Smart grids - IEA (2024)

Innovative digital infrastructure is gaining prominence in electricity grids, both in distribution and transmission, with around 7% growth in investment in 2022 compared to 2021.

The distribution sector accounts for around 75% of all investment in grid-related digital infrastructure, through the rollout of smart meters and the automation of substations, feeders, lines and transformers via the deployment of sensors and monitoring devices.

Investment in digitalisation in distribution also includes specific digital tools, such as Distributed Energy Management Systems (DERMS). These are able to exploit the potential of the increasing volumes of flexibility resources such as small-scale renewables plants, EV charging points and battery energy storage systems to solve local network issues for short-term grid needs, such as voltage regulation and congestion management. In addition, such tools can help distribution system operators (DSOs) to optimise their long-term investments, considering the flexibility potential of Distributed Energy Resources (DER) as an alternative to network reinforcement, including in grid-planning activities.

Considerable investment and progress has been made in electric vehicle public infrastructure, which continued to grow significantly in 2022, rising by more than 75% during the year. Smart grids can effectively integrate electric vehicle charging into the grid by providing the visibility and control needed to mitigate grid bottlenecks.

In the transmission sector, digital investment is devoted to the digitalisation of equipment such as power transformers, the automation of substations and the development of flexible alternating-current transmission systems (FACTS) and advanced sensors as phasor measurement units, allowing for faster and more flexible operation and improved control, monitoring and optimisation of the power grid.

Another aspect that is becoming increasingly important is networks’ disaster resilience. More and more new digital technologies are being deployed, such as Spark Prevention Units that help prevent forest fires (such as bush fires in Australia) or technologies that combine geographic information and satellite image analysis to predict potential damage to grid assets, e.g. damage from falling trees or branches near power distribution lines.

Smart grids - IEA (2024)

FAQs

What is the concept of smart grid? ›

A smart grid is an electricity network that uses digital and other advanced technologies to monitor and manage the transport of electricity from all generation sources to meet the varying electricity demands of end users.

What is smart grid NIST? ›

The National Institute of Standards and Technology (NIST) uses this definition “a modernized grid that enables bidirectional flows of energy and uses two-way communication and control capabilities that will lead to an array of new functionalities and applications.”

What is the smart grid policy in the US? ›

Smart Grid is designed to support operational and energy measures such as smart meters and appliances, renewable energy resources, as well as energy efficiency resources. The Department of Energy (DoE) is required by Section 1304 of the act to conduct Smart Grid research, development, and demonstration.

What countries have smart grids? ›

Among the countries that have or will begin investing in substantial smart grid infrastructure are Canada, Mexico, Brazil, the EU including many member states, Japan, Korea, Australia, India, and China.

What are the 3 features of a smart grid? ›

Research is mainly focused on three systems of a smart grid – the infrastructure system, the management system, and the protection system. Electronic power conditioning and control of the production and distribution of electricity are important aspects of the smart grid.

What is the main aim of smart grid? ›

The benefits associated with the Smart Grid include: More efficient transmission of electricity. Quicker restoration of electricity after power disturbances. Reduced operations and management costs for utilities, and ultimately lower power costs for consumers.

What is an example of a smart grid? ›

Vehicle-to-Grid (V2G)

V2G helps balance electricity consumption spikes and reduce overload on the power grid during peak hours. For example, V2G can feed energy (unused battery capacity) back to the power grid from an electric car's battery to improve grid stability and maximize the benefits of renewable energy.

What are the two types of smart grid? ›

Smart grid use two different network types for communication one is HAN and WAN. HAN is used to connect the home appliances with the smart meter. There are different technologies that are used as a home area network such as Zigbee, Wireless Ethernet or Wired Ethernet and Bluetooth.

Why is the smart grid controversial? ›

Across the country Smart Meters have become increasingly unpopular as they malfunction, overcharge customers, allow utilities to quickly disconnect homes, and put the burden of equipment installation on ratepayers.

Do we really need smart grids? ›

Smart grid technologies offer several significant advantages, one of the most notable being their ability to maintain an equilibrium between energy supply and demand. This function is critical given the inherent challenges of storing electricity and the potential consequences of failing to meet demand.

Is smart grid a microgrid? ›

The main difference between a microgrid and a smart grid can be found in the communication. In a microgrid, the components within the grid communicate with each other. In a smart grid, the components are connected to each other and to energy trading platforms on the internet.

What are the main components of a smart grid? ›

Smart Grid includes electric network, digital control appliance, and intelligent monitoring system. All of these, can deliver electricity from producers to consumers, control energy flow, reduce the loss of what, and make the performance of the electric network more reliable and controllable[1].

What is the concept of smart meter and smart grid? ›

The smart grid is significantly broader than smart metering. Smart meters are just a single application within the smart grid. A true smart grid goes beyond the meter to provide a broader set of services that increase reliability, survivability and responsiveness of the grid.

What is the smart grid concept in IOT? ›

A smart grid is an intelligent and digitally enhanced electricity distribution system. Its function is to improve efficiency, reliability, and sustainability by integrating advanced communication and control technologies.

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