Smart Grid: A Step Towards the Future

Electricity distribution and transmission currently used have shown to be ineffective and unreliable. This is due to how little the grid technology that is currently in use has changed since it was created. To address the drawbacks of the conventional grid, researchers are already experimenting with smart grid solutions. A smart grid is far more dependable than a conventional grid and can help cut greenhouse gas emissions by up to 211 million metric tonnes. This is what motivates investors to invest in this cutting-edge technology. The market is anticipated to be worth more than $400 billion by 2020.

A modern power generation, transmission, and distribution system known as a "smart grid" is capable of automating and managing the rising complexity and demands of electricity in the twenty-first century. The system promises to integrate and promote alternative energy sources like solar, wind, and hydropower, give users access to real-time data on their energy use, and help utility companies cut down on outages.

What is the Smart Grid?

Smart grids have a multitude of moving parts, just like conventional grids. Smart grids, however, contain components that are more effective in terms of functioning and design. For instance, certain intelligent appliances may choose when to utilise energy based on the user's pre-set preferences. The performance of the power factor, the status of the breakers, batteries, and transformers, as well as other essential and non-critical operational data, are all controlled by smart substations.

The smart power metre, which enables two-way communication between the consumer and the power provider, is another essential part of a smart grid. This facilitates and speeds up the detection of power outages, billing, data collecting, and sending of repair teams. Superconducting cables, automated monitoring and analysis tools, and smart distribution are further characteristics.

The Market Today

The market for smart grid technologies is increasing in the US. The federal government, which has supported R&D initiatives to the tune of billions of dollars, provides incentives that drive the market. $2.5 billion was spent on smart grid technologies in 2014. Spending is anticipated to reach $3.3 billion by 2017. In 2016, it is anticipated that 13.3 million smart metres will be shipped across the country. By 2020, it is anticipated that North America's non-residential smart metre penetration will be around 71.7%.

Around 150 smart grid technology businesses are thought to exist worldwide, with the US accounting for 77.4% of them. The top 25 smart grid providers collective market capitalisation is currently around $2.03 trillion. The global market for smart grid technology is anticipated to reach $400 billion by 2020, with a compound annual growth rate of 8%. The market is anticipated to continue expanding by double digits in the United States alone, reaching $26.7 billion by 2017. Between $60 and $300 million have been invested in General Electric, Honeywell, Itron, and Trilliant Networks to date.

Why do we Need it?

The needs and demands of our day are well met by smart grids, and these impacts are expected to persist for a very long period. For instance, the technology will modernise and overhaul dated equipment. Blackouts, burnouts, and power surges will be less likely as a result of this. The technology will also lower the price of energy generation as well as consumption. Smart grids will enable renewable energy and prepare the grid to meet rising energy demands if fully implemented. But more importantly, the system will enable widespread electric vehicle charging and allow users almost real-time control over their energy expenses.

Instead of just enhancing power management and using greener technology, switching to a smart grid is all about giving consumers a financial advantage. The average home will be able to save approximately $600 in direct bill savings if this technology is successfully adopted. The system will compel users to cut their energy consumption by 5 to 10% by giving them real-time information on their usage. According to research, customers are more likely to take the necessary steps to reduce their energy use when they are fully aware of how much energy they are using. The entire amount of energy saved as a result of smart grid technology is projected to reach $42 billion after one year. The annual savings will rise to $48 billion in five years.