Integration of renewables
The forces now driving the development of the smart grid are as varied as they are influential. Environmental concerns are increasing around the globe, driving the development of renewable energy on a larger scale than ever before.
The widespread addition of wind, solar and other renewables present operational challenges due to their intermittent nature. A grid that can handle a generation mix with a high percentage of renewables, and one that enables consumers who are also generators of electricity to feed excess power back into the grid, will become a necessity for those technologies to realize their full potential.
Integration of electric vehicles
Such a grid will also be necessary to realize the potential of plug-in electric vehicles. The integration of vehicle charging stations and power-storage devices into the grid would provide the potential for energy storage during periods of low demand. Batteries and other storage devices can even power to be fed back into the grid when demand rises, helping to balance supply and demand and reduce the instabilities caused by renewable resources.
As pressure to reduce pollution from conventional vehicles rises, electric vehicles can make a significant contribution to improving the quality of air in our towns and cities. The use of electric vehicles can also reduce dependence on imported oil, a key aim in many countries, and limit exposure to the price volatility of oil markets.
These benefits can be realized only with the development of the necessary infrastructure, in terms of vehicle charging points, billing systems and battery technologies.
Reliability and energy efficiency
The efficiency of the power grid itself has also come under examination, as even in the most modern systems, up to eight percent of the electricity leaving a power plant is lost in the transmission and distribution network. Reliability, for years the chief concern of utilities and grid operators, is now only one of a wide range of considerations in power system planning, operation and management. Energy efficiency has now come to the fore as another key issue that in many cases (notably in areas suffering from transmission congestion) is closely linked with reliability.
Demand response
On the demand side, energy consumers are demanding even greater control over their energy usage, and the application of available technology can meet this need. Residential smart meters, for example, allow utility customers to take advantage of time-of-use pricing that was formerly available only to large commercial/industrial users.
Regulators have taken note of these needs. There are now many examples of regulatory support for expanding renewable generation, increasing grid efficiency and enhancing system reliability. These efforts range from local government actions to ease the installation of rooftop solar panels, to state/provincial requirements for renewable generation, national reliability standards and cross-border agreements for improved interconnection between power systems.
All of these elements, from the economic to the environmental, are amplifying the necessity for the grid itself to evolve. We need our power delivery infrastructure to do more – much more than it does today. To meet the many challenges facing it, the grid needs an infusion of intelligence.