Application of AI and IoT for Decentralized Finance in Renewable Energy Management and Green Energy Promotion for Sustainable Socioeconomic Development

Abstract

This chapter examines the transformative role of artificial intelligence (AI) and the Internet of Things (IoT) in strengthening decentralized finance (DeFi) frameworks for renewable energy management. In an ideal sustainable energy ecosystem, intelligent monitoring systems, transparent financing mechanisms, and decentralized governance structures operate cohesively to optimize resource utilization and promote inclusive economic growth. Such a system is expected to support real-time energy forecasting, automated funding processes, and participatory decision-making. However, existing renewable energy infrastructures remain constrained by centralized financial control, limited predictive capability, and insufficient integration of digital intelligence, thereby restricting scalability and community participation. Building on prior research in AI-driven energy analytics, blockchainbased financing, and distributed governance models, this chapter critically 298 evaluates how their convergence reshapes green energy ecosystems. While earlier studies highlight the technical efficiency of smart grids and the transparency of blockchain platforms, they often overlook the systemic integration of predictive analytics, decentralized lending, and collaborative governance through decentralized autonomous organizations. Addressing this gap, the present work proposes an integrative conceptual framework grounded in digital ecosystem theory and financial decentralization principles. Through analytical synthesis, the chapter demonstrates how IoT-enabled data streams, AI-based forecasting, and smart contracts enhance risk assessment, financing accuracy, and operational resilience. The findings underscore the importance of ethical governance, data security, and algorithmic transparency in sustaining public trust. Ultimately, this research positions AI- and IoT-enabled DeFi as a critical pathway toward equitable, resilient, and sustainable renewable energy economies.