and improving the quality of life for future generations.
A smart city should consider a smart economy, governance, envi-
ronment, people, and interaction, but having a vision alone is not

enough. Actions in legislation, policy, and organizational change
are needed (Farahzadi et al., 2018).
On the other hand, the amortization of each city subsys-
tem separately is not enough to create a smart city. However,
these dimensions must be considered as a whole integrated sys-
tem (Baran, 2022). In summary, the smart city must respond to
changes in the context; smart solutions cannot be easily copied
and need to be evaluated in different contexts.
9. Conclusions
The energy supply methods are considered the influencing factor
affecting the future of energy systems and environmental sus-
tainability. With the continuous development of the Internet, a
convergence of DG, SGs, and diverse energy resources would lead
to smart and innovative energy supply systems. Accordingly, in
this paper, we addressed smart and DG, its applications and chal-
lenges, and discussed how it would help societies obtain optimal
and sustainable resources for energy supply with the aid of the
IoT.
This paper provided complete and extensive information on
distributed electricity generation, the IoT, and its applications in
SGs. In addition, a comprehensive systematic review and biblio-
metric analysis are provided to define the relationship between
these two domains. The results showed that India, the USA, China,
and the UK have the most research collaborations. In addition, the
University of New South Wales (UNSW Sydney), Nanjing Univer-
sity of Posts and Telecommunications, Federal University of Pi-
auí, and King Saud University have the most cooperation in the
field. There are many ways that the IoT can transform the en-
ergy industry since it has the potential to change all energy cy-
cles such as production, transmission, distribution, and consump-
tion. In the discussion section, different IoE-based DG challenges,
including security issues, authorization, confidentiality privacy-
preserving, trust issues, data tampering, and social and manage-
rial challenges, are identified and discussed in detail.
In future work, further research in the energy field can be done
by examining the opportunities for research and innovation in en-
ergy and mathematical modeling, given the link between the spe-
cific topics of “green computing” and “energy and SGs” to provide a
proper perspective. Moreover, energy transmission and consump-
tion optimization modeling can be presented as future works.
It is worth mentioning that researchers believe blockchain
technology would provide substantial solutions to solve the chal-
lenges facing the energy industry. Blockchain can improve the
situation of businesses related to energy and its supply. This in-
crease in productivity and better energy management is possi-
ble through the ability to track energy in a network. Blockchain-
related technologies have positive effects on reducing costs and
increasing environmental sustainability. In addition, oil, gas, and
energy supply companies are very sensitive on issues such as pri-
vacy and security that blockchain-based system would provide
tamper-proof solutions. Blockchain also increases energy market
stakeholders’ transparency without compromising their privacy.
Integrating blockchain technologies with the IoT helps end cus-
tomers and consumers to get the energy they need directly from
the distribution network, and there is no need for retailers in the
field of energy supply. Furthermore, when energy-related transac-
tions are recorded in a blockchain, the abuse of energy buying and
selling is minimized due to the general nature of information dis-
semination and the possibility of tracking them on the blockchain
platform.
Journal of Computational Design and Engineering | 1807
Acknowledgments
This work was partially supported by the National Science Foun-
dation of China (No. 61902385), the Natural Science Founda-
tion of Guangdong Province of China (No. 2018A030313943), and
the Shenzhen Key Fundamental Research Projects(Grant No.
JCYJ20200109115422828).
Conflict of interest statement
None declared.
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