The smart grid is here to stay

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Smart grids are becoming mainstream, as they offer solutions to distribution networks to deliver electricity reliably, safely and cost-effectively. However, varying national challenges, regulatory environments and energy systems mean that there is no “one size fits all” approach to deploying smart grid technologies and solutions globally. Utilities will need to decide the type and pace of transition from traditional to smart solutions.

In a report titled “Forging a Path toward a Digital Grid: Global perspectives on smart grid opportunities”, released in October 2013, consulting firm Accenture noted that what is certain is that distribution grids will continue to become smarter. While large-scale deployments of smart grid solutions are likely in some cases, the majority of utilities will look to deploy discrete solutions, it said.

In reviewing the challenges driving the uptake of smart grid solutions, Accenture noted that countries around the world face, to varying degrees, pressure to tackle rising electricity costs and threats to energy security. Smart grids are seen as a potential answer to these concerns, especially in developing economies such as China, India and Brazil, which are grappling with rising demand for energy from an expanding population and efforts to improve economic growth.

The report notes that the deployment of smart grid solutions is ultimately influenced by three groups: government/regulators; customers and the utilities themselves. In its analysis of 15 countries across Asia Pacific, Europe, Africa and the Americas, Accenture found significant differences in the level and type of support from each stakeholder group. For instance, China, Japan and South Korea showed the greatest degree of support for smart grid deployment, and it is likely that these countries will press on most quickly with deployment. Some European countries such as the United Kingdom, the Netherlands and Germany display a low degree of support, particularly from consumers.

“The theoretical potential of the smart grid is undeniable [but] the way forward needs to be navigated pragmatically,” noted Accenture. Utility providers will thus have to respond and decide when, and how exactly to embark on and scale up smart grid solutions, it added. The reported suggested segmenting smart grid solutions into four different types of investment approaches based on risk and opportunity levels. For instance, if the goal is for new technologies and techniques across the network that can extract more value from existing smart grid investment with minimal incremental cost, a potential investment could be in applying analytics to high-latency smart meter consumption and voltage data to reduce network voltage on viable circuits.

What could speed up the pace of smart grid adoption, said Accenture, is if these solutions become crucial to maintain the security of utilities’ supply. Grid parity for solar photovoltaics and energy storage could also have an impact, while greater risk mitigation by regulators could make the case for further investment in smart grid technologies and solutions. 

By : EMA