Future of Power Grids: Smart Technologies Driving Global Resilience
The shift to a low-carbon future is accelerating as power grids evolve through innovations like Distributed Energy Resources (DER) and smart technologies. Investments in energy storage, electric vehicles, and analytics are making grids more resilient and efficient.
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Dr. Surekha Deshmukh holds a Ph.D in Electrical Engineering and is a Domain Consultant at the IoT and Digital Engineering Unit of TATA Consultancy Services (TCS) in Pune, India. She is a Senior member of IEEE and has been a member of the IEEE Power and Energy Society for more than 20 years, serving in many leadership roles. Along with being a Chair of the IEEE Pune Section, Dr. Deshmukh also contributes to IEEE’s global initiatives serving as chair of the IEEE Smart Cities Committee’s Women in Engineering (WIE) group and the Web Presence Subcommittee of the IEEE AdHoc Committee on Technology for a Sustainable Climate.
Dr. Deshmukh addresses the future of power grid innovations and the promising technologies supporting it.
Before we go into specific questions, here is the context of the energy transition trends, and what it means for the future power grid.
The transition from fossil fuels to renewable energy is no longer just a vision, it is a rapidly progressing reality. According to the International Energy Agency (IEA), by 2030, the global share of electricity generated from fossil fuels is expected to fall to 73% [ 1 ]. In contrast, according to The International Renewable Energy Agency (IRENA), renewable energy sources are set to supply around 77% of global electricity by 2050 [ 2 ]. Countries such as the United States, Australia, China, Japan, Europe, and the UK are leading this shift by investing in Distributed Energy Resources (DER), as models to support dynamic energy shifts.
Technologies like energy storage systems and biofuel backup generators are ensuring the constant availability of power. Investments in DER are growing, estimated to increase from $141billion in 2023 to over $240 billion in 2028. The E-mobility sector is also transforming, and Electric vehicles (EVs) are becoming more affordable, supported by favorable policies that encourage adoption. According to the IAE, there are about 40 million EVs on the road today, with EVs projected to be more than 35% of total car sales by 2030. As a result, the global market for vehicle-charging stations is expected to increase. Approximately 8 million public charging points were installed worldwide by the end of 2023, a 40% increase over 2022.
The widespread electrification required to support the growing needs of consumers will significantly increase the demand on the electricity distribution network. Meeting this demand will necessitate costly upgrades to local infrastructure, which may face resistance from residents, who are likely to bear the financial burden. Additionally, expanding the power distribution network alone is not a sustainable solution. Prioritizing energy efficiency measures to reduce overall demand will enable consumers to achieve more with less energy.
Therefore, it is crucial to fully comprehend the impact and the implications of integrating low-carbon renewable energy sources into smart grid systems in the coming years. IEEE offers education and credentialing in Distributed Energy Systems.
How are advanced grid technologies, such as smart meters and grid-edge devices, enhancing energy efficiency and reliability, especially in integrating renewable energy sources?
The modern power grid, with its increasing integration of renewable energy sources, aligns with the United Nations’ COP 28 goal of tripling renewable energy globally. Over the past decade, the electric grid has become smarter through innovations such as smart metering, Internet of Things (IoT) devices, sensors, drones, and more. And the utility sector now leverages advanced technologies like data analytics, artificial intelligence, augmented reality, and digital twins. Digitalization’s biggest advantage is real-time access to data across the entire grid, including operational, behavioral, and technical metrics.
This data unlocks significant potential for understanding grid behavior, enabling real-time decisions about balancing generation and load, resource adequacy, storage needs, and ensuring 24/7 power for customers. Grid-edge devices with analytics monitor asset health and provide real-time alerts for performance issues or asset failures, boosting reliability and operational efficiency.
The integration of renewable energy and green technologies has reduced emissions and accelerated the transition away from carbon-based energy, supporting decarbonization. These innovations optimize operations, minimize downtime, maximize availability, and enhance security, reliability, and stability. Today’s smarter grid demonstrates modernization, improving operations and driving business growth.
What impact are energy storage solutions, particularly long-duration storage technologies like flow batteries and compressed air energy storage, having on grid stability and renewable energy utilization?
Aligned with net-zero targets, investment in green technologies and renewable energy has grown significantly. The increasing use of renewable energy has amplified the need for storage systems as backup power to address the intermittent nature of sources like wind. For solar photovoltaic (PV), storage backup is essential.
Energy storage solutions, especially long-duration technologies, are crucial for ensuring consistent power, maintaining load balance, and stabilizing operations. They provide immediate backup for grid resiliency, security, and stability.
Storage systems enhance the reliability of green energy through a variety of solutions like flow batteries and compressed air energy storage.
Optimizing the techno-economics of these hybrid systems is key to their commercial success. Trust in energy storage is driving the reliable operation of renewable energy portfolios.
How are microgrids and virtual power plants (VPPs) redefining energy resilience and decentralization, and what role do they play in the broader context of the energy transition?
The energy landscape is changing rapidly due to socio-political factors, regulatory changes, and advancements in technology. Microgrids and virtual power plants (VPPs) are at the forefront of this transformation, contributing to decentralized energy systems that are both resilient and adaptable. Microgrids, which generate and consume power locally, offer operational advantages such as improved energy efficiency, enhanced reliability, and continuous power supply.
Electric vehicles and fleets are now capable of acting as virtual power plants, providing immediate backup to the grid and helping balance the energy demand. With reduced power loss and deployed grid-edge technologies, microgrids have demonstrated their ability to operate independently while also offering the potential to integrate with larger networks when needed.
The ability of microgrids to scale according to demand, combined with their comparatively low investment costs, makes them a key player in the fast-tracked energy transition. Microgrids are a viable solution to meet the growing demand for decentralized power, ensuring reliability while enabling renewable energy to thrive.
In what ways are predictive analytics transforming grid operations, from load forecasting to predictive maintenance, and what benefits do they bring to managing renewable energy variability?
The application of predictive analytics is revolutionizing the way utility companies manage the grid. With the increased integration of renewable energy sources, AI and data-driven insights are becoming critical for optimizing grid operations.
AI-powered predictive models can forecast energy demand, solar power generation, and even potential equipment failures based on historical data. These models help utilities make informed decisions, reduce downtime, and improve grid reliability. Predictive analytics is also playing a role in energy trading, where accurate predictions of power availability and pricing can mitigate risks and optimize transactions.
How is the development of hydrogen and Power-to-X technologies contributing to the decarbonization of power grids, and what are the potential benefits and challenges of these innovations?
Hydrogen and Power-to-X technologies are set to play a pivotal role in decarbonizing the power grid. As we move towards cleaner energy solutions, hydrogen is emerging as one of the most promising alternatives. Depending on its production method, hydrogen can be classified as gray, blue, or green, with green hydrogen being the cleanest form.
Power-to-X technologies convert surplus renewable energy into other forms of energy, such as heat or fuel (like methane or methanol). These technologies not only support grid decarbonization, but also provide innovative ways to capture and store carbon, thus reducing the overall environmental impact of energy production.
The commercial viability of hydrogen and Power-to-X technologies is still evolving, but they hold great potential for transforming the energy landscape.
These new technologies and innovation impact consumers and businesses who are collectively becoming more reliant on a robust and resilient power grid.
Business-to-business (B2B) customers have greatly benefited from smart grid technologies, enjoying improved operations, power availability, and superior quality. Industrial and commercial customers, in particular, now consistently meet operational KPIs with uninterrupted power, thanks to the grid’s enhanced robustness.
Digital interventions have minimized power interruptions, leading to significant cost savings on diesel generators and backup systems, while also reducing diesel-related air pollution.
Consumers also benefit from better power quality managed under industry, government, and regulatory frameworks. Smart grids provide more reliable power, improving the overall energy service.
Prosumers, using smart meters and communication systems, now engage in power trading, capitalizing on green energy production. This accelerates return on investment and offers profit potential within regulatory guidelines. Demand response programs further showcase how smart technology delivers broad benefits to all stakeholders.
Through these innovations, industries, consumers, and regulators are working together to achieve significant techno-economic and environmental gains.
[ 1 ] International Energy Agency (2023). World Energy Outlook 2023 – Analysis. [online] IEA. Available at: https://www.iea.org/reports/world-energy-outlook-2023
[ 2 ] IRENA (2023). World Energy Transitions Outlook 2023. [online] www.irena.org. Available at: https://www.irena.org/Digital-Report/World-Energy-Transitions-Outlook-2023