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One of the most significant issues to solve in the fight against climate change is energy supply. Non-renewable resources are no longer a viable option for the sustainable future. Governments around the world are slowly transitioning to renewable energy sources in accordance with global goals.
To make this switch, a major consideration is the necessary infrastructural changes—chief among these, the grid. With technological advancements, smart grids have emerged as a viable solution to meet the various challenges renewable energy pose.
This article takes a closer look at the various technologies that comprise smart grids and how these tools act as a catalyst for a greener, cleaner future.
What Is Smart Grid Technology and Why Is it Relevant?
Before highlighting the emerging trends in this industry, it’s important to unpack what smart grid technology actually is. The International Energy Agency defines a smart grid as an “electricity network that uses digital technologies, sensors and software to better match the supply and demand of electricity in real time while minimizing costs and maintaining the stability and reliability of the grid.”
As the world transitions to renewable energy sources, a major issue will be incorporating clean fuel into the existing grid infrastructure. This is where smart grids have a major role to play, using technology to manage the rollout of solar, hydro, and wind-powered electricity to distribute energy in a reliable way.
Smart Grid Technology: Top Ten Emerging Trends
The prevailing theme in these emerging applications demonstrates the use of cutting-edge technology to manage the integration and eventual transition to clean energy.
Here are the top ten trends driving innovation in smart grid technology:
Integration of Renewable Energy Sources:
One of the biggest drivers of the clean energy movement is, of course, climate change. In a twisted cycle of cause and effect, the burning of fossil fuels releases greenhouse gasses that warm up the atmosphere, and the warmer temperatures then impact grid infrastructure, destabilizing energy supply.
With several global agreements committing to a future that prioritizes sustainability, renewable energy is at the top of every list. Integrating renewable energy sources into existing grid infrastructure will require advanced technologies—some of which will be covered later.
Use Cases:
Germany’s Energiewende (Energy Transition) policy offers a clear example of how the country aims to scale back its reliance on nuclear energy. Their goal is to integrate renewable resources into an existing energy grid. The policy also outlines a long-term strategy to achieve climate neutrality by 2045.
One key to achieving this is increasing the capacity of wind and solar power and using smart grid technologies to improve the efficiency and reliability of these energy sources.
Advanced Metering Infrastructure (AMI):
One of the latest trends in smart grid technology is Advanced Metering Infrastructure (AMI). With the proliferation of smart meters across the US, and particularly in the states of California and Texas, AMI allows customers to have greater oversight of their energy usage. This improves energy management from a consumer standpoint, allowing users to see the benefits of off-peak power utilization.
For energy providers, AMI improves grid management and enhances accuracy in meter reading, data collection, and billing. This technology can also be used to promote energy conservation during peak periods and enables dynamic pricing strategies, like prepaid metering systems.
Energy Storage Solutions:
When discussing a transition to renewable energy sources, one of the big concerns is the reliability of clean energy. The average solar panel can only hold energy for up tofive days, making this type of energy unreliable in many parts of the world. This is where energy storage technologies come into play.
These solutions provide new strategies for storing renewable energy and play a vital role in smart grids. Energy storage solutions increase the capacity of batteries to store surplus energy, usually produced during periods of low demand and saved for use during peak periods.
Energy storage solutions have improved with time, thanks to advances in technology. Lithium-ion and solid-state batteries have made a huge contribution toward storage capacity and enhance the effectiveness of these batteries.
Use Case:
One of the clearest examples of the power of energy storage solutions can be found in Australia. The Hornsdale Power Reserve in South Australia relies on a series of Tesla batteries to enable large-scale storage. These batteries support the grid by storing the surplus energy produced during low-demand periods and supplementing energy during peak usage.
Grid Modernization and Digitalization:
Another trend coming to the fore is grid modernization—made possible through the integration of digital solutions. These integrations are key to improving operational efficiency, strengthening grid reliability, and enhancing resilience.
Sensors, IoT (Internet of Things) devices, and communication networks enable real-time monitoring and management of the grid. Digital twins provide technicians with accurate simulations of grid performance, enabling precise forecasting of energy consumption.
Use Case:
The Great Grid Update is the UK’s answer to modernizing its grid infrastructure. Their efforts are geared towards transitioning to renewable energy sources and managing the influx of electric cars relying on the grid.
This project is aimed at improving efficiency and reliability. Engineers depend on the powerful predictive analytics of digital twin technologies, which enable predictive maintenance and monitoring.
Cybersecurity Enhancements:
With the increased integration of digital technologies, smart grids are a growing target for threat actors. By exploring vulnerabilities, hackers can disrupt energy supply, access critical data and information, and even take over entire utility systems.
Cybersecurity enhancements are critical to maintaining the security of national grids. In general terms, this encompasses multi-layered security tools like data encryption, anomaly detection systems, and access control solutions. Experts advise implementing these solutions alongside improvements in organizational policy and education.
Use Case:
The Cybersecurity for Energy Delivery Systems (CEDS) is a program initiated by the Department of Energy in the US. It serves as a research and development hub that aims to develop “resilient energy delivery control systems” that are capable of withstanding cyberattacks and maintaining operations through incidents and breaches.
Demand Response Programs:
Shifting attention to consumers, demand response programs are gaining popularity among grid operators globally. Rather than boosting the energy supply, governments and utilities managers are imploring customers to use energy sustainably by shifting energy-intensive activities to off-peak periods.
Customers are incentivized to comply through dynamic pricing models, managed by these demand response programs. This allows for better management of energy supply and these programs provide critical data for infrastructure and data management.
Use Case:
The negawatt market has emerged as a viable solution for surplus energy and energy demand management. If you’ve never heard of a negawatt as a unit of measurement, it’s because this is a hypothetical unit used to describe unused energy. The negawatt market refers to surplus energy being returned to the grid and sold to customers in need.
Unused energy is thought of as a commodity in this market, and can be bid on. This incentivizes conservative use of energy and places the financial burden of overconsumption on high-usage users. These transactions would be monitored and facilitated by smart grid technology.
Microgrids and Decentralization:
Microgrids have emerged as a solution to improve energy reliability for remote and disaster-prone locations. Microgrid Knowledge defines them as “a self-sufficient energy system that serves a discrete geographic footprint, such as a college campus, hospital complex, business center or neighborhood.”
They improve grid resilience by providing an alternative source of energy during grid failures. This is linked to the concept of decentralization, which refers to energy generated off the main grid.
Use Case:
In an effort to improve grid stability, Puerto Rico is implementing microgrids to manage their frequent power failures. These solar-powered microgrids provide consistent electricity supply to hospitals, emergency centers, and other critical infrastructures.
Electric Vehicles (EVs) Integration:
As countries around the world adopt electric vehicles, a new challenge is posed: charging requires the integration of smart grids. Interestingly, these cars can act as batteries, feeding surplus energy back into the grid and directly to homes.
This two-way energy flow demands advanced grid management and coordination, which smart grid technologies enable.
Use Case:
When looking for an example of optimizing grids for EV adoption, Norway provides an interesting case study. With electric vehicles accounting for more than 50% of new car sales, the Norwegian government has been an early mover in smart grid integration.
The Norwegian smart grid incorporates electric vehicles as mobile storage units, supporting V2G technology that allows EVs to return power to the grid during peak demand. This is referred to as bi-directional charging and occurs in a number of orientations: vehicle-to-grid (V2G), vehicle-to-home (V2H), or vehicle-to-load (V2L). V2L refers to the use of an electric vehicle’s excess energy to power up appliances and essentially act as a reserve energy source.
Artificial Intelligence and Machine Learning:
Going back to the roots of “smart” technology, artificial intelligence (AI) and machine learning are being deployed to improve grid operational efficiency. AI has several applications in smart grid technology, which include:
Accurate forecasting of energy consumption, which improves grid management
Enhanced cybersecurity through AI tools that scan for and detect vulnerabilities
Improved outage alerts. AI-powered sensors and meters create a powerful network that can transmit outage alerts even while powering down due to energy loss.
Use Case:
In Singapore, Prime Minister Lee Hsieng Loon outlined the island state’s Smart Nation initiative. Harnessing the power of AI and technology, they aim to integrate artificial intelligence into the national grid to enhance energy management. Singapore aims to use AI algorithms to analyze information from IoT devices to improve energy distribution and anticipate maintenance requirements. This ensures the grid remains reliable and efficient.
Blockchain for Energy Trading:
Earlier, the emergence of the negawatt market was discussed; blockchain technology represents a viable solution for facilitating energy trading. Blockchain offers a decentralized and secure approach to transactions and lends itself well to an energy exchange. The technology empowers peer-to-peer (P2P) energy trading—which would enable users to exchange surplus energy amongst each other in a marketplace.
Use Cases:
In Germany, a renewable energy firm, Sonnen, created the SonnenCommunity. They provide a platform for users to facilitate peer-to-peer energy trading among households with solar panels. The energy trading marketplace is powered by blockchain technology and enables a direct energy exchange, thereby boosting local energy usage and production.
Concluding Thoughts
Smart grids represent a giant leap toward a sustainable future. As the world moves away from non-renewable resources, governments will need to take advantage of technology to keep pace with ambitious global goals.
The technologies that empower smart grids are credited with not only integrating green energy into the grid, but stabilizing energy supply, and managing periods of peak and low demand. Customers gain a better sense of transparency in terms of energy utilization and associated costs, and grid managers have access to detailed insights. This enables proactive service and maintenance alongside distributed supply.
From AI-driven analytics and blockchain-enabled energy trading to decentralized microgrids and advanced energy storage, smart grid innovations are reshaping the way power is produced, distributed, and consumed. These trends empower stakeholders across the energy ecosystem—utilities, governments, businesses, and consumers—to collaborate effectively in building a resilient energy infrastructure.
A cleaner, greener future is possible, and smart grid technology is at the forefront of ushering in this change.
