Why smart grids

Over-head and underground cables leading to your home or business are operated by DSOs. Traditionally, energy systems from power generation to homes are one-directional and based on more predictable, controllable and centralised power generation, looking something like this:. Increasingly, more energy is being generated locally and connected directly to distribution networks, from solar panels on your roof, to small power plants. Since , the European Union has committed to reaching the so-called targets.

For such objectives to be achieved, an ever increasing share of RES is being connected to our electricity networks. The benefits of a smart grid include improved efficiency and reliability of the electricity supply, integration of more renewable energy into existing network, supporting the development of electric vehicles at scale, new solutions for customers to optimize their electricity consumption and reduction of carbon emissions. According to the EU a smart grid employs innovative products and services together with intelligent monitoring, control, communication, and self-healing technologies to:.

Similar smart grid definitions exist in other regions through the world where smart grid initiatives exist which is the case for most countries, obviously including the US. The U. It sums up some benefits associated with the Smart Grid again, the initiative, but you can expand it to smart grids overall :. Obviously, there are also challenges regarding the movement to a smart grid. Some were addressed earlier in this overview. Additional ones include consumer concerns privacy and personal data protection and cybersecurity.

A second challenge is certainly the overall cybersecurity aspect which is typical in all industrial environments where digitization and digital transformation are ongoing, data become key and IT and OT converge IT stands for information technology, OT for operational technology. Smart grids will increase network flexibility by the development of additional intelligence e.

Additional challenges in smart grids include regulatory changes, the complexity in integrating sources, systems and partnerships between various players in a deregulated market, the local situation whereby a selected number of large companies often still dominate and changing attitudes among prosumers. The goal of this article was to introduce smart grids and explain the essence of the smart grid concept we call it a concept as there is no real smart grid yet.

However, there is of course more to it given the sheer complexity of electrical grids, the involved components and the many stakeholders. Smart grids include various operation and energy measures such as smart meters, smart appliances, renewable energy resources, and energy efficient resources.

Today, grid modernization has evolved to be more inclusive of customer preferences and desires. As is explained here , distributed energy resources DERs are electricity-producing resources or controllable loads that are directly connected to a local distribution system or connected to a host facility within the local distribution system.

DER systems typically use renewable energy sources, including small hydro, biomass, biogas, solar power, wind power, and geothermal power, and increasingly play an important role for the electric power distribution system. Therefore, renewable energy is used instead — but it is a distributed, unpredictable resource that must be managed within a smart grid infrastructure.

For decades, our electricity needs have been adequately met by a traditional National Grid model which is conceptually quite simple. However, the energy market is a highly dynamic place, with many powerful factors of change.

Some of these are leading to the demise of traditional grids, while others are facilitating the smart grids that are replacing them. If we look at both sets of factors, we will see why smart grids are essential, as well as how they can improve our access to and use of electrical energy.

Fossil fuel power stations have served us well for so many years because they are predictable and reliable. However, these stations are highly polluting, and make significant contributors to global warming.

Accordingly, many European countries have made commitments and set deadlines for phasing out fossil fuels. Meanwhile, demand for electricity is steadily growing, as we live more of our personal and working lives online, and increase our uptake of electric vehicles. So, without making technological advances, we would have been left with a diminishing pool of fossil power stations endeavouring to support a relentlessly increasing electric load.

The new technologies will also help ensure that electricity recovery resumes quickly and strategically after an emergency—routing electricity to emergency services first, for example. In addition, the Smart Grid will take greater advantage of customer-owned power generators to produce power when it is not available from utilities.

By combining these "distributed generation" resources, a community could keep its health center, police department, traffic lights, phone System, and grocery store operating during emergencies. In addition, the Smart Grid is a way to address an aging energy infrastructure that needs to be upgraded or replaced.

The Smart Grid is not just about utilities and technologies; it is about giving you the information and tools you need to make choices about your energy use.

If you already manage activities such as personal banking from your home computer, imagine managing your electricity in a similar way. A smarter grid will enable an unprecedented level of consumer participation. For example, you will no longer have to wait for your monthly statement to know how much electricity you use. With a smarter grid, you can have a clear and timely picture of it. Combined with real-time pricing, this will allow you to save money by using less power when electricity is most expensive.