According to Christian Buchel, Chairman of the European Distribution System Operators (EDSO) organization, the technology has proven incredibly valuable in securing resilience, enabling remote operations and providing insights into consumer data.
Green renewal of Europe
Beyond immediate crisis management, smart grids are also poised to become a key element of Europe’s green and digital recovery. First, the technology is well equipped to accommodate renewable energy, which has been increasingly finding its way into the continent’s energy mix. Second, smart grids answer the call for a secure energy system transformation and integration in order to provide a springboard for maximized usage and the optimisation of innovations such as electric vehicles.
In line with the European Green Deal, the European Commission (EC) has recently proposed revised rules for cross-border energy infrastructure to advance the transition in the most effective way. Interestingly, smart grids are a critical part of the proposal, with the institution highlighting the considerable development of these technologies following the growing digital transformation of the electricity sector.
The EU’s aim for recovery is clear: digitisation, decarbonisation, deregulation and decentralization of the energy system. But why exactly do smart grids play such a key role in this endeavor?
Smart grids need smart planning
Smart grids consisting of complex cyber-physical networks of communications, sensors, and computers, Smart grids work to modernize the electricity system from A to Z. By enabling the two-way flow of both electricity and data, operators are given the power to detect and react to changes in usage and other issues. With self-healing capabilities and consumer empowerment, the EU is relying on smart grids to enter a new energy era.
In simple terms, we could say the EU is moving from pipes to platforms, and there are a few good reasons for that, including the increasing number of active customers engaged in demand-response, the constantly growing share of distributed energy resources that needs to be accommodated and factors such as the need for greater efficiency and reliability to advance larger projects like the mass adoption of electric vehicles or smart homes.
Modernization of intelligent electrical grids
The EC plans to double the number of key smart electricity grid initiatives aimed at interconnecting the continent’s energy system (also known as projects of common interest) by 2026. It goes without saying, though, that there are stark differences in progress across member countries. For example, Italy, Sweden and Finland are already planning or executing the rollout of second-generation smart metering devices, while other nations have only begun conducting pilot tests. The process will take both substantial effort and resources: €41bn is needed to achieve a smart meter penetration rate of 92% across Europe by 2030.
Learning from lessons on past inefficiencies and artificial policy obstacles, the revised proposal for trans-European energy infrastructure is specifically focused on providing tangible guidelines. It calls for union-wide integrated networks and smart grid deployment in order to ensure a competitive and functioning integrated market. In regards to smart grids, the proposal requests:
- upgraded rules to promote the uptake of smart electricity grids to facilitate rapid electrification and scale up renewable electricity generation;
- new provisions on smart grid investments for integrating clean gasses (like biogas and renewable hydrogen) into the existing networks; and
- continued attention to the modernisation of electricity grids and storage as well as carbon transportation networks.
Interestingly, the EU highlights in the proposal that projects like smart grids may not require as complex permitting processes as transmission infrastructure does. Reinforcing the entire energy infrastructure network is inherently resource-intensive; with smart, cyber-physical setups, it’s possible to achieve great results while at the same time, laying the foundation for successful energy transition in Europe. Striving for efficiency and applying innovations throughout will be key.
Artificial intelligence (AI)
It’s worth noting that artificial intelligence (AI) can also work to make the smart grid much more efficient. The technology may not be new, but its potential in making the life of transmission system operators (TSOs) and distribution system operators (DSOs) easier is substantial.
At FUERGY, we deploy AI to analyze historical data and generate behavior patterns on any variable that evolves over time, such as total energy consumption, consumption of specific delivery points or the production of renewable energy sources.
The AI models then generate predictions about energy production and consumption, compare these variables with online data and suggest the best option for energy management. Insights are provided into what portion of locally produced green energy will be consumed locally and what part will be shared with the grid, what part of the excess energy will be stored or how much of the available energy from batteries or storage will be used during peak energy consumption.
Sustainability - more than a catchword
The EU has been looking to increase its share of renewable energy and tackle global warming for years. However, with fluctuations in supply and limited storage, integrating sources like wind and solar hasn’t been easy. These challenges have driven research efforts, with initiatives like ERIGrid working to develop methods, concepts and procedures to make the technology more applicable in different settings across the continent.
Yet, shining examples already exist. Among others, the EU has been featuring the island of Bornholm in Denmark. Over the last two decades, it has erected dozens of large wind turbines and set up plants to burn waste. With smart meters to orchestrate the island’s heating systems, even refrigerators have been programmed to balance the electrical supply. Research across 2,800 households which applied smart controllers to fluctuations in the electricity price, time of day, and weather, found a 30% drop in winter energy demand.
Proper synergies between energy sources and consumption
Having an optimal mixture of renewables is fundamental. Both solar and wind energy need to be used in tandem to maintain relatively stable green energy production – if there’s no sun, the is probably wind.
There is no risk of having too many green sources, as the smart grid assures that excess green energy is either stored or used for the production of green hydrogen – a process that has a particularly bright future, especially in electromobility. Smart grid technology simply allows us to find the right synergy between energy sources and consumption, where all sources are used to the fullest.
How Europe envisions smart cities?
Cities will be the main actors in energy transformation by shifting the way they use energy. By 2050, the world’s urban population is projected to reach 7.7 bn. The EU has specifically stated that cities play a major role in helping the continent meet its decarbonisation objectives for 2030 and 2050. Perhaps apart from Copenhagen and its smart urban bicycle projects, how might European smart cities look in the future?
Storage and flexibility, electric mobility, equipment components, service and capability sourcing, data, and cybersecurity – all these will form key concepts ruling smart grids, making them applicable in cities around Europe. For example, the city of Vienna already collects data from the Aspern district's smart grid, buildings, tech and citizens to analyze over 1.5mn daily datasets, helping to cut greenhouse gasses and optimize the energy framework.
In addition to Lyon, Florence, and Malmö, Amsterdam is also advancing smart grid projects. With tens of thousands of dwellings connected to a smart grid, slumbering power outages will be visible and easy to prevent. By combining demand and supply-side measures, the city plans to cut the overall electricity demand by 3%.
The EU’s reliance on smart grids for its recovery is an obvious sign of pragmatism. Rather than setting decade-long goals for an ambitious energy transition, the institution has realized that the existing structures might as well just be enough – that is, if we employ the advanced capabilities of smart grids to make them work the way we need them to.
Are you ready to be part of the renewable energy revolution and take your energy independence to the next level? Contact us today! Our experts are here to help you find a tailor-made solution to your needs.
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