Introduction

The integration of the Internet of Things (IoT) into renewable energy networks is revolutionising the way energy is produced, distributed, and consumed. In Australia, the National Electricity Market (NEM) is undergoing significant transformations to accommodate a higher share of renewable energy sources (AEMO 2022). While IoT offers numerous opportunities for enhancing efficiency and reliability, it also introduces new vulnerabilities that must be addressed to ensure the resilience of the energy infrastructure.

Opportunities Presented by IoT in Renewable Energy Networks

Enhanced Monitoring and Control

IoT devices enable real-time monitoring and control of energy systems, facilitating better management of renewable energy sources like solar and wind. This capability allows for more accurate forecasting and efficient dispatch of energy resources, contributing to grid stability. For instance, smart meters and sensors can provide granular data on energy consumption patterns, aiding in demand-side management.

Integration of Distributed Energy Resources (DERs)

The proliferation of DERs, such as rooftop solar panels and home battery storage systems, necessitates advanced coordination mechanisms. IoT facilitates the aggregation and optimisation of these resources, enabling virtual power plants and peer-to-peer energy trading models. This decentralisation enhances energy resilience and empowers consumers to participate actively in the energy market (Corrs Chambers Westgarth 2021).

Predictive Maintenance and Operational Efficiency

IoT technologies support predictive maintenance by continuously monitoring the health of equipment and identifying potential failures before they occur. This proactive approach reduces downtime and maintenance costs, ensuring the reliability of renewable energy assets.

Vulnerabilities Introduced by IoT in Renewable Energy Networks

Cybersecurity Risks

The increased connectivity brought about by IoT devices expands the attack surface for cyber threats. Vulnerabilities in IoT components can be exploited to disrupt energy systems, leading to potential blackouts or equipment damage. Notably, the energy sector has become a prime target for cyberattacks, with incidents such as the Triton malware attack highlighting the potential consequences (IEEE Communications Society 2025).

Data Privacy Concerns

The collection and transmission of vast amounts of data through IoT devices raise concerns about data privacy and protection. Unauthorised access to sensitive information can compromise consumer privacy and lead to misuse of data.

Interoperability and Standardisation Challenges

The lack of standardised protocols and interoperability among IoT devices from different manufacturers can hinder seamless integration and communication within the energy network. This fragmentation can lead to inefficiencies and complicate the management of the energy system.

Case Study: 

The National Electricity Market (NEM) in Australia

The NEM is a complex and interconnected electricity grid that spans the eastern and southern regions of Australia. As the country transitions towards a higher share of renewable energy, the NEM faces unique challenges and opportunities associated with IoT integration.

Opportunities in the NEM

The Australian Energy Market Operator (AEMO) has outlined a roadmap to achieve 100% renewable energy, emphasising the role of digital technologies, including IoT, in facilitating this transition. IoT-enabled solutions can enhance the visibility and controllability of the grid, allowing for more efficient integration of variable renewable energy sources (AEMO 2022).

Vulnerabilities in the NEM

The increasing reliance on IoT devices within the NEM also introduces cybersecurity vulnerabilities. Experts have warned about the susceptibility of Australia's electricity grid to cyber threats, particularly with the influx of IoT endpoints. Ensuring the security and resilience of the NEM requires robust cybersecurity measures and continuous monitoring (BlackBerry 2025).

Illustrative Example 

Figure 1 illustrates the hypothetical growth of IoT device deployments and the corresponding increase in reported cyber incidents in the NEM from 2020 to 2025. It highlights the trade-off between IoT adoption and cybersecurity risks—an important aspect of your case study.

Figure 1 serves as a cautionary representation of how rapid IoT adoption in renewable energy networks, such as the NEM, without parallel investment in cybersecurity, may create significant operational and strategic risks. The trend underscores the need for grid-wide IoT cybersecurity standards, advanced monitoring systems, and regulation to keep pace with digitalization.

Strategic Implications

The NEM needs a coordinated response involving:

• Minimum cyber baselines for all IoT-connected grid assets (e.g., based on NIST 800-82, ISO 27019).
• Device-level monitoring and anomaly detection systems integrated into AEMO’s DER Management Platform (DERM).
• Development of a Cyber Incident Response Framework (CIRF) for aggregated DER systems and third-party aggregators.

Conclusion

The integration of IoT into renewable energy networks presents a dual-edged sword, offering significant benefits in terms of efficiency, reliability, and consumer empowerment, while simultaneously introducing new vulnerabilities that must be diligently managed. In the context of Australia's NEM, leveraging IoT technologies is essential for achieving renewable energy targets, but it necessitates a comprehensive approach to cybersecurity and standardisation to safeguard the energy infrastructure.

Article written by:
Robert Boschetti & Dr. Loau Al-Bahrani

References:

AEMO (2022). AEMO unleashes ‘roadmap’ to 100% renewables. [Online] Available at AEMO | AEMO unleashes ‘roadmap’ to 100% renewables.

 Corrs Chambers Westgarth (2021). The National Electricity Market: addressing the challenges of renewable penetration. [Online] Available at The National Electricity Market: addressing the challenges of renewable penetration - Corrs Chambers Westgarth.

IEEE Communications Society (2025). [Online] Available at Cybersecurity Issues and Challenges in Internet of Energy (IoE) | IEEE Communications Society.

Springer Nature (2024). [Online] Available at Cybersecurity challenges in IoT-based smart renewable energy | International Journal of Information Security.

BlackBerry (2025). A BlackBerry Milestone and the Road Ahead. [Online] Available at A BlackBerry Milestone and the Road Ahead.