Smart Local Energy Exchange Systems Leveraging The Internet of Things for Decentralized Energy Management

During the Industrial Revolution, human society depended on natural energy flows, animal power, and biomass for heat and mechanical energy, with limited energy consumption per capita. However, between 1850 and 2005, global energy production and consumption surged as industrialized societies shifted from traditional energy sources such as wood, crop waste, and biomass to commercial energy forms like natural gas, oil, and electricity. While biomass still accounts for about 10% of global energy use, its primary contribution remains in developing regions. Over the past 200 years, energy consumption patterns have evolved in four key stages: (1) the rise of coal-powered steam engines in the late 19th century, (2) the widespread adoption of internal combustion engines and electric power generation in the first half of the 20th century, (3) the shift towards cleaner energy sources, particularly for electricity generation, and (4) the growing emphasis on reducing pollution and enhancing energy efficiency, especially in smart homes and cities. Despite advancements, the large-scale implementation of energy-efficient technologies is limited by the need for low-cost, easily deployable solutions. Additionally, the vast amount of data generated by smart energy systems presents significant challenges in data storage, organization, and analysis. This paper examines the historical evolution of energy consumption, its impact on economic development, and the ongoing shift toward sustainable energy practices.