Today’s aging, degrading electrical grid is struggling to keep up with the increasing demand for energy, especially renewable energy. In the U.S., electricity demand is expected to grow 30% by 2030. Electricity prices are forecast to increase 50% over the next 7 years. The energy industry is in the midst of a digital transformation, and the smart grid must also evolve.
What Is a Smart Grid?
Today’s power grid was birthed in the 1870s, when Thomas Edison supervised the installation of the world’s first power plant. The smart grid is described by the International Energy Agency as an “electricity network that uses digital technologies, sensors and software to better match the supply and demand of electricity in real time while minimizing costs and maintaining the stability and reliability of the grid.” It modernizes power generation, transmission, and distribution to support evolving energy needs.
Why Do We Need a Smart Grid?
A key limitation of today’s electrical grid is how it generates electricity, which is based on estimations of demand. It’s vulnerable to fluctuations in supply, demand, and weather, potentially cascading outages and destabilizing nearby units.
In addition, approximately 80% of U.S. electricity is produced using conventional sources: natural gas, oil, coal, and nuclear. All are nonrenewable and create waste. For example, natural gas releases carbon dioxide and nitrogen oxide. Earth’s atmosphere traps these gases, leading to air pollution and smog.
Fast-growing renewable electricity sources, like wind and solar, are less centralized than in past generations, requiring energy storage.
Benefits of a Smart Grid
Contain and Resolve Outages More Quickly
Increases in delayed detection and resolution of outages compromise public safety. The second half of the 1990s saw 41% more outages than the first half of the decade. By identifying and addressing outages quickly, the smart grid minimizes the impact of outages. It contains them, ensuring faster recovery after emergencies.
Improved Efficiency
Real-time data on energy consumption is sent to the utility via the smart grid’s two-way communications, allowing for improved planning and faster response. The ability to store energy prepares the system for spikes and enables conservation. Data on peak times, system problems, and other real-time data could lead to 30% reduction in consumption.
Decreased Costs for All
Decentralizing electricity production can significantly reduce transmission congestion costs, currently estimated at $4.8 billion annually.
More efficient utilization and increased use of renewable energy will ultimately drive down consumer costs. Smart meters reduce operation and management costs, adding to those savings. Consumers will be able to manage their energy costs proactively, whether that means investing in intelligent, energy-saving end-use devices or selling energy back to the utility for revenue.
A Greener Future
The smart grid reduces the need for power plants and transmission lines to support peak hours. It also advances our ability to replace traditional sources of energy with renewable sources, reducing waste. Integrating and decentralizing wind and solar power more effectively also requires more advanced energy management techniques.
Increased use of hybrid and electric vehicles (EVs) has exponentially increased the burden on today’s grid. Smart chargers, time-of-use rates, and advanced meters are key players, helping manage a complex control problem on constrained grids, incentivizing EV purchases and production.
The Future of Smart Grid Technology
Just as Edison’s light bulb became a standard in homes everywhere, the smart grid will mean continued growth of renewable energy sources, distributed energy resources, and use of electric vehicles. It also means advances in analytics and data management to support managing the grid, including cybersecurity and detection of issues.
By 2024, investment in smart grid devices or systems, such as advanced metering infrastructure, was forecasted to reach 6.4 billion U.S. dollars. Growth at a global level is continuing to grow at a rapid pace and will reach $108.92 billion by 2030. ROI will be realized through improved efficiency and reduced outages. Cost savings from smart grid deployments will exceed $125 billion globally in 2027, increasing from just over $33 billion in 2022.
Powered by Internet of Things (IoT) technology, consumers, distributors, and suppliers may benefit from increased stability and security from blockchain-based energy trading. It will lead to an increased need for regulations and legal expertise. The smart grid is a critical step toward smart cities.
HNM Systems Can Staff Your Utility & Network Construction Projects
When discussing utility staffing, Deloitte reports, “Advances in smart grid, distributed generation, microgrids, and energy storage are revolutionizing the energy business, which necessitates a new talent profile. With a rapidly aging workforce, it will be critical that utilities can identify the right talent pool and adequately recruit, hire, retain, and develop them.”
HNM’s extensive network and custom-tailored approach can help you staff for utility construction and network construction projects, like smart grid infrastructure. With more than 40+ years of experience and expertise, HNM is uniquely equipped to keep your business moving forward and delivering high-quality results.
