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NEWS ARTICLE

What is a Smart Grid?

The world’s technology is getting smarter, and the electrical grid is no exception. While grid technology might not be the first thing that comes to mind when people think of high-tech systems, digitalization trends are bringing opportunities to improve the safety, reliability and efficiency of grid technology.  

The term “smart grid” refers to electrical power distribution infrastructure that enables digital two-way communication between the utility providers and customers. This capability, which requires control and monitoring technologies installed throughout the grid, helps utilities efficiently distribute energy where and when it is needed most. Smart grids are also able to intelligently manage energy coming into the grid from consumers generating their own energy through distributed energy resources like rooftop solar panels. When combined with energy storage systems, smart grid technology can also help determine when power should be pulled from the grid and when it should use backup power to reduce strain on the grid due to high demand.  

Smart grids are especially critical the more renewable energy is brought into grid infrastructure. Electrification trends are transforming traditional utilities through advances in power generation and distribution, as well as breakthrough technology in e-mobility and battery energy storage. From how we produce power, to how we transport it, to how we use it, the grid of tomorrow looks very different from today’s infrastructure. 

But what are the advantages of a smart grid? And what kinds of solutions are required to maintain and protect one?  

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A New Approach to Energy Transmission 

Smart grids improve the overall efficiency of grid systems. Unlike traditional electrical grid systems, smart grids utilize intelligent technologies to mitigate energy losses during distribution and plan for current and future energy needs. Through the use of digital technology, smart grids monitor and manage the flow of electricity in real-time, allowing for quick adjustments in supply and demand.  

Additionally, smart grids can drive cost savings. Real-time energy management can save energy and money by reducing both downtime due to power outages and energy waste. By monitoring energy usage patterns, grid operators can manage energy resources efficiently and make sure no systems are taking on more strain than necessary. 

The U.S. Department of Energy (DOE) has supported a wide variety of project focused on modernizing the grid by using cutting-edge technologies, equipment and controls that collaborate to deliver more reliable and efficient electricity. As a result of these projects, smart grids are being put to work across the U.S. decreasing the duration and frequency of power outages, helping grid operators restore service quickly when there is an outage and reducing the impact of storms and other severe weather events.  

Smart grids reduce the overall impact on the environment through intelligent energy management. Smart grids also help wind and solar power operators better manage the intermittency of renewables. More intelligent and distributed grids, better utilization and shorter distribution routes, help reduce waste in the grid system, reducing carbon dioxide emissions. 

Alongside the positive aspects of smart grids, there are also some challenges. Modern smart grid equipment is still more expensive to install than traditional grid infrastructure. While smart grids do require investment dollars up front, grid operators need to look at total cost of ownership and cost savings over time as well as the cost of equipment. Additionally, some people are hesitant to use smart grids for privacy reasons due to the collection and sharing of their energy usage data. These concerns can be addressed through strong physical and cybersecurity protection of edge devices. Smart grid technology requires robust access control and remote monitoring to protect customer data.  

As the power grid expands and modernizes to meet the requirements of renewable energy and a more electrified world, our solutions are critical for power generation, transmission and distribution infrastructure. Learn more about nVent connects and protects power utility, energy storage and renewable power generation here: https://www.nvent.com/power-utility   

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