The major drivers of smart grid development will be the shift from centralized to distributed power generation and the rise of renewable power. While the benefits of these approaches are in line with new legislation for climate protection, they will have a severe impact on the stability of the grid. As conventional power stations will need to balance fluctuations in generation from renewable sources, they will become more reliant on control systems, such as those provided by ABB, to provide the necessary flexibility in their operations. ABB's products and services will continue to include optimization solutions using SCADA/GMS (generation management systems), but the communications, protection and control equipment in the rest of the grid will be challenged.
