Smart grids shape the future

The power grid has evolved to better match supply and demand, improve stability and reliability, and support the transition to cleaner, more sustainable energy. Today, smart grids leverage real-time monitoring and automation to improve efficiency and better direct the flow of energy.

Compared to a traditional power grid, a smart grid incorporates several new components:

• Distributed energy resources (DER): With the rise of renewable energy, grid operators are looking for ways to balance generation and demand at a local level. Small-scale systems that either generate or store power have emerged as a solution, but effectively managing these systems requires the creation of microgrids.[1]
• Advanced metering infrastructure (AMI): Real-time, two-way communications enable more fine-tuned control over power flows. Grid-wide visibility into power utilization enables more accurate demand forecasting and automatic adjustments to power distribution in response to changes in demand.[2]
• Vehicle-to-grid technology (V2G): Electric vehicles’ (EVs’) impact on power grids has been a major point of concern. V2G technology helps mitigate this impact by allowing EVs to deliver unused energy from their batteries to the grid.[3] Drivers can also ensure that their vehicles charge only during high generation and low demand, or they can schedule them to begin a charge cycle just before use.

These innovations are only the beginning. Emerging technologies, such as artificial intelligence and 5G connectivity, further expand the smart grid’s capabilities and potential. This article will examine some of those technologies and their impact alongside the trends currently shaping the energy sector.

The internet of energy

As the smart grid continues to evolve, operators are increasingly adopting Internet of Things (IoT) technologies such as connected sensors and smart meters. Known as the Internet of Energy (IoE),[4]   this network of interconnected devices requires high-bandwidth connectivity on a massive scale. This is due to the grid’s geographic sprawl and the overwhelming volume of data generated by its sensors.

Much like how 5G technology has enabled advanced IoT and edge use cases, it is the key to enabling the IoE.[5]   The 5G standard was designed from the ground up to support the IoT, offering exceptional speed, reliability, and security, whether in congested urban environments or remote locations.[6] The connected infrastructure that 5G makes possible represents a considerable step forward for grid management, supporting near-real-time automation.[7]

But connectivity is only part of the puzzle. A smart grid is an extremely complex system that produces massive amounts of data requiring deep analysis and rapid responses.[8] To meet these goals, operators are exploring new ways of powering the grid with AI.

Making smart grids even smarter

AI offers immense potential for revolutionizing smart grid operations. According to a paper published by SAP Insights, the technology is fundamental for integrating renewable energy technology, stabilizing the grid, and reducing infrastructural instability.[9] AI’s self-learning adaptability is particularly valuable for supporting renewable energy and balancing power generation during peaks and valleys in demand.

Other possible benefits of integrating AI and machine learning into smart grid operations include:

• More efficient energy generation, more accurate forecasting, and better power management through predictive analytics;
• Fast, data-driven decision-making;
• Optimized, tailored energy usage and charging for devices, endpoints, and electric vehicles;
• Timelier and more sophisticated outage alerts coupled with automated switching to address grid imbalances;
• Proactive infrastructure maintenance and management;
• Improved visibility and transparency for all grid operations; and
• Intelligent threat detection and remediation.

AI-driven smart grids offer consumers a range of benefits as well, including reduced energy costs, guidance on sustainability, better pricing transparency, and less frequent outages. AI and machine learning can also support emerging technologies such as microgrids.

Interconnected energy islands: microgrids

Picture a neighbourhood where every house has a roof lined with solar panels (Figure 1). Although the neighbourhood is connected to its city’s main power grid, each house can also generate enough energy to fulfill its daily needs.

Figure 1: A block filled with solar-powered homes. (Image: slavun/stock.adobe.com)

This example neighbourhood is a microgrid—a self-sufficient, localized grid consisting of multiple connected loads and DERs.[10] Other examples include hospitals, university campuses, and commercial buildings. A microgrid may operate independently or be managed by a utility company.

Microgrids are generally defined by three core characteristics:

• Can generate and distribute power locally
• Can disconnect from the central grid to operate independently (a process known as islanding)
• Are managed by a microgrid controller that can monitor and dynamically adjust energy prices and power generation [11]

Microgrids have grown increasingly important for enhancing grid resilience, especially in areas prone to natural disasters or in remote locations. They can integrate various energy sources, including renewables and conventional generators, and are controlled by smart technologies to ensure efficient energy management and distribution.

One of the most significant weaknesses of a traditional distribution grid is its lack of redundancy. If a power station goes offline or the grid becomes overloaded due to high demand, entire regions can be left without power. Microgrids mitigate this problem, as an area that loses access to the main grid simply swaps over to the microgrid until power is restored. Microgrids also represent an important step in the transition to sustainable energy generation, reducing the energy load in the main grid.

A global push for sustainable power

Since the European Union announced its plans to be climate-neutral by 2050,[12] governments around the world have invested in their own sustainability initiatives. Though the details differ, the core focus of nearly every initiative involves an updated power grid and a transition to renewable energy:

• Thailand aims to generate a third of its energy from renewable sources by 2037 and faces a burgeoning electric vehicle market that requires extensive modernization of the country’s power grid.[13]
• Sweden intends to be completely free of fossil fuels by 2040, leveraging a combination of wind, bioenergy, solar energy, and body heat. The country reached the 50 per cent milestone in 2012, eight years ahead of schedule.[14]
• The Colombian government plans for roughly 75 per cent of households to be equipped with smart meters by 2030.[15]
• Japan has committed to being carbon-neutral by 2050 and consequently committed to a $155 billion decarbonization fund.[16]

Smart grid technologies will be instrumental in the transition to sustainable energy sources such as solar, wind, and hydroelectric power. In addition to intelligently regulating fluctuations in demand, smart grids will support predictive and proactive maintenance and enable better system management and visibility. Perhaps the most critical supporting technology will be energy storage.

Bridging the gap between supply and demand 

Except for nuclear and hydroelectric power, sustainable energy solutions suffer from one major weakness: they can generate power only within limited time windows, with no means of scaling up during periods of high demand. Whereas a natural gas plant can create more power by burning more resources, one cannot exactly make the sun burn brighter or increase the strength of the wind. Thus, sustainable solutions cannot scale without energy storage systems.

Fortunately, several promising solutions are on the horizon. Most notable is the evolution of solid-state batteries, which promise cell-level energy densities of up to 500 watt-hours per kilogram.[17] Smart grids will also play an essential role by dynamically identifying when to store and release excess energy, enhancing grid flexibility and reliability.

Driving smarter transportation

In addition to grid modernization initiatives, the transition to EVs has the potential to massively reduce emissions. Most nations committed to climate neutrality have also committed to replacing combustion vehicles with electric cars within the next few decades. Alongside V2G technology, the smart grid will be instrumental in this transition for several reasons.

First, it will help mitigate the EV charging load through intelligent scheduling. This could mean initiating charge cycles only during high-power generation or low-demand periods. It could also entail adjusting charge cycles based on a driver’s needs. For instance, if a driver regularly leaves the house for work at 8 a.m., the vehicle could schedule a slow charge cycle to ensure the car is ready to drive on time while also minimizing impact on the grid.

Smart grids also can track emission reduction in EVs for greenhouse gas credits. While the impact of this innovation may be minimal at the consumer level, it could result in significant cost savings for companies that operate sizeable land-based transportation fleets.

Finally, the smart grid could act as a bridge between electric vehicles and smart cities. While initially facilitating communication and coordination for tasks such as traffic monitoring and control, smart power infrastructure could eventually help to enable fully autonomous driving.[18]

Supporting intelligent cybersecurity

As power grids become more interconnected and reliant on digital technologies, they also become more of a target for threat actors. Ensuring the security and resilience of critical infrastructure in the face of increasingly sophisticated cyber threats is essential.

To combat these threats, operators are using encryption to safeguard data transmission across the grid. Secure communication protocols are also vital, ensuring that communication between different parts of the grid is conducted securely, thereby minimizing the risk of intercepts and tampering.

Resiliency features are also needed to sustain grid operations under adverse conditions and facilitate quick recovery. Key techniques include redundant pathways for energy flow and robust control systems capable of isolating and addressing failure points without shutting down the entire network.

Powering a smarter future

The world has come a long way since the first electric grid was brought online. Modern power grids face a range of demands and pitfalls that would have been inconceivable all those years ago. Fortunately, smart grids have evolved to meet and overcome those challenges.

From 5G and AI to EVs and microgrids, we are slowly but surely revolutionizing how we produce, store, and even use electricity. And there is every indication that what we have seen so far is only the beginning.

[1] https://www.next-kraftwerke.com/knowledge/derms
[2] https://www.eaton.com/us/en-us/products/utility-grid-solutions/advanced-metering-infrastructure/fundamentals-of-ami.html
[3] https://news.mit.edu/2023/minimizing-electric-vehicles-impact-grid-0315
[4] https://www.investopedia.com/terms/i/internet-energy-ioe.asp
[5] https://www.csiro.au/en/news/all/articles/2023/november/introducing-the-internet-of-energy
[6] https://iot.telenor.com/technologies/connectivity/5g
[7] https://biztechmagazine.com/article/2023/07/5g-technology-key-modernizing-energy-and-utilities-industry
[8] https://www.osti.gov/servlets/purl/1639296
[9] https://www.sap.com/insights/smart-grid-ai-in-energy-technologies.html
[10] https://www.microgridknowledge.com/about-microgrids/article/11429017/what-is-a-microgrid
[11] https://www.energy.gov/eere/solar/solar-integration-distributed-energy-resources-and-microgrids
[12] https://climate.ec.europa.eu/eu-action/climate-strategies-targets/2050-long-term-strategy_en
[13] https://innovationatwork.ieee.org/smart-grid-transforming-renewable-energy/
[14] https://www.climatecouncil.org.au/11-countries-leading-the-charge-on-renewableenergy/
[15] https://www.smart-energy.com/industry-sectors/smart-meters/national-smart-meter-rollout-planned-in-colombia/
[16] https://asia.nikkei.com/Spotlight/Environment/Climate-Change/Japan-plans-155bn-decarbonization-fund-for-grid-factory-investments
[17] https://about.bnef.com/blog/top-10-energy-storage-trends-in-2023
[18] V2G technology for the smart grid

About the author

Brandon has been a deep tech journalist, storyteller, and technical writer for more than a decade, covering software startups, semiconductor giants, and everything in between. His focus areas include embedded processors, hardware, software, and tools as they relate to electronic system integration, IoT/industry 4.0 deployments, and edge AI use cases. He is also an accomplished podcaster, YouTuber, event moderator, and conference presenter, and has held roles as editor-in-chief and technology editor at various electronics engineering trade publications. When not inspiring large B2B tech audiences to action, Brandon coaches Phoenix-area sports franchises through the TV.