The future of distribution grids
Our CEO, Robert Denda, was the guest on the podcast Redefining Energy hosted by Gerard Reid and Laurent Segalen and one of the most listened-to about energy transition. The challenges of distribution grids while power supply ensuring stability were one of the main themes of the discussion.
Distribution grids are encountering new obstacles. As electricity consumption rises due to electric vehicle (EV) charging stations, heat pumps, and data centers, these grids also must integrate swiftly expanding decentralized energy resources like rooftop photovoltaic systems and storage batteries at the same time, they must balance these demands while also safeguarding grid stability. The question arises: how can utility companies, traditionally focused on tariffs and capital expenditures, shift their mindset to embrace innovative technologies?
The answer lies not only in regulatory and technological advances but also in a fundamental cultural shift, with digitalization playing a key role in the solutions. This was the point made by our CEO, Robert Denda, who was recently a guest on Redefining Energy, one of the most listened-to podcasts on the energy transition. The two hosts, energy experts Gerard Reid and Laurent Segalen, discussed several topics with Denda, from smart meters to sensors, cybersecurity to AI, performance, and new business trends.
The Capacity Issue
We are facing a significant issue with the capacity of our distribution grids, which has a contractual and a technical aspect. The previous contractual capacity, which was sufficient, is now being challenged by the rapid growth of distributed generation as we assist in its exhaustion. This is the first phenomenon and is not limited to a specific country; it is a global issue that requires us to rethink our energy systems.
This is a widespread matter that can be mitigated through alternative connection agreements and specific contracts that incentivize customers not to fulfill their allocated capacity and the sharing of unused capacity among the different participants. This approach is already in practice in the UK, Norway, Austria, and experimentally in the Netherlands and is providing some relief.
The second concern is the technical capacity of the grids, which, in certain regions, are operating at their limits. Addressing this even worse point requires a multifaceted strategy. As pointed out by our CEO: “That is what is happening, for instance, in the Netherlands, where grid operators are currently tackling this by not only resolving the contractual part but also reinforcing the infrastructure. At the same time, they are digitalizing the grid and exploring solutions such as flexibility options, demand response initiatives, and other innovative approaches to alleviate the strain on the grid.”
The Necessity of a Digitalization Transformation
The key to addressing these challenges lies in digitalization. By incorporating digital technologies into traditional grids, we can improve real-time monitoring and control, allowing for a more dynamic response to fluctuating demands and preparing for innovative solutions such as demand response and flexibility markets.
A collective and multi-faceted approach is needed to solve the aforementioned capacity issue as quickly as possible. It is crucial for grids to fulfill the necessary contracts and implement reinforcements and the proper equipment by integrating digital technologies while navigating regulatory constraints. In addition, engaging customers to limit their consumption and involve them in demand flexibility is also important to solve the equation. This combined approach is essential to address today’s challenges and buys time until we will have full capacity thanks to a renewed grid.
Working with global perspectives
At Gridspertise, we have seen that comparing grids across different regions reveals significant differences and unexpected similarities. The grids share common challenges, such as aging infrastructure designed for centralized generation and increasing demand from various factors, including EV charging, cooling needs, and data centers. Whether dealing with the underground networks of Europe or the overhead lines in the U.S., each system has uniquechallenges. However, the solutions often revolve around a common theme: the necessity for real-time data and control to ensure the quality of supply and to accommodate increasing demand.
The Human Element
Amongst these technological advancements, we must not undervalue the human element. Digitalizing distribution gridspresents a generational challenge for utilities, requiring the upskilling of personnel and the development of a culture that embraces change and collaboration. This latter challenge weaves both technological progress and human development.
As Robert Denda clarified during the podcast: “This shift necessitates supportive regulatory frameworks that beyond traditional equipment also integrate digital technologies and their operation. Additionally, there is a need for training and, upskilling of personnel and reorganizing internal structures. Today, many utilities have metering departments and operations departments that do not even communicate with each other because it was not necessary in the past, but it has become extremely relevant.”
Adopting 'As a Service' Models
The above-mentioned scenario requires regulatory frameworks that not only recognize investments but also consider operational costs and performance-based regulation. A cultural change is needed, and it is occurring, with utilities increasingly adopting 'as a service' models. These partnerships help utilities navigate technological complications with the support of experienced providers or companies like Gridspertise, ensuring a seamless transition to a digital grid.
These models often include a contractual provision for the possible transfer of technology and knowledge back to the utilities. This allows them to maintain control of significant portions of the grid during the transition period, managing it as historically. As new technologies are introduced and the grid is modernized, a gradual transition occurs. Ultimately, this results in incorporating these advancements into the everyday operations of the grid.
This ‘as a service model’ is a solution that enables utilities to gradually adapt to the cultural shift without immediate pressure.
Cybersecurity as a Design Criterion
In this digital era, cybersecurity is essential. Cyberattacks are becoming increasingly common and require action. Nowadays, modern grid technologies are being designed with security as a priority, making the grid more resilient tocyber threats. This proactive approach to cybersecurity is critical to protecting our energy infrastructure.
Answering a question from the co-host Laurent Segalen, our CEO emphasized: “The importance of this aspect cannot be overstated, especially considering the necessity for real-time control, sensors, and other critical components that require protection against cyber threats.”
The importance of Edge Computing for grid resilience
A distributed approach to grid management enhances grid resilience in particular with the deployment of edge computing devices, which delve deep into the local level of distribution, system operation, and control of a local area, consequently enhancing the resilience of the grid's infrastructure. This closeness leads to quicker response times and alleviates pressure on the central systems, making the whole grid more flexible and robust against critical events such as interruptions. Fundamentally, edge computing is a crucial enabler for grid resilience, guaranteeing that local areaspreserve their stability and efficiency, even amidst extensive grid challenges.
As highlighted by our CEO during the podcast: “Gridspertise integrates new Information Technology (IT) systems with Operational Technology (OT) systems by incorporating a digital grid with innovative technologies. The integration ofadvanced solutions, such as cloud-edge computing, Remote Terminal Units, smart meters, and control units, significantly enhances grid operations. This merging also contributes to a wealth of information for utilities while enhancing control, monitoring, and sensing capabilities”.
Planning for the future of the grids
Looking at the future of grids, we observe a combination of hardware and software solutions that are necessary for the establishment of a digital grid. This envisions a future where updates and innovations are proactive strategies intended to adapt to a constantly evolving landscape rather than just reactive measures.
To sum up, the journey towards a digital grid is not solely about technology, it is about people, partnerships, and regulations. It involves creating a resilient, flexible, and sustainable energy system that meets the current demands and anticipates future needs: it is a story of progress and a call to action for every participant in the electric power sector. This reflection embodies our collective efforts to transform the energy sector. Day by day, we are paving the way towards the future of distribution grids.