Utilities Tech Outlook Weekly Brief
Be first to read the latest tech news, Industry Leader's Insights, and CIO interviews of medium and large enterprises exclusively from Utilities Tech Outlook
Smart grids enhance renewable capacity and assist in decarbonizing the grid by improving the amount and consistency of intermittent renewable energy supplied to the energy system. Similarly, distributed generation approaches help reduce carbon footprints by better-integrating energy from renewable sources like solar and wind.
Fremont, CA: Problems in the global energy supply chain have highlighted the growing importance of renewable energy, particularly solar and wind power.
However, because renewables do not generate electricity continuously, alleviating the current energy crisis (and any future disruptions) necessitates more active management of energy systems and better storage and distribution of any energy generated; thus, the growing global adoption of smart grids.
However, smart grid deployments can have a huge impact on industry, the environment, and society. This article discusses the various benefits of smart grids.
Reducing Consumer’s Energy Costs
The smart grid's benefits become even more apparent with the present energy cost crisis. The smart grid greatly lowers the cost of serving consumers, allowing utility providers to compete in retail pricing for end users despite prospective wholesale price increases.
Greater Environmental Sustainability
Smart grids enhance renewable capacity and assist in decarbonizing the grid by improving the amount and consistency of intermittent renewable energy supplied to the energy system. Similarly, distributed generation approaches help reduce carbon footprints by better-integrating energy from renewable sources like solar and wind.
Improved Ability to Meet Energy Demands and Peaks
The energy grid must respond adequately to increased demands and peaks. The smart grid achieves this outcome in two ways: first, by triggering actions that minimize or completely avoid power outages and restore energy more quickly if they occur, and second, by distributing electricity more efficiently using its communication capabilities to ensure supply and demand balance and mitigate peaks.
Efficiency for Energy Companies
Because of advances in the smart grid, energy companies can now significantly enhance their operational efficiency in providing electricity to businesses and individual users. Furthermore, data collected within the smart grid allows energy companies to more accurately predict supply needs while creating opportunities for new business models that use functionalities such as time-based pricing, load control, budget billing, high usage updates, push notifications, and web-based services for customer energy management.
Another advantage of smart grid deployments is their aid in combating growing wholesale electricity prices. The smart grid balances increased demand with market prices by incorporating renewables and developing flexibility in controlling consumer demand, allowing businesses to deliver stable pricing to end users. This benefit also extends to other smart grid ancillary services or technologies, such as battery energy storage systems, which may produce and store energy at off-peak pricing, allowing for improved supply management and cost reduction for end users.
