SMART GRID

The New Energy Revolution

Smart grid technology has been teased since the early 2000s, but how close are we to truly efficient energy management?

Over the past three decades, engineers and policymakers have been working together to bring consumers a power grid with greater efficiency, enhanced security, and fewer outages. Achieving this vision requires the interoperability of many diverse systems and devices.

POWER GRID

Digitalization and smart controls can reduce emissions from buildings by 350 million tons CO2 by 2050.

Source: IEA

Benefits & Barriers

Modernizing our energy infrastructure is no small feat. The innovations that drive smart grid technology come with significant challenges. As engineers design innovative solutions, consider the following.

BENEFITS

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Flexible Customization

Enhanced grid efficiency cuts costs for utilities and consumers, boosting adoption of customizable energy technologies tailored to diverse user needs.

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Reliability & Resilience

Real-time energy flow monitoring enables smart grid automation, demanding robust, precisely engineered technologies.

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Leveraging Renewables

Smart grids facilitate dynamic balancing of renewable energy supply and demand, ensuring efficient energy transfer to high-demand areas and minimizing storage losses.

BARRIERS

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Integration of Technologies

Designing smart grid products involves integrating diverse technologies, protocols, and standards into interoperable solutions, necessitating extensive testing and investment.

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Legality & Adoption

Evolving energy policies and stringent reliability standards increase development and implementation costs, potentially delaying market entry.

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Cybersecurity

To protect the integrity of smart grids, it’s important to implement security measures such as encryption, authentication, and real-time threat detection.

POWERING UP THE MARKET

Driven by an increased global demand for affordable energy, greater awareness about carbon footprint management, and the rise of renewables, projections for Smart Grid investment is expected to reach approximately $185 billion (USD) in 2029.

North America

Europe

Asia Pacific

South America

Middle East & Africa

60.3B

2023

71.7B

2024

185.0B

2029

Source: Markets & Markets

GRID GADGETS

Hardware durability and flexibility are critical to ensure proper communication across the grid and efficient energy flow.

Networking hardware is growing significantly as devices capture data from both consumers and utilities. Engineering innovations continue to advance in the following:

An electric meter mounted on a light green wall

Smart Meters

Batteries and other storage technologies hold excess energy generated during low-demand periods for use during peak demand times, enhancing grid stability and efficiency.

Two utility workers are working on a power line. The worker on the left is in a bucket truck, while the worker on the right is climbing the pole. They are both wearing yellow hard hats and safety vests

Advanced Sensors

Monitor the performance and condition of power lines, transformers, and other key power grid infrastructure to detect faults, optimize maintenance, and prevent outages.

A worker in a yellow jumpsuit and a white hardhat inspects a large electrical panel

Phasor Measurement Units

PMUs measure the flow of electrical waves to provide real-time data on the health of the power grid, measure resiliency, and enhance the grid's ability to integrate or remove additional energy capture source.

An aerial view of a large-scale battery energy storage system (BESS) facility. The BESS is comprised of numerous rectangular battery containers, arranged in rows and columns

Energy Storage Systems

Batteries and other storage technologies hold excess energy generated during low-demand periods for use during peak demand times, enhancing grid stability and efficiency.

SUSTAINABLE POWER SYSTEMS

Energizing the Future

While smart grid technology has not reached its full integration potential, several focused use cases for its effectiveness can be seen across industries - in applications such as automobiles, home networks, and microgrids.

An illustration depicts a grid system of solar panels and electric vehicle charging stations. Four rows of solar panels are arranged in a grid pattern, each panel generating clean energy.

Chargers utilizing advanced electronics enable seamless AC/DC conversion for bidirectional energy flow and employ high-efficiency inverters and converters with minimal harmonic distortion – leveraging silicon carbide (SiC) or gallium nitride (GaN) semiconductors for superior performance, in compliance with IEEE 1547 and UL 1741 standards.

Vehicle-to-grid (V2G) networks use this bidirectional energy flow to support the larger grid. They draw power at optimal times, reducing strain on the grid during peak demand, and supply power back when not needed, enhancing grid stability and efficiency. This system allows electric vehicles to act as mobile energy storage units, contributing to a more balanced and resilient energy infrastructure.

An image shows a neighborhood of three houses, each with solar panels on their roofs and electric vehicle charging stations in their garages

A Vehicle-to-Home (V2H) network enables an electric vehicle (EV) to supply power to a home through a bidirectional charger and home energy management system (HEMS). The bidirectional charger converts DC power from the EV's battery to AC power for the home during grid outages or peak demand periods, managed by an energy management controller. Key components include smart meters, inverters, and load management systems within the home's electrical panel, ensuring seamless integration with the grid.

Challenges like power conversion efficiency and battery degradation are addressed with high-efficiency inverters and optimal charging algorithms. Regulatory compliance and smart grid compatibility ensure safety and reliability, supporting benefits such as emergency backup, cost savings through peak shaving, and grid stability contributions.

An illustration shows a smart grid system with a focus on renewable energy sources. A wind turbine stands prominently on the left, further emphasizing the reliance on renewable energy. The grid infrastructure is represented by lines connecting the houses, storage tanks, and the turbine, emphasizing the interconnectedness of the system.

A microgrid is a localized energy system that can operate independently or in connection with the main grid, incorporating local energy generation, storage, and distribution capabilities. It typically includes renewable energy sources like solar panels and wind turbines, along with batteries or other storage technologies. Microgrids are managed by advanced control systems that optimize energy use, balance supply and demand, and ensure reliability.

They provide resilience against grid outages, reduce dependency on centralized power sources, and support integration of clean energy solutions at a community or facility level. For example, a university campus could use a microgrid to integrate solar panels and battery storage, enabling it to continue functioning during grid disturbances while reducing its carbon footprint.