By Frederic Gomel, EVP Power Systems and Services at Schneider Electric
It might not have always felt like it, but 2023 was the warmest year in recorded global history – averaging 1.46°C above pre-industrial (1850-1900) levels. The rise is largely attributable to human-induced climate change through emissions of greenhouse gases. 2023 also concluded with a genuine flicker of hope: the COP28 agreement to transition away from fossil fuels.
At the climate conference, 198 parties from around the world agreed, for the first time, to phase out their use of coal, oil and gas in energy systems “in a just, orderly and equitable manner”. It also included targets to triple global renewable energy capacity and double the rate of energy efficiency improvements, both by 2030.
Fortunately, that many of the technologies we need to achieve these goals are available now. Transitioning to advanced, digitally equipped grids can integrate renewable energy sources and manage new types of energy demand efficiently and securely. Let’s explore how just these ‘grids of the future’ are being implemented today.
Understanding current power grids
As of 2023, around half of all grids in the EU are more than 20 years old. These traditional grids are reliant on large, centralised power plants for long-distance electricity generation and distribution to regional grids. The power plants connect to bulk power regional grids and then to substations, where voltage levels are reduced to safer distribution levels for supply to residential, commercial, and industrial areas.
Think of our current power grid as a petrol-driven car. For years, large, centralised power plants transmitted power through the grid to the load centres – the engine will be the power plants and the load centres the wheels. We now need to make this car an efficient EV, changing the centralised engine to decentralised electrical motors in the wheels, all while the car is moving.
Here’s why current grids just aren’t good enough anymore
Imagine energy in today’s grid like blocks of ice. Rigid, heavy, and cumbersome. The ice can’t adapt or move anywhere fast. This is what our grids have been like for the past century – rigid and inflexible, unable to adapt quickly to new energy sources or demands. In fact, today’s rise in renewable energy sources and push for electrification are straining the old grid systems.
Take electric vehicles, for instance. More than half of all new cars sold in the U.S. by 2030 are expected to be electric. As a result, domestic electricity demand is expected to increase up to 18% by 2030 and 38% by 2035, according to Rapid Energy Policy Evaluation and Analysis Toolkit analysis. The U.S.’s power grid is an ageing system built to run on fossil fuels but, as more sectors of the economy like transport and household appliances move toward electrification, the grid may not have the capacity to satisfy electrical demand.
What do future grids look like?
Simply, better in every way. If the world transitions to renewable, clean energy faster and adopt ‘Grids of the Future’ today, we can create a more sustainable energy system. It is based upon three principles:
• Design a flexible grid that integrates all resources to encourage long-term digital investment.
• Simplify permitting regulations and shorten licensing times to accelerate the shift away from fossil fuels.
• Push for more government policies that provide financial support and allow the necessary investments needed in the grid.
Grids of the Future are powered by data and integrated network models. They are more sustainable, resilient, efficient, and flexible. Digitally planned, designed, equipped, and operated, they support the growth of distributed energy resources (DERs), microgrids, energy communities, and other flexible resources through optimised orchestration across the lifecycle.
Just as an air traffic controller must help a pilot plot the right path around a storm, we need to make sure the correct commands are sent across the grid to the right breakers, ensuring problems are isolated and averted. Once digitally equipped, remotely managed, and powered by data and integrated network models, these grids of the future are more sustainable, reliable, flexible, efficient, and secure.
How do we upgrade the grid?
The first step to retrofitting national grids is to increase the network output and efficiency for greater electrification. Then, we need to connect more renewables and DERs to electrify the right way. 42% of today’s grids need to be better connected within the next six years if we’re to meet 2030 environmental targets. This process will involve leveraging specialist DER management software to enable rapid integration of distributed energy resources and DER orchestration on a grid level.
Electricity consumers are seeking more control over their energy future and are driving the growing presence of DERs. This growth is disrupting utility operations, planning and the industry overall. And with the continued adoption of climate change mitigation policies and renewable energy goals, the adoption of DER will only increase. DER management software is a grid-aware solution tailored for the utility to manage this disruption. With DER monitoring, forecasting and control at its core, the software enables critical capabilities including hosting capacity analysis, grid constraint management and usage of DER flexibility.
What’s next?
Adopting flexible grids that integrate all resources, simplify permitting regulations, and accelerate the shift away from fossil fuels are critical steps in this direction. Pushing for more government policies that provide financial support and allow the necessary investments needed in the grid.
In many ways, we’re lucky that these resilient, efficient, and responsive grids are highly practical, rather than an unrealistic pipe dream. Meaningful impact takes an ecosystem of people, communities, suppliers, customers, and partners – it’s time to turn ambition into action by advocating for government policies that provide the necessary financial support and investments in our grid infrastructure.
