THE ERA OF RENEWABLE ENERGY & SMART GRIDS

Like many other phenomena in the 21st century, the power sector is moving from a centralized system to a distributed system. To put it another way, power is starting to tend toward a peer-to-peer architecture. Microgrids—more recently called smart grids—are the most technically sophisticated of the many distributed energy resource (DER) solutions transforming the power sector.

Smart grids are essentially subsets of larger electrical utility grids, designed to give organizations greater control over their energy resources and to make better use of utility-provided energy in conjunction with locally produced power. Most importantly, smart grids can connect and disconnect from the larger grid, thus operating both connected to a grid or as an island.

INNOVATIVE DISTRIBUTED ENERGY AND RENEWABLE TECHNOLOGIES

source: Harbor Research

The smart grid and the utility grid are linked by a “point of common coupling” that maintains voltage at a constant level until there is a problem on the utility’s grid. If the utility’s power starts to fluctuate, the smart grid taps its on-site energy production to even out the flow. If the larger grid goes down completely, the smart grid disconnects and uses its own local generating and/or storage capacity to provide power.

Because smart grids are a connected and highly-instrumented phenomenon, they are by definition a huge Smart Systems and Internet of Things (IoT) opportunity. They incorporate a wide array of sensors that can sample electrical current at up to 60,000 times per second. This huge volume of data feeds sophisticated AI algorithms both at the edge and at the core, allowing smart grids to operate autonomously. And the energy flow from smart grids is two-way, which requires specialized software to manage scenarios that involve selling as well as buying electrical energy.

Along with electric vehicles (EVs), Smart Cities will further drive widespread distributed energy and smart grid adoption.

INNOVATORS ARE MANEUVERING TO ENABLE FUTURE ENERGY SYSTEMS

source: Harbor Research

Distributed Energy Use Cases

Innovative technologies such as distributed generation, batteries, microgrids and smart meters are changing the electricity industry, creating new challenges for power utilities. Utilities companies can create services surrounding their existing power architecture and assets, such as monitoring consumption, the development of microgrids or developing EV charging capabilities.

In the future of distributed power, significant opportunities exist in smart cities for utilities and their suppliers. By 2026, electrical power will represent over half of the revenue opportunity for smart cities — however, one third of the smart city’s opportunity represents adjacent opportunities that energy OEMs and utilities can serve.

Public EV charging station networks are inherently a high-technology digital business. They displace the legacy fueling model with a distributed, subscription-based approach enabled by software, analytics, and energy management to prevent EV charging from crippling the grid. Industry groups should continue to promote EV charging interoperability through open standards, and collaborate with OEMs and utilities to deploy faster, cheaper charging stations with energy storage and load balancing, thereby accelerating the shift to EVs.

Key Distributed Energy Markets & Use Cases

source: Harbor Research

SECURING THE GRID & ENERGY RESOURCES

Climate events, such as the February 2021 freeze in Texas that left more than 4.5 million homes and businesses without power, highlight the need for resilient power grids and resource management. The energy sector has been slower to adapt to digital technologies than other industries. But as critical infrastructure, adapt they must.

Renewable energy (wind or solar) requires high-frequency monitoring to adjust to bottlenecks in the grid. These requirements naturally lead to a more distributed architecture. Smart Systems solutiions can better control, monitor and maintain equitable transmission and distribution of power and resources.

The new onslaught of data from monitoring and automation requires secure and reliable communication networks. The use of digital and decentralized technology can provide a larger potential target for cyber attacks, which could result in widespread outages. Blockchain and distributed ledger technology can help secure the grid and supply chain.  Regulations will continue to evolve as smart grids are more widely adopted.

THE IOT IS FINALLY SEEN AS A PANACEA

As we move into the third decade of the 21st century, the stakes are high for energy suppliers. Global energy demands are expected to grow by 37% by 2040, and our increasingly digital world cannot tolerate sudden power outages. Most energy infrastructures are now antiquated, brittle and prone to failure, while energy companies are struggling to adapt to new forms of renewable energy.

These companies are looking for a panacea and IoT is there waiting in the wings. Taking advantage of sensor-data and data analytics can make an enormous impact in the way energy is generated, distributed, consumed and stored, and thus global investment in IoT is expected to surpass $60 trillion over the next 15 years.

Smart power systems will drive a distributed energy future

source: Harbor Research

Recent studies have identified as many as 2,000 smart grid projects, both grid-tied and remote, that are in the proposed, planning or deployment stages worldwide. Together, they represent almost 21 gigawatts (GW) of capacity. (By way of comparison, the total energy generating capacity of Great Britain is roughly 75 GW.)

By applying complex IoT solutions, which facilitate automation on an industrial scale, smart grids can improve energy efficiency at the source. By integrating IoT and digital twins technologies across vast infrastructures like power plants, suppliers can shave time and labor from their presently manual processes. This translates to vast savings. And simplifying processes through the use of a connected IoT system can provide predictive maintenance and improve outage management, offering a significant degree of stability and optimization in an ever-evolving and unpredictable market. ◆