Modernising Power Grids to Meet Future Energy Demands Today

As defined by the International Energy Agency (IEA), smart grids are electricity networks that use digital technologies, sensors and software to better match the supply and demand of electricity in real time, all while minimising costs and maintaining the stability and reliability of the grid.

In recent years, the need for smart grids has skyrocketed, with Statista estimating that the value of the smart grid technology market will grow from the US$50bn estimate in 2022 with a CAGR of more than 17% until 2028, where it will reach around US$130bn globally.

Due to the critical challenges and opportunities posed by the transition to renewable energy, driven by climate change policies, the world's power grids must expand and evolve rapidly to keep up with demand and provide resilient infrastructure.

This is the belief of AspenTech’s Sally Jacquemin, Vice President and General Manager of its Power & Utilities Business Unit. 

Power grids need to keep pace with change

“The United Nations Intergovernmental Panel on Climate Change (IPCC) and subsequent policy updates urge an aggressive shift towards renewable energy and a reduction in fossil fuel use to mitigate climate change,” Sally begins. “This transition necessitates a grid capable of integrating and managing intermittent renewable energy sources efficiently.

“Additionally, the burgeoning adoption of electric vehicles (EVs) demands a more robust and responsive grid to handle the increased load and facilitate widespread charging infrastructure. Global energy demand is projected to surge significantly by 2050, further stressing the existing infrastructure.

“The digitalisation of numerous sectors — including finance and healthcare — is dramatically increasing electricity demands worldwide. These sectors require reliable and continuous power supply, which only a modernised and digitally enhanced grid can provide. Modernising power grids is therefore essential not only for sustainability but also for economic and operational resilience in the face of growing energy needs and technological advancements.”

With this in mind, Sally believes digitising the grid provides solutions to overcome issues that come with unprecedented demand, like resiliency. 

Coming from a perspective where IT and energy and utilities marry, she says that digitising the grid addresses resiliency, efficiency and renewable energy integration issues. Sally highlights advanced digital management systems such as Generation Management Systems (GMS), Energy Management Systems (EMS) for transmission, Advanced Distribution Management Systems (ADMS) for distribution, and Distributed Energy Resources Management Systems (DERMS) as key examples.

She explains: “These systems enhance visibility and control, allowing for real-time monitoring and immediate utility response that improve grid stability and resiliency. They also manage the variability of renewable sources, ensuring a stable and reliable energy supply.

“The complexity of grid management is accelerating with more variable generation sources, different grid equipment sending data and a variety of loads. The volume of data and optimisation that must be managed cannot be accomplished with a pencil and paper anymore.”

This is where digital solutions — which make grids smart — come in and they allow for the optimisation of energy flow by analysing production and consumption patterns. Minimising losses and maximising resource use are benefits of this, thanks to its ability to facilitate efficient grid flexibility by adjusting to changes in electricity demand and managing additional loads from EV adoption through optimised charging strategies.

And it does not stop there — predictive maintenance capabilities brought about by digital solutions extend the lifespan of grid assets and reduce downtime, while streamlined data handling enhances regulatory compliance and reporting accuracy. 

“In essence, digitising the grid not only enhances operational efficiencies but is also crucial for adapting to the demands of a digital world, supporting sustainability and ensuring a stable, efficient and future-ready energy system,” Sally says.

Digital solutions contribute to the efficient deployment of available power in smart grids

The impact of digital solutions in making grids smarter is something Sally witnesses first hand and works to enable.

AspenTech’s Asset Performance Management (APM) suite, including the Aspen Mtell tool, uses data analytics and machine learning for predictive maintenance, enabling utilities to prevent equipment failures and reduce downtime, for example. APM’s condition-based monitoring provides real-time alerts on critical grid assets, facilitating immediate maintenance actions. It also optimises maintenance schedules based on asset health and usage, enhancing grid reliability and reducing costs.

As well as this, AspenTech’s suite of simulation tools, like Aspen Fidelis, allow utilities to anticipate performance issues and optimise system performance through strategic foresight, ensuring a robust, adaptive power supply system, especially with increased renewable energy and electric vehicle integration.

AspenTech’s system performance simulation tools play a crucial role by simulating various ‘what-if’ scenarios,” she shares. “These simulations help power utilities to foresee future performance issues, compare different operational strategies, and prioritise maintenance and investment decisions to optimise overall system performance. This strategic foresight supports the grid’s ability to adapt to dynamic demand patterns, particularly with the increasing integration of renewable energy sources and electric vehicles, ensuring a robust and responsive power supply system.”

The pressure for — and on — sustainable and resilient grids

Sally emphasises that digitalisation is not just a response to regulatory pressures, but is a strategic enabler for creating more sustainable and resilient energy systems, ready to meet the future's energy demands head-on.

This comes off the back of heightened demands from the UN Intergovernmental Panel on Climate Change for more aggressive climate action, which significantly impacts the power and utility industry. 

Sally says: “This external pressure pushes for a swift transition towards renewable energy, reduction of fossil fuels and broader, more reliable and affordable energy access. At AspenTech, we view these challenges not just as obligations but as catalysts for innovation within the sector.”

Sally and AspenTech firmly feel that, by leveraging digital tools, utilities can not only comply with stricter regulatory standards but also advance their operational efficiency and grid reliability with functionality.

This will play a part in how smart grids evolve to mitigate issues, be smarter, greener and more resilient. 

Electric, gas and water grids are evolving into more integrated, intelligent and interactive networks, Sally believes, and says that these entities are capable of addressing the increasing complexities of modern load demands and sustainability goals. 

“As we push toward a greener grid, smart technologies enable dynamic load management and bidirectional power flows, crucial for accommodating electrification of electric vehicles and distributed generation from renewables like solar and wind,” she explains.

“The grid is becoming smarter by utilising predictive analytics and intelligent forecasting to foresee and mitigate potential disruptions, ensuring reliability and reducing downtime. The focus on resilience also includes enhancing the grid's adaptability to mitigate the effect of severe weather events and other environmental impacts. 

“Smart grids also employ robust cybersecurity measures and advanced physical infrastructures to withstand both cyber and physical threats.”

With the modernisation and digitisation of power grids, not just technological upgrades but essential transformations needed to meet the future's energy demands, innovative solutions including predictive maintenance and advanced simulation tools are paving the way for a resilient, efficient and sustainable energy infrastructure. This being said, the utility control room of the future will be characterised by its enhanced capacity to manage diverse energy resources, its adaptability to changing energy patterns and its robustness against emerging threats, ensuring a stable, efficient and sustainable energy future with smart technology at the heart.

To see the full interview in the magazine, READ HERE.

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